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Mathaou
legacy of cane
(02-03-2017, 06:00 PM)
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EDIT:
Okay. So I may have sounded like I was gloating. I apologize for that. Instead of me asking, here's me telling:
The stock market is your friend. Invest any spare money you have into it and you'll be set.
If you're afraid to take risks, just choose index funds. Those are a very smart bet.
If you like to take risks and you have money that you don't necessarily need then put that into riskier stocks (ONLY AFTER COPIOUS AMOUNTS OF RESEARCH HAVE BEEN DONE))
Obviously it isn't for everyone. If you can't afford it that's fine. I'm saying that if you can go for it. I'm not trying to make anyone feel bad.
If you can live below your means. I'm fairly lucky in that I live in a place where real estate is inexpensive. I also cook for myself and don't spend money that often aside from bills and the occasional large purchase or food.

Most people who have a job have expendable income. Even if it's just ~$100 you can invest that. Slowly grow your portfolio.
Last edited by Mathaou; 02-03-2017 at 06:34 PM.
Titanoboa
Member
(02-03-2017, 06:01 PM)
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The Nintendo Switch comes out next month and I have friends

It also sounds like you have barely any loans/expenses, so there's that.
Hollywood Duo
Member
(02-03-2017, 06:02 PM)
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They don't have expendable income thats why.
Hoo-doo
Member
(02-03-2017, 06:02 PM)
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Because people don't want to play the long game. Most want instant gratification.
Alphahawk
World's #1 Rob Thomas Fan!
Attended over 315 Matchbox 20 concerts

When she says baby, I can't help but be scared of it all sometimes. Says the rain's gonna wash away, I believe it!

GREATEST SINGER EVER
(02-03-2017, 06:02 PM)
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Because they don't want to gamble on the stock market?

Even so called "stable" stocks could fail, and then you would be out of the money.
KrellRell
Member
(02-03-2017, 06:02 PM)
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Originally Posted by Hoo-doo

Because people don't want to play the long game. Most want instant gratification.

beat me to it
skynidas
Junior Member
(02-03-2017, 06:03 PM)
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A lot of people are scared to invest, they think they are going to lose their money. What app/website do you use to invest?
Guevara
Member
(02-03-2017, 06:03 PM)
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Investing in individual stocks is pretty risky.

But most people hopefully do invest, just through a 401K plan or similar. It's easier to put aside 5-10% of your pre-tax income into a mutual fund.
Violence Jack
Member
(02-03-2017, 06:03 PM)
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I have a baby on the way, trying to save up for a house, and we're trying to pay off student loans. Once I get caught up, I plan on investing outside of more than just a 401K.
FallingEdge
Member
(02-03-2017, 06:03 PM)
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i wanna do both
Poppy
Member
(02-03-2017, 06:03 PM)
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i think it's mostly just a personality thing. i know i would technically benefit from being more financially frugal but it just doesnt really interest me because i never want for anything. i know i am showing my privilege here but thats the truth
WaffleTaco
Banned
(02-03-2017, 06:04 PM)
Because I don't have the money and you won't either when life hits you in the face.
Mathaou
legacy of cane
(02-03-2017, 06:04 PM)
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Originally Posted by skynidas

A lot of people are scared to invest, they think they are going to lose their money. What app/website do you use to invest?

Robinhood. Zero commissions trading. Its fantastic.
Glix
Member
(02-03-2017, 06:04 PM)
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Originally Posted by Hoo-doo

Because people don't want to play the long game. Most want instant gratification.

I agree, but don't like that negative connotation of "instant gratification"

Some people believe that "hey I could get hit by a bus tomorrow" gonna enjoy what I have while I can.

It may be somewhat short sighted but I think thats fine if you are doing it with your eyes wide open.

You can't take it with you.
egruntz
shelaughz
(02-03-2017, 06:04 PM)
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19 year old college student whose expenses are in part being covered? You must know everything.

Of course if people had spare funds they'd want to invest. Reality is that most people are in serious debt and currently live paycheck to paycheck.

My investment is 401k and saving for my first home.

Slowly but surely.

Others' investments are biding time at their shitty jobs until a better opportunity presents itself.
Last edited by egruntz; 02-03-2017 at 06:12 PM.
gutter_trash
(02-03-2017, 06:04 PM)
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Originally Posted by Hollywood Duo

They don't have expendable income thats why.

pretty much this
ZOONAMI
Member
(02-03-2017, 06:04 PM)
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A general lack of it, and sort of a mentality of enjoying the present and not worrying too much about 40 years from now.

I really should invest more than just my 401k though.

I did buy a $300 bond with part of my tax return lol.
pantsmith
Member
(02-03-2017, 06:05 PM)
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Its the marshmallow test; do I want a marshmallow now, or two marshmallows later.

