OFFICIAL STOCK MARKET AND ECONOMY THREAD VOL. A NEW CHAPTER

[turbospartan]

I have a chunk of cash I had been holding to purchase a rental property... but I should've put it into crypto / stocks for the last year+. I think I've made about $200 in "HIGH YIELD" interest...

 

[206to813]

I’m also on team don’t hold any cash.
I be living check to check cuz I dump all my money into assets but I live well below my means so it’s gravy.

Same

paycheck to paycheck life

#brokeboys

 

[superantigen]

Y'all wild...lol

I've got dependents and a mortgage. I need cash in the bank..lol. I'd probably consider yoloing all my funds into the market if I was a bachelor, but I'm not...so there's that.

You never know when you'll need money. And you don't want to need your money at the very moment the market tanks, so it's wise to keep some bread on you always.


...

 

[antidope]

Y'all wild...lol

I've got dependents and a mortgage. I need cash in the bank..lol. I'd probably consider yoloing all my funds into the market if I was a bachelor, but I'm not...so there's that.

You never know when you'll need money. And you don't want to need your money at the very moment the market tanks, so it's wise to keep some bread on you always.


...

For the latter piece that's what the paychecks cover. I organically DCA

 

[johnnyredstorm]

sort of a financial advice question, but how much cash do you guys typically keep stowed away in a plain savings account? fairly new to investing, but I imagine its more beneficial to throw all your savings into a S&P 500 fund?

I have $100 in my savings

 

[アミーゴ]

I’m so curious where some of y’all learned economics/finance

 

[truss]

Higher leverage means higher default risk

A proven method where return of borrowed money > cost of debt justifies higher levereage

 

[ballinsam23]

If You have no mouths to feed, really no point having too much cash on the side. Maybe enough to cover an emergency.

 

[アミーゴ]

I love y’all but this thread makes my brain hurt

 

[206to813]

I’m so curious where some of y’all learned economics/finance

You know damn well that y’all with a finance related degree are the 1%
Rest of us learned from the streets

and Twitter and YouTube lol

 

[Based Jesus]

I keep just enough cash to pay my bills. Everything else goes into the market.
I'd have significantly less money if I still kept around the amount of cash I used to.

 

[truss]

Ex-McKinsey partner pleads guilty to insider trading in Goldman Sachs fintech deal

Dik**** plead guilty to one count of securities fraud, which brings a maximum prison sentence of 20 years.

www.cnbc.com

Crazy

 

[アミーゴ]

Ex-McKinsey partner pleads guilty to insider trading in Goldman Sachs fintech deal

Dik**** plead guilty to one count of securities fraud, which brings a maximum prison sentence of 20 years.

www.cnbc.com

Crazy

McKinsey is the devil

 

[biggie62]

All the ****ty consulting jobs over the past 3 decades can all be traced to that ****ty firm. Yet people still throw millions at them

let alone the work they do with shady governments.

 

[アミーゴ]

All the ****ty consulting jobs over the past 3 decades can all be traced to that ****ty firm. Yet people still throw millions at them

let alone the work they do with shady governments.

Everyone I know left but their souls have been gone for years

 

[truss]

They make you do a convoluted animal survival video game as a part of the application

 

[アミーゴ]

They make you do a convoluted animal survival video game as a part of the application

Do they? Bob just comes off as an awkward dude

 

[Brownstone]

All the ****ty consulting jobs over the past 3 decades can all be traced to that ****ty firm. Yet people still throw millions at them

let alone the work they do with shady governments.

Not to mention the weirdos that work there (yes generalization)

 

[OprahsBabyDaddy6]

Premarket got me with the dwade pump fake this morning, smh

 

[htg designs]

Finally able to start my $AMD position. Need more strong proven growth companies in my port. Played around too much with the speculatives. Made some money, lost money. But Im tryna get some real hitters and minimize my allocation to risky plays. Wanna get into $NVDA too, now would be a good time but I might have to wait

 

[s0rtega22]

USE DEBT TO YOUR ADVANTAGE

GOOD LAD. Gotta use them like they use you!

Yo, sorry for the rookie question here...but care to elaborate? We just bought our first house and I had the plan to toss a little more dough at it each month to go towards the principal.

It's funny how much of this (to me) is mental. Growing up in a family with a ton of debt, the goal has always been to eliminate it at all cost and "save for rainy day" in a traditional sense -ie banks. I am starting to understand the basics of the market and simple concepts like Index Funds vs a Savings Account (no brainer), but making it into an actual practice is hard work. Just want to keep learning and make sure i'm strategic on these first-time plays like purchasing a home.

Appreciate ya'll.

 

[antidope]

Yo, sorry for the rookie question here...but care to elaborate? We just bought our first house and I had the plan to toss a little more dough at it each month to go towards the principal.

It's funny how much of this (to me) is mental. Growing up in a family with a ton of debt, the goal has always been to eliminate it at all cost and "save for rainy day" in a traditional sense -ie banks. I am starting to understand the basics of the market and simple concepts like Index Funds vs a Savings Account (no brainer), but making it into an actual practice is hard work. Just want to keep learning and make sure i'm strategic on these first-time plays like purchasing a home.

Appreciate ya'll.

The math doesn't support it, it would tell you to invest that money. Over the last ten years (12/01/2011 to 11/30/2021) a 50/50 Stock & Bond Portfolio (using 50% S&P 500 & 50% Bloomberg Barclays) has returned +9.32% annualized.

If you're truly just trying to play the numbers, paying off a mortgage (or any sort of really cheap debt) early doesn't make financial sense if you had the option of investing that surplus vs using it to pay down debt. But its definitely more about just math.

Like you said there's a lot of emotion tied to it and it should be respected. I know people who have tens of millions of dollars who still won't do leverage even though it wouldn't hurt them at all and they just pay for everything cash. It's bad finance but what are you gonna do.

 

[sole searchin]

Psychology of money.

People just want to see a certain amount in their accounts liquid or be debt free. I’m guilty of that also stupidly

 

[turbospartan]

Basically as long as your investing return rate is greater than your mortgage interest rate... you should invest instead of paying extra on the loan.

 

[gvhp2223]

Yo, sorry for the rookie question here...but care to elaborate? We just bought our first house and I had the plan to toss a little more dough at it each month to go towards the principal.

It's funny how much of this (to me) is mental. Growing up in a family with a ton of debt, the goal has always been to eliminate it at all cost and "save for rainy day" in a traditional sense -ie banks. I am starting to understand the basics of the market and simple concepts like Index Funds vs a Savings Account (no brainer), but making it into an actual practice is hard work. Just want to keep learning and make sure i'm strategic on these first-time plays like purchasing a home.

Appreciate ya'll.

a) put $10,000 towards your mortgage principal to save yourself $350 a year in interest.

b) don't save $350 a year on your mortgage. put $10,000 into an index fund and make $850 in interest the first year and then compounded after that. $922 the second year, $1000 the third year and so on.


What sounds better?