1–10 of 29 posts
I know we all want our next product to make it big. How do we stay financially responsible in the long run?
Do you seek out a financial advisor? Stash cash in savings accounts? Buy GOOG and AMZN stocks? Save money for a house? Eat ramen?
That being said, I also put money in more conservative investments like mutual funds. You can usually set it and forget it. With the markets doing pretty good the last two years, I think I was able to grow at 10-15%.
I also try not to spend too much of my time reading up on this myself. I pay Motley Fool for investment advice and follow their thesis. They have a pretty good track record and they've gained my trust.
It's also important to have no fear. I've known people who lost out on the recent market gains because they were too scared to buy in at the low point. Now, they put themselves in the market when it's booming.
I've also played around with Bitcoin, but that was more for fun and I definitely wasn't planning for the long-term there.
Personally, I invest in individual stocks like Starbucks (companies you think won't be going away anytime soon). I've tried to think like Warren Buffet. If you're investing in a company like Gillette, you're asking yourself, "Are men going to stop shaving?" That being said, I also put money in more conservative investments like mutual funds. You can usually set it and forget it. With the markets doing pretty good the…
This is probably, like, a horrible way to do things. But I try to find a company (1-10 billion market cap) that I personally believe in, but saw-tooths a lot. I usually check-in once a day and watch it go up and down. I then guess if I think it is sort of on a crest up or down, then buy or sell accordingly. And never accept a loss on a trade. Instead just sit on the shares until they are in the black. And example wou…
After that I started looking at newsletter service like Motley Fool, but curious to see if there are other services that people recommend. I have looked at Personal Capital (iPhone app), but haven't booked a session with them yet.
Personally, I have been a turned off by financial advisors.
To that end, keep only a little in savings (emergency fund), and put the rest in a 401k or IRA, invested in index funds. Index funds are a great 80% approach, because:
- They track an index (e.g. S&P 500) which is likely to go up and up in the long term
- They are very low cost since they are not actively managed
- You can watch them every day, or forget about them for two years
- Warren Buffet recommends them, and he seems to be doing okay
I started off with advice from this article by transferring a bit of my savings weekly into a target date retirement fund.
http://www.iwillteachyoutoberich.com/blog/asset-allocation-i...
Today I have other index funds in other sectors, but the asset allocation is pretty much the same ratio. Hope that helps!
I believe in the 80% solution. Put your money to work rather than stuffing it in a mattress, but favor the 80%-of-optimal solution that's easy to set and forget, instead of the 100%-optimal solution that requires micromanagement, expertise, and luck. To that end, keep only a little in savings (emergency fund), and put the rest in a 401k or IRA, invested in index funds. Index funds are a great 80% approach, because: -…
Saving is tough to master. I wish more people would embrace the emergency fund. It's so nice to have. You don't really need to worry about any catastrophes and if you want to splurge, you've got the money to take care of it.
But, anything above your emergency amount, put that money to work. Funds that pay dividends are also nice to haves.
I believe in the 80% solution. Put your money to work rather than stuffing it in a mattress, but favor the 80%-of-optimal solution that's easy to set and forget, instead of the 100%-optimal solution that requires micromanagement, expertise, and luck. To that end, keep only a little in savings (emergency fund), and put the rest in a 401k or IRA, invested in index funds. Index funds are a great 80% approach, because: -…
This is probably, like, a horrible way to do things. But I try to find a company (1-10 billion market cap) that I personally believe in, but saw-tooths a lot. I usually check-in once a day and watch it go up and down. I then guess if I think it is sort of on a crest up or down, then buy or sell accordingly. And never accept a loss on a trade. Instead just sit on the shares until they are in the black. And example wou…
I did that before too! Honestly, it did feel like gambling a bit. It worked until the company one day went bankrupt. After that I started looking at newsletter service like Motley Fool, but curious to see if there are other services that people recommend. I have looked at Personal Capital (iPhone app), but haven't booked a session with them yet. Personally, I have been a turned off by financial advisors.
Yeah, most people don't seem to think very much of this strategy (I'm even down-voted?), and no one talks about it. But I'm not sure why. I hear about the crappy 5% a year or whatever returns people get, which just never seems very good to me. But, idk, maybe I'll lose all my money one day. That's a real possibility as I spurn most advice I get.
Anyway, Good luck!