The big 18 and adult things?

[El Jason]

Piggybacking on Buzz’s post…you are netting less than 2% growth yearly.

 

[Wyoming270]

Piggybacking on Buzz’s post…you are netting less than 2% growth yearly.
View attachment 413612

Its still way ahead of the stocks that crash.

 

[Wyoming270]

S&P 500 over the past 10 years has returned 14%/year averaged. Leaving 10% a year on the table is brutal in particluar when considering inflation.

CD's are not worth long term investment consideration until they reach 7-9%.

Your investing strategy is ass-backwards. There is little downside to assuming more risky positions early on. Time is really your biggest asset for early investing.

Your strategy would result in a very modest retirement even if coupled with a pension and SS.

I think your retirement investment "strategy" is going to lead to you asking someone if they need a cart or fries with that when you're "retired".

Remember that time the dow hit 6,694, and the s and p 500 lost 56.8%? People who made a career out of the math you just copied were jumping out of windows. the problem is you dont know when the market declines will happen, how fast they will be or when they will stop. for someone who is 18 it is better to have money making steady gains AND be accessable to use instead of getting loans for living expenses while they watch that money drop.

 

[Wyoming270]

Piggybacking on Buzz’s post…you are netting less than 2% growth yearly.
View attachment 413612You are right about inflation killing this country.That is why most of my post was how to beat inflation. Lock in a house at a low rate, buy old cars acquire used equipment. That is how you beat inflation. Youll still pay fullprice for fuel and food, but after you knock down the main expenses with that method those categories have a lot more room in the budget.

 

[El Jason]

for someone who is 18 it is better to have money making steady gains AND be accessable to use instead of getting loans for living expenses while they watch that money drop.

If you have to get loans for living expenses you went wrong somewhere along the way.

Sometimes you have to choose between accessibility and growth. For younger folks, they are probably better off with it inaccessible and making better returns. That’s not to say you should invest a house down payment fund in stocks. But, putting everything in a 5% CD is terrible financial planning.

Also, if you want to look at short term blips, you are correct. When you look at long term returns it’s not even close.

You don’t beat inflation by purchasing used stuff. You beat inflation by outperforming it in your investments.

 

[Nick87]

If you have to get loans for living expenses you went wrong somewhere along the way.

Sometimes you have to choose between accessibility and growth. For younger folks, they are probably better off with it inaccessible and making better returns. That’s not to say you should invest a house down payment fund in stocks. But, putting everything in a
5% CD is terrible financial planning.

Also, if you want to look at short term blips, you are correct. When you look at long term returns it’s not even close.

You don’t beat inflation by purchasing used stuff. You beat inflation by outperforming it in your investments.

Thats true. But I will admit when you work construction or a related field like I do. Your income is effected by the economy more than probably anyone. Its hard to be slower out of work and watch the money you could have had handy plummet as well. Thats just something you have to account for and learn to stomach. But it's not easy nonetheless. I think that's what keeps so many people in my field from investing. (Coincidentally most of them blow it on stupid shit anyway so it wouldn't really matter and sometimes I'm not an exception).

 

[El Jason]

Fair. I watched my deferred comp drop by 50% in 2008-9. You get to a point where you just stop looking at it. When I rolled it over into a combined account two years ago, it had quadrupled from its value before the recession hit.

 

[Nick87]

Fair. I watched my deferred comp drop by 50% in 2008-9. You get to a point where you just stop looking at it. When I rolled it over into a combined account two years ago, it had quadrupled from its value before the recession hit.

Yah it totally effects everyone. But imagine watching that and sitting home without a job for a long time. No reason not to invest, just more reason to learn to live on less than your making when times are good.

 

[BuzzH]

Remember that time the dow hit 6,694, and the s and p 500 lost 56.8%? People who made a career out of the math you just copied were jumping out of windows. the problem is you dont know when the market declines will happen, how fast they will be or when they will stop. for someone who is 18 it is better to have money making steady gains AND be accessable to use instead of getting loans for living expenses while they watch that money drop.

Not true. Pick any 10 year period between 1930 and now. S&P has averaged 7-9%/ year growth. Most recessions last 12-18 months.

Having some accessible cash is fine, maybe 6 months of living expenses.

Any more than that, you're taking an absolute beating with investing in CD's over the market.

Do yourself a favor with some research:

https://www.slickcharts.com/sp500/returns

If you can't do that, spend a few bucks and talk with a financial advisor. Your advice on this thread is total crap.

