My buddy keeps telling me that index funds could easily net 7% annually or even do better than that without risk at all so I would get back 7k on every 100k invested no problem according to him
This seems really really fucking high to me, could anyone refute this or is he correct that easy safe stocks are that good
Crypto can net 7% per day. Has more risk but if you spent a couple weeks studying how everything works you can reduce most of the risk.
>>3327225
>without risk at all
they are low-risk, but not risk-free.
I'm also not sure why youre under the impression that $7k per year is "really fucking high"
>>3327225
minus the commission fees.
there is always a risk..My sister invested 50K in a certain index fund and it became completely worthless at a certain point.
>>3327250
How can I start studying how everythong works to reduce risk?
>>3327225
he's retarded, more conservative estimate is 5% annual and it's not risk-free
the bull market will end within 2 years and you sure as hell won't be getting 7% then...
Stock market is in a bubble right now, buy crypto instead.
>>3327225
>>3327225
Index funds are your best, safest, most cost-effective investment.
Maxing out your IRA each year @ $5500 assuming an average 7% return each year will be ~$1.25M in 40 years.
There will be crashes, recessions, downturns, and all kinds of other fun along the way.
You should be investing in a tax-advantaged account AND taxable account. Both should have index funds - total stock market, international, total/aggregate bond, and emerging markets. You can add in REITs, TIPS, etc if you like.
This should be done in conjunction with your crypto speculation.
Yes you can become a millionaire in crypto in a fraction of the time but the risk is MUCH higher.
>>3327225
>without risk at all
> wake up Tuesday morning
> markets crashed 50% while you were sleeping
Yeah, no risk at all.
I started investing end of April. Since that point I have gotten about 10% ROI in the market. Holding for now, going to shift more into crypto. I only have 2 ETH now :(
>>3327374
lurk /biz/
>>3327752
>crash 50%
so i lost half my gains, still got the other half
>>3327927
What's it like to go through life being retarded?
>>3327374
Start learning the fundamentals, about blockchain tech, how it works, why it is not possible for "hackers to print more bitcoins".
Then learn all about the top 200 coins in coinmarketcap.com
You need to memorize for each one their core features, team members, investors and roadmap.
Then learn all about trading, candle graphs, RSI, MACD, Ichimuku frogs, boilinger bands etc
Then learn all the APIs from Bittrex, Kraken, GDAX, Binance etc
Finally learn Solidity and wriite your own smart contracts that connect to those APIs and execute orders within 1ms apex from the high / low scale points
If you do all that, you can reduce the risk by around 20%
>>3327225
>net 7% annually
Over long periods of time
> I would get back 7k on every 100k invested
> really really fucking high to me
Your education level is now evident
>without risk
>believing this
Ok OP. It's clear to me that you can form complete sentences. So I can at least assume you're 7 years old. There is no such thing as an investment without risk. Risk is a spectrum and it's the investors job to determine where a prospective investment falls on that spectrum. Index funds are far from riskless.
>>3327309
>minus the commission fees.
immaterial
>>3327955
>he didnt make 1000% on crypto
>>3328040
This is also why I came to the conclusion that extra money is better invested into your buisness or education after you max your 401k and ROTH IRA.
I have a moderate brokerage account now, but I'm switching forward contributions toward a masters degree. Maybe a rental property too.
End goal is to either have my own business or retire at 40 and teach part time. That would be so fulfilling.
>>3328040
You are correct sir.
I was trying to make the point that anyone can become a millionaire at retirement with simply saving $5500 a year.
Everyone should also be investing at least the same amount in a taxable account to double their wealth at retirement, along with maxing out at least the matching portion of a 401k if available.