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Show HN: In a single HTML file, an app to encourage my children to invest

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Re: Show HN: In a single HTML file, an app to encourage my children to invest

#201

Post by ashleyn »

ffsm8 wrote: post #138
ashleyn wrote: post #125

Earlier quoted context omitted.

Sometimes I feel like I started investing late at 26. Already, six years into the best decade for compounding in your life. But such was the power of compounding that I had reached a substantial net worth by age 35. So even just nine years can make such a tremendous difference even into later ages. It's never too late to sock money away.

It remains to be seen what's going to happen over the next few decades. It's entirely possible that it'll all get wiped out (the substantial gains, not all value). While the market was a very good bet for the last 50yrs, its not a guarantee. Especially in the current climate you should be fully aware that it's significantly more risky to start investing today vs 10 yrs ago. (Riskier doesn't mean it's necessarily a ba…

Your money has to go somewhere or it will rot to inflation. If you're ultrabearish on stocks, snap up bonds. If you're bearish on stocks and bonds alike, snap up gold. Either way, bare minimum of what to do with your money long term is to preserve its value across inflation.

But really I would recommend nonetheless staying the course with investment advice on a stocks/bonds balance relative to your age. Increasingly, the economy distributes not through labour but through capital and holding stocks is essential even with their inherent risks. Even in light of that CNN article about meme stock and crypto investors having the last laugh over the past decade, indices of ordinary large-cap stocks bring you exposure to these things.

Re: Show HN: In a single HTML file, an app to encourage my children to invest

#202

Post by linsomniac »

koakuma-chan wrote: post #134
coldpie wrote: post #133

Earlier quoted context omitted.

Don't know about Switzerland, but most US brokers offer some kind of "target retirement date" fund, which automatically shifts from higher-risk assets to lower-risk as you approach retirement. VFIFX is one from Vanguard, for example. Pick one you like (just ask a coworker what they use, if you pick a big-name brokerage it really doesn't matter which one), shove your extra cash into it regularly, and forget about it.…

Even when it crashes it's like 20% no? It's not actually that big of a deal.

The idea is that over a 40 year window that 20% (or more) crash is eventually going to rebound, so just sitting on the target retirement fund is going to do well over it's lifetime. As you get closer to retirement, and don't have the time to recover from the crash, the plan moves to safer investments.

Re: Show HN: In a single HTML file, an app to encourage my children to invest

#203

Post by mfro »

koakuma-chan wrote: post #131
whoooboyy wrote: post #128

Earlier quoted context omitted.

Incredible HN post. I'm hoping it's because you are from a country where people are generally well taken care of. Yes, there are people who don't invest. Where do they keep their retirement savings? 40-50% of Americans, at least, simply have no retirement savings! Most people in America aren't earning enough to put away a meaningful amount for retirement. It's going to be grim as boomers and millennials hit retiremen…

And it doesn't occur to them that they will need money when they're old and can't work? Incredible.

Wow, you are so out of touch

Re: Show HN: In a single HTML file, an app to encourage my children to invest

#204

Post by bluGill »

linsomniac wrote: post #102

There's an awful lot of negativity here, but as someone who's 55 and has earned a good wage since I was 17, I really wish I had taken investing more seriously from the very beginning. While I knew of compound interest, I really didn't understand it until like a decade ago. If I'd started putting 5% of my money into a target retirement plan from 17, I'd be retired now. As it is I'm not doing badly, but I really wish I…

Investing for retirement at 17 is a bad idea! At 17 you should still be thinking about investing in education - the right education investment today will pay back far more than any other monitory investment. There are of course bad education investments, and some are not willing to study even more (or not able to pass a good education course), in that case retirement might be the best investment you can make, but it should not be your first choice.

A different reply said they waited until 26 to start - that is probably about the right time to start saving for retirement. Maybe a little late, but close enough. Before about that age you are still getting started and so you have little spare cash. You need to pay off school loans (if you took any). You need to save for down payment on a house, and buy a lot of those will last a lifetime household items everyone needs. You should be thinking about marriage and saving for it (even if you don't get legally married most people will live with someone else and should be planning on how to make that life work).

