Non Retard General-Smart investors ediition

Common sense steps to financial freedom

1. Get a emergency fun that can cover 6 months of expenses

2. Start with your highest interest debt, pay it off and move to the next and the next etc until you are debt free

3. Put the money you were paying on debt into a s and p 500 type index fund, look for the lowest expense ratio you can find

Sit back and laugh as your networth grows like a weed and nu males in thier mid to late 20s are still browsing shit threads about crypto

>>1494165
>Welcome to the one and only non retard thread that will be posted on biz.
>posts a bunch of common sense meme shit
you played yourself my man

File: pepe.jpg (29KB, 399x385px) Image search: [Google]

29KB, 399x385px

>This thread is for Sensible working people

>>1494165
>implying I'm not a teenage Robinhood who already has large amounts invested in index funds, bonds, and blue chip stocks
Got a trust fund and invested all of it. I'm worth more than you and your parents combined. Who's the retard now.

>>1494189
>Who's the retard now.
YOU IF YOU DON'T GIMME YOUR LUNCH MONEY TRUSTIE-FAG.

File: tmp_19432-images-1205795904.jpg (3KB, 160x90px) Image search: [Google]

3KB, 160x90px

>>1494171
I disagree.

Paying off a ton of debt should only be done if it's affordable. If you have just enough money to survive 6 months, pay off a $10,000 credit card then get laid off a month later and knock up your slut gf you are fucked.

The more sensible approach would be to pay off enough debt to raise your credit score so you get 0% transfer offers. Then transfer what's left and make manageable payments on that, then at the last month pay it off or transfer to another 0%.

Get a better job with a 401k plan that has low fees or a company match. Put atleast enough to get the match. Take what you can after tax and put that in something else.

>>1494192
I though 4chan was a safe space
Plz no bully

Lol look at all these cryptotards getting triggered! You wouldn't post in my thread if you weren't triggered

>>1494217
the fuck's a cryptotard mate?

>>1494171
>a emergency fun

Yea. I'm out of this genius thread.

Reporting in

I'm transferring $20k into my broker account this week after deciding only to keep 3k in emergency fund. Will be buying etfs like $1.5k/mth for as long as I can

Is this a good idea? better than buying all at once I think

so, is there an online exchange for stocks like there are for crypto?

>pls no crypto-bullying

File: 2567285.jpg (19KB, 288x359px) Image search: [Google]

19KB, 288x359px

>>1494323
>so, is there an online exchange for stocks like there are for crypto?
>so, is there an online exchange for stocks

>>1494325
oh come on, just entertain a noob.

>>1494329
That doesn't make you a noob, it makes you retarded, friend.

>>1494330
whatever.

tell me how to get less retarded.

what the fuck do i even google?
"how to trade stocks online from home?"

>>1494329
>>1494331
Man wtf

Just search "what are stocks", "how are they traded" and look on investopedia

>>1494337
ok, thanks.

Ops advice is to save up money and pay off debt. Wow you're a fucking genius op. Good luck on waiting 20 years for your index funds to grow back after the bear destroys them.

>>1494366
Ye took so long to recover from 08

>>1494165
OK fellow normalfag. What do we talk about in this thread?

>>1494367
Don't get me wrong index funds are obviously a smart investment, but when the market crashes again it's fucked

>>1494382
If it crashes again it's an amazing time to buy. Everythings on sale!

I flip the burgers to perfection and wash the dishes sparkling clean at my job. Am I doing alright OP?

>>1494343
Pants on fucking head

File: 1462536564420.gif (2MB, 550x550px) Image search: [Google]

2MB, 550x550px

>>1494385
>market crashes when I get my bonus
Sign me up senpai

>>1494317
There are a lot of studies that have proven this to be a waste of time. Dump the whole 20k, get the ball rolling.

>>1494323
FUCKING RETARD

>>1494366
That is your problem retard, you clearly have no understanding of the market. Ideas like paying off debt and building wealth piss you off because your an autist.

There is not some secret trick thats gonna make you rich in a few years, I am sorry bro. If there was it would be exploited to fuck by eveyrone.

>>1494372
ITs a place to laugh at retards wasting there money on stupid shit. Also to talk about progress and common sense wealth building . >>1494388

>>1494382
hmmm I wonder what dollar cost averaging is?

Hmm I wonder why I made more money in 2010 then I lost in 2008 by a long shot.

Hmmm maybe you should stick to crptotarding

>>1494388
Yes! I know you are lying and a faggot. But anyone reading this that makes low wages listen up.

When I was in college I was working part time at a restraunt, I only made about 18k a year but I saved 9k every year.

