MWil23 Posted October 14, 2020 Share Posted October 14, 2020 2 hours ago, El Ramster said: Whose the master here? I did good last week made 500 on Scott’s miracle grow. They bought some medical cannabis companies! And I did good. So I sold my stocks took out the profit and invested 1400 on American Airlines. I’m playing the long game 6-12 months. Is this the right strat! I’m getting killed right now but I have to stay disciplined. was I stupid to sell my stocks and invest money in a downward spiral stock? Or do I have vision. im just getting into it and i somewhat like it. 2 hours ago, El Ramster said: I love this thread. I wanna read it all. IMO @ramssuperbowl99 has really helped jump start me on some goals, which are to essentially dump a crap ton of money into mutual funds (95 aggressive, 5 conservative) to get a compounded rate of return somewhere in the 7-12% range, with it being up 18% for me in the last 2 years. My goals are basically to "not touch it" for a LONG TIME (check out a compound interest calculator over a period of 25-30 years) and then have that money work for me. To put it into perspective, if you started out with $10,000 and then were able to invest $10,000 annually for 30 years at a 7% return, you'd end up with $1,086,853. A 7% return is a fairly conservative return, as some say factor in 10-11%. A 10% return on that would be $1,983,928. A compound interest calculator looks like this: (http://www.moneychimp.com/calculator/compound_interest_calculator.htm) Quote Inputs Current Principal: $ Annual Addition: $ Years to grow: Interest Rate: % Compound interest time(s) annually Make additions at start end of each compounding period Results Future Value: $ Compound Interest Formula FV = P (1 + r / n)Yn where P is the starting principal, r is the annual interest rate, Y is the number of years invested, and n is the number of compounding periods per year. FV is the future value, meaning the amount the principal grows to after Y years. Understanding the Formula Suppose you open an account that pays a guaranteed interest rate, compounded annually. You make no further contributions; you just leave your money alone and let compound interest work its magic. The balance your account has grown to at some point in the future is known as the future value of your starting principal. To find a formula for future value, we'll write P for your starting principal, and r for the rate of return expressed as a decimal. (So if the interest rate is 5%, r equals .05). Your balance will grow according to the following schedule: Year Balance Now P 1 P + rP 2 (P + rP) + r(P + rP) This starts to get messy in a hurry. But you can simplify it by noticing that you can keep pulling out factors of (1 + r) from each line. If you do that, the balances collapse to a simple pattern: Year Balance Now P 1 P(1 + r) 2 P(1 + r)2 If you follow this pattern out for Y years, you get the general formula for future value: 1. FV = P (1 + r)Y That's to compound once per year. More generally, if you want to compound n times per year, you use: 2. FV = P (1 + r / n)Yn Example Let's say you want to invest $1000 at 5% interest, compounded annually. At the end of ten years, your balance would be FV = $1000 x (1 + .05)10 which equals $1628.89. If the interest was compounded monthly instead of annually, you'd get FV = $1000 x (1 + .05/12)120 which equals $1647.01. Philosophical Digression on Interest At some point you should ask yourself why interest even exists - that is, why you can deposit money in a bank account and then earn more money without working. The answer is that money is a useful thing, and interest is the rent that the bank pays to the money's owner (that's you) for the privilege of using it. The typical way they'll use it is to rent it to somebody else, in the form of a mortgage or a car loan, for example. As long as the rent they get is higher than the rent they pay you, all will be well. As far as compound interest (earning "interest on your interest") - suppose you deposit $1000 in a bank account that pays five percent interest annually. At the end of one year, your balance will have grown by $50 (that's five percent of your starting thousand) to $1050. Assuming you leave the entire $1050 in your account, the interest you get during the next year will be greater - five percent of the entire $1050. So compound interest is nothing mysterious; it's just a fixed rate of "rent" on your ever-growing principal. Balance: $ (People like to say that Einstein thought compound interest was a fascinating concept. Well... maybe someone named Al Einstein really did think that, but he wasn't the way-smart dude with the crazy hair. Compound interest is nothing more than renting money.) Another Digression, on Economics In the middle of the Great Depression, John Maynard Keynes said "interest has been usually regarded as the reward of [saving], whereas in fact it is the reward of not-hoarding." By "hoarding" he was referring to people's habit of hiding money in their mattresses instead of putting it in a bank account, out of fear that a bank failure could wipe out their savings. Hoarding may have been intelligent behavior for individuals, but it was bad news for the economy because all that potentially useful money was being hidden where it could not be put to use. Today, this problem has been solved: the FDIC insures bank accounts (up to a limit), making old-style hoarding obsolete. The creation of the FDIC is an example of good government policy: it aligned people's personal goals (to keep their money safe) with the national economic interest (to keep the country's wealth available for productive use). (Also see more compounding to compound interest periodically or continuously, and basic investment for compound interest with annual additions, plus the simple interest calculator.) TL; DR IMO if you want to play the long game, do this 1 Quote Link to comment Share on other sites More sharing options...