 

[JShane]

Yah, I've learned thats just part of it and roll with it. Looking back my parents were obviously in the same boat.

On the starting g the thread for advise at 40. Follow the advise thats here.

 

[BuzzH]

Thats true. But I will admit when you work construction or a related field like I do. Your income is effected by the economy more than probably anyone. Its hard to be slower out of work and watch the money you could have had handy plummet as well. Thats just something you have to account for and learn to stomach. But it's not easy nonetheless. I think that's what keeps so many people in my field from investing. (Coincidentally most of them blow it on stupid shit anyway so it wouldn't really matter and sometimes I'm not an exception).

Those short term losses are buying opportunities.

What keeps people from investing is lack of understanding compounding interest, discipline, and the market. IMO, the average American is not very financially literate.

Not all their fault, it should be taught from grade school through high school/college.

If its not many are going to be making bad decisions like investing for your future/retirement in CD's.

By not investing in the S&P you are betting against the top 500 companies in the world's largest economy making money.

I like my "odds" in the market...like 310% growth in the past decade.

 

[BDH]

Be ok with ending relationships, that goes for women, friends, and jobs. Move away from where you grew up even if it’s just for a few years. There is a fine line between having money and having time. Slow down when adjusting your bow sight, buying stuff, driving and anything that has to do with a women.

 

[El Jason]

I did buy a $9k shotgun used for $2800.

 

[BuzzH]

Its still way ahead of the stocks that crash.

In the past 10 years, 20 years, 50 years?

Uh, not even close...

In the past decade alone you "only" left 270% growth on the table.

 

[CowboyLeroy]

Now you come along.... Just kidding I met my wife at a high school party, but there were plenty of bars in between 15 years later when we reconnected.

Exactly the same situation with me and mine. we actually have the first photo we took together (2010 crooked digital camera field party photo) framed in our house.

 

[Nick87]

What keeps people from investing is lack of understanding compounding interest, discipline, and the market. IMO, the average American is not very financially literate.

100% agree, that was me most of my adult life. Parents never did any investing (at least not to my knowledge) and public school sure as he'll didn't teach us any of it. But hey, we had mandatory band and choir class.

Those short term losses are buying opportunities.

People aren't buying when they aren't working. Thats what happens in most blue collar/construction families during a recession or even a downturn. They're not watching they're portfolio shrink they're watching they're grocery money and mortgage payment disappear. I can assure you anyone in a trade or likewise field in 08 and shortly beyond, the furthest thing on there mind was the S&p 500.

 

[Nick87]

Exactly the same situation with me and mine. we actually have the first photo we took together (2010 crooked digital camera field party photo) framed in our house.

Thats funny, ours is on the fridge.

 

[BuzzH]

100% agree, that was me most of my adult life. Parents never did any investing (at least not to my knowledge) and public school sure as he'll didn't teach us any of it. But hey, we had mandatory band and choir class.

People aren't buying when they aren't working. Thats what happens in most blue collar/construction families during a recession or even a downturn. They're not watching they're portfolio shrink they're watching they're grocery money and mortgage payment disappear. I can assure you anyone in a trade or likewise field in 08 and shortly beyond, the furthest thing on there mind was the S&p 500.

Right, that's why its solid advice to have 6-12 months in available living expenses to ride out things like 2008.

There was still work to be had to supplement living on reserves.

Its a fools errand to let something like 2008, covid, etc. scare you from continuing to invest.

Akin to missing a shot at a big game animal and never taking another shot again.

I kept right on buying into the market in 2008-2010...and at bargain prices.

 

[Nick87]

Right, that's why its solid advice to have 6-12 months in available living expenses to ride out things like 2008.

Totally agree, I already mentioned that in this thread. A lot of people were out of work for a lot longer than that though they burned through that and then some.

There was still work to be had to supplement living on reserves.

No, there really wasn't.

I kept right on buying into the market in 2008-2010...and at bargain prices.

I'm sure you did, how many days were you out of work?

I'm not trying to derail this kids thread Buzz because its a good one and you and I probably align on more issues than not. But once again for a union rep and a guy who is always talking about the working class I think you prove to be pretty far removed from it. Akin to your snarky, arrogant comments on the no tax on OT thread and various others. Have a good evening.

 

[JShane]

I did buy a $9k shotgun used for $2800.