It does not sound like much, but again you retards do not even understand compounding returns. When you are in your young 20s and saving 9k a year and then obviously more as you age you end up rich.. fast. Do not be an autist and think you are going to retire tomm. it wont happen. I will be done with work in my late 30s, in great shape.

File: burnspermalol.gif (2MB, 176x144px) Image search: [Google]

2MB, 176x144px

>>1494165
>non retard thread
>talking about debt

>>1494366

What is dollar cost averaging moron

>>1494790

Poor person detected

Has never heard of leverage

Max kek

>>1494778
>saved 9k a year from 18k/yr salary
>thinks that has anything to do with a compound annual growth rate

Also...

>obviously more as you age you end up rich... fast
>do not be an autist and think you are going to retire tomorrow, it won't happen

What kind of drugs are you on to have such contradictory opinions of your own life?

File: top.png (803KB, 600x600px) Image search: [Google]

803KB, 600x600px

>>1494778
>compounding returns

Enjoy your few thousand dollars profit when youre 60

>he doesn't know that crypto gods are banging his mum and wife

$BLOC$

File: 1473475503496.jpg (21KB, 240x320px) Image search: [Google]

21KB, 240x320px

>>1494165
>investing
>index funds

Fucking pick one faggot.

Why the fuck u gonna trust your money to a stock market?

I mean, i could see if u just have too much cash and nowhere to put it for a bit but my fuck anon. Get some oil leases and real estate or get in on ipo's.

>>1494189
It depends on what you are invested in, how much you know about it, and how much control you have over your income. Elaborate and 30 neckbeards shall judge you.

Fellas, we have a private /biz/ stock investing channel

anyone interested in joining?

Let me give all of you the first step towards being financially free and rich.

BUY PERSONAL FINANCE BOOKS AND READ THE MUTHERFUCKERS.

the more the better.

Dont matter if u want to read them or not.

I goddamn hare reading and they have made me thousands. Tens of thousands... in a few short years. With more comitment and risk i could potentially make hindreds of thousands next year but im a scared faggot and like to play low risk

Choose your asset allocation depending on age and goals- the older you are /closer to retirement/ more responsibilities you have, the higher the percent of your portfolio should be in low risk bonds- preferably government bonds- use an ETF tracker for your domestic government bond with 5-10 year maturities- this will provide plenty of liquidity- the rest of your portfolio should be made up of equity based products- if you are knowledgeable on Value investing go ahead and choose 15-20 stocks using conventional methods- if not ,to have your underlying equity exposure I would suggest either a global Dow type ETF or a combination of low fee ETFs which cover all major Geographical areas- maybe S&P 500, FTSE 100 and a broad emerging market ETF. This is just an example, as most of the users here are quite young I'd Suggest a split as follows- 5% Cash 15% Low risk Government bonds 80% Equity products- (Either ETF approach or Value investing selected stocks) Right know I would also suggest keep a couple of thousand in Gold as an insurance if the dollar goes to shit. Not than anyone here will fucking listen anyway- CFA Experienced Broker/Adviser

>>1494759
>There are a lot of studies that have proven this to be a waste of time. Dump the whole 20k, get the ball rolling.

Are you sure? Can you post some

Because I was under the impression that dollarcost averaging was superior as id be able to buy any impending dips as they came

I'm a college student (and gonna end up debt-free). What's a good, stable stock to invest in over the years?

File: 1470971493231.jpg (53KB, 600x600px) Image search: [Google]

53KB, 600x600px

>>1494165
I wish biz was more like this thread and less people talking about gamblin/day trading, useless crypto or scamming for money.

Too much shilling and speculatibg on useless shit.

File: 1469873626693.jpg (44KB, 486x563px) Image search: [Google]

44KB, 486x563px

>>1494171
>>1494193
Not op but I agree with antpic poster that paying down realistic debt and refinancing if you can obtain better credit is always ideal.

Also OP should have included obtaining a decent 50-90k job and paying into a 401k up to what your company matches. Anyone know which kind of roth one should sellect if company offers choice between two?

File: 1466388297666.png (326KB, 331x661px) Image search: [Google]

326KB, 331x661px

Does anyone have any experience with decent index fund alternatives, other funds I mean? What about REITs or commodity funds?

>>1495114
I always wondered this, but why curve down risk as you get older? As you get older you have less time to live and thus should feel better being more risky because if you get fucked youll be screwed for a shorter time. Why bother with bonds at all? Does that make sense? And otherwise this info is spot on and if these threads become regular it should be part of the sticky.

>>1495385
Read "A random walk down wallstreet" and consider S&P 500 index fund to start out. What dod you major in?

