Can anyone explain to me to benefits of long term Investments?

Compound interest.

>>1112833
If you choose companies that perform steadily and pay a dividend, it's like putting money in a bank with decent interest rates.

Also you're not paying trading fees every time the market jerks a point in one direction or the other. Those trading fees go into merchant's pocket you know.

the idea is that the stock market generally grows steadily so you're better off just sitting on your portfolio than trying to trade and getting fucked by fees

but that's not really true anyway because we're likely on the verge of another collapse

>>1112833
Better tax structure. For long term capital gains, you are taxed lower than short term capital gains.

That being said, you have to do VERY well to make more than the market as a trader.

So I should get myself ETFs (Indexfunds) on a broad market and follow a buy and hold strategy?

But when would ever be a good time to sell out?

>>1112833
Another point not made by the hipsters in this thread is this from an oldfag:

At some point in the future (if you are alive to that point) lets say 30 years from now, most of the people in your trade or industry will have retired and you won't have as many contacts to help you with employment. Younf people born 5 years ago will be running things and they won't want to hire your old ass. So, as you become less and less employable, those "buy and hold" investments you made 30 years ago are paying you almost what you make annually at your retirement age. So, you tell everyone to kiss your ass, retire and start bringing home the big checks from your diversified investment portfolio.

That's another reason to buy and hold.

I just opend a free Depot since I have been interested in ETFs for a while now. ( I am a complete beginner)

I just kinda want to buy one or two and "see what happends", but there is something very basic that simply doesn't get adressed in every text or video about this topic I see. I really don't get how to get money out of it.

So lets say I buy X for 100$ and wait like 50 years, in these 50 years the value of X raised to 105$, so (ignoring the fees) I sell and made 5$ profit in these 50 years?

I know it couldn't possibly be this way but this is seriously all I got.

Anyone got a good video that simply explains all the very basic things about how money actually returns to me and in what form?

>>1113532
You dont buy ETFs for 100 bucks.
You buy ETFs for 100 bucks each month.

Then by accumulating the dividends and also investing them into the ETF and by selling at a point where the ETF is high (you will be buying during low and high phases so this is profit as well) you can get a decent profit.

>>1112833
Because people can't predict what's going to happen tomorrow, but they know the S&P is going to go up long term at an average of 8% per year for the next 40 years.

>>1113532
For most of your life, you will hopefully be a net saver. Meaning that you'll be investing regularly and, ideally, not withdrawing at all. You'll life on your wages/salary, and invest the money that you don't spend.

Eventually, by choice or by age, your wages/salary will end (i.e., you will retire). At that point, you'll probably become a net spender, meaning that you'll be withdrawing from your investments. By that time, hopefully you'll have saved enough that you can safely withdraw the amounts you need or want to have the kind of retirement you desire. Save too little, and your golden years are going to be shitty. Save enough, and you'll live like a king.

Question about dividends,

If I purchase stock x Friday and dividends are paid Monday, do I get paid or is there a waiting period?

Sorry completely new to stocks and didn't want to make a new thread.

>>1115096
As long as you buy BEFORE the ex div date you will get those divs on the payout date

Dividends are announced, in advance, in the following format:

"Anyone who owns ABC stock at the close of markets on X date (the ex-dividend date) will be paid $Y dividend (per share) on Z date (the payment date)."

>>1114598
>>1115406

Are the dividends actually worth it or are we talking about pennys, in general?

So basically the idea is, to keep buying whatever ETFs I choose and at some point hope that I get to sell them for more of what I paid?

I understand there is a risk factor, though a rather small one with ETF, but is the profit I could make worth it instead of just letting my money sit on a bank?

>>1115464
It varies, and dividends are not required (so their is some enhanced risk) but good dividend stocks pay a rate competitive with, or slightly higher than bonds on the long term.

>>1115464
it's pretty much pennies. if i recall recreckly, it's like 1-2% share price/annually. it's still better than any bank/credit union.

What do you guys think of ETF's that pay monthly dividends like SDIV? It yields about 8% yearly, though its been performing badly as of late.

Its also pretty diversified, own stocks in different countries and different sectors.

>>1112833
speaking of long term investments,

what about permanent life insurance with dividends or whatever?

>>1112833
Read the book titled "Stocks for the Long Run" everything you need to know is there.

How do you invest in ETF or index funds?

>>1116013
Insurance products are ALWAYS terrible investment vehicles. There's always a catch (usually taxes or distributions) and the fees will murder your returns.

>>1112833
As long as you hold on, in the long run the only way you're screwed is if something really bad happens, then everyone is screwed. It's a "failproof" strategy.

Because trading takes much more expertise and dedication.