/biz/ - Business & Finance

[Anonymous No.10850725]

Are index funds a meme?

[Anonymous No.10850734]

Nah. Just get out when the next crash happens.

But even without that you just need to hodl and you'll be fine eventually.

[Anonymous No.10850741]

Nope, 7% average returns, so long as you keep investing and compounding you can reach big money suprisingly quickly.

[Anonymous No.10850755]

>>10850725
Nope.
I invested $350k in some managed funds in March and am up rn 10%
Feels awsome.

[Anonymous No.10850766]

>>10850734
>>10850755
I'm kinda worried about going in now, feels like we're at the top of the stock market cycle now and it's going to go to shit within 12-18 months

[Anonymous No.10850784]

>>10850766
start dolla- cost averaging in then. It's impossible to predict the market

[Anonymous No.10850788]

>>10850734
Or pick the right funds. There are plenty of funds you can hedge in.

[Anonymous No.10850803]

>>10850725
Nope, here's the results if you can just put away $1000 a month for the next 30 years with an average rate of 7% return.

Compound interest is magic. Say you start in your early 20's... you could be set by the time you're 50. Jack up your savings rate even more and you'd be done much faster, too. Sadly most people in our society fall for the consumer debt jew.

[Anonymous No.10850855]

>>10850803
>Compound interest is magic. Say you start in your early 20's... you could be set by the time you're 50
>tfw 21, can't save £1k a month but just put a £2k lump sum in to Vanguard LS100
Better than nothing I guess, but I'm worried about the UK weighting in LS100 as I think Brexit will fuck thing up.

>Sadly most people in our society fall for the consumer debt jew.
Just got my first card so I can (((improve my credit score))). Shouldn't be a problem as I'm going to pay it off in full every month.

[Anonymous No.10850876]

>>10850741

With a massive stock market crash on the horizon, knowing my luck, I will get cucked when things start looking up.

[[[They]]] are willing to burn it all down to spite Trump. It's a disgrace.

[Anonymous No.10850888]

>>10850855
I went for an MSCI World based ETF for 50% of my portfolio. Can't beat that for risk diversification.

Of course you could get higher returns with a riskier index, so you have to decide how much risk you can bear and leave enough time to ride out dips.

[Anonymous No.10850897]

>>10850855
>set by the time you're 50

Set to pay for funeral costs and hospital bills ?
What a meme. I'd rather enjoy my life than wait for my dying days. If I'm a poor old man then it's better I die of pneumonia, noone will suspect 'suicide'.

[Anonymous No.10850899]

>>10850855
>tfw 21, can't save £1k a month but just put a £2k lump sum in to Vanguard LS100
Yep anything is better than nothing. More than most people do, living paycheck to paycheck with $200 in their savings account.

>Just got my first card so I can (((improve my credit score))). Shouldn't be a problem as I'm going to pay it off in full every month.
You got the right idea anon. We're gonna make it.

[Anonymous No.10850937]

>>10850888
Got any suggestions on where to start reading for finding good funds?

[Anonymous No.10850939]

Good index funds for bongs? Looking at Vanguard, what do I buy, I'm a brainlet

[Anonymous No.10850952]

>>10850937
Just decide which index is right for you, and then look at fees and get the fund replicating that index with the lowest fees.

[Anonymous No.10850955]

>>10850784
This. Just making regular investments into the same index regardless of market conditions is the best way to avoid getting screwed. You win when the market goes down unexpectedly because you're buying stuff cheap, and then you win more when the market goes up as expected over the long-term.

[Anonymous No.10850960]

>>10850725
>index funds

[Anonymous No.10850978]

>>10850952
how do I decide what is right for me

[Anonymous No.10850982]

>>10850725
>are index funds a mean
yes just buy the russel 2000 etf

[Anonymous No.10850983]

>>10850855
>tfw 21, can't save £1k a month but just put a £2k lump sum in to Vanguard LS100
Just try to save as much as you can per month and put it regularly into the investment. Even £100 a month is a good start. You can increase it as you earn more or cut costs, and maybe aim to eventually get to £1k a month by the time you're 30!

[Anonymous No.10850988]

>>10850803
you do realise 1.3million in 30 years is shit right

[Anonymous No.10851002]

>>10850978
basically, high diversification like MSCI world means you suffer less during market downturns (less risk), but also gain less
with lower diversification like S&P500 or DJIA you'll have higher returns but also higher risk when it dips

only you know how much you can afford to lose, like if you know you might need the money in the next 2-5 years, go for a lower risk option so you don't have to sell during a huge dip

[Anonymous No.10851007]

>>10850988
Yes and I used a rudimentary example. Most people are shit at saving and finances in general, and can barely find an extra $500 a month to put away.

