Hey Veeky Forums, today I talked to a very intelligent gentleman

Crazy_Nice
Crazy_Nice

Hey Veeky Forums, today I talked to a very intelligent gentleman. He was an older gentleman who had approached me at my job and just started bullshitting with me. Anyways, he was in his 70s, had 5 houses, boats, a plane, and could buy any car he wanted. At first I took his story with skepticism, but he had proof with him.

Eventually we had got onto the topic of money, saving, banks, and retirement. Now, I've never once thought of investing in my entire life, doing anything other than putting money into my bank account. From what he explained though, I'm being a complete idiot. I'm only 22, I've got some credit card debt and a card to pay off so the thought of investing anything anywhere never crossed my mind.

He told me three things that he did to be successful:

1. Invest in stocks the pay dividends
2. Real Estate - renting property
3. Roth IRA

He claims he was making 12% returns on average on his stocks, and when he was in a group of 15 guys it was more like 20% and sometimes even 50% on his investments.

He said he would make money renting houses and then even more money when he would sell them later.

Finally, he claimed he was making 15-19% returns in his IRA account.

All of these things really peaked my interests.

So Veeky Forums, I know nothing about anything at all. What are some good materials to pick up and read to learn about these topics? Right now I work about 50-60 hours/week + Uber during a lot of my free time, and I want to start hitting up the gym again, so I feel like my time is very limited. So I'm wondering if anyone has advice to be able to fit learning about these topics into my schedule and eventually get started.

Thanks guys

All urls found in this thread:
http://www.berkshirehathaway.com/letters/2013ltr.pdf
http://investorplace.com/2014/06/warren-buffett-vanguard-funds/
iluvmen
iluvmen

@Crazy_Nice
Since your post is well written, my advice is:

1. Listen to audio book when you're driving around uber or at work

2. Learn about long term investment

3. DO IT.

It's overly simple but the action part is the hardest for most people.

Poker_Star
Poker_Star

Look up on youtube, rich dad poor dad audio part 1. You will know how to get started.

Methshot
Methshot

@Crazy_Nice
+ Uber during a lot of my free time
Can you please tell me more about this? I am thinking about doing it, but I have read that some people get paid less than minimum wage (in Australia) after they factor in all the costs, such as fuel, maintenance, insurance etc. As a trade, I will tell you what I know (which is not much).

Yes I've read investing in stocks that pay dividends is a good idea for basic investors, unless you know enough about the company and its future direction to know its stock will go up a lot. Buying and selling stocks very often will just result in very high broker fees. Better to let your money sit tight for a while and collect dividends. If you are worried about the risks in stocks, you could invest in an index fund or mutual fund. There are varying funds with varying levels of risk. Rent from real estate is a no-brainer, but don't sell an asset that is bringing in a profit unless you have to or you find a better deal (and everytime you sell there are fees etc, just like with stocks).

So yeah that uber thing... my town only has 120,000 people but they are advertising for uber drivers. I heard most people use the service on weekends, which would be good. But how much does it pay? How does it work?

Evilember
Evilember

@Crazy_Nice
First thing you should do is wipe his numbera from your memory. Those sorts of returns (while not impossible) are unrealistsic for the vast majority of investors. You can make money investing, but if you go into it with his numbers in mind you will only end up disappointed.

As far as learning goes, Investopedia has good info on the basics of it all. And there are plenty of more in depth books out there. Or audiobooks as@iluvmen
says.

LuckyDusty
LuckyDusty

@iluvmen
Sounds like a plan. I'm in sales, and I actually listen to sales audio books while I drive and they have really helped me a lot.

Do you happen to have any suggestions on good books to read/listen to?

@Poker_Star
Thank you for the advice user, I will definitely take a look into it for sure!

@Methshot
I appreciate the advice user.

Well, with uber you make, depending on where you are, about 80% of the price of the fare for the ride. The fare prices fluctuate depending on supply and demand, and when there is high demand they call it "surge" pricing, and those are the best times to drive. Surge pricing just means that they're charging higher for fares because they can. Events like football games, concerts, etc. end up leading to the higher prices which means more money for you. So if the normal ride might cost $10 to go to the city, it would cost maybe $20 or $30 on surge pricing for the same trip, and that's where you make your money.

Sometimes they will guarantee how much you will make per trip minimum too for big events.

In the US you can take .40 cents per mile as part of a tax deduction, which helps a lot.

Factoring in fuel, as long as you're getting 25-30mpg you should be a-okay with that. Oil changes, just do them yourself and save money, drive like a grandma, and you'll come out on top.

For australia it's a bit more difficult, but I find it's pointless to drive unless they're having surge pricing or guaranteed rates, because you're getting the most money per mile on your car.

@Evilember
Understood, making any amount of money on money that would otherwise just be sitting there sounds better to me. I'll check out investopedia for sure, and if you have any specific books you've liked, please feel free to share!

