361–370 of 448 posts
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He's teaching them the most important lesson of living in a capitalist system: wealth comes from having money, not from earning money.
If he's not able to also provide them with a sizeable initial capital, this lesson is also completely irrelevant. No one becomes really wealthy by investing savings off their modest salary.
At the point with investment I was lost. Children should learn to be patient (saving money) and prepare for bad situations (saving money). That’s enough. When older we can teach them what capitalism considers as investment. Capitalism is a longer word for greed. Money doesn’t work. Employees do. Customers pay. Both suffer to make greedy persons rich. Give them a piggy bank. Teaches the concept of preparation.
I don't want to work until I'm dead. If that makes me greedy, so be it.
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"My mom taught me the same thing about giving." care to share what you learn???
They mean don't wait till you're rich to start giving charity. Just give what you can when you can. Many people tell themselves they are great people because of all the money they'd give away just as soon as they are rich enough to do it but die without giving anything.
The great thing about saying "give 10%" is how well it scales.
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> social security, pensions, and lump-sum savings Isn't that very little money?
In short, yes, but my family is very cheap, so it is doable with sacrifice. I think I'm middle class (or maybe upper-middle?) now, but I think I'm the first generation that can say that. And even I rented closets, garages, and spaces behind TV's until about 4 years ago, lol.
I run a "Bank of Dad", tracked in a spreadsheet for my kids. They can choose to "invest" their money with me or not. To make investing meaningful for them, I pay 10% interest per month, up to a $50 balance. To avoid bankrupting myself—and to encourage them to get a real investment account when the time comes—the rate drops as the balance increases, similar to progressive tax brackets. By the time they get to $1000 ba…
These kids are going to be so mad at how low interest rates are at actual banks that I wonder if this is ultimately going to teach them to borrow rather than save. I guess it’s the same thing, really: they’re learning the time value of money either way.
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> One can lead a meaningful, enjoyable life while also considering their finances. This is where I disagree. I think there's a certain amount of naivety required to pursue meaningful things. There's so much in life that makes no financial sense that creates meaning. The moment you start having to think sensibly from a financial perspective, is when so many of these things no longer make sense. Once you're plugged int…
> There's so much in life that makes no financial sense that creates meaning. The moment you start having to think sensibly from a financial perspective, is when so many of these things no longer make sense. I get the sentiment, but it implies the opposite of your conclusion. Since so many things make no sense from a financial point of view, the only sensible strategy is to break free of the financial constraints as…
So I think the reason why this doesn't make sense (in my mind) is because in a state of retirement i.e. financial independence, you're still just as conscious of money as you were when you were accumulating wealth. You still need to manage money no different to when you were accumulating, it's just now you're not earning.
To me the freedom I'm referring to is similar to that of childhood - where you're not worried/concerned about "the system". You're just doing your own thing in your own world. That kind of purity no amount of money can resolve, even in an early retirement scenario.
The other issue is that a lot of stuff only makes sense when you're younger. Like it's a lot difficult for example to become a travelling musician or even to travel etc.
Now of course, early retirement provides it's own kind of freedom. But I would say that it's not equivalent to the kind of "freedom" that I'm referring to, which is basically being carefree.
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> 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?
I wasn't thinking of fighting off hordes or anything like that.
Ammunition can be used for barter, hunting, and self-defense. It can also be used as a tool to break locks, start fires, and send signals.
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.
Financial literacy is a gift, and absolutely omitted from standard education, which is unfortunate. That said, I don't think knowledge of investment gets you very far if your job pays subsistence wages. I worked for a popular fintech focused on personal investment and their narrative was essentially "financial freedom through investment". I think it's important to understand that even the most sophisticated knowledge…
I don't know what you mean by that. They teach compound interest in every school. Basic economics too. Anything more advanced is going to be lost on most kids, because that's most adults' level of financial literacy too. The problem is many kids don't have much money to save or invest. Or if they do, real banks kinda suck when you only have a kid amount of money ("Here's the 0.2% interest on your $37 balance"). So th…
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I think the word "bloodline" has gotten people wrapped around the axle. You could have just said "the Rothschild family" and been in the clear. "Bloodline" veers a little close to smearing an entire ethnicity over the actions of one relatively small family. I'm sure it's not what you meant, but as soon as you start talking about the contents of people's blood, people's ears start perking up and looking for bigotry.
Well I don't really understand the difference between the words family and bloodline, because what is a family besides a lineage of people connected by blood? Just for clarity - I am referring to Mayer Amschel Rothschild and his descendants who have been and continue to be involved in central banking. I am most definitely not referring to all Jewish / Ashkenazi Jewish people, any ethnicity or anyone with the last nam…