Care to estimate the average net worth of most boomers right now? Hint: it doesn't have two commas.

Anyway, here's my own personal projection.

[Anonymous No.10851136]

>>10851007
>$9.2m
comfy, GL anon

[Anonymous No.10851140]

>>10851007
How much money do you invest per month?

[Anonymous No.10851152]

>>10850766
Set stop loss at 90% from ath.
It is easy.

[Anonymous No.10851191]

>>10851136
Thanks fren, you too

>>10851140
$8,000 a month, software/tech.

I know not everyone can and is in this fortunate of a position but the same principles of living within your means and preparing for the future (while not depriving yourself in the present) apply no matter your tax bracket.

[Anonymous No.10851247]

>>10850960
This looks super comfy. Apu looks so cute!

[Anonymous No.10851281]

>>10851191
>$8,000 a month, software/tech.
SV?

[Anonymous No.10851283]

>>10850960
*sips*
Son, your crypto get-rich-quick schemes might pay off, but a well-balanced investment portfolio can do wonders too.

[Anonymous No.10851307]

>>10851191
>8k/mo
Jesus how much do you make a month to begin with?

[Anonymous No.10851387]

>>10851307
He’s LARPing

[Anonymous No.10851436]

>>10851387
he probably makes around $200k/year, it's not impossible

[Anonymous No.10851462]

>>10851387
>>10851436
Senior software in the Bay Area, 200k+ is totally possible

[Anonymous No.10851493]

>>10850937
SaxoBank EU based but has managed portofolios in colab with MorningStar™.
50% gainz in two years.
All in.
No stop loss.

[Anonymous No.10851524]

>>10851191
Yo, help me get a job

[Anonymous No.10851891]

>>10851152
tell me more about this

[Anonymous No.10852131]

I only recently started saving for retirement (I'm 30, god I wish I saved sooner) but I'm really scared about a market correction. I already had to live through the 08 housing crisis, the global financial crisis and a bunch of other bullshit and I never feel like i'm making solid progress career wise to be able to build a strong foundation for my retirement plus my parents are getting older so there will be medical costs to worry about as well and I haven't moved out so it feels like I'm living some prolonged adolescence never really feeling like I enjoyed my valuable as a 20-25 year old and now doomed to work an office job for the next 40 years of my life just like the meme, that's why it bugs me so much it just hits so close to home.

[Anonymous No.10852178]

>>10852131
everything you said could be said by literally millions. you are not special. your fears are not unique. but if you dollar cost average into the market and buy as much as you can when others are selling (like in 09) you can actually change your future instead of complaining about your inevitable doom 40 years before it comes.

[Anonymous No.10852466]

>>10852131
Look at the long-term. You are not retiring for 25+ years outside of an unexpected windfall. What happens to the market this year, next year, or the next decade isn't be-all-end-all of your investments.

People try to make a living predicting the market and most of them are fuck awful at it. Just look at /biz/ and crypto.

Take advantage of the fact that your living expenses are lower than most. Budget your money and save as much as you can. Try to buy the dip/correction if you want, but the most consistent thing to do is just regularly put money into your accounts ($X every Y months, or whatever), and obviously max out yearly contributions to tax-advantaged accounts (401K, IRA/ROTH, HSA) first.

[Anonymous No.10852517]

>>10850734
>sell at the low
classic /biz/

[Anonymous No.10852553]

I'm a European citizen but invested everything in an S&P 500 ETF. Returns for the last year 20%+ excluding dividends.

Do yourself a favor and invest in the US if you buy an index fund. The rest of the world is fucked.

[Anonymous No.10852561]

>>10851462
You ever think how fucked up it is that USD is the "same" while not being the same throughout the country? I know that sounds retarded but hear me out. Out on the West Coast, virtually everything is outrageously inflated, both the prices and the wages (to match the absurd prices). However, as soon as you pull money out of such a fucked market (like investing it), it becomes "normal" money again because its value isn't being absolutely decimated by the environment it's in. It's like Coasties use Yen that suddenly turns into USD as soon as they pull it out of that shithole.

[Anonymous No.10852752]

>>10852561
>You ever think how fucked up it is that USD is the "same" while not being the same throughout the country?
>You ever think how fucked up it is that USD is the "same" while not being the same throughout the country?

It's called geo-arbitrage and yes, many people around here do it. Imagine working remotely, living in the midwest while pulling a $200k SF lead software salary.

