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Ask HN: How do you manage your financials?

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Re: Ask HN: How do you manage your financials?

#111
post #104

Earlier quoted context omitted.

I don’t take investing so seriously like pouring over financial statements outside of skimming through earnings reports. I don’t live everyday worrying Tim Cook is committing massive accounting fraud. I invest in companies I understand, use/like, and reasonably trust, and it’s worked out well for me. There may come a time the whole market crashes again, but my gains are far above the index fund over the last 10 years…

> I don’t take investing so seriously Then how do you know you aren't over paying for stocks? Your plan is to buy high and sell higher? > it’s worked out well for me My unvested RSUs have more than doubled in value over the past year, and ESPP has done just as well lately. The market has worked out great for everyone, especially those of us in high tech. > if I need to derisk I will make that decision at a later time…

If you have income and you're young, you can afford to take risks. Big tech is disproportionately represented in SPY/QQQ so if we're in a massive bubble it's all going down anyway.

I consider active investing to be a hobby. I get a kick out of seeing earnings reports come in from companies I'm invested in. Again, I've dramatically outperformed SPY over 10 years and the gains have nearly secured my retirement as someone in his early 30s.

I occasionally hedge with SPY puts or gold calls if I think we are in an actual correction. If it's sustained I would do that over selling.

Re: Ask HN: How do you manage your financials?

#112

Earlier quoted context omitted.

Interesting that you claim that, since I usually only hear the contrary (actively managed funds don't perform better and the fees are too high). Does anyone have specific data on this? Does anyone

I work in this industry. We have detailed reports on damn near everything, including private hedge funds and how they perform. 80-85% of any active management or financial advisory services have not beat low cost index investing over the long haul. The top 15% or so can and do, but the vast majority of the active investments players (that 80% or so) don't make enough to beat passive investment once their fees are tak…

What are those top 15%? Is it the same 15% each year? :) Does it include big players that anyone can sign up for like Fisher or Fidelity?

Re: Ask HN: How do you manage your financials?

#113

Mint and/or Personal Capital to monitor transactions and balances. Capital One Money Market for Emergency Fund and Capital One Checking for checking. M1 Finance for taxable and tax-advantaged market accounts. Amazon Prime Credit Card (through Chase). My approach started with Dave Ramsey, but has evolved a little based on "I will teach you to be rich" and some others. In general, I see my finances as a funnel - income…

What is an M1?

https://www.m1finance.com/
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