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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

#241

Post by nonethewiser »

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…

That's why you shouldn't leave it up to a kid with very little money who quite literally cannot understand the long term impacts of their decisions to invest or not. Instead, put aside something for them. You can even start well before they are 17.

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

#242

Post by mothballed »

mlmonkey wrote: post #235

When I started working at 24, a friend of mine (a few years older than me) asked me if our company had a 401(K) and what was the match. I was confused. What's this gobbledygook? So I asked around and got him the answers, and he responded with: max out your 401(K). Just do it. And do not ever think about taking money out of it. So I followed his advice. At that time, the ~$5500 cut in paycheck (my gross was around $35…

I used a lot of the money I could have 'saved for retirement' on a house instead. Given how fast housing prices have risen and the compounding issue of the cost of rents, I'm not sure I'm too far behind. If you look at REITs, which combine the value of housing appreciation with increased values of rents, they are beating stocks in general over the period I've been working.

You might actually be worse off saving for retirement, at early career stages. Of course, some will point out retirement savings are tax protected, but so are modest capital gains on primary residence.

https://i2.wp.com/financialsamurai.com/wp-content/uploads/20...

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

#243

Post by nonethewiser »

ashleyn wrote: post #125
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…

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.

Historically, it takes about 7-10 years to double your money in the stock market. So between doubling your money and incremental saving, yeah you should see a pretty significant difference from 26-35. And that's before it skyrockets :)

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

#244

Post by carllerche »

matheusmoreira wrote: post #211
ashleyn wrote: post #201

Earlier quoted context omitted.

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,…

> Your money has to go somewhere or it will rot to inflation. Inflation is mainly created by this act of "putting your money somewhere". For most people, this "somewhere" means loans. Money is being loaned out to people, spent, deposited back into the bank, and loaned out again, on and on it goes until $1,000 turns into $100,000 in circulation, not a cent of it real until all loans are paid back.

You are very confidently incorrect. So incorrect, it is hard to even start correcting you.

* Inflation is not caused by "putting your money somewhere" What on earth. * At a high level, inflation is caused by either "too much money chasing too few goods" and/or the cost of producing the goods rising. Money supply can increase without causing inflation if the supply of goods can also increase. In short, the supply of money can increase without causing inflation if productivity rises to match it. * Most people do not "put money" in loans what are you even talking about there? * Bank loans do not automatically increase the supply of money. When a loan is taken out, it is (mostly) deposited to another bank, resulting in a net-zero change in money. Increasing the supply of money requires the federal reserve to take steps.

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

#246

Post by Pooge »

mothballed wrote: post #242
mlmonkey wrote: post #235

When I started working at 24, a friend of mine (a few years older than me) asked me if our company had a 401(K) and what was the match. I was confused. What's this gobbledygook? So I asked around and got him the answers, and he responded with: max out your 401(K). Just do it. And do not ever think about taking money out of it. So I followed his advice. At that time, the ~$5500 cut in paycheck (my gross was around $35…

I used a lot of the money I could have 'saved for retirement' on a house instead. Given how fast housing prices have risen and the compounding issue of the cost of rents, I'm not sure I'm too far behind. If you look at REITs, which combine the value of housing appreciation with increased values of rents, they are beating stocks in general over the period I've been working. You might actually be worse off saving for r…

> You might actually be worse off saving for retirement, at early career stages.

A very well-diversified, international fund usually performs at 8% annually which is far more than you would get holding REITs (or worse, properties themselves). What you invest for (e.g. education, retirement, projects) is irrelevant as long as your time horizon allows for crash recoveries (measured in decades at worst and months at best).

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

#247

Post by mothballed »

Pooge wrote: post #246
mothballed wrote: post #242

Earlier quoted context omitted.

I used a lot of the money I could have 'saved for retirement' on a house instead. Given how fast housing prices have risen and the compounding issue of the cost of rents, I'm not sure I'm too far behind. If you look at REITs, which combine the value of housing appreciation with increased values of rents, they are beating stocks in general over the period I've been working. You might actually be worse off saving for r…

> You might actually be worse off saving for retirement, at early career stages. A very well-diversified, international fund usually performs at 8% annually which is far more than you would get holding REITs (or worse, properties themselves). What you invest for (e.g. education, retirement, projects) is irrelevant as long as your time horizon allows for crash recoveries (measured in decades at worst and months at bes…

REIT is largely a reflection of property appreciation plus rents, which is the opportunity cost of not owning your own property. The link I posted was showing an 8+% return once accounting for both over the a 20 year period that doesn't even include the recent COVID era price explosions.

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

#248

Post by ZeWaka »

Pooge wrote: post #246
mothballed wrote: post #242

Earlier quoted context omitted.

I used a lot of the money I could have 'saved for retirement' on a house instead. Given how fast housing prices have risen and the compounding issue of the cost of rents, I'm not sure I'm too far behind. If you look at REITs, which combine the value of housing appreciation with increased values of rents, they are beating stocks in general over the period I've been working. You might actually be worse off saving for r…

> You might actually be worse off saving for retirement, at early career stages. A very well-diversified, international fund usually performs at 8% annually which is far more than you would get holding REITs (or worse, properties themselves). What you invest for (e.g. education, retirement, projects) is irrelevant as long as your time horizon allows for crash recoveries (measured in decades at worst and months at bes…

> 8% annually

Historically, yes - but the last 5 year average has been ~14% (I guess it's like ~9% if you're adjusting for inflation). I think 10% is a bit of a better number these days.

That's not to say I couldn't be eating my words when the market crashes tomorrow, however.

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

#249

Post by lukan »

nonethewiser wrote: post #239
bluGill wrote: post #204

Earlier quoted context omitted.

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…

>Investing for retirement at 17 is a bad idea! At 17 you should still be thinking about investing in education Why would you assume they are mutually exclusive? You can just do both.

And poor people just should eat cake, I know..

For real, I believe most 17 year olds on this earth do not have the funds to invest in education AND in a retirement fond, so there are choices to be made. (there are also the choices of creating social bonds and investing into activities together, ...)

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

#250

Post by _vqpz »

koakuma-chan wrote: post #199
_vqpz wrote: post #189

Earlier quoted context omitted.

Okay

I said that because I find it puzzling when asked the reason why I invest. They're like, are you saving for a house? No, I'm saving in general, and then I buy whatever I want.

Nobody here asked you anything
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