PrplChilPill Posted October 14, 2020 Share Posted October 14, 2020 A personal story..... I had a high paying job. We got/bought a lot of stock during those 9.5 years, and it went up a lot. Then, I got laid off (after we moved across the country where I have zero network). I took time to get my head straight (wrote a novel I hope to fix and publish) and then launched a web site. Unfortunately, everyone that said they'd help did not, and that died after 8 -12 months when I realized I just didn't love the topic enough. Then the pandemic hit....And it is hard to find a job (and, frankly, I'm not looking SUPER hard). During the time I had the high paying job, our sons were in college. Most of my friends sold their stock to help their kids pay for college, while we had our sons borrow money (and we would pay off the loans, some of them, over time). That allowed us to keep the stocks, which kept going up. Now? Now we can use those stocks to pay bills in the months my wife's business (did I mention we bought her a business when we moved, with some of the stock?) does not pay them. Moral? It's great to have less mortgage and student loans. It really is.....but sometimes it is great to have lots of "savings" in the market too. We never expected to need that money until our 60s....... I have one simple stock rule: don't sell a stock unless you need the money. Even then, if you can borrow the money at a low interest rate, that's better.....as long as you keep your debt in line. 1 Quote Link to comment Share on other sites More sharing options...
Fresh Prince Posted October 14, 2020 Share Posted October 14, 2020 (edited) 2 hours ago, El Ramster said: Whose the master here? I did good last week made 500 on Scott’s miracle grow. They bought some medical cannabis companies! And I did good. So I sold my stocks took out the profit and invested 1400 on American Airlines. I’m playing the long game 6-12 months. Is this the right strat! I’m getting killed right now but I have to stay disciplined. was I stupid to sell my stocks and invest money in a downward spiral stock? Or do I have vision. im just getting into it and i somewhat like it. Invest in NIO. Bought in at $13 it’s now $26. When they expand to Europe next year, stock will go up even higher. Edited October 14, 2020 by Fresh Prince Quote Link to comment Share on other sites More sharing options...
El Ramster Posted October 14, 2020 Share Posted October 14, 2020 9 minutes ago, Fresh Prince said: Invest in NIO. Bought in at $13 it’s now $26. When they expand to Europe next year, stock will go up even higher. Ty. Brody. How much have you invested into it. And when do you see them expanding to Europa. Quote Link to comment Share on other sites More sharing options...
Fresh Prince Posted October 14, 2020 Share Posted October 14, 2020 1 hour ago, El Ramster said: Ty. Brody. How much have you invested into it. And when do you see them expanding to Europa. Over 10K. Got this info off a website The Chinese electric car startup Nio wants to implement its expansion plans faster than originally planned. Nio currently operates exclusively in China – now first vehicles from the manufacturer are to be offered in Europe as early as the second half of 2021. Company CEO William Li announced that the brand is to be represented in the most important global markets by 2023/2024. In Europe, Nio initially plans to compete in individual countries but has not yet revealed which countries these will be. Quote Link to comment Share on other sites More sharing options...
El Ramster Posted October 14, 2020 Share Posted October 14, 2020 10 racks my boy.. That’s a gamble! Hope it all pans out for you. Hope nothing but big success your way. Quote Link to comment Share on other sites More sharing options...
Fresh Prince Posted October 14, 2020 Share Posted October 14, 2020 7 minutes ago, El Ramster said: 10 racks my boy.. That’s a gamble! Hope it all pans out for you. Hope nothing but big success your way. Thanks bro. Definitely a gamble but so far it’s paying off. Hold long term that’s for sure Quote Link to comment Share on other sites More sharing options...
