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Ask HN: How do you invest?
1–10 of 14 posts
Re: Ask HN: How do you invest?
#2poorly.
now i just buy aaa bonds and sp500. lost too much gamblin' alreafy.
Re: Ask HN: How do you invest?
#3Haven't used it yet, but I'm intrigued by WealthFront.
Re: Ask HN: How do you invest?
#4Of the money I invest --
25% in Vanguard dividend growth index fund
25% in Vanguard total stock market index fund
25% in Vanguard total bond market index fund
25% in stocks I chose myself
Re: Ask HN: How do you invest?
#5bitcoin
Re: Ask HN: How do you invest?
#6I personally own (not through a broker) shares in a diversified portfolio of companies, all of which offer Dividend Reinvestment Plans with optional cash purchases of additional shares directly through the company's transfer agent. This means that I pay no fees when purchasing additional shares for my DRiPs, in fact, a lot of the companies I invest in offer discounts on shares purchased through their Share Purchase Plan. I mostly invest in large companies that pay reasonable dividends with long histories of stability and dividend payments/increases. My goal is to almost never stop buying, making use of dollar cost averaging, and earn a safe return that ought to still beat the market in order to save for retirement/other future investments.
Re: Ask HN: How do you invest?
#7I personally own (not through a broker) shares in a diversified portfolio of companies, all of which offer Dividend Reinvestment Plans with optional cash purchases of additional shares directly through the company's transfer agent. This means that I pay no fees when purchasing additional shares for my DRiPs, in fact, a lot of the companies I invest in offer discounts on shares purchased through their Share Purchase P…
Buying DRIP stock has a lot of tax complexity. You establish a new cost basis for stock with every dividend you receive. I.e. 4x a year.
Above all, the importance of recordkeeping cannot be
overstated. Unlike other tax-related documents, DRIP
statements, recording all reinvestments and OCPs,
should be kept indefinitely. [1]
[1] https://finance.yahoo.com/education/drip/dspp_plans/article/...
Re: Ask HN: How do you invest?
#8Read about asset allocation and mean variance optimization. The rest will follow.
Re: Ask HN: How do you invest?
#9Betterment and Bitcoin speculation for the most part. With the right knowledge, you can certainly outperform Betterment, but as a programmer I'm content just outsourcing that and saving that time for other things (like getting better at programming, for example, which implicitly earns me money as well).
Re: Ask HN: How do you invest?
#10I personally own (not through a broker) shares in a diversified portfolio of companies, all of which offer Dividend Reinvestment Plans with optional cash purchases of additional shares directly through the company's transfer agent. This means that I pay no fees when purchasing additional shares for my DRiPs, in fact, a lot of the companies I invest in offer discounts on shares purchased through their Share Purchase P…
Buying DRIP stock has a lot of tax complexity. You establish a new cost basis for stock with every dividend you receive. I.e. 4x a year. Above all, the importance of recordkeeping cannot be overstated. Unlike other tax-related documents, DRIP statements, recording all reinvestments and OCPs, should be kept indefinitely. [1] But if you die and leave everything to your heirs, all is forgiven. They get a brand new tax b…
Thanks for the advice. It is important not to overlook the downsides of any investment strategy, and I do keep very diligent records.
The downside to DRiPs as you mentioned is the amount of paperwork you have to do and the difficulty in selling. For me, however, I am willing to incur that cost for the upsides which are particularly maximized by my personal situation.
I am not sure about how difficult US taxes are, but in Canada they are fairly straightforward for someone adept at math and logic.