>>1494778
50k retirement dam u are stupid

>>1495416
go to reddit faggot

>>1495117
i heard that buying more in ETFs at once is better. Im not sure why but i think reading somewhere that its because of commission fees. ETFs aren't as volatile as a common stock of a company so the "dips" aren't as big and pretty much you will be dollar cost averaging around the same price but tacking on the commission.
I could be wrong tho, but if i were to do what you are saying i would buy a little more at a time

>>1495447
Physics and math

>>1494769
Why would those ideas piss me off? They are obvious to anyone with a sense of financial fortitude.

>>1494774
So you wasted two years earning back the money you lost and I'm the retard?

>>1494813
Yes that's a good strategy, but you can waste years earning back all of the money you lost.

>>1495447
>I always wondered this, but why curve down risk as you get older?

The idea is to run out of money just before you die. As you get older you need to remove money, so to have it in risky shit means if there is a crash you can't just wait it out.

If you have some insane retirement fund where this isn't an issue then do as you like. Most people do not have anything near that.

>>1495495
>but i think reading somewhere that its because of commission fees.

Correct. The commissions are per trade, larger the trade the less the commission costs per share essentially.

>>1495528
>Correct. The commissions are per trade, larger the trade the less the commission costs per share essentially.
yeah, and dollar cost averaging isn't the greatest strategy with ETFs with very low volatility

>>1495495
But commission fees are so negligible in my case.

I pay $10 per trade, wgich means iM paying under 1%. Very little, no? About <$200 in fees in the long term

>>1495528
>>1495537
wouldn't it make more sense to spread out my buys over a longer period???
I'm.not getting this

please respond with credible sources or some good math or explanation

Post ur fuggin portfolios

Pic related.

I have only VFFVX Vanguard Target Retirement 2055 Fund Investor Shares. Only made 3k so far (almost 2 years).

Stick to it? For how long? I have literally no other assets except 6k in the bank.

Single, 24, NYC. Pay 700 for rent. Walk to work.

File: Scrapbook_1473556572919.jpg (242KB, 1440x860px) Image search: [Google]

242KB, 1440x860px

>>1495590
Pic attached. 90k salary.

File: SmartSelectImage_2016-09-10-21-21-32.png (76KB, 1392x471px) Image search: [Google]

76KB, 1392x471px

>>1495590
>>1495591

>>1495563
Pls reply so I kno what to do

>>1495563
Just google it dude. Nobody's doing your homeworks for you. You do realize that doing 5% return in this economy would be a godsend, right? Throwing away 1% is madness.

Also, you're not timing the market. It's useless to even entertain the idea. There is literally no dip that you can predict. None.

>>1495641
I'm not trying to predixt

I'm trying to spread out my money so I buy any that comes if/when it does. Isn't that the whole point of dollarcost averaging?

>>1494165
If you honestly think you can't beat the market then there is absolutely 0 to talk about in terms of investing. Throw some darts at the wall to pick some ETFs, mutual funds, index funds, etc wait a couple decades until you retire and start switching over to less risky securities as you approach your horizon.

>>1495643
Sure, it reduces your risk, but if you believe the market is +EV, you're hurting yourself. And if you don't believe the market to +EV, then there is no point in even investing. Alternatively, just google it. It's a simple query. But you seem to really prefer the advice of random anonymous people on an anime imageboard, so I don't know.

>>1495646
wasn't really sure the term to search to describe this specific scenario

>>1495447
>Read "A random walk down wallstreet"

Random walk hypothesis is bullshit. Took humanity until just recently to prove conclusively that rolling dice is neither random or chaotic but deterministic. And yet people pretend to understand capital markets with an utmost certainty ? give me a break.

>>1495656
Hey, someone who knows his shit. Rare find on /biz/ my friend.

>>1495656
How the fuck is rolling a dice not random? There are so many random variables in how the dice falls, bounces and lands

>>1495656
Our physics models at the most fundamental level (quantum theory) is inherently random. Don't even try to go there, the physics would be too advanced for you.

Nobody is trying to pretend understand capital markets with an utmost certainty. That's not even the argument of the random walk hypothesis, and it would be closer to the complete opposite idea actually.

I also think you're a bit confused with the difference between random and unpredictable.

>>1495671
Based on the initial configuration of a dice throw you can know for sure how they will end up. (deterministic). They are Pseudorandom and not truly random.

>>1495676
random walk hypothesis says stock prices follow a random walk and thus unpredictable. however there is no good evidence to show its random (on the contrary). the walk of stock prices may perhaps be unpredictable based on our current knowledge but that in no way makes them random.

>>1495687
All that matters is that they're impossible to predict on our level. Are you really that dense? Nobody's trying to make it sound as a fundamental metaphysics answer to the nature of free will and determinism.