Most important: you don't know how long you will live. Save for the future, but not everything - you have no guarantee you will live to tomorrow - if you are under 60 odds are strongly in favor of it, but people die young all the time. You should have a little play money as well in your budget. Go climb Mt Fuji while your body is young and healthy enough to do so (I picked a random activity here, you should decide what you care about, not rush to Japan)

Re: Show HN: In a single HTML file, an app to encourage my children to invest

#206

Post by buenzlikoder »

sureglymop wrote: post #119
linsomniac wrote: post #102

There's an awful lot of negativity here, but as someone who's 55 and has earned a good wage since I was 17, I really wish I had taken investing more seriously from the very beginning. While I knew of compound interest, I really didn't understand it until like a decade ago. If I'd started putting 5% of my money into a target retirement plan from 17, I'd be retired now. As it is I'm not doing badly, but I really wish I…

You say that now but as a young person with a decent income and no family or many responsibilities it's hard to even know where to start. And I'm not even talking about what to invest in, I'm already confused at which platform/bank/whatever to do it through. The "meta", if you will. I just want to invest the 70% of my salary I don't need every month and not think about it for 40 years but how? Maybe an important deta…

Are you saving for retirement or buying property? Then start filling your 3rd pillar (Säule 3a) first because of the tax cut. Ideally in a low cost provider (viac/finpension), but the bank you already have probably has an offer too. It might be a bit more expensive than viac, but still much better than not investing. Stay away from 3rd pillar at insurance companies, they might be hard to cancel. Do yourself a favor and do this just for the tax cut.

If you max out the 3a, you can start of thinking investing elsewhere. IBKR is the cheapest to buy a US domiciled world ETF. But the UX is not super easy and you will have to fill all transactions manually in the tax report.

Neon with investments is another option I can recommend if you prefer a swiss company and a simple user interface. Fees are low if you set up a savings plan and pick one of the 0% ETFs

Re: Show HN: In a single HTML file, an app to encourage my children to invest

#207

Post by 91bananas »

koakuma-chan wrote: post #131
whoooboyy wrote: post #128

Earlier quoted context omitted.

Incredible HN post. I'm hoping it's because you are from a country where people are generally well taken care of. Yes, there are people who don't invest. Where do they keep their retirement savings? 40-50% of Americans, at least, simply have no retirement savings! Most people in America aren't earning enough to put away a meaningful amount for retirement. It's going to be grim as boomers and millennials hit retiremen…

And it doesn't occur to them that they will need money when they're old and can't work? Incredible.

This has to be satire at this point.

Re: Show HN: In a single HTML file, an app to encourage my children to invest

#208

Post by neucoas »

Galanwe wrote: post #39

> I act as their investment agent, assigning realistic interest rates Author then proceeds to put 15% annual interest rate...

Commenter just discovered that there are other countries and economic realities outside the US/Europe

Re: Show HN: In a single HTML file, an app to encourage my children to invest

#209

Post by thw_9a83c »

mattmanser wrote: post #196
thw_9a83c wrote: post #162

Nice! I also created a "virtual bank account" for my kids when they were 7-8yo. They can choose to take the weekly cash or put it in their savings account. My bank gives them a 5% interest rate per month, which isn't bad. Explaining the idea of compound interest this way is easy. However, I think that's the easier part of being an investor. The more complicated part is risk management. With a savings account, there i…

5% per month? Where is this crazy money generator? Assume you meant per year here! It's not zero risk: - Your currency may collapse, see Germany 1930s, Argentina, Zimbabwe, Venezula, etc. - Only a certain figure is protected in savings, though governments will act aggressively to protect that (see 2008 + the Icelandic/UK/Dutch palava)

Yes, it's 5% per month. You wouldn't be able to explain the concept of a yearly compound interest rate to such young children. One year is an eternity in their life. I also don't give them too much pocket money to encourage them to save. They would spend it on junk food if they had too much cash.

A agree, that the currency is not a 100% safe investment. Inflation especially makes it bad for long-term savings. Indeed, money in any savings account is insured only up to a certain amount. However, that's not something you can explain to kids with a "virtual account." I suppose the idea that Daddy's bank will go bankrupt is probably not an ideal way to teach kids financial literacy.

Re: Show HN: In a single HTML file, an app to encourage my children to invest

#210

Post by bluGill »

linsomniac wrote: post #192
elictronic wrote: post #175

Earlier quoted context omitted.

I started my daughter investing with a custodial account at 13. She put a few hundred dollars of her money in and I convinced her by matching her investment and told her if the amount ever went below the original investment I would backstop any loss. Investing is all about that long term gain and slow growth. Having 10 years of experience after finishing college will do so much more than Robinhood for refrigerators.

I've made a similar deal with my kids: Around 7 years ago I set up a "kid retirement" plan for them, where they couldn't touch the money until they were 18, but any money they put in I would match, and I'd also give them 10% APY with monthly compounding. My daughter aged out of it a couple years ago, she got something in the $100 range. Her brother still has a 18 months left, and I just recently rolled his over into…

That young you should be investing in a 527 education account not a ROTH retirement account. Education is a much better ROI when you are young than anything else. As you get older the value of education decreases. In generally the cross over is sometime in your early/mid 20s (Could be as young as 16 if you don't do well in school, or as old as 35 for things like medical doctor)

If you don't live in the US you will have different options, but the idea still applies

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