El Ramster Posted October 14, 2020 Share Posted October 14, 2020 1 minute ago, Fresh Prince said: Thanks bro. Definitely a gamble but so far it’s paying off. Hold long term that’s for sure It’s 26$ right now and going up up. At one point do you sell Lol. I just bought 600$ worth. Ima see how it does. Might buy more. That’s deff along the line of my 6-12 month plan. Quote Link to comment Share on other sites More sharing options...
GSUeagles14 Posted October 14, 2020 Share Posted October 14, 2020 7 minutes ago, El Ramster said: 10 racks my boy.. That’s a gamble! Hope it all pans out for you. Hope nothing but big success your way. theres a bunch of them that have good upside... the trouble is finding them at the right time. peix is another good one, could have an upside of $17-20 in a few years. Quote Link to comment Share on other sites More sharing options...
Fresh Prince Posted October 14, 2020 Share Posted October 14, 2020 (edited) 5 minutes ago, El Ramster said: It’s 26$ right now and going up up. At one point do you sell Lol. I just bought 600$ worth. Ima see how it does. Might buy more. That’s deff along the line of my 6-12 month plan. I keep asking myself that question. I don’t think it’ll ever hit tesla’s 2000 a share but if it could hit $100-150 in a year or two, palms will get sweaty lol. wants to boost production to 150,000 cars by next year and 300,000 in 2022. Now if they could just sell that much. Damn I’ll be a rich man Edited October 14, 2020 by Fresh Prince Quote Link to comment Share on other sites More sharing options...
Sad People Posted October 15, 2020 Share Posted October 15, 2020 Just found this thread and am excited for it. I know next to nothing about investing but am at the age (27) where I need to start thinking about my future. read a lot about Roth IRA accounts in this thread, do most banks offer them? And if so do they work like a normal saving account where you put money in and it earns you interest unlike a traditional savings account? stuff like this makes me nervous because I’ve done absolutely nothing for me future. What would be a good spot to start learning about investing and what not? Quote Link to comment Share on other sites More sharing options...
TLO Posted October 15, 2020 Share Posted October 15, 2020 39 minutes ago, mattyice0401 said: Just found this thread and am excited for it. I know next to nothing about investing but am at the age (27) where I need to start thinking about my future. read a lot about Roth IRA accounts in this thread, do most banks offer them? And if so do they work like a normal saving account where you put money in and it earns you interest unlike a traditional savings account? stuff like this makes me nervous because I’ve done absolutely nothing for me future. What would be a good spot to start learning about investing and what not? I’d recommend opening an account with Vanguard. Park all your money in their SP500 index fund or target retirement fund, and you will be a winner. you’ll get the ups and downs of the market, but you’ll come out ahead over the next 40 years. Just don’t do anything dumb (i.e. sell) in the down times. Not really like a traditional savings accounts that pays essentially nothing. Also mwill should just take his excess cash to Vegas tbh 1 Quote Link to comment Share on other sites More sharing options...
MacReady Posted October 15, 2020 Share Posted October 15, 2020 I don't know why nobody listens to me. If you're talking massive amounts - 10,000 dollars or more you want to invest - put it into a Roth IRA account or go with a brokerage firm. Start a Roth IRA account regardless of how much money you have to invest with first of all. But if you're talking getting started? 10, 20, 50, 100 dollars at a time here and there? Get Stash. Get Robinhood. Just do it. I didn't know what I was doing when I started and I "didn't know what I was doing" to a lot of money. A whole lot of money. Quote Link to comment Share on other sites More sharing options...
Heimdallr Posted October 15, 2020 Share Posted October 15, 2020 Anyone with more than standard USA investment planning (max IRA, HSA, 410k match) is just fine. Anything beyond that puts you in the top 5% of world population and you can do whatever you want (within reason). Quote Link to comment Share on other sites More sharing options...
twslhs20 Posted October 15, 2020 Share Posted October 15, 2020 1 hour ago, mattyice0401 said: Just found this thread and am excited for it. I know next to nothing about investing but am at the age (27) where I need to start thinking about my future. read a lot about Roth IRA accounts in this thread, do most banks offer them? And if so do they work like a normal saving account where you put money in and it earns you interest unlike a traditional savings account? stuff like this makes me nervous because I’ve done absolutely nothing for me future. What would be a good spot to start learning about investing and what not? Invest in books and listen to podcasts. Maybe a securities class on coursera or udemy. Self education is the best foot forward. Quote Link to comment Share on other sites More sharing options...
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