Investment options

jabber

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I have just recently started dabbling in options. Anybody have any advice for a newby to options?
 

Carnage2011

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You won't get rich saving, especially at today's rates. You're actually losing money by saving it from inflation alone. Find something like real estate with tax benefits, upside appreciation and cash flow or talk to a financial adviser and find something to invest in that has a chance to increase in value.

In generations past, savings was rewarded. In today's credit economy saving is punished.

No guts no glory.
This x10000. You could put money in CD’s and make money in the past, but that isn’t the case currently. I’d put it towards a solid cash flowing investment.
 

bobbydean

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I just retired. Staying aggressive in the market. Do not like bonds or annuities.

What amount should I have in retirement funds?

I have a professional license that will expire in May. Thought about renewing. Always thought that when you give it up, you give it up.

Retirement is enjoyable!
 

SAJ-99

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I have just recently started dabbling in options. Anybody have any advice for a newby to options?
Use spreads until you figure out what you are doing. Don’t be naked short in either direction. Just make sure you can stay in the game if you are wrong in a bad way.
 

neffa3

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If only you'd have said something back in November! :ROFLMAO: :ROFLMAO:

I held some Tesla stock for a while. Bought at $190 and sold at $280 and felt good about it at the time lol.
If you're not day trading it's still a good deal, just like Amazon, and Microsoft, and Apple. Zero chances it's not a money maker over the next 5 years.
 

SAJ-99

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Zero chances it's not a money maker over the next 5 years.
Wow. I like the confidence. The question is what are you paying for those future earnings. Right now it trades at 60x operating cash flow and 70x EV to EBITDA. If you have a model that can make that look reasonable I would love to see it. Any reasonable fundamental argument I have heard isn't based on car sales, it is focused on the batteries.
 

Birddog916

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I like Acorns for something different and the liquidity of it. I have had an Acorns account for about 4 years now and have averaged 5% growth over that time. It basically is a savings that rounds up your change when you swipe your debit or credit card, so if you go to Home Depo and spend 15.45 Acorns rounds up the transaction to 16$ and they invest .55 cents. I also make a $100 a paycheck contributions to it. I have used this account to fund home improvement projects mostly. The wife and I do this in addition to our 401K accounts. You can also tell them how you want it to be invested high risk, medium risk or low risk.
 

neffa3

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Wow. I like the confidence. The question is what are you paying for those future earnings. Right now it trades at 60x operating cash flow and 70x EV to EBITDA. If you have a model that can make that look reasonable I would love to see it. Any reasonable fundamental argument I have heard isn't based on car sales, it is focused on the batteries.
It was more of a comparison to the previous suggestions of a saving account.

Are there better options out there? Most certainly. But sometimes when you bet the house on red 7 it rains Benjamins. Stocks are gambles and I'm a sucker for swinging for the fences.
 
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2rocky

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I'd sure love to hear an investment adviser's advice and what his questions are.

My biggest question is do you have any debt, and do you have a retirement account fully funded and tax sheltered? I don't think taxes will go down in 30 years. Do you?
 

rjthehunter

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Someone mentioned marajuana. While I don't agree with it, whether I like or dislike it, it'll be becoming legal in states soon enough. Might as well jump on that train. My buddy made some serious money off an investment in a shop and is setup for retirement and he's like 30. Stocks seem to be the best route for any investments. Savings accounts just lose money.

Another option would be real-estate. Prices of houses and land are going up. If you're looking to put money somewhere and get a return, that might be an option. Especially if you're handy and can buy a house and fix flaws/issues, then turn around and sell it for 10k more than you have into it. Sometimes it'll take longer to sell but will pay off when the right buyer comes. We're talking a pretty big investment though.

Third option, learn to count cards and go to Vegas every couple weekends. It's at least a fun way to make money slowly. Definately not high returns, but you have fun doing it lol.
 

RobG

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You have to consider taxes when looking at the interest rates of savings account. When you factor that in I think you’ll find I-bonds are going to be hard to beat for something 100% “safe.” They have several tax advantages but there are minor penalties for cashing them in before five years.

However, keeping interest-paying assets in a taxable account is just pissing money away to the tax man. It would be much better to buy an equity index fund and keep the interest paying assets in an IRA.

If you have a health savings account it can be used as a tax advantaged savings account. It’s the best of both worlds. Just save your medical receipts and reimburse yourself when you need the money instead of reimbursing yourself immediately. In the interim your money grows tax free.
 

Flatrock

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In my original post, I thought you wanted a place to park some money as kind of an emergency fund or savings account but it sounds more like you just wanted investment options in general?

For the stock market, it is very hard to beat an S&P 500 index fund. Very very few active fund managers can beat the market over the long term after fees.

If you're going to dabble in stocks, you need to do lots of research and have conviction on your picks. Having a sell strategy is just as important as your buy strategy. On the flip side, you HAVE to cut losses at some point if you're wrong. Which you will be. Don't let a stock drop 50%+ on you.
 

Flatrock

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If you're not day trading it's still a good deal, just like Amazon, and Microsoft, and Apple. Zero chances it's not a money maker over the next 5 years.
I got to agree with you there. I can't imagine them failing long term.
There is ABSOLUTELY a chance Tesla's stock won't make money over the next 5 years. Very few companies have such widely differing views on it as Tesla. Some swear it's going to zero. Others say it's going to 10,000. It is currently priced astronomically. Maybe an astronomic price is correct because of what the future holds but if we get a recession, look out below. Don't fall in love with a stock!
 

Flatrock

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I have just recently started dabbling in options. Anybody have any advice for a newby to options?
Start small. Extremely small! Like 1 contract at a time and inexpensive ones at that. Options have their time and place but can be exceptionally risky if you don't know what you're doing. Covered calls are one way to get started in them.
 

wllm1313

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It was more of a comparison to the previous suggestions of a saving account.

Are there better options out there? Most certainly. But sometimes when you bet the house on red 7 it rains Benjamins. Stocks are gambles and I'm a sucker for swinging for the fences.
Yeah I know a lot of people who bought CHK paper in 08...
 

twsnow18

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I also have a money market online savings account, 1.75%, which is where I keep some emergency cash. Obviously it’s not gonna get you to retirement, but better than a regular bank savings account that pays nothing. Made about a grand from it last year, which I use for NR apps and a NR tag or 2.
 
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