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

There's nothing wrong with that, especially long-term. People forget what the stock market does when we're in a bull market and everything seems great. The peak of the S&P in 2000 wasn't passed in a meaningful way again until 2013. I wouldn't be surprised if bonds outperformed during that 13-year period (not sure, just guessing).

 

Long term stocks outperformed bonds, however in volatile markets bonds are safer of course. I reviewed Dow Jones over many years and during one bear market stock dropped so low it took 13 years to recover. Not a place I want to be nearing retirement lol.

 

Get into dividend stocks for retirement. You won't have to touch principal, which will slowly increase, while you get a monthly paycheck. I could stop working now and get by, but I'm young enough to try to push the passive income as high as I can.

 

Good point. I intend to keep a mixture of stocks and bonds and I am interested in dividend stocks if I can buy them when they are in a low dip. Been looking at those for when I convert 401k to an IRA. During the corona peak drop I saw several fall lower than many years if I had the ability to buy them them I would have, they’re already going back up as I knew they would.

 

This is where I need to educate myself. I've got one account sitting in cash, but you don't get to choose what you invest in as it's a company plan, and of course they limit vehicles..

My Fidelity, I'm literally 'trading' once in a while, otherwise it sits in cash..until I go looking for the next trade.

I turn 50 in a bit.. need to figure this stuff out.

All extra income (lol) goes to my daughter's college tuition at this point..

oh..and what I can divert to the taco.. lmao

 

I bought and sold that stock a few times back in 2016-2017 on the advice of my former boss. Each time I sold it I took profits and invested in home improvements, if I kept that stock all this time I could have sold it and not worked for a few years or pay my house off!! Crazy run for sure! It's not as bad as a few of my friends who would talk shit to me about buying tesla stock and how crazy the valuation is and they would buy ford instead because "it's a better more established company", how did that work out LOL!!

 

There are still a lot of strong dividend stocks yielding very nicely right now.

 

That's my goal. I started late with this philosophy. I have multiple retirement accounts (none that are big though), but my goal now is to get in on dividends in a brokerage account max out my Roth IRA, and if I can get back to a former employer, get back to contributing to that account as well as max out an HSA. If social security is still around when I can collect (~20 years), that will be bonus money.

 

My advice as a non financial advisor and idiot on the internet: invest the company retirement in index funds or funds with the lowest expense ratio. Expense ratio is the fees you pay per $1000 of investment.

Again idiot on the internet, do your own research, but that's what I found.

 

I'm almost back even for the year after everything tanked at the end of Feb. I didn't touch anything and most of it has bounced back and kept paying dividends. The prices are still lower than they were back in Feb but the dividends make up for that. If the prices get back by the end of the year, I'll be up. I think at the low point I was down 170K and now I'm down 5K. I have some dividends paying out next week so that should close the gap more as long as things don't take a hit.

 

I’m pretty sure 5-10 years from now Ford will be doing well while Tesla is a niche player with all the competition in electrics. People are just gambling now and they will win for a while.. but in the end they won’t.

 

How much principal do you think I’d need to get ~$75,000 a year in dividend income?

 

That was me

 

Same speech they gave me almost 5years ago....

 

Depends on your avg yield.

 

Your only saving grace is there are a LOT of people betting on the future like you. If Tesla was valued at what it’s actually worth based on sales and profit it would be 1/10th of what it is now. Just try to sell before the bottom drops out

 

Depends how risky you'd want to be in your stock picks. If you made a safe portfolio with a 4% yield (not hard to do and would be safe), it would take around $1.9 million. You could get riskier and try to double the yield, then you'd need less than a million in principal. It's a lifetime thing though, anybody can get to that with a long enough time horizon.

 

I dont own any, I sold my last shares back in 2018 to buy a new fence, I wish I would have kept it, but oh well.

Full disclosure I'm also the same guy who has not made any money in this current market because I'm following my Austrian economic principals and failing to profit off the fed rigging the stock market. I keep saying its going to crash big time again and THEN I'll buy, haha. So I guess I'm doing the same thing as the ford is a better investment than tesla crowd.

 

Depends on a few things... the dividend yield, what stocks you pick up, and what happens with the dividend (cut/cancel, decrease, increase). I try and invest in blue-chip dividend aristocrats, but I have money in other stocks I thought were good deals before I really found my investing philosophy. I have been able to get some capital gains out of those and re-invest that into stocks giving dividends.

Some people chase the high yield dividend stocks, but that is out of my comfort zone. My annual yield is around 4% right now (thanks for the dividend cut BA), and I am happy with that. My yields range from 0.36% (just a company I like) to 7.77% (lucky sevens!!!)

You can also look at how often the dividends hit (monthly, quarterly, semi-annually, or annually). Most of mine are quarterly, with one monthly. I may look into another monthly or two.

 

Yeah it’s tough predicting the future, even harder to predict what other investors will do. I like to gamble but only in Texas Holdem and $20 my limit haha