Got like 18k I saved up this past 12 months

Methshot
Methshot

got like 18k I saved up this past 12 months
Wondering what to do with it
Want to make it grow
Dont know anything about day trading (cryptocurrency or otherwise)
Could put it in a mutual fund or some shit
For now want to play with $200 just to learn how this whole thing works

What do? Any tips?

All urls found in this thread:
https://www.youtube.com/watch?v=-MFHQfJtmRE
TalkBomber
TalkBomber

@Methshot
Low cost Index Funds/ETFs

Do this with your $18k, use it to buy $1800 worth of VOO every single month for the next 10 months

Dont know anything about day trading (cryptocurrency or otherwise)

Good, it's bullshit and you'll lose your money. Don't do it.

inb4 bitcoin autists come in and tell you to buy le bitcoin dip or whatever

RumChicken
RumChicken

@TalkBomber
Ok.

Um what? I have 0 background on this shit. So when I invest I invest every month? So if someone says they are buying x stock they keep buying it?

Fuck

ZeroReborn
ZeroReborn

@Methshot

The whole market is about to go down the toilet. Dont do anything for the next 3 years.

JunkTop
JunkTop

@RumChicken
So when I invest I invest every month?

Yes it's called dollar cost averaging and it's a good idea. You want to invest a consistent amount every single month(or as often as you can, but it needs to be over $1000 so trading fees don't eat your monies up too much).

Open a self-directed broker account and purchase $VOO in consistent amounts as often as you can, this is the best way to invest your money until you are nearing retirement and you need to lower volatility.

The reason why you want to buy often is because if the s&p drops for example, you want to have enough money to buy more of it. If you were to put ALL of your $18,000 into $VOO right now you would potentially lose out on a bunch of gains if it were to fall for a while, which you could have bought.

@ZeroReborn
The whole market is about to go down the toilet. Dont do anything for the next 3 years.

I've been hearing that for quite some time now, enjoy losing out on 3 years worth of gains though.

New_Cliche
New_Cliche

@JunkTop

Now I am in a crossroad, helpful user.

Do I invest like you say or do I save money? The 18k existed because its my "Fuck you" money in case things go sideways.

I am assuming that if I invest that money, it is gone forever, right? Wouldnt it be better to have a "fuck you" fund that you can access?

Dreamworx
Dreamworx

What if instead of ETFs he stuck to buying blue chips? T, VZ, CAT, BA, MCD etc.. ?

Need_TLC
Need_TLC

@New_Cliche

OP, still new to investing and admit I am no professional and don't know everything. But try reading Benjamin Grahms Intelligent Investor.

Also, I have started investing into blue chips ( google) and am learning slow.

Nude_Bikergirl
Nude_Bikergirl

@New_Cliche
Do I invest like you say or do I save money? The 18k existed because its my "Fuck you" money in case things go sideways.

Keep 3-6 months living expenses as "fuck you money".

I'm assuming you're young, your "fuck you money" is your parents. If you break your cock and have to move back home that's ok.

You don't really need more than like $5k as your rainy day fund

I am assuming that if I invest that money, it is gone forever, right?

Pretty much but you can easily liquidate it in a horrible situation like your house burning down, your car exploding and you breaking both your legs and arms... probably not gonna happen tho.

@Dreamworx
No point unless you got like millions of dollars and want to live off Dividends.

Garbage Can Lid
Garbage Can Lid

@Need_TLC
Also, I have started investing into blue chips ( google) and am learning slow.

What's the point if you can buy the s&p which includes Google and another few hundred companies comprising the index?

Just buy $VOO m8

kizzmybutt
kizzmybutt

@Nude_Bikergirl
I'm assuming you're young, your "fuck you money" is your parents. If you break your cock and have to move back home that's ok.

About that. I sort of have a "partnership" (kek) with my parents. I was able to buy a house with no down because of this job. Therefore I bought one that is 5 miles from a major city.

Its a multi-family home. So my parents look after it and pay like $600 (the less amount they would've spent if they continued renting) and the rest of the 3k is from my tenants. But did I dun goof'd? I got a house and the land. Its cool being an only child btw hehe

But I do like not having to bother them for anything. IDK if its ego or w/e

@Garbage Can Lid

How so? I am familiar with what that means because of wolf of wall street

I am dumping qt 3.14 that would only date you if you have $$$ btw

Deadlyinx
Deadlyinx

@kizzmybutt
I don't know anything about houses, I just rent a cozy room and don't give a shit about anything else

@kizzmybutt
How so? I am familiar with what that means because of wolf of wall street

What do you mean?

Isn't it more logical to you to buy an weight index of the 500 biggest companies in the United States instead of buying a few of them?

Snarelure
Snarelure

@Garbage Can Lid

I've read and heard buying those companies yield better returns. I definitely don't want to do swing trading but would like to accrue dividends and then DRIP.

I have been on the fence with ETFs for a while so this discussion is much appreciated!

Burnblaze
Burnblaze

@Deadlyinx
Isn't it more logical to you to buy an weight index of the 500 biggest companies in the United States instead of buying a few of them?

Aim small miss small? Again I am just trying to get my feet wet and seeing how this whole thing works.

As far as doing the plan you outlined earlier. So that $1800 that I spent per month is essentially gone? Or does it go to a bank account and I can bail out whenever I want like "oh shit, my left arm is cut off, I need like $7200 bionic arm. let me go and use my remaining hand and grab some from that ETF" ?

Firespawn
Firespawn

@Burnblaze

No it is just invested in those securities. It can go up or down. But stocks are more liquid than real estate.

The way I always looked at it was a dividend paying stock gave a better return than my credit union. And those tend to generally have better rates.

