Lifestyle > Train of Thought
The power of Compound Interest, the stock market, and your 401K plan
nibs:
--- Quote from: JML - no vowels, disembowel your Colin Powell, throw in the towel on December 23, 2005, 02:53:08 PM ---Investing is the best thing you can do with your money... no doubt about it. Like you said... some people don't know about finance... but another problem is that a lot of people don't even have the money to invest.
--- End quote ---
that's a myth, perpetuated by large corporations. investing is giving corporations your money to spend now, for paltry gains later. unless you can get microsoft or google at the ground floor, it's overrated.
a better thing you can do with your money is invest in yourself. use your money to develop and realize your dreams, start your own company/business, and then use your money to grow that business. be an entrepreneur. let your money create wealth for you now, as opposed to going to someone else and giving you a small fraction of the wealth generated later.
the problem for most people is if you don't force them to save, if you don't take money out their paycheck and invest it for them in some 401k plan (with matching funds or something), they'd just spend that money foolishly and do nothing with it. investing is clearly better than spending that money on foolishness. investing is clearly better than saving the money. and there are ways to set aside money so that it is invested and ends up being taxed less than had it been accepted as salary. but for the most part, people should be investing in themselves, and looking towards entrepreneurial opportunities. which the internet and modern communications and shipping have lowered the entry bar significantly. don't listen to that grover norquist "everyone should own stocks" bullshit, because really it's just giving your money away, for someone else to use...
J Bananas:
before you invest learn the difference between a liability and an asset. if u think puttin money into a car or a house will help you, you are going to be very disappointed unless u plan on flippen them really quick for a higher number.
nibs:
--- Quote from: J Bananas tells no tales on December 24, 2005, 04:01:25 PM ---before you invest learn the difference between a liability and an asset. if u think puttin money into a car or a house will help you, you are going to be very disappointed unless u plan on flippen them really quick for a higher number.
--- End quote ---
just to be clear, you are not directing that at me, because i never told people to buy cars.
houses are some other shit, if you own a house/property, that is certainly an asset and an investment. property values rise quickly, the money you put into the mortage you can get back out easily by refinancing if you needed the money. the only people that tend to lose money on houses are people that simply can't pay their mortgage and get foreclosed. actors that put together ridiculous dream houses and can't afford to keep them up, and can't find a buyer willing to pay top $$$ for someone elses dream...
your advice about houses is wrong. buying property, keeping it in the family is one way that family estate values can grow over time. just think about that shit. if you have a house paid off all you need to pay from then on is property taxes. if you ever need money that home is collateral, you could take out a mortgage on it...etc. property == $$$. property == wealth.
cars are similar to a lesser extent. rare shit, collectors shit, shit that is kept up in pristine condition can pretty much be sold at top dollar and often for a profit as well.
clear liabilities, clear waste is shit like: flat screen tv's, and playstations and silly shit like that throwback jerseys (that aren't autographed) and basketball sneakers are a waste. you buy that shit, it depreciates in value immediately.
cars depreciate in value very quickly unless you buy them specifically to maintain in pristine condition...etc.
houses/property are not a waste. their value appreciates. get some.
cats that are flipping houses are on some other shit. shit is only a problem if you have too many properties, too many mortgages, and don't have the cash flow to cover it. as a long term investment, property is always a win. short term it depends on how you manage it. if you want to become a landlord, you can move people in. i know cats that lease houses to drug dealers and strippers, individuals that don't have the legitimate credit and income to actually buy property, but have the cash to pay the bills. there's a lot of shit to do in real estate. you can hold on to it/speculate, you can do the landlord thing, you can flip it. property is a legitimate investment.
if you are telling people to invest in a 401k instead of buying a house...that's shaky logic.
Twentytwofifty:
I think it's pretty clear that "nibs" doesn't know what the fuck he's talking about.
hahahaha @ "135k a year really isn't alot of money. nothing you'd want to live off if you had a family."
...with 135k, money might be tight if you have the kids in private school, give them 360s, buy them designer clothes...
I'd LOVE to grow up with my fam making that kind of money.
7even:
you mean 135k in cash or untaxed?
my father made WAY less money anyways.. 6k a month, then it got taxed down to like 3,2k, then you have like 40k each year.. and that was in deutsch mark in dollas it be like 25k lmao... and now that he's retired he gets far less money of course; but we still able to pay the rent, get food, buy gas for the car, and have pay tv... and high speed connection internet of course :D .. I wouldnt call us poor.
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