CouchChiller
CouchChiller

@LuckyDusty
I don't actually read much but I'm doing a finance degree ao I've picked up info along the way. That being said I'm certainly not an expert in any of this, but through a bit of sensible thinking I'm averaging 15% on my stocks. I know I wont keep this up over my lifetime however. The only book I have read is Benjamin Grahams The Intelligent Investor. Its very well known and (I think) highly regarded. If I had to say what my investment “style” was, it would probably be close to Value Investing, which is one of the main takeaways of the book. Good luck user. As long as you keep your expectations realistic and ignore the crypto shills and too good to be true stocks then you should be fine.

BinaryMan
BinaryMan

@Crazy_Nice
piqued my interests.***

learn how to spell words. then worry about investing.

Illusionz
Illusionz

@BinaryMan
Kek, I knew something seemed wrong. I've gotten so bad at spelling since I've been out of school.

Thank you for pointing out my mistake though, you're probably right, my knowledge in general has gone in the shitter since I haven't applied myself in years.

Inmate
Inmate

@BinaryMan
being pedantic about spelling in an international chinese cartoons board

Poker_Star
Poker_Star

@Inmate
replying to someone being pedantic about spelling in an international chinese cartoons board

Evil_kitten
Evil_kitten

I'mma bump

Inmate
Inmate

@Crazy_Nice
peaked my interest
It's 'piqued' you fucking tardicle. Read a book.

FastChef
FastChef

@Inmate
That was already pointed out about three posts above yours, so I'm sorry that someone stole your thunder already to look cool.

Spamalot
Spamalot

@FastChef
They stole my thunder to look cool? That doesn't make any sense you fucking moron.

Inmate
Inmate

@Spamalot
Why else would you post then? Surely an intelligent man, such as yourself, wouldn't waste time reading the OP, then take time to reply just to point out a spelling mistake and say how much more intelligent you are for noticing. The spelling mistake, which was pointed out earlier in the thread by the way.

So basically, all you're doing is wasting your own time. I don't see what you're trying to accomplish here. As for me, it's free thread bumps if you want to argue about it more.

Stupidasole
Stupidasole

@Inmate
It wasn't a spelling mistake. It was the complete misuse of a word you fucking complete idiot.

whereismyname
whereismyname

@Stupidasole
Lol damn OP getting hammered over homophones.

homophones
homo
phones

askme
askme

@LuckyDusty
uber
I drive a lot in the city and it is where I'm working currently. Recently, I got hooked up by some Uber ads on radio and one of my friend even invited me using his referral link to join this thing. I'm doing a lot of thinking right now of whether or not I want to join to be a driver for a part time job.

So what do you think OP? Is it good to do this for a part time job, considering I work 9-6 and start driving during night time, just around the city, then go back home and sleep, repeat. It should pay higher on the weekends, do they?

Carnalpleasure
Carnalpleasure

@Crazy_Nice
So did he pay you to suck his dick or what

Burnblaze
Burnblaze

@Crazy_Nice

read books while you're walking on treadmills at the gym.

you get exercise and education, that way.

not sure what books to suggest to you, though. Do you have an interest or hobby you think you can turn into something profitable?

RumChicken
RumChicken

@askme
It is a pretty good part time job as long as you're driving when the payouts are higher, see
@LuckyDusty

@Burnblaze
My only hobbies really are cars and boxing right now, both of which I've kinda put on the backburner to make more money. I was hoping one day to open some sort of automotive service business with my friend, but that's something further down the line.

Right now I sell cars and make pretty good money doing so. Despite what older people think, the job isn't to rip people off at all which is why I'm happy doing it.

JunkTop
JunkTop

@Crazy_Nice
start your Roth IRA right away. it's super easy. really.
just go to vanguard.com and follow the instructions to start and fund your Roth IRA.

make it a priority to max out your roth every year ($5,500). it isn't much but it seems like a lot when you're young, just starting out, and have all those other cool 'things' that you want.
anyway, once you have transferred money from your bank to your roth, you can follow Warren Buffett's advice to the trustee of his wife's estate for when Warren dies:

My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors -- whether pension funds, institutions, or individuals -- who employ high-fee managers. - Warren Buffett

so... buy 90% VOO and 10% BND every year (until you have learned more about investing and can afford admiral shares).

START NOW.

RIGHT NOW.

www.vanguard.com

fly, you fool!!!!

PurpleCharger
PurpleCharger

@RumChicken
stop fucking around and do this @JunkTop

Ignoramus
Ignoramus

@JunkTop
the buffett quote is from the middle of page 19: http://www.berkshirehathaway.com/letters/2013ltr.pdf

and here is a nice article explaining it: http://investorplace.com/2014/06/warren-buffett-vanguard-funds/

you getting your account set up yet?

Supergrass
Supergrass

@JunkTop
@PurpleCharger
@Ignoramus
Because user, I'm just about to go to sleep. I have off tomorrow so I can do this tomorrow.

Thank you though, that's some pretty specific advice!

SniperGod
SniperGod

@Crazy_Nice
Dude invested during a time when all the markets where going to get skewed in his favor.

CouchChiller
CouchChiller

@Crazy_Nice
the problem with Veeky Forums (myself included) is we dont wanna be millionaires by the time we're in our 50s to 70s.

Fuck that, we want get rich quick shiet right now. Memestocks and cryptoshit for life

askme
askme

@JunkTop
not living life on the edge with no savings

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