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Let's Talk Money

Discussion in 'Stocks & Investments' started by Styx586, Jul 19, 2021.

  1. Jul 30, 2021 at 10:41 PM
    #121
    JEEPNIK

    JEEPNIK Well-Known Member

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    You know I’d really like to see the age and education level of the posters in the posts. Assuming folks were honest (a very iffy thing these days) it would add a whole new dynamic.

    Heck I’ll start. 68 with a BS in chemistry. Retired.
     
    Bannerman likes this.
  2. Jul 30, 2021 at 11:02 PM
    #122
    241240

    241240 Sir Lurks-A-Lot

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    How about dumbest way to earn a pile of money? I invested $4k in a Yamaha V-Star. Four months later exchanged it for an $8k insurance check. For many years getting run over was the best investment decision I had ever made. :)

    I guess full disclosure requires me to say that I also invested the temporary loss of 1.5 toenails.
     
    Xtremsiege2, Fohu and stacksmasher like this.
  3. Jul 31, 2021 at 3:19 AM
    #123
    stacksmasher

    stacksmasher Well-Known Member

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    If you were any kind of financial consultant the first thing you would do is tell people they need to go to a "Fiduciary" and not someone who is going to push "Dave Ramsey ELP" BS on them. You should be ashamed of yourself ; )
     
  4. Jul 31, 2021 at 4:04 AM
    #124
    Bannerman

    Bannerman Tasteful Thickness

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    The first thing you’ve said on this thread that wasn’t retarded.
     
  5. Jul 31, 2021 at 4:37 AM
    #125
    Iwilltaco

    Iwilltaco Well-Known Member

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    @kairo’s guest house having a water with @not_nick
    Under development
    It appears “talking money” isn’t going so well. I enjoyed the stories though
     
  6. Jul 31, 2021 at 5:15 AM
    #126
    Toyko Joe

    Toyko Joe Here for the pictures

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    Around 40, BS Mathematics, still working
     
  7. Jul 31, 2021 at 7:17 AM
    #127
    Mastiffsrule

    Mastiffsrule Well-known member, but no one cares.

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    That wasn’t uneducated.
     
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  8. Jul 31, 2021 at 7:51 PM
    #128
    apreston1

    apreston1 Well-Known Member

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    I’m not confused. I see stupid people who chase their passion, encouraged by greedy people (RE: elite “intellectual” leaders and professors at Ivy League schools) with no regard to financial implications. When confronted with reality, they cry and plead for a bailout or loan forgiveness.

    I have a BS in Biology, chased my passion only to the point of realizing there was no money in it (for me). Adjusted, went into the Navy, went into business remained flexible and constantly learned and adapted. I believe that a University degree only means you are highly trainable and can do new and different things that may be completely different from what your initial direction may have been.
     
  9. Jul 31, 2021 at 8:00 PM
    #129
    theesotericone

    theesotericone Well-Known Member

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    I'll let someone else tell a story. It's a good one from way back.

     
  10. Aug 1, 2021 at 8:53 AM
    #130
    outdoorgb

    outdoorgb (.)(.)

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    I posted early on about home my wife and I came from little and are doing quite well...

    58, BS Manufacturing Engineering, employed in aerospace manufacturing (jet engine components). Wife works for local school district. Retirement is not far off but we both still love our jobs.

     
  11. Aug 4, 2021 at 8:13 AM
    #131
    Bannerman

    Bannerman Tasteful Thickness

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    I learned the danger of Credit Cards and how to use them responsibly when I was 21. Maxed out the $500 limit on my new CC on some 40 Series Flowmasters for my Dodge Hemi. Damn it sounded good but cost me close to $1000 by the time I paid it off (18% interest is no joke). In retrospect, it was a super cheap way to learn the lesson to not spend money I didn't already have.

    EDIT: I do miss her sometimes.

    IMG_1137.jpg
     
    Last edited: Aug 4, 2021
  12. Aug 4, 2021 at 8:48 AM
    #132
    241240

    241240 Sir Lurks-A-Lot

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    Hey parents who have had kids that grew up to be financially responsible adults: Any advice on how to go about teaching money management to the young'uns?
     
  13. Aug 4, 2021 at 8:51 AM
    #133
    theesotericone

    theesotericone Well-Known Member

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    @cartter469 Wanna give some input from the "kids" perspective. Whatever your folks did to instill fiscal responsibility in you is quite impressive. The fact you took that info and ran with it is equally impressive.
     