>>1495696
Has nothing to do with metaphysics. It's mathematics and science. So no its really not all that matters unless you are fine with just smashing your face against the keyboard to compute compound interest.

>>1495719
The argument is that you don't have the knowledge necessary to predict the market. The fact that it's possible with perfect information is irrelevant. Your argument about dices proves that you don't understand this point.

>>1495724
No. I created the argument in post>>1495656
>>1495656
>Random walk hypothesis is bullshit.

You are interjecting your own thoughts: "you don't have the knowledge necessary to predict the market" I make no claim to the statement. I don't know if that is false or true.

>>1495732
Sure, but the argument behind the random walk hypothesis is that you have as much chance at predicting the market as you'd have to predict the roll of a dice I would make right now. Literally doesn't matter if it's deterministic or not because it's not the argument. I'm not interjecting my own thoughts, I'm explaining to you what the hypothesis is because you seem to have misunderstood it.

Btw chaos is deterministic, it just means sensitivity to initial conditions. Just shows how much you really know about those things.

>>1495744
>Btw chaos is deterministic, it just means sensitivity to initial conditions. Just shows how much you really know about those things.

i never said to the contrary. chaotic systems are a subset of deterministic systems, I am glad you actually looked up shit on wikipedia but please don't try to make me look bad because you are just playing yourself homie.

>>1495756
Didn't have to look it up brah. I've actually studied nonlinear dynamical systems.

>neither random or chaotic but deterministic.
Yep, totally accurate statement if you knew chaotic systems are deterministic.

I know that you will never admit to being wrong, but the fact that you only replied to this part just shows that you've been stumped.

>>1495763
Sets and subsets look them up.

I haven't been stumped. I am actually reading Fama's The Behavior of Stock Prices right now and its actually clearing a lot of shit up. Turns out the bar is actually set a lot lower then what common sentiment lead me to believe, what he describes as random walk hypothesis is essentially set up to disprove technical analysis over the short term, not that stock prices are inherently random.

Bought $250 in gold, how dumb am I?

>>1496579

how long are you holding it for?

File: Screenshot from 2016-09-11 13:51:01.png (39KB, 722x291px) Image search: [Google]

39KB, 722x291px

>>1496596
>0% transfer offers
???

>>1496596
till it hits like Nov15

>>1494911

>Why would you trust your money to a stock market?

You are asking why someone would purchase the equity of profitable businesses distributing yearly profits in the form of dividends or which may grow large enough and get bought out by competitors?

>>get in on IPO's

Kill yourself.

File: MKSH.png (456KB, 857x450px) Image search: [Google]

456KB, 857x450px

>>1496605
>equity of profitable businesses
>equity
>profitable businesses

It's for you

>>1496604

Fair play.

Here's my analysis of gold. Remember that it's worth exactly what you paid for it.
US interest rate rise will hit gold hard (briefly).

Once the fed raise rates, the interest on their debt becomes even more unpayable than it is. Investors may go into bonds, depending on their confidence in the US government to maintain economic order.

I think there will be a near term dump on gold.

Silver risk = $16-17.

Gold risk = $1200-1250

That's where I believe the bottoms to be, IF there is grounds for selling.

Interim i.e. 1 year I can see gold smashing so much higher than the previous high of ~$1,800. By then, the dollar might end up being rather worthless, meaning gold will shoot up even higher and the dollar will become irrelevant.

Physical Gold as a life-long buy-and-hold is always a good shout. Just don't expect mega gains. And don't trade it for a loaf of fucking bread when the shit hits the fan.

>>1494165
Did you seriously just post this OP on biz? I hope your not serious, that would be pretty embarrassing lol

>>1494919
No kek. What are you like 15?

File: Capture - Copy.png (2KB, 145x131px) Image search: [Google]

2KB, 145x131px

wtf do I do? I am expecting an additional ~$50k by year's end and am already maxing out my 401keks. Throw it in a vanguard fund or some shit?

>>1494165
Index funds worked these years because central backs flooded the market, you are going to have a surprise when the fed stops the QE and raises the rates

>>1494313
He meant emergency fund you thickheaded nigger.

If you work for someone else you shouldnt be on /biz/

>>1494165
>non retard thread
>posts bread on /biz
top kek anon!

>>1495563
>I pay $10 per trade, which means I'm paying under 1%

The advice is for absolute novices who try to immediately reinvest dividends because a book told them to reinvest them but never specified to wait until they had enough of them for the commissions to be reasonable.

10$ a trade is shit btw.

>>1495568
80% cash
5% market etf
15% oil

As of a week ago.

I may be spending too much time reading zero hedge but I can't see how the borrow money to buy bonds stimulus can go on forever.

That shit has to crash hard eventually.