Though when you work all week, sometimes you want to eat your marshmallow now so you feel like you accomplished something.

Other times you don't make enough, so you'd really only ever get like 1.2 marshmallows and so you might as well enjoy yourself now because the return isn't that great.
Keri
Member
(02-03-2017, 06:05 PM)
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Originally Posted by Mathaou

Most people who have a job have expendable income. Even if it's just ~$100 you can invest that. Slowly grow your portfolio.

So, being a 19 year old college student with loans and financial aid and whatnot and the small remainder of my tuition paid for by my parents (very lucky for that bit), I don't really have any bills to pay thus far until June when I move into an apartment, where rent will be ~$420 (YAY CHEAP SMALL COLLEGES). I have a job that I work about 20 hours/week at, one paycheck from that is ~$450 totaling about ~$900 made a month. Since I have all of that as disposable income and I prefer to invest rather than save, I put pretty much all of my money into stocks, leaving myself around ~$100 for food and whatnot.

So my strategy is just to put $600/month into Netflix, Tesla, and a S&P 500 retirement fund, and maybe some Amazon if I stumble across $800. These are really stable stocks and I've only made money thus far. Why aren't more people investing?!

You'd be better off paying off your student loans (or not taking them out in the first place, if possible). The interest you save is guaranteed and will probably be equal to or more than what you make in the stock market. Also, stocks are only "stable" long term. There's probably going to be big drops sometime soon-ish.
Aphexian
Junior Member
(02-03-2017, 06:05 PM)

Originally Posted by Mathaou

Most people who have a job have expendable income. Even if it's just ~$100 you can invest that. Slowly grow your portfolio.

So, being a 19 year old college student with loans and financial aid and whatnot and the small remainder of my tuition paid for by my parents (very lucky for that bit), I don't really have any bills to pay thus far until June when I move into an apartment, where rent will be ~$420 (YAY CHEAP SMALL COLLEGES). I have a job that I work about 20 hours/week at, one paycheck from that is ~$450 totaling about ~$900 made a month. Since I have all of that as disposable income and I prefer to invest rather than save, I put pretty much all of my money into stocks, leaving myself around ~$100 for food and whatnot.

So my strategy is just to put $600/month into Netflix, Tesla, and a S&P 500 retirement fund, and maybe some Amazon if I stumble across $800. These are really stable stocks and I've only made money thus far. Why aren't more people investing?!


To give you a larger world view: After I'm done paying bills each week I'm left with like maybe $30-40. I use that as a small cushion until I get my next paycheck. I take home, after taxes, $1,900 a month but most of it goes towards bills. If I had money to invest, I would put it more towards paying off a bill faster.
Duxxy3
Member
(02-03-2017, 06:06 PM)
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Could die tomorrow.
Ray Wonder
Member
(02-03-2017, 06:06 PM)
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What's expendable income mean I've never heard of that
Cyframe
Junior Member
(02-03-2017, 06:06 PM)
600 hundred dollars extra a month is very fortunate. Many people don't have that. It's more complicated than people being 'lazy' and not wanting to save for retirement.
Mathaou
legacy of cane
(02-03-2017, 06:06 PM)
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Originally Posted by WaffleTaco

Because I don't have the money and you won't either when life hits you in the face.

Perhaps but Netflix is estimated to peak in Q3 due to their Disney dealings and the S&P fund goes up at least 10% a year. Every quarter I reassess my portfolio and buy and sell appropriately. Tesla has been very good to me tho. I'm not a dumbass I do a fuckton of research.
Piece of Shit
Member
(02-03-2017, 06:06 PM)
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Originally Posted by Alphahawk

Because they don't want to gamble on the stock market?

Even so called "stable" stocks could fail, and then you would be out of the money.

The stock market isn't gambling, and saying that it is is simply ignorance. Read The Intelligent Investor by Benjamin Graham (the man who pretty much invented security analysis) and you'll realize there are a ton of ways to make the stock market a reliable income.
Mega
Member
(02-03-2017, 06:06 PM)
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Originally Posted by Titanoboa

The Nintendo Switch comes out next month

This was gonna be my post. There's always something in the moment or around the corner, so people don't like saving and depriving themselves of having fun now.

I automatically have money deducted from every paycheck for retirement, but the thought still lingers in my head that I may die before it becomes available to me. I also sometimes wish I had that money in my pocket for random crap, but I don't waver.
Amory
Member
(02-03-2017, 06:07 PM)
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You're only budgeting $100 a month for food and everything else?
Titanoboa
Member
(02-03-2017, 06:07 PM)
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Originally Posted by Mathaou

Perhaps but Netflix is estimated to peak in Q3 due to their Disney dealings and the S&P fund goes up at least 10% a year. Every quarter I reassess my portfolio and buy and sell appropriately. Tesla has been very good to me tho. I'm not a dumbass I do a fuckton of research.