SniperWish
SniperWish

@Snarelure
I've read and heard buying those companies yield better returns

It doesn't unless you have millions of dollars

@Burnblaze
Aim small miss small? Again I am just trying to get my feet wet and seeing how this whole thing works.

ETFs are perfect. No brain required and you are making better gains than 95% of investors who don't do this with minimal input from you(other than logging in once a month and buying).

So that $1800 that I spent per month is essentially gone?

It can be considered that, you can always sell your shares and withdraw your position but that would defeat the whole purpose of Long-term investing. Your best way to approach it is to indeed treat as if the money is gone for the next 20-30 years.. and DON'T. TOUCH. IT.

and I can bail out whenever I want like "oh shit, my left arm is cut off, I need like $7200 bionic arm. let me go and use my remaining hand and grab some from that ETF" ?

Correct, it's not a good idea to do so though because you might have to sell at a loss if at the given time it's not worth as much for whatever reason.

Just leave it and don't touch it UNLESS both your parents die, your balls need to be amputated and you need your arms removed

ZeroReborn
ZeroReborn

@Firespawn
@SniperWish

Ok so that money I invested is there and its increasing every month that I put more into it? Say I bought Hot Sauce stock at $18 a share, I bought a thousand of them shits that one month. Then the next month do I buy another thousand or am I done? And if I am not done then do I suddenly have 1000 more shares so now I have 2000?

What if Hot Sauce Stock goes up to $20?

You bros are helping out a lot, btw.

CodeBuns
CodeBuns

@ZeroReborn
Honestly, why not go real estate? Get you a nice duplex, preferably brick, and buy and house hack. Live in one side and rent out the other and collect rent? That could maybe be an option?

BunnyJinx
BunnyJinx

@ZeroReborn
Then the next month do I buy another thousand or am I done?

If you want to, which you should if you dollar cost averaging(a good approach to investing in ETFs).

What if Hot Sauce Stock goes up to $20?

Then you made money.

Just buy the damn $VOO already every month

Nude_Bikergirl
Nude_Bikergirl

@ZeroReborn
Maybe this could shed some light broski

https://www.youtube.com/watch?v=-MFHQfJtmRE

Crazy_Nice
Crazy_Nice

@CodeBuns
somewhat autist so cant sell
not good looking enough

The only reason I was able to buy that house was because my parents were on board and they did a lot of leg work. And again the benefits of having my job, no money down.

@BunnyJinx

Dude I am trying to understand this lol so by the end of the plan you outlined I will have 10x as much than when i started. So for all intents and purposes I have 18k worth. Then what?

Lord_Tryzalot
Lord_Tryzalot

To be fair the video does convey the other guys point of low cost compared to what I said. And that's fine. I'm always down to learn something new.

farquit
farquit

@Crazy_Nice
No worries. In the states, they usually charge a maximum fee of 10% property management fee. I guess in theory you could live next door and not ever have to deal with the tenant.

Open a trade king account and study. Youtube is a great resource but so is that book I recommended too. Just have to find your style I guess.

happy_sad
happy_sad

@Crazy_Nice
so by the end of the plan you outlined I will have 10x as much than when i started

Yes.

You *COULD* spend your entire $18k and buy it in the beginning, but if you spread it out this way it's much better to absorb the ups and downs of it.

if for example you spent your $18k and then it started falling for the next 5 months(don't worry you didn't lose money if you didn't sell, it'll go back up eventually), you just missed out on buying all of that and making those gains when it went back up.

That's why this is a better approach to spread it out.

So for all intents and purposes I have 18k worth

+/-, but yes.

Then what?

Then you continue to do the same with as much as you can - as long as it's above $1k per purchase.

Poker_Star
Poker_Star

@happy_sad
if for example you spent your $18k and then it started falling for the next 5 months(don't worry you didn't lose money if you didn't sell, it'll go back up eventually), you just missed out on buying all of that and making those gains when it went back up.

Dude a lightbulb just went off in my dumbass head. I totally get it now. Thank you.

Methnerd
Methnerd

@Poker_Star
Now you're getting it lad, it's quite simple really.

You're just minimizing your risk(if you could call it that I guess, i'm not sure how to name it) by spreading it out like this.

SniperWish
SniperWish

@Methnerd
Spreading it out keeps it open so I could buy more when it costs lower. Might just leave the 18k alone and instead of alloting 1500 to the savings account, I could invest that to the ETF.

Now why were you so averse to swing/day trading or cryptocurrency trading? It seems that block chains are here to stay.

TurtleCat
TurtleCat

@Methnerd
@SniperWish

Forgot your qt

CouchChiller
CouchChiller

@SniperWish
Now why were you so averse to swing/day trading or cryptocurrency trading? It seems that block chains are here to stay.

That shit is bullshit, no one makes money off daytrading or swing trading or commodities or any of that shit

cryptocurrencies especially

AwesomeTucker
AwesomeTucker

@CouchChiller
The way I understood it in my very limited knowledge is that I will be doing what you suggested but instead of talking and reacting in months we do it in days/hours

New_Cliche
New_Cliche

@AwesomeTucker
but instead of talking and reacting in months we do it in days/hours

no... very much the opposite.

That's just what delusional daytraders/other retards say. The fact of the matter is that the vast majority of those people DO NOT beat the market long-term

Stark_Naked
Stark_Naked

@New_Cliche
I meant that swingers and day traders reacts in hours and days. So if I could make a dollar out of every 10 per week, that could be lucrative, no? Then buy a different stock, rinse and repeat

Do people not do this IRL?

Raving_Cute
Raving_Cute

@Stark_Naked
No, just no.

Buy ETFs

viagrandad
viagrandad

@Raving_Cute
Ok lol thought it was a thing lmfao

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