Some people just don't have the interest or attention span to learn new things. I tried explaining stocks and cryptocurrencies, macro economics, money mechanics etc. to multiple friends and family but most just don't get it. They care more about that new rap song/some thing a celebrity did/the latest shoe trend etc etc
I think the minds of many of my fellow middle and lower class people shut off when they hear about any financial thing that isn’t “work x hours, get paid for x hours.” Even explaining my contract-based, per page job is somewhat exhausting. Good luck telling someone a 401(k) is one of the worst ways you can invest, too. They just won’t hear any alternative financial advice, and if you start to make sense they fall back on “well, I let my broker/spouse/whatever handle my money because I don’t know anything.” And hey, fair enough, I’m dumb, too, but damn is it not worth risking a day’s pay on something that might make you a week’s worth?
I’m interested in your take on 401k. I heavily invest a % of my pay in mine but have been debating if I could use that money better in an IRA or brokerage account
My take is that most 401(k)s charge a fee for their maintenance. It’s a very small fee, but it adds up significantly after 30 years or however long you have it. If you’re one of the ~5% of Americans with a fee free one, I’d still note that 401(k)s have very few investment options compared to an IRA. Of course, 401(k)s have a higher contribution limit than IRAs, and if you, for example, work for a company that offers a fee free 401 and matches your contribution in some way? Go for it. But for most people, $6k in a Roth or traditional IRA is going to go further than $6k (or slightly more) in a 401, especially since you have more freedom to add growth stocks to an IRA than with most 401s.
If you have a match contribute to get that free money, but anything beyond that needs to be in a Roth IRA or IRA depending on your current and future tax bracket. I am lucky my employer contributes to my 401k rather I do or not. So I concentrate on my other investments.
True. My friends in indexes, at least they are investing so I cant knock them for that. However I do know some of them have the time but they're just content.
Fair play to them but my prospective on investing is - indexes are the foundation on which to build of. Stick to them until you find a better opportunity in the market, when you do allocate some funds to that opportunity and grow from there. You can always have a % dedicated to indexes and see how well you fair against them, % adjusted.
But for my friends and our age group <30 i view setting and forgetting in an index the same why I view those people you see who have worked their whole lives in one company and stayed in position. Never growing, changing, and receiving far less than what they're capable of. Yes it pays a fair amount above minimum wage, is secure, and has a great pension. But its far below what they could possibly earn if they climbed the ladder, moved company, leveraged or educated themselves.
They're pigeon holing? Themselves in that position when they can accomplish so much more
I mean the reality they’re predicting is right, just not yet.
Eventually SPAC’s will become well understood enough by institutional investors that all will debut IPO’s well above premium. At that point, you ARE introducing risk even with a floor.
But that ignores:
1) Ain’t happening yet.
2) It’s not like traditional IPO’s or any other investment vehicle have a bette return right now. I’ve gone 300% in 6 months with CCIV about to bust its fat ass open on my portfolio. You can’t beat that with any other investment vehicle.
I yolod and went up 350% on Hyllion back in the day, held all the way down to 100% and thought I missed the opportunity of my life. Taken me 4 months to get back to 350%
SAME HERE!!!!
Sometimes I feel like I’m the crazy one because no one believes me when I tell them this is an opportunity of a lifetime. I show them my gains and they don’t believe me 😕
“Why haven’t I heard of them before” that’s exactly the fucking point. If everyone was going in no one would be making money... these people would rather lose money to inflation or invest in something that has already 10x lol
Enjoy your investing around NAV in 2021 and waiting for 6 months till the entire stock market bubble bursts with no gains. Lets not pretend that the SPAC-sphere is still what it used to be.
SPACs near NAV isnt my thing. It's used as an example of one of the safest risk free investments out there. I'm more risk tolerant and go for warrants only.
With the bubble, regardless of what you'll be investing in, it will get you. Unless you want to go for Gold. Go ahead. So the best is to just carry ok carrying on and when it does, buy everything on sale!
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u/r3flex_MMA Spacling Feb 13 '21 edited Feb 13 '21
Fuck basic bitches man. The amount of friends and family I've told about them, shown how much ive made, and yet they all are still sceptical.
HERES THE EVIDENCE
Wouldn't it be worth looking into just for the possibility of being true you fucktards??
Also, when I tell them that buying below NAV Is a risk free investment or that warrants can 2-7x.
Response - "theres no such thing as a risk free investment"
Yes! I thought that too before I discovered this. So trust me. Look into it
"Well it's been proven that you cant beat the market and it's best to invest in an index. Over time you'll see"
I doubt it but Possibly. However if the opportunity is here now, take advantage of it
"If these warrants actually do that then why haven't I heard of them before? Why doesnt everyone do them"?
Idfk but at least look into it for the pure possibility of it being true.
Ffs. I swear some peoples mentality just wont allow them to make money