I think that poster meant once your parents stop paying for everything and you can't rely on loans. And then you try to get a job with that cheap small college degree.
Mathaou
legacy of cane
(02-03-2017, 06:08 PM)
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Originally Posted by ZOONAMI

A general lack of it, and sort of a mentality of enjoying the present and not worrying too much about 40 years from now.

I really should invest more than just my 401k though.

I did buy a $300 bond with part of my tax return lol.

I'm a huge planner. I can't stand not knowing what I'm going to do in the future in terms of important shit like finances.
Somnid
Corporate Ballwasher
Ignore everything I say
(02-03-2017, 06:08 PM)
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It's kinda a crapshoot nowadays. Even my 401K isn't great, it's lost money a few quarters but I don't have enough to aggressively invest in anything either (and I make decent money). If I were to make any large investment it would be one that lowers my marginal costs like a house or solar panels or something.

I was sorta interested in the acorns app for small investment though since it seems like it just puts it into some sort of index fund. Anyone ever used that and have opinions?
echoshifting
(02-03-2017, 06:08 PM)
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You should really hire someone to help you build a real portfolio if you want to do this
Mathaou
legacy of cane
(02-03-2017, 06:09 PM)
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Originally Posted by Titanoboa

I think that poster meant once your parents stop paying for everything and you can't rely on loans. And then you try to get a job with that cheap small college degree.

I'm not too worried about employment I'm really driven. And my degree is in a good field.
Metalingus5150
Member
(02-03-2017, 06:09 PM)
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I don't know how to do it. Even that robinhood site seems intimidating to me.
curiouscharles
Member
(02-03-2017, 06:09 PM)
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Well, I'd invest... but then I wouldn't have money for clothing [my profession / business / love], and without some sort of little reward to keep me going / stoke my passion for my chosen business - I'm not sure I'd continue loving it so much.

But if you don't have any such "vices" OP, then by all means go ahead and invest - just don't invest in anything but index funds or anything less safe than those... you'll get bitten, and bitten hard when shit hits the fan.

I'm going to start investing in an index fund as soon as I have more expendable income [hopefully by next year, or the year after].

I've already got a house and I'm not too worried about retirement, mostly because my chosen business doesn't have any sort of physical toll on me, and I love it - so I'm not planning on retiring early or anything like that.

[Plus I can potentially sell the business for millions if I build it up properly over the next few decades].

But yeah, all my spare money just gets re-invested into growing my business right now, but I can't say I don't wish I was investing right now - it's a time game and it would be super smart for me to start growing something now with a little, as opposed to later with a lot.
NandoGip
Member
(02-03-2017, 06:09 PM)
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a lot of bills not a lot of money

i like to have a drink sometimes

i save for my retirement at least
HvySky
Member
(02-03-2017, 06:09 PM)
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Originally Posted by Hoo-doo

Because people don't want to play the long game. Most want instant gratification.

Pretty much. I even recognize this and still fall victim to it.
Kill3r7
Member
(02-03-2017, 06:10 PM)
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Originally Posted by Cyframe

600 hundred dollars extra a month is very fortunate. Many people don't have that. It's more complicated than people being 'lazy' and not wanting to save for retirement.

Correct, a significant portion of the population does not have any money saved to their name. Let alone having expendable income.

Originally Posted by Hoo-doo

Because people don't want to play the long game. Most want instant gratification.

Ditto.
Angelus Errare
this looks like one of those Final Fantasy games lionhead always makes
(02-03-2017, 06:10 PM)
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Originally Posted by Mathaou

Perhaps but Netflix is estimated to peak in Q3 due to their Disney dealings and the S&P fund goes up at least 10% a year. Every quarter I reassess my portfolio and buy and sell appropriately. Tesla has been very good to me tho. I'm not a dumbass I do a fuckton of research.

That's not what he's referring to when he says "life hits you in the face". He's referring to unforeseen bills destroy any savings plan a person had set up because most people barely earn enough to get by. Many people live cheque to cheque not because they're "lazy" but because their job doesn't pay them nearly enough to have $600 a month left over.

Not everyone is fortunate to have no real living expense bills and their parents paying their tuition.
Last edited by Angelus Errare; 02-03-2017 at 06:14 PM.
Titanoboa
Member
(02-03-2017, 06:10 PM)
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Originally Posted by Mathaou

I'm not too worried about employment I'm really driven. And my degree is in a good field.

