Investment Thread

[Phredd3]

So, according to this 2020 NYT article, only 21 states require personal finance classes in high school, recently up from 16.

Thanks for the link. Drilling down, I discovered this page, partially quoted below:

During the 2019 legislative session, North Carolina established a required, full-year course in economics and personal finance for high school graduates. This new course will be developed by the State Board of Education and North Carolina Department of Public Instruction and will ensure all students have access to high-quality instruction on the true cost of credit, borrowing, credit scores and reports, and planning and paying for post-secondary education. The course will be required for graduation beginning with the class of 2024 and replaces a course that combined content standards in civics, government, and economics.

So my wish is coming true, and perhaps we are trending in a healthy direction, at least.

[JNort]

My wife has a top tier MBA and worked at a large investment bank for 10+ years and has zero understanding of personal finance. Fortunately she has been good about her 401k, but that is about it. For instance, she would consistently keep credit card balances despite having more than enough liquid funds to pay them off. My understanding of personal finance is well above average though definitely has holes, and I am generally good about knowing what I don't know.

The flip side of that is that my wife is equally horrified by my lack of medical knowledge - when a doctor talks to me it is like the teacher from Charlie Brown, and I don't have any natural curiosity about the topic (hence why I didn't go pre-med despite A's in Dr. Bonk's Intro to Chem classes). However, I again recognize my deficiency in this area and the importance of good decision making so either take a lot of notes or bring my wife to important appointments to make sure I'm not missing anything.

So I guess we all have our strengths and weaknesses. But, as others have noted, there are so many resources out there to get good advice on personal finance. So even if you are not good at it and have no interest, it isn't that hard to do a few minutes of research, ask knowledgeable friends for their thoughts, and get someone good to help you who won't charge a fortune for that. Showing people the charts displaying the impact of compounding and how much they are giving up long term by not saving and/or paying high fees should get the point across, but it doesn't always work.

lol I really feel this. My sisters are horrified with my lack of knowledge on medical anything and basically control all of that including getting the results for me. Heck they even schedule most of my visits for me. Yet when it comes to budgeting and personal finance it’s flipped.

I also am appalled at their lack of historical and geographical knowledge but as you say, know your own weaknesses/ strengths.





For context my youngest sister didn’t know much of our southwest was once Mexico. This came about while looking at a map of So Cal and she wondered why so much of the cities were Hispanic sounding.

[JNort]

My strong desire for financial independence. I didn’t want to spend my life working for the man and money. Instead, I wanted to be the man and have money working for me.

Same here Jeff. Runs in our family. My dad learned at 23 that he couldn’t take “orders” from someone so he started his own business. He sadly was given a bunch of bad financial advice and still has to work (age 67) but never for someone else. I saw that as a teen and vowed to retire no later than age 50 and have been working to that goal and on track at 30.

[Jeffrey]

Same here Jeff. Runs in our family. My dad learned at 23 that he couldn’t take “orders” from someone so he started his own business. He sadly was given a bunch of bad financial advice and still has to work (age 67) but never for someone else. I saw that as a teen and vowed to retire no later than age 50 and have been working to that goal and on track at 30.

I think 50 is a great and, for many, realistic goal. Your teenage start provides you an extreme advantage. Self-discipline and hard work substantially increase the success probability.

If I can ever help with free (worth every penny)advice, please PM.

[LasVegas]

Same here Jeff. Runs in our family. My dad learned at 23 that he couldn’t take “orders” from someone so he started his own business. He sadly was given a bunch of bad financial advice and still has to work (age 67) but never for someone else. I saw that as a teen and vowed to retire no later than age 50 and have been working to that goal and on track at 30.

I was on track too until I had 3 kids and had to pay for daycare which is about equal to in-state tuition.

[bundabergdevil]

I was on track too until I had 3 kids and had to pay for daycare which is about equal to in-state tuition.

Couldn't you have just dropped them off at one of the casinos and let them run around? I thought that was one of the perks of living in Vegas.

[Jeffrey]

I was on track too until I had 3 kids and had to pay for daycare which is about equal to in-state tuition.

No doubt, 3 before 30 is a game changer. However, you still have the critical mindset and it’s a rare commodity.

[LasVegas]

Couldn't you have just dropped them off at one of the casinos and let them run around? I thought that was one of the perks of living in Vegas.

Lol I wish. People have dropped little kids off in the casinos before. Some lady actually did it like last month.

No doubt, 3 before 30 is a game changer. However, you still have the critical mindset and it’s a rare commodity.

Yeah, my wife and I REALLY wanted kids and we wanted to have them all before 30. My life is kind of flipped from what my friends are currently doing but that’s ok. I’ll be 47 when my youngest graduates high school and I like that.

[camion]

Lol I wish. People have dropped little kids off in the casinos before. Some lady actually did it like last month.



Yeah, my wife and I REALLY wanted kids and we wanted to have them all before 30. My life is kind of flipped from what my friends are currently doing but that’s ok. I’ll be 47 when my youngest graduates high school and I like that.

Dang. My dad was 47 when I was born.

For some reason my family has averaged around 40 years per generation since my grandfather’s day.

[bundabergdevil]

Lol I wish. People have dropped little kids off in the casinos before. Some lady actually did it like last month.



Yeah, my wife and I REALLY wanted kids and we wanted to have them all before 30. My life is kind of flipped from what my friends are currently doing but that’s ok. I’ll be 47 when my youngest graduates high school and I like that.

Dang. My dad was 47 when I was born.

For some reason my family has averaged around 40 years per generation since my grandfather’s day.

