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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

#161

Post by skeeter2020 »

ffsm8 wrote: post #138
ashleyn wrote: post #125

Earlier quoted context omitted.

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.

It remains to be seen what's going to happen over the next few decades. It's entirely possible that it'll all get wiped out (the substantial gains, not all value). While the market was a very good bet for the last 50yrs, its not a guarantee. Especially in the current climate you should be fully aware that it's significantly more risky to start investing today vs 10 yrs ago. (Riskier doesn't mean it's necessarily a ba…

>> Especially in the current climate you should be fully aware that it's significantly more risky to start investing today vs 10 yrs ago.

First, I don't think this absolute statement is true; I think you need to look at it from the alternatives perspective. If not investing then what? bury gold? spend it all?

Second, are we at a much riskier time than past history, both short & long term? I made significant contributions in 2014, saw 30%+ wiped out within 6 months and seen it all come back and more with the power of long timeframes.

Third, investment can take a lot of forms, not just today's hot tech stocks. I won't get into it beyond the standard think long term and avoid leverage, which seems to be completely inline with start early; start now.

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

#162

Post by thw_9a83c »

Nice! I also created a "virtual bank account" for my kids when they were 7-8yo. They can choose to take the weekly cash or put it in their savings account. My bank gives them a 5% interest rate per month, which isn't bad. Explaining the idea of compound interest this way is easy.

However, I think that's the easier part of being an investor. The more complicated part is risk management. With a savings account, there is basically zero risk. But that's not how you invest these days.

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

#163

Post by random9749832 »

vslira wrote: post #78
johntiror wrote: post #73

There’s an old story about Rothschild getting a haircut when the barber started giving him stock tips. Rothschild thanked him, left the shop, and immediately sold all his holdings. The reason was: “When even the barber is investing, the market’s gone too far.” I might be wrong, but reading this, I couldn’t help but think: if we’ve reached the point where we’re building apps to get our kids into investing, maybe we’re…

The reasonable interpretation of such a project is not to pump the stock market even higher by getting children to invest their savings into it, but to inculcate the habits of investing over time so they can do it properly as adults. I'm sure Mr. Rothschild would be fine with this learning tool.

Narrative: You are teaching about the intricacies of finance and the stock market.

Reality: Dump everything into Nvidia / S&P 500. Number go up.

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

#164

Post by koakuma-chan »

aners_xyz wrote: post #159
koakuma-chan wrote: post #134

Earlier quoted context omitted.

Even when it crashes it's like 20% no? It's not actually that big of a deal.

I’m sorry but 20% of a retirement fund is a lot of money.

It may be a lot of money but it shouldn't matter because you don't need all of it right away.

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

#165

Post by UK-Al05 »

exitb wrote: post #77
nxor wrote: post #61

Earlier quoted context omitted.

In what way are you doing that? Not that I disagree just curious how

The simple way would be to not "manage" your finances, don't build an investment portfolio. Have an honest work, live happily within your means and save whatever's left in cash.

I don't think you understand. In the US you have to invest, or you simply won't retire before you die.

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

#166

Post by zipy124 »

Esophagus4 wrote: post #44
Sammi wrote: post #21

Earlier quoted context omitted.

Source: "Since 1957, the S&P 500 has delivered an average annual return of 10.54%, but when adjusted for inflation, the real return drops to 6.68%." https://www.investopedia.com/ask/answers/042415/what-average... And on top of that there's huuuuuuuuge variance over time. You have to scale in and out of the market over a very long time to actually get the ~7%. Any one time investment is just a straight up gamble. It's…

Yes, the trick with houses is that it’s the only chance most retail can get 5:1 leverage. Your brokerage will never extend that to you to invest in equities. But without leverage, long run return of residential real estate is like 3% after costs, which is less than equities but above bonds. At least that’s what I tell myself as I go to sleep in my apartment, a non-homeowner watching people accumulate serious paper ga…

Leverage comes with a cost though through interest rates. It is entirely possible (and even typical) to come out with a loss even on appreciating real estate, since your house must appreciate by more than the interest on your loan. In the UK at-least you can get 1:5 leverage on equities, but you'd be looking at a 20-25% APR, instead of the 5% mortage.

The paper "the real return on everything" notably cuts off in 2010 and is talking about global averages, if you narrow it down to specific countries we can see stark differences. In the USA and UK you get 8.4% and 7.2% returns on equity, but only 6.03% and 5.36% returns on housing, a stark difference. Adding in mortage leverage adds on about a percent or so of return, thus still not bringing housing in-line with equities.

If we narrow our window to post 1980, we see in the UK returns of 9.34, 6.81 and 6.67 % for equity, housing and bonds. If we look at post 2010 in the uk, house prices have only stayed the same or decreased in real terms since then in the uk for instance, whilst equities have soared.

They also in the paper assume bond yields are roughly the same as mortage interest rates, which maybe was true for their data period, but hasn't been true since 2010 (https://www.housepricecrash.co.uk/forum/uploads/monthly_2022...)

Finally you can diversify equities globally, you cannot diversify your housing globally (if using leverage in a mortage).

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

#167

Post by random9749832 »

johntiror wrote: post #73

There’s an old story about Rothschild getting a haircut when the barber started giving him stock tips. Rothschild thanked him, left the shop, and immediately sold all his holdings. The reason was: “When even the barber is investing, the market’s gone too far.” I might be wrong, but reading this, I couldn’t help but think: if we’ve reached the point where we’re building apps to get our kids into investing, maybe we’re…

Greed is at a 21st century high. I am just waiting for the rugpull moment when billionaires decide the show is over (https://seekingalpha.com/news/4464647-deeper-dive-the-wealth...).

Even George Hotz understands this is the symptom of a larger issue and it is going to end bad: https://geohot.github.io/blog/jekyll/update/2025/10/24/gambl...

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

#168

Post by skeeter2020 »

onli wrote: post #146
koakuma-chan wrote: post #127

Earlier quoted context omitted.

Your bank probably has an investment platform, you can just use it, it doesn't matter. My portfolio is 70% XEQT 30% CASH.TO—don't bother with anything else.

Oh, that can be bad advice. It does matter a lot if the bank asks for high fees, which would be the case with all(?) German banks, and I'd be surprised if that's different in Switzerland.

Banks don't typically charge any fees for a self-directed account that holds primarily ETFs, beyond maybe a small trade fee or account fee(?) - which we would never pay in North America. Active management of either your account or the products you hold is where they stick it to you. Each product will have a management fee which you should check, but you'll likely avoid the big bank and insurance company products because they do no better than the market funds and take more in fees so the returns suck.

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

#169

Post by Jaxan »

nxor wrote: post #95
ho_schi wrote: post #90

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 mostly agree but greed is a part of human nature is it not?

People keep repeating this. But why is it people’s nature. Maybe it is learned, because everyone keeps repeating this phrase!
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