I mean, sure. You'll probably understand once that "expendable income" isn't so expendable. Like right now you have no expenses at all.
Aphexian
Junior Member
(02-03-2017, 06:10 PM)

Originally Posted by Mathaou

I'm not too worried about employment I'm really driven. And my degree is in a good field.

I'm really driven

Oh yes, because those out there can't get jobs because of lack of motivation.
ant_
not characteristic of ants at all
(02-03-2017, 06:10 PM)
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It takes a lot of time to learn and we aren't provided a good primary education on finances/money

When I graduated and learned more about just finances in general, my world changed.
Hazmat
(02-03-2017, 06:11 PM)
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Originally Posted by Mathaou

Perhaps but Netflix is estimated to peak in Q3 due to their Disney dealings and the S&P fund goes up at least 10% a year. Every quarter I reassess my portfolio and buy and sell appropriately. Tesla has been very good to me tho. I'm not a dumbass I do a fuckton of research.

You kind of sound like the guy that comes back from Vegas after winning $1000 at craps and wonders why everyone doesn't do it. You can make moderate gains in the stock market, but one big loss can crush you. It happens to huge successful investment companies with more data and better analysts than you. It's a risk, particularly investing heavily in individual stocks.

A bad turn in the market can take years to make your money back on.
Trey
Member
(02-03-2017, 06:11 PM)
There are several factors.

Firstly, your reality of "expendable money" isn't the same as most or even many people. Once you cover your rent and food, you consider everything beyond that as "play money." But people have kids, other bills besides rent and food, car and house maintenance to consider, and a bunch of other stressors aside from incidentals. That "play money" goes quick.

Two, humans are wired for instant gratification. We're really, really bad with the long game, generally speaking. This behavior crops up in many ways, but in this one, it's especially pernicious.

Three, many people don't know they have the option. They don't quite understand compound interest, or stock indexes. It's something a lot people don't know, or want to bother with.

And lastly, some people don't care. They enjoy their life the way they live it, and that 100 dollars a paycheck they could tuck away into a vanguard index means more to them when they get it, than the larger sum they'll get decades down the road.

It's good that you're investing so early, but your perspective is not unique.
cubicle47b
Member
(02-03-2017, 06:11 PM)
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People have immediate wants or need that take precedence. For teenagers it might be clothes, gas, or entertainment costs. For parents it might be paying the mortgage and feeding their family. Or it might be debt, which we have a lot of. If you get past that, a lot of people don't understand tax advantaged retirement accounts, how to diversify investments, might be scared of the stock market's ups and downs, etc.
Mister Saturn
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(02-03-2017, 06:11 PM)
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Originally Posted by Mathaou

Perhaps but Netflix is estimated to peak in Q3 due to their Disney dealings and the S&P fund goes up at least 10% a year. Every quarter I reassess my portfolio and buy and sell appropriately. Tesla has been very good to me tho. I'm not a dumbass I do a fuckton of research.

There's more that a lot of people can do to save yeah, but don't subscribe to the illusion that your current good fortune hasn't been in part subsidized by your parents.
Rentahamster
Rodent Whores
(02-03-2017, 06:12 PM)
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Hookers and blow are more fun than the nebulous concept known as my future.
Paertan
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(02-03-2017, 06:13 PM)
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Time spent researching and doing the investments is time I could spend at my job probably earning more money.
ZOONAMI
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(02-03-2017, 06:14 PM)
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Originally Posted by Mathaou

I'm a huge planner. I can't stand not knowing what I'm going to do in the future in terms of important shit like finances.

Yeah that's probably good. I'm not much of a planner.

I sometimes put money into an individual account of fidelity, thinking I might buy some stocks, but I always end up bailing on the idea and just taking the money back out lol.

I think your confidence in amazon and Tessa is well founded, but I actually think Netflix is sort of overpriced and their content isn't as good as amazon or even something like hbo now, showtime, or Cinemax. There is a lot of garbage on there and not a whole lot that's any good. I actually just cancelled my Netflix sub. I can see them losing subscribers and not gaining them. They need to be at about $5 a month imo, and like $10 total with 1 DVD a month. Their DVD and bluray plans are crazy over priced given the existence of redbox.
Foffy
Member
(02-03-2017, 06:14 PM)
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The average American is shackled to a degree with debt as is.

Of course, the title of the thread makes something sound so simple. Why wouldn't one do it if it would appear to be so obvious?

Most people lack emergency money if something suddenly comes up. They have free money to invest..?
Reckheim
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(02-03-2017, 06:15 PM)
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Originally Posted by Paertan

Time spent researching and doing the investments is time I could spend at my job probably earning more money.

Or if you work in an office do both :) ...

Would anyone have any recommendations for some light reading on how to start up? I've been kind of interested in doing it as well.

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