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

roberdam.com

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

#271

Post by [deleted] »

triceratops wrote: post #259
acuozzo wrote: post #236

Earlier quoted context omitted.

> People who try to time the market If you have doubts about the long-term __existence__ of the market, then investing in the first place necessitates "timing the market" since you'll need to determine when to sell before the panic sell-off which inevitably comes before the global minimum is reached. Mind you, I'm not talking about figuring out whether or not to "hodl" through local minima. I'm talking about rolling…

If it goes up in smoke, you personally can't ever buy enough ammunition to matter. Who's gonna man all those guns?

[deleted]

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

#272

Post by mothballed »

Pooge wrote: post #267
mothballed wrote: post #247

Earlier quoted context omitted.

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.

> The link I posted was showing an 8+% return If I'm not mistaken, they usually pay at least 3% dividend which is added to your salary. ETFs don't trigger any tax as long as you don't sell. And I didn't check but REITs probably have higher annual fees.

I was using REITs as a proxy for the value and opportunity cost of buying your housing rather than investing in a retirement account. If you actually buy REITs this breaks down because REIT capital gains are taxable, while residence capital gains on a primary residence of modest value are not.

It was not my intent to convey you should buy REITs instead of a place to live.

After early career this breaks down though, because the tax advantage are only good for primary residence modest value homes, it's not a strategy that can be continually employed.

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

#273

Post by bluGill »

EvanAnderson wrote: post #216
bluGill wrote: post #210

Earlier quoted context omitted.

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 ha…

The spiraling price of college in the US today has been questioning the assumption that education has a better ROI.

There are a lot of it depends. If you are going to be a retail worker all your life there is no reason to go to college. A music degree has questionable value on its own, but many people get them understanding that "any degree" is needed for some good jobs and those that find those do well enough (your generals and non-major electives are important). The school matters - Harvard is expensive but the networking can be worth it if you network well in school. State schools tend to be a lot cheaper than private or out of state as well, and generally pretty good. Scholarships enter in as well. Degrees like Engineering or Medical doctor tend to have a much better ROI long term, but only if you pick the right one and pass.

But you need to make your own decisions. For some your best ROI is dropping out of school at 16 - but for the vast majority more school will be worth it.

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

#274

Post by tinfoilhatter »

FredPret wrote: post #254
tinfoilhatter wrote: post #94

Earlier quoted context omitted.

The Rothschild bloodline is responsible for helping to orchestrate every modern war since the Napoleonic Wars, by loaning money to both sides of the conflict. Major General Smedley D. Butler wrote about this in War is a Racket. I personally, don't give a damn what Mr. Rothschild would be fine with, or the rest of his disgusting family.

Standard antisemitic trope

Standard bs defense to prevent any legitimate criticism of Jewish people no matter how reprehensible their actions are. Please spare me.

Maybe we should get into what Natalie Rothschild said while being interviewed, about her family's fondness for incest? Or would that be anti-Semtiic as well?

What exactly can you say about the Rothschild bloodline (except for praising them) that isn't considered anti-Semitic? Please do tell!

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

#275

Post by bluGill »

graeme wrote: post #266
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…

If you start investing a small amount at age 17 you can build the habit and increase totals later. Saying "I'll do it later when it is rational" often translates to "I won't do it (for a long time)". Which is not rational

Get your habit be investing in an education savings account.

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

#276

Post by Brendinooo »

graeme wrote: post #266
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…

If you start investing a small amount at age 17 you can build the habit and increase totals later. Saying "I'll do it later when it is rational" often translates to "I won't do it (for a long time)". Which is not rational

This is true of most money behaviors! My mom taught me the same thing about giving.

And even today, knowing way more about personal finance than I did at the start of my working life, I'm still amazed at how blocking out money in the budget astronomically increases your chances that that money actually goes to the thing you want.

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

#277

Post by bluGill »

sebastiennight wrote: post #229
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…

As with many times when we use the word "should" (and you've used it a lot), the perspective you're sharing is deeply influenced by your own cultural background and might not apply to many people reading. A few examples: school loans, considering a house purchase to be a sound investment, purchasing once-in-a-lifetime household items, saving for a wedding (from the age of 17!?) or marriage (not sure what you even mea…

The details matter and are personal I agree.

Even if a house isn't right for you, you still need to save for the deposit on an apartment. You still need to buy furnishings for your apartment. You won't even know if a house is right for you until you are mid 20s to 30, so it is probably best to save for a house and if you decide at 30 it isn't right for you roll that money into retirement savings (if a house isn't right for you that means you need more retirement savings)

Relationships - even if you don't have a wedding or kids - come at the time you have those starting to get out on your own expenses. You will need to figure those out.

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

#278

Post by sebastiennight »

lukan wrote: post #249
nonethewiser wrote: post #239

Earlier quoted context omitted.

>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, ...)

The root comment was talking about investing 5% of their earnings. If you're making any kind of income at 17 (which admittedly is not everybody) then learning to save+invest a small portion of that can have incredible positive snowball effects beyond the compounding itself.

I can't imagine a scenario where at 55 years old, you would miss the 5% of your summer income you invested back in high school. But I can totally see a scenario where investing those 5% led you to increasing it to 10% in college, 20% on your first job, and being financially independent way before you hit the age of 55.

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

#279

Post by roberdam »

lutusp wrote: post #265

> I explained to my kids that investing is like having a magic box that generates more money over time. That is wildly misleading. Investing is super important, but it shouldn't be described in this fairy-tale way. Young people might be misled into trusting investment advisors/counselors/brokers, whose real goal is to enrich themselves at your expense. In fact, there are adults who haven't yet learned this. An articl…

never speak about investment counselors on the article, I will forward the WSJ article to my 7 year old girl so she won't be scammed by her broker (me).

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

#280

Post by sebastiennight »

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…

I hope that @roberdam reads this and implements those into his PWA.

OP, enabling: - deposits (and withdrawals) - a matching logic (which we can do manually I guess, by doubling the deposit amount) - and correct calculation of compounding (if I had $100 for 11 months and add $100 in december, I shouldn't see the value compound $200 for the whole year)

would be great.

Bonus points if there was some kind of password (even hardcoded) so that the kids can't just click the gear icon and write themselves a blank check of $1,000,000

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