Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Show HN: StockNerd – A community for index fund investors

stocknerd.com

Post reply on HN
Print view View original

111–117 of 117 posts

Re: Show HN: StockNerd – A community for index fund investors

#111

Post by max_ »

skdotdan wrote: post #63
baccredited wrote: post #25

Warren Buffet tells his heirs to go 90% SP500 and 10% Bonds. So just buy VOO and BND, rebalance yearly and you are done. OR do a 3 fund portfolio like: https://www.bogleheads.org/wiki/Three-fund_portfolio OR buy a target retirement fund from Vanguard: https://investor.vanguard.com/search/?query=Vanguard%20targe... OR fill out a risk profile on Wealthfront/Betterment and invest there. Bottom line is pick an approach a…

I think this portfolio lacks an "antifragile" asset. Invest, say, 5% in something with high risks, high returns, and potentially anticyclic, such as cryptocurrencies. What do you think?

I do this! :)

I think its what every young person (under 30) should be doing.

Re: Show HN: StockNerd – A community for index fund investors

#113

Post by fuckemem »

max_ wrote: post #111
skdotdan wrote: post #63

Earlier quoted context omitted.

I think this portfolio lacks an "antifragile" asset. Invest, say, 5% in something with high risks, high returns, and potentially anticyclic, such as cryptocurrencies. What do you think?

I do this! :) I think its what every young person (under 30) should be doing.

And old person (over 30)

Re: Show HN: StockNerd – A community for index fund investors

#114

Post by max_ »

fuckemem wrote: post #113
max_ wrote: post #111

Earlier quoted context omitted.

I do this! :) I think its what every young person (under 30) should be doing.

And old person (over 30)

@ 30 I assume you have a wife & kids.

I think its kind of irresponsible to make risky bets at that age.

You should invest more is "safe bets" like bonds.

Re: Show HN: StockNerd – A community for index fund investors

#115

Post by jjeaff »

fpgaminer wrote: post #98
ryandrake wrote: post #96

Earlier quoted context omitted.

That 7-8% return is not risk-free, whereas if you have a fixed rate of, say, 4%, any extra mortgage payments represent a risk-free 4% to yourself. So the person who poured their money into the stock market may have a higher net worth, or they may not.

I don't think real estate/paying into your mortgage is risk-free. I'd say it's about as risky as long term investments into the stock market. Over all of recorded history, the stock market has gone up 10%/year on average (not accounting for taxes/inflation). The common rebuttal to that is that past performance is not an indicator of future performance. Sure, but then you have to apply the same logic to the supposedly…

I'm afraid your logic is a bit flawed here. The home value increase or decrease does not factor in when considering your mortgage. Your mortgage continues to exist no matter where your home value goes.

You have to pay that same mortgage even if the market tanks and your home becomes worthless. Even in the case of just "letting it go" the bank will take your worthless house and will still come after you for what remains on the mortgage.

That is why putting money into your mortgage is a "risk free" investment at 4% (or whatever your rate is).

Re: Show HN: StockNerd – A community for index fund investors

#116

Post by jjeaff »

pc86 wrote: post #106
jjeaff wrote: post #81

Earlier quoted context omitted.

Borrowing on your home to invest is just a terrible idea. You may see higher returns on the aggregate in the market but doing so is a good way to lose your home. Too much risk and like you, I think the small spread (and it is very small) between your mortgage and market returns doesn't even cover the risk premium of the potential to lose your home.

If you borrow against your home to invest you don't lose your home if the investments tank, you only lose your home if you can't make the loan payments.

Yes, but lets hope your income is not based on investment success and that your job is still safe even in a market crash. Of course, if you have a steady, locked in income from a very safe pension or trust fund, then go ahead and borrow on your home. You don't have to worry about losing it in that case.

But you only have to go back to 2008-2009 to see how well that worked out for a very large swatch of the American populous.

Re: Show HN: StockNerd – A community for index fund investors

#117

Post by bbcbasic »

max_ wrote: post #114
fuckemem wrote: post #113

Earlier quoted context omitted.

And old person (over 30)

@ 30 I assume you have a wife & kids. I think its kind of irresponsible to make risky bets at that age. You should invest more is "safe bets" like bonds.

It depends how risky. I agree you can't afford to lose the proverbial shirt. You can't completely avoid risk. Can't bonds lose a lot of value if interest rates rise for example?
Post reply on HN