The Stock Market, Investments, and Investing Thread
(02-06-2020, 09:04 PM)ChicagoFire Wrote: You kind of touched on the fun aspect at the end of your post by treating yourself to a new car. To each their own. I'm more of a travel guy.

Sure there might be something fun about what was then my new car, rather than buying used cars for the previous 20 years; however, I was not really considering my new car to be fun, but more of a kind of reward for myself in that I had established a pretty decent investment cushion by the time that I converted from considering used cars to a new car.

I had always had a car since I was 15 years old, so I never really questioned about having a car, it was merely a matter of what kind of car, and when I got the new car it was considered a reward, but still a certain amount of utility and also maybe a little bit of a status shot too, since I bought a luxury vehicle, but I was using my car for work, too.

I think that another one of my subliminal points about the new car versus considering a used car was that I knew a lot of people who were in similar status and income as me, but they would buy new cars, and new cars depreciate a lot in their first few years and they would even buy nice cars that seemed to end up putting strains on their budget. I am just using that buying used cars versus new car idea as a way to save money rather than the fun angle of having a car.

I think that my thinking about travel would be similar too, and there might be trade-offs with travel and being able to build a nest egg. Sometimes there are jobs that involve travel, and sometimes that could be a way to incorporate the travel in a way that helps with building an investment budget. If a guy has not yet established his nest egg of an investment budget, then it might be a bit imprudent to be spending a lot on consumption such as $1k to $10k per year extra on travel that could be invested. There are surely going to be trade offs regarding how to budget the matter, and whether it is considered consumption or investment.. and in what stage of building investments (accumulation, maintenance or liquidation) a guy considers himself to be.

(02-06-2020, 09:04 PM)ChicagoFire Wrote: As for learning I'm simple, I don't like tracking down the latest stock pointer or the new secret Gold hoarding site. I'll rotate investing in different asset classes about every month or two. 

Fair enough... there can be a certain aspect of investing.. in which you consider your investments long term, so that if you were in a coma for 5 or 10 years, you would feel happy with your choice, which kind of implies an intent to let them ride, rather than to play around with your choices.

(02-06-2020, 09:04 PM)ChicagoFire Wrote: As for bitcoin I still think you should have exposure to it. Could it hit 100K or 0 per coin? Beats me, don't mortgage the house with that particular asset. I agree with having a long term strategy with bitcoin. People like to day trade but I think it's a waste of time. Always remember to file your taxes properly, that's how the feds nab you. 

If you are making long term investments into bitcoin and accumulating BTC you do not have anything to claim because you are not selling.

(02-06-2020, 09:04 PM)ChicagoFire Wrote: Agreed. I picked this up from Samseau that if you owe money it's not the end of the world since inflation will eat the debt away. You're paying your debts off with devalued money. I like to apply for new 0% credit cards and keep repeating the cycle. This is just one way of gaming the system and others include buying in bulk and gaming your business credit card (I seriously need to get my ass on that project I've been thinking about!)

Cannot argue with you there. There can be benefits in playing the system to your advantage, but you need to figure out that what you are doing is benefiting you.. and the 0% credit cards are really great as long as you pay them off, but they might have a 3% or 4% initiation fee... which needs to be taken into account.... I remember in the early 2000s, there were no fees on those 0% promotional rates.. but around 2006 or maybe it was a bit later, they started to have initiation fees.

(02-06-2020, 09:04 PM)ChicagoFire Wrote: With FIRE themes like invest 10% of your check to a sunny day fund repeats itself. I haven't read everything under the sun but if I have to see another "learn to cook don't eat out" OR "ride the bus instead of own a car" blog post I'm leaving that site fast. Some of the smarter marketers like Wall Street Playboys have to sensationalize their posts otherwise people will go read another blog. 

One last parting shot, Millionaire Fastlane is a great mentality book. My problem is not executing, partly because I have my hands full nowadays. If you're a normie that thinks government is going to pay your 401K you're on the slow lane and by the time the riots start I'll be out of America.

There have been predictions of doom and gloom to America and its social security system for a long time, and yeah there have been movements away from pension systems to 401k which are a lot less guaranteed in terms of getting a set benefit once you become eligible, and sure there are matching amounts that vary from employer to employer, too. I surely have my doubts about the Armageddon to America projections, yet I do believe that bitcoin does help to hedge in regards to a decent number of Armageddon scenarios.. so in that regard, it does not hurt to have plans for a variety of scenarios to the extent feasible. I have preached my fair share against the gold bugs who seem to be relying on an Armageddon scenario for their preparations to work out, and it seems quite irrational to me to be putting much more than 10% preparations into 1% scenarios, even though 1% preparations might even be more prudent, but each of us are going to calculate the probabilities of Armageddon scenarios differently, so fair enough that some guys might be making preparations that are way greater than I would consider to be prudent and/or practical.

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RE: The Stock Market, Investments, and Investing Thread - by JayJuanGee - 02-06-2020, 10:46 PM

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