Definite pros and cons to 'having a child' timing. We didn't even think about it in our 20s and early 30s. Most of our friends began having children in their early to mid-thirties. Lots had sought advanced degrees, were moving around a lot, or just didn't want to yet. We had our first late 30s and have our second scheduled for when we are both 40 this summer. I do think about staying healthy and active and worry that they'll have to deal with old parents sooner than I'd prefer them to. On the flip side, we have a reasonable chunk of invested capital that we have saved and shouldn't have to touch and will continue to compound even if budgets get thinner with daycare, school, and college savings.

It's a tough go, kudos to Las Vegas for having his in their 20s. I was nowhere near the head space as a 20-something for children, that's for sure. I started developing the dad bod before I became a dad so that helped get my mind right!

[BlueTeuf]

Here's an article from MarketWatch entitled: Looking to avoid an obscenely overpriced U.S. stock market? Here’s one strategist’s advice on how to ride the inflation wave

The article references some comments from one Vincent Deluard, director of global macro at StoneX:

“In the U.S., fiscal and monetary authorities have inflated a massive stonk bubble. When all is said and done, Europeans will have savings under their mattresses, Asians will have even more productive assets, and Americans will have funny memes,” Deluard says.

Inflation, which investors are increasingly betting on, is the obvious answer to the problems the U.S. faces. “Inflation will act as a ‘debt jubilee,’ will restore the equilibrium between the asset-owning old and pauperized youth, and will allow a stealth default on unfunded liabilities that the boomer generation awarded itself,” he writes.

Can someone boil this down for me? What is Vincent telling us (in plain language) - and is it an actionable insight for a commoner like me?

[bundabergdevil]

Here's an article from MarketWatch entitled: Looking to avoid an obscenely overpriced U.S. stock market? Here’s one strategist’s advice on how to ride the inflation wave

The article references some comments from one Vincent Deluard, director of global macro at StoneX:



Can someone boil this down for me? What is Vincent telling us (in plain language) - and is it an actionable insight for a commoner like me?

What the heck is a 'stonk'?

Edit: Okay, it's a meme. Stand in for 'meme bubble' due to GameStop and other speculation. That and DogeCoin. This stuff is getting tough to follow.

[PackMan97]

Can someone boil this down for me? What is Vincent telling us (in plain language) - and is it an actionable insight for a commoner like me?

Sure. Pick winners, not losers. It will be clear in 6 months that you picked losers. Congrats on being at the bottom of the pyramid.

[YmoBeThere]

Here's an article from MarketWatch entitled: Looking to avoid an obscenely overpriced U.S. stock market? Here’s one strategist’s advice on how to ride the inflation wave

The article references some comments from one Vincent Deluard, director of global macro at StoneX:



Can someone boil this down for me? What is Vincent telling us (in plain language) - and is it an actionable insight for a commoner like me?

My interpretation is hard assets such as gold, silver, metals producers, etc. If looking at financial instruments, TIPs rather than long bonds...

[Jeffrey]

Can someone boil this down for me? What is Vincent telling us (in plain language) - and is it an actionable insight for a commoner like me?

Yes, I think Vincent is telling us our time is better spent reading other people’s opinions/advice.

[bundabergdevil]

Sure. Pick winners, not losers. It will be clear in 6 months that you picked losers. Congrats on being at the bottom of the pyramid.

Yes, I think Vincent is telling us our time is better spent reading other people’s opinions/advice.

These responses came with some extra sauce. Love it.

[Bluedog]

^I do think I-Bonds are looking increasingly attractive...I haven't pulled the plug myself on that and there is a cap. Some people intentionally look to have a huge tax refund because you can use that to get I-Bonds. The current fixed rate is 0.0%, which sounds pathetic, but the composite rate of ~1.7% or thereabouts is pretty good for a "safe" investment and if inflation skyrockets, it will be even better. I view I bonds as less speculative than gold/precious metals. EE Bonds are another option but only if you plan on holding for 20 years, which is a long haul...

I'm considering abandoning some of my inter/long treasury holdings and go with some combination of short-term corporates and i-bonds/TIPS. Besides that though, still holding equities and staying the course. Valuations can remain frothy longer than one expects. I have international equities and small-cap value to somewhat diversify risk. International has been a bear for the last 10+ years certainly, but seems more attractively valued today. I don't plan on holding gold/silver/bitcoin, but others do as a hedge...Having something somewhat correlated with inflation may not be a bad idea though. Gov'ts are spending and printing money pretty hard, although inflation has still remained low somehow. We'll see if it eventually catches up with things.

https://www.treasurydirect.gov/indiv...esandterms.htm

[Section 15]

Can someone boil this down for me? What is Vincent telling us (in plain language) - and is it an actionable insight for a commoner like me?

"Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it."
- Will Rogers

Best stock market advice I've ever come across.

Section 15

[Jeffrey]

I don't plan on holding gold/silver/bitcoin, but others do as a hedge...Having something somewhat correlated with inflation may not be a bad idea though. Gov'ts are spending and printing money pretty hard, although inflation has still remained low somehow. We'll see if it eventually catches up with things.

Many investors and “market experts” were rather certain that the massive government infusion of liquidity in ‘08 and ‘09 would be very inflationary and, eventually, they will be correct. The current massive additional infusion should help their forecasts one day materialize.

[cato]

Many investors and “market experts” were rather certain that the massive government infusion of liquidity in ‘08 and ‘09 would be very inflationary and, eventually, they will be correct. The current massive additional infusion should help their forecasts one day materialize.

I’ve been a transactional attorney for two decades and I can’t remember a time when we weren’t rushing to get deals done to take advantage of low rates before inflation hits. Eventually it will, but I’m skeptical of any particular prediction of when.

On a separate note, I’m curious how many people here invest in real estate? I’m a much less active investor than others here, but work in CRE and personally invest in the space (although modest amounts currently).