I know a few people that do it but you have to be fucking ELITE at your job.

[Anonymous No.10853584]

No but theyre not very exciting
Its essentially your retirement money. It should just be 1/3 of where your savings go, not all or half of it. Do you want to be poor for most of your life but a multi millionaire when youre 60, or do you want a chance at being a millionaire in your 30's and also able to collect a guaranteed smooth million when youre 60?

[Anonymous No.10853657]

>>10850725
no. they are legit, secure investments to accumulate wealth.

[Anonymous No.10854036]

>>10850766
NOBL

[Anonymous No.10854170]

Index Funds are great, you get to be a millionaire and retire at the age of 65 instead of 70 thanks to those compounding gains.

This is better than investing in Bitcoin at this point because although Bitcoin will make you 10x the money in one sixth of the time and allow you to retire in your 30s, you are going to end up with a lot of free time on your hands and it can be a bit of a problem knowing what to do with all that money - a lot of people love working!

So don't buy Bitcoin now whatever you do. Get that money in a nice safe index fund, and get ready to RELAX! when you get to 65 and hit up some of those exclusive golf courses that you could only have dreamed of (unless you bought Bitcoin a few decades earlier in which case you would have gotten bored of playing in the most exclusive golf resorts so you would not get to enjoy this incredible time of your life in the same way).

[Anonymous No.10854248]

>>10850803

Wow, a million dollars!

What's that inflation adjusted, by the way?

Enough to buy yourself a timeshare 20 miles away from the beach, and a luxury coffin with flashing LED light interior?

Truly a masterful investor.

[Anonymous No.10854283]

>>10854248
see
>>10851007

also, what is your net worth? if it's not 6 digits don't even reply.

[Anonymous No.10854421]

>>10854283

Yes, it's 6 digits, and I'll be hitting 7 digits 4 years before you. Cheers.

Stay poor boomer.

[Anonymous No.10854941]

>>10852466
Please explain how 401k makes sense, if you still pay taxes on it when you withdraw? Why not pay tax first, then invest and be free to do whatever the fuck you want to with money?

[Anonymous No.10854998]

>>10854941
it doesn't. normies do it and what are normies? broke. put your money in your own investments after tax and if you want to withdraw it in a few years you can and you don't get hit with a penalty etc. being in control of your money outweighs all the possible cons 10 fold.

[Anonymous No.10855112]

>>10850939
I bought the 60-40 lifestrategy

[Anonymous No.10855188]

Maybe but you'd have to live in your mum's basement and eat her food to save 8k

[Anonymous No.10855221]

>>10854941
401K is a meme

[Anonymous No.10855259]

Can anyone help a brainlet out

How do I invest in a Vanguard Index fund?

>canadian

[Anonymous No.10855412]

>>10855259
newfag get out

[Anonymous No.10855528]

I hate people who need someone to hold their hand to do something, same with trading crypto. You will find your answers with a quick google search, even with >>10855259 I typed canadian vanguard and the first link is to the canadian vanguard.

[Anonymous No.10855889]

>>10855259
have you tried visiting their website?

[Anonymous No.10855937]

>>10854941
the idea is that you're in a higher tax bracket now than when you withdraw, so the tax is lower then, because you need less money since you're not building a retirement portfolio anymore

[Anonymous No.10855940]

>>10854998
>>10854941
>>10855221
How is 401k a meme?

It makes perfect sense. You pay taxes once, rather than twice.

Otherwise 25-40% of your gains will go to tax. It maxes out under 20k anyway.

Day traders don’t makr shit for money. They lose out to taxes and fees. 401k is a good idea, ask anyone who isn’t on this board.

[Anonymous No.10856090]

>>10855940

invest your after tax money in your own vehicles. withdraw long-term cap gains with no or minimal taxes anytime after 1 year. don't have to wait till you're 60. fuck your normie shit

[Anonymous No.10856209]

>>10856090
No or minimal tax? What dis?

[Anonymous No.10856323]

>>10850988
In 30 years, homes in the bay area will probably sell for $30 million dollars. Just think about that for a moment. 20 fucking million dollars for a modest home. Not even exaggerating, don't think so? My dad bought his home 35 years ago for 600k, he sold it last year for 4.3mil.

[Anonymous No.10856359]

>>10856323
in 35 years that amounts to just 5.8% APR compounding, not that spectacular

[Anonymous No.10856391]

>>10856359
My point is about the value of the dollar 30 years from now, not about investing in a home.

[Anonymous No.10856425]

>>10856391
Then you made your point very poorly, because those gains over 30 years are nothing special.