  14. Aug 4, 2021 at 9:25 AM
    #134
    cartter469

    cartter469 A College kid who went broke for a truck

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    So I started working at 14. I know you cant do that everywhere but after I was about 12, if I went out to eat with friends or movies etc, I was using my own money. Learning how much stuff costs. Allowance/gift money. Naturally I worked as early as I could to afford those things. I started working as an assistant tournament director at a large baseball complex that hosted 500+ team tournaments so I enjoyed working since I already knew the environment and the workers were more of friends than co workers. The first year I had to save 50% and could spend 50% no disputes. All my spending is tracked in an excel spreadsheet to validate no one has my info as well as making sure I'm aware of spending. Still do that today. At the end of the first year my parents simply showed me the dollar amount in one of their brokerages. They then explained how much they've actually deposited vs account value. That made me really want to get invested. Parents added me as a user on a lower limit credit card and told me to always check my checking account before using it. I was building credit but using it as a debit card. Not spending money I don't have. Every month I then transfer them whatever my charges add up to on the credit card. Again tracking allows us to separate mine from theirs. Then when I got my permit they would have me fill up gas if I was with them so I can see how much gas costs and how often I'd have to fill up which prepared me for when I was driving and I made sure to bank up a bunch of cash. the 50/50 spend save is a rule of thumb for me now but realistically while my living expenses are low I'm saving about 70% Another thing is if your kids will be paying for college on their own, show them really how much school costs. My parents are helping me with mine as well as I received decent scholarships so I'm super fortunate that no loans will be needed. The same way investment accounts rise, show your kids how much debt increases if not payed off. Discourage any kind of debt to start. Car and house payments are different. I still plan on never having a car payment because my parents helped me pickup about a third of the trucks cost and I had the rest in cash. No monthly payment makes it much easier for me since I'm just starting out. I also got a student credit card of my own and I am doing those payments myself rather than using a parents card. Their card is backup for emergency if I need to pay over the limit of my student card(car repair/need new computer etc).

    It's a lot sorry. The main things I can say helped.

    From an early age really try to show the value of a dollar and how much things really cost.

    save 50% spend 50%
    Track all spending(don't have to track cash but I didn't use cash very often so I didn't need to)
    Show them the concept of investments raising account values(start with showing them very safe indexes and if they become interested then they can become an investing guru. Shoutout @theesotericone trying to get to the point I can navigate the market as effectively as he does)
    Show them how fast debt will pile up if they are spending money they don't have on a credit card.

    @241240 direct response to your question but info for all.
     
  15. Aug 4, 2021 at 12:02 PM
    #135
    CPS-65

    CPS-65 I’m good for some, but I’m not for everyone.

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    First, you have to be an example of what you are trying to teach. Kids see what you do and reconcile it with what you say. They know when you are full of shit.

    Then, talk with them about money, how to earn it, and how easily it is vaporized. Show them how to plan for expenses. When they are young, it might be a new doo-dad, or a movie. As they get older it will be paying their cell phone bill, insurance, tags, or some part of those expenses. Give them the opportunity to earn some money when they are young. Both of my kids took care of the cans and recycled them. My 22 YO grad student daughter still does it. Give them an allowance they work for. Right away, they will connect money with work and learn to balance savings with expenditures. Coach them up, don't be judgmental, help them understand the connections. You can use different methods to understand savings vs. expenditures; a jar of money, reconciling a savings account, using a Gantt chart to track long term savings goals and seeing how recurring expenses and impulse buys affect their long term goal. This can help them carefully consider what they buy and how things like subscriptions or credit card debt can affect their overall goals.

    Throughout their life it's also a good idea to talk about the types of careers out there, what it takes to be able to do that job (education, training, skillset, etc.) and what the pros and cons are (pay, benefits, retirement, toll it takes on you, etc.) We have always tried to give our kids a good understanding of money, employment, enjoying life, and education. We wanted them to have the tools to follow whatever interest they might develop and have the widest scope of opportunity's possible. People, who have no plans, no awareness of requirements, and do not handle money well operate more under a paradigm of what they can get, rather than getting what they want. I always felt it was important to balance what you make, job satisfaction, and time for yourself and family. Money isn't everything. Job prestige isn't everything. Your family won't care what you did or how much you made at the end; they will only care about who you were to them. Were you always there, or always at work? It's important to pass that on to the next generation, especially in a world that values money above all else.

    When I was growing up, many of my friends had parents who bought them just about anything they wanted. Cars, dirt bikes, skis, whatever. I always had to earn it. Honestly, I thought my parents were being kind of shitty about it because they earned a very good living, we had a nice home in an expensive neighborhood. I actually thought I was due some of these nice things, but no, I had to work, and save, buy second hand stuff, and fix things. I worked from the time I was 15. I worked at a truck company which belonged to one of my friend's parents. We transferred loads, largely batts of fiberglass insulation, from one trailer to sets of doubles. We also fixed and washed lots of stuff. I dug lots of holes and trenches for neighbors landscaping their lots. I had a really sweet gig taking care of horses and a few assorted animals for people who were out of town. Still, I was a little jealous of the ones who got a free ride from mom and dad.

    What I learned, over time, was people who get handed everything appreciate nothing. Many of those kids tore their stuff up because there would just be a new one next year. That was a bit of a realization for me. Some of my friends who had nice cars or trucks with all the cool stuff, had it all done and serviced somewhere. I had to learn to do it myself, to fabricate things I couldn't buy, to install things myself to save money. It took a minute, but I realized this was a strength, not a weakness, and it became part of who I am at some point. I still thought my parents were mental though. I took a while for me to understand they were helping me. Talking about it a little might have helped me "get it" sooner.

