Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

Whoever hastens to be rich will not go unpunished.

The majority of people who build wealth do so over many years of steady and consistent investing.

I’m not looking to be rich tomorrow. I’m looking to build wealth for my future.

Live on less than you make, invest the rest, wait 25 years and you’ll have life made.

My goals are to have a goose egg big enough where it stays invested and I live lavishly off 4% per year.
My goals aren’t to remove money from the market because I fear me living in poverty if the market dips.


I’m only hesitant to take investment advice from people who have no risk meter and are ok with leveraging everything they own.

 

This is why I don't believe in "experts" for this. What you said there will work for everyone, you just have to do it. A lot of people have a lot of excuses, but it really is this simple.

 

Admirable goals apart from the goose egg. Build a nest egg and don't invest where it could turn in to a goose egg.

 

same 28 and not a care in the world but making money, it worked for January making a sizable gains. However February I've lost about 25% of gains, but still gains. lol


Since I've started investing I have not taken 1 penny out of my portfolio. I have added to it very little, but most of my self managed funds are just stock trades that have paid off luckily. It's money I could lose, but damn i'd be pissed if I did.

I also invest heavily maxing out my 401k all Roth.

 

I agree.

Rates of return and the fancy investment portfolios are only worth what you contribute.

 

Going back to the rest of this post, where you mentioned living off of 4%, have you thought about how you plan to do that when the time comes? Sell shares? Have a yield of 4% so you are paid out and never have to sell? I am always curious as to how others plan to enjoy their investments when needed.

 

I honestly don’t know. That will be something I decide as we near closer to that point. Its hard to tell what I’ll do 30+ years from now, especially given the rules may change.
It also depends on my income. I prefer not to touch the investments at all if I can live off earned income.

I just know if I need to sell a certain percent per year to live I want my annual rate of return higher (on average) than what I pull.

I’d like to start a brewery/pub near retirement age. I’ll still likely work and the spouse will run the business full time.
So if we have good cashflow going we may not have to touch investments. If we decide not to do that and just retire that probably will be 60-65 and we will either sell part of the 4% or just take a distribution of the earned interest.

 

USAA had a 1% for new cars years ago with excellent credit. They then had a bonus if we bought through their car buying program that knocked off a 1/2%. Worked out in our favor.

 

@Boyk1182

Husband has 401k.
I have a 437b.
We have two Roth IRAs with about $12k each.
We do all Roth no traditional.

401k is standard. Can’t touch the money till 59.5.
My 437b no loans, no distributions, no touching funds at all until you stop working for the state. Once you stop working that money is 100% available to you penalty free regardless of age.

437b sounds like heaven on earth... as long as I leave my job. If I don’t we just locked up all our money till I decide to quit.
If I leave the job in a decade though, thats a nice lump sum we have to start a business tax and penalty free prior to 59.5.

I wish I had a crystal ball and could know what to do.

My brain tells me I’m only ok with cashing out 30% max of my investments at that time to start a debt free business in my 50s.
So maybe do 30% Roth IRA, 35% 401k and 35% 437b.
My job pays me beans so I have a feeling I may not be there too long but again... can’t see the future.

We’ve got $120k in retirement. Mostly 401k. I almost want to max out the 437b to balance that out but I feel like thats placing importance on shit that doesn’t matter. Because the bulk of our money we’ll never touch.

I feel like I lose sleep over the littlest things.

My gut is telling me to focus on the future and just split contributions up starting now.

 

You’re doing fine, no matter how you look at it. You’re saving a lot and maximizing many of the benefits that are available. You shouldn’t lose sleep over any of that.

I prefer simplicity, so I like having 1 account for all investments. Am I missing out on some benefits? Yes. But I can also stop working in my 30’s, 40’s, 50’s, etc. I just have to stop reinvesting dividends and transfer them to my checking account. It really would be that simple. I don’t plan to do that, but like to have the option.

You’ll end up better off in the end if you can juggle all those 401ks, Roth’s, 437bs. You’re getting huge tax benefits, the only downfall is all of that is for “someday.” I want mine to be ready to go tomorrow if I need it.

 

I treat my portfolio as a small business, not a retirement account. That may help explain why I do things so differently.

If you’re truly going for retirement, I would learn about how to maximize the benefit of each option, and do that. Run mock numbers and see what will end up working best. You’ll have a huge benefit in the long run if you use those retirement vehicles to your advantage.

 

I agree with simplicity. I wish I could have all my money in one place.

I agree with your approach in that I want the most options. It will be highly unlikely that I retire at 50... but I want the option lol.

I don’t want to be a slave to my job or a bank.

So what are all your investments? Post tax if they aren’t in company sponsored retirement vehicles?

 

I just got on the Dave Ramsay snowball plan. Part of it is to stop contributing to your 401k and take that money and pay off your cc debts. Everyone else is telling me that’s stupid but they’re all broke

 

All dividends are taxed because it’s a regular account, no capital gains really because I rarely sell. I prefer to sell for a loss if anything, so I can get the tax break while getting rid of something. All equally contributed to, but double in ABBV, T, CAT, and PG. Ignore prices, they are old share prices but I couldn’t edit them out.

 

CC debt at 20-25% interest is more expensive than what you’re likely to make investing in your 401k. So yes, it’s sound advice, because otherwise you’re essentially just getting farther into debt

 

I wouldn’t put any money in the market if I had credit card debt. Unless I thought I could return more on that money, but that ain’t happening.

Edit: The guy above beat me to it, and said it better.

 

I am averaging about 3% cash back by strategically using 2 rewards credit cards. I only buy things with those cards. Have never paid interest though.

 

I’m two months away from being ready to sell my house which my profit would pay off all my debts. I could rent it out and it would take me about a year to pay off the debts which would put me in a much better place later on down the road but it’s so much easier to just sell it and start over debt free. I have a serious problem with spending money

 

No kids?

 

I’ve been following Daves plan since I was 14.
I support every part of it.

The point of quitting all investing is because we know giving up that match hurts. That hurt fuels you to get rid of your debt ASAP and get to contributing 15% in BS4.

A couple percent match over your debt snowball is not going to make a substantial difference in your retirement. What does make a difference is dumping debt and freeing up income you can consistently invest over the rest of your working lifetime.
Its the issue of stepping over dimes to pick up pennies.

Get yourself to a place of consistent investing. Thats what builds wealth, not 401k matches.

I’ve lived and breathed the plan for years. I’ve stumbled and made stupid mistakes when I think I’m smarter than Dave. Guy knows what hes doing.

I put off retirement investing for many years to cashflow my masters programs and put 20% down on a house. No regrets for one second I didn’t invest more in the past. I can invest more today because I stayed debt free and have more of my income to invest.

Let the loss of the match fuel your snowball. I can promise you won’t regret it.