How wealth dies
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How wealth dies
1–10 of 85 posts
Re: How wealth dies
#2Ok, this seems like a good post. At the end of the day, what do I, as a single investor, do? I'm 50 years old, 2 kids in college, I have a $300,000 mortgage on a house presently worth $1M. I have $300,000 cash and an open eTrade account.
What do I do with the cash?
A) keep it as cash
B) Pay off the mortgage
C) Buy some QQQ
D) Buy some T-notes
E) there is no E. I am a simple man. Let's start with a simple solution.
Re: How wealth dies
#3Posts like this make me want to hurry up and buy a farm
Re: How wealth dies
#4Ok, this seems like a good post. At the end of the day, what do I, as a single investor, do? I'm 50 years old, 2 kids in college, I have a $300,000 mortgage on a house presently worth $1M. I have $300,000 cash and an open eTrade account. What do I do with the cash? A) keep it as cash B) Pay off the mortgage C) Buy some QQQ D) Buy some T-notes E) there is no E. I am a simple man. Let's start with a simple solution.
maybe learn about options. do some practice trading. Theory is one thing, patience and common sense are other things. Above all be very, very careful, but have fun.
The practice part is important but when you are comfortable, nibble a little with small amounts.
Re: How wealth dies
#5Ok, this seems like a good post. At the end of the day, what do I, as a single investor, do? I'm 50 years old, 2 kids in college, I have a $300,000 mortgage on a house presently worth $1M. I have $300,000 cash and an open eTrade account. What do I do with the cash? A) keep it as cash B) Pay off the mortgage C) Buy some QQQ D) Buy some T-notes E) there is no E. I am a simple man. Let's start with a simple solution.
No one can give you an answer to this but you because it depends on what you value.
Re: How wealth dies
#6Ok, this seems like a good post. At the end of the day, what do I, as a single investor, do? I'm 50 years old, 2 kids in college, I have a $300,000 mortgage on a house presently worth $1M. I have $300,000 cash and an open eTrade account. What do I do with the cash? A) keep it as cash B) Pay off the mortgage C) Buy some QQQ D) Buy some T-notes E) there is no E. I am a simple man. Let's start with a simple solution.
C. it's the only one that has you in the arena. There's no guaranteed outcome, but money itself is a team-sport.
I'm a simple man myself, so I'm answering in order to verify my own reasoning.
A. will have negative returns from inflation. D. defends against inflation but is too conservative. B. There's arguably negative value in holding more equity in terms of opportunity cost since you already have > 200% position in equity. source: I believe this guy https://www.youtube.com/watch?v=j4H9LL7A-nQ
Re: How wealth dies
#7Ok, this seems like a good post. At the end of the day, what do I, as a single investor, do? I'm 50 years old, 2 kids in college, I have a $300,000 mortgage on a house presently worth $1M. I have $300,000 cash and an open eTrade account. What do I do with the cash? A) keep it as cash B) Pay off the mortgage C) Buy some QQQ D) Buy some T-notes E) there is no E. I am a simple man. Let's start with a simple solution.
Why is this hard? Calculate the expected value of each option, do a risk analysis, apply risk factor (based on your own tolerance), biggest number wins.
Re: How wealth dies
#8> On this basis, global material prosperity has grown by 25% since 2004, which is nowhere near claimed “growth” of 96% in real GDP over that period. Moreover, the 25% rise in aggregate prosperity has been matched by the rise in population numbers over those twenty years.
This assumes that the GDP growth and the material prosperity are in a simple linear relation. I don't think this makes sense.
A small solar panel that can charge battery-powered night lights and a couple of cell phones produces negligible energy. Just a few minutes of air-conditioning consumption for a house in the US. Yet it can completely transform the life of households in an African town.
Re: How wealth dies
#9Ok, this seems like a good post. At the end of the day, what do I, as a single investor, do? I'm 50 years old, 2 kids in college, I have a $300,000 mortgage on a house presently worth $1M. I have $300,000 cash and an open eTrade account. What do I do with the cash? A) keep it as cash B) Pay off the mortgage C) Buy some QQQ D) Buy some T-notes E) there is no E. I am a simple man. Let's start with a simple solution.
Whatever you decide, be aware of the following:
- You will sleep 5% better every night from here on out if your mortgage is paid off
- You'll sleep 5% worse every night from here on out if you have 300k riding in the markets
Re: How wealth dies
#10Ok, this seems like a good post. At the end of the day, what do I, as a single investor, do? I'm 50 years old, 2 kids in college, I have a $300,000 mortgage on a house presently worth $1M. I have $300,000 cash and an open eTrade account. What do I do with the cash? A) keep it as cash B) Pay off the mortgage C) Buy some QQQ D) Buy some T-notes E) there is no E. I am a simple man. Let's start with a simple solution.
I don't have any answers but you definitely need some cash. How much? I have no idea.
With the rest, I would put some in a vanguard account. And then invest where? I want to say index funds but the market is very strange. The biggest companies have too much wealth soaked up. Is this sustainable? Is this a bubble? Who knows...