    I learned a lesson that stayed with me throughout my life when a HS friend, who got a new IROC-Z/28 for her 16th birthday, and another every two years or so, lost her dad suddenly. He had a good business that provided a high standard of living that meant no one ever had to work. When he died, the business followed soon after. Mom, the kids, they lost much of it because they had no idea how to run the business or how the finances worked. Aside from equipment and inventory, dad was basically "the business". Everyone had to get a job now and no one knew how to work or had much in the way of skills. It was not pretty. It was very much an "oh crap" moment for me and solidified the need to be able to stand on one's own feet. Other friends I have who "had it all" when we were growing up, for the most part, don't handle money well as adults.

    As it turns out, being given everything isn't always a good thing, even if it is fun at the time. Apparently, my mom and dad weren't out of their minds when they insisted I earn it myself.
     
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  16. Aug 4, 2021 at 12:08 PM
    #136
    241240

    241240 Sir Lurks-A-Lot

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    @cartter469 Lots of good advice there. From what I've seen while lurking on the stock thread I've been as impressed as @theesotericone with how you are with money at your age.

    Much of what you said mirrors how I was raised - first real job was at 14 (paper routes and neighborhood lawn mowing before that, not sure if those are even options for most kids nowadays), mandatory 50% saving, etc. My parents never showed us how much money they had though, and I've been on the fence about doing that with my kids. I want them to know how much things cost as adults, but I've been nervous about whether they'd react to seeing our account balance with "You have how much money?!! Stop telling me we can't afford things!" Did you have any of that sort of reaction when your parents showed you their brokerage account? You would have been, what, 15 years old then?
     
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  17. Aug 4, 2021 at 12:17 PM
    #137
    cartter469

    cartter469 A College kid who went broke for a truck

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    Yes I was about 15. And the thing they told me with brokerage accounts and how i treat mine. That money is reserved for retirement only. You don't tell them that's your emergency cash or your savings you pay bills out of etc. You tell them that when your old and retired you will be able to live comfortably and not have to work until your 80. Also when they start working have them check paystubs so they can see taxes. Another big point with investing and trying to get them to max out a Roth IRA is that you get around taxes. Once they see how much they get taken off a paystub, they'll want to try and get out of being taxed on investment.

    Obviously every kid is different but as far as showing them a dollar amount. I would say show them one of your brokerage accounts and heavily emphasize that it is not money available to spend tomorrow. If you have multiple brokerage accounts I'd say show them one of the smaller accounts just so their reaction is not like you said. But that should probably wait until they understand the value of a dollar. Once they work and understand how much things cost to go to movies or out with friends etc, then you can show them that dollar amount. Had my parents showed me a retirement account with 7 digits before I had started working then It wouldn't have meant as much. It'll take time. Didn't see how old they are but if you are able to start a Roth for them and transfer it to them later that would be huge. My parents matched my first two years contributions so I only had to put in 3 to max it out for 2 years. That was a huge incentive. Most teens wont be able to max it out if they only save 50%. But once I was 16 I was on my own but at that point I understood the benefit of maxing it out, so I did max it out and spent less that way I could.

    Also the projections for 7-10% growth over 50 years, show them those calculations. Max out roth 2 years and show them what 12k becomes 50 years later at even just 7% which is a pretty safe estimate from my understanding.
     
    shaeff likes this.
  18. Jul 21, 2022 at 10:52 AM
    #138
    shaeff

    shaeff Roaming Around

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    Quoting this from last year. 1- my kid (will be 1 early August) LOVES that book! Like, it's unreal how much he loves it. And 2- it's an absolute blast, so much work but so much fun!

    Lastly, I recall talking about refinancing my mortgage in this thread last year. We did it in December. Went from 4.125% down to a 15 year fixed at 2.625%, plus I got a good bump in pay in January so I'm sending an extra $500/mo on it. House should be paid off in 7yrs or less, while still contributing a good amount into retirement.

    I know I pulled this thread back from the dead but for some reason it just popped into my thoughts. Hope y'all (everyone in the thread) are doing well.
     
  19. Jul 22, 2022 at 11:27 AM
    #139
    Bannerman

    Bannerman Tasteful Thickness

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    He’s a little bigger now. Haha. He helped mom pay cash for her new 4Runner last night!

    5612B22B-454E-4830-A43E-723AFE7EDB63.jpg
     
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  20. Jul 22, 2022 at 11:42 AM
    #140
    Toyko Joe

    Toyko Joe Here for the pictures

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    Finances are funny with families.

    We make enough that my wife can enjoy finding a job she enjoys. For her its about enjoying the work and getting away from the kids for a few hours. She now works 14 hours a week. Everyone needs that separation to apricate each other in our home.

    We just got through buying up 3 more house in April? Can't find reliable contractors so doing it mostly by myself which is taking 5 times longer than it should.

    We only have our personal home mortgage right now and only 13 years to go on it; but our cash on hand is no longer so the purse strings have gotten really tight. Traded in our truck and truck payment for a smaller 7 passenger crossover without a payment and bought a beater truck for yard work and rentals work. Not seeing large amounts in my checking account makes us really make better decisions. :laughing:
     
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