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Monger income
- Thread starter TempAmpBurner69
- Start date
I appreciate the sentiment when people make statements like this but to be an entrepreneur takes someone who is driven and disciplined. If you do not have a high drive to achieve, and make something happen, being an entrepreneur isn't for you. And let's be real, most people in this country don't have that determination to be that.
Four decades of investing have taught me to take a balanced approach over a variety of asset classes. Don't over-invest in any one asset class. While you may get lucky with a hot stock on occasion, you will almost certainly be unlucky on other occasions. It's just the Law of Averages. I remember what a "genius" I felt like in early 2000 when I was way over-weighted in Tech stocks. Two years later, I felt like a chump. It's also a good idea to have a slush fund that you can use to buy-the-dip or, alternatively, use for Hobby purposes.
I don't want to endorse any fund family, but find a big, high quality mutual fund family that is no-load, has low fees, and good, long term performance. Then buy their flagship funds. Why? Because that is where their best talent is. A simple search will reveal some of the best ones. Check their Morningstar ratings too. It's not that difficult. No matter how smart you are, it's very unlikely you're going to be able to outperform these funds. And, of course, get a few index funds too.
Stocks that pay qualified dividends are great too (check first though, not every company's dividends are qualified). Once qualified, dividends get taxed below your marginal tax rate. In contrast, any kind of interest (sans low yielding municipal bonds) are taxed at your marginal tax rate.
Last and most important rule: Don't panic.
Disclaimer: I may or may not be a financial planner who may or may not also play one on TV.
I don't want to endorse any fund family, but find a big, high quality mutual fund family that is no-load, has low fees, and good, long term performance. Then buy their flagship funds. Why? Because that is where their best talent is. A simple search will reveal some of the best ones. Check their Morningstar ratings too. It's not that difficult. No matter how smart you are, it's very unlikely you're going to be able to outperform these funds. And, of course, get a few index funds too.
Stocks that pay qualified dividends are great too (check first though, not every company's dividends are qualified). Once qualified, dividends get taxed below your marginal tax rate. In contrast, any kind of interest (sans low yielding municipal bonds) are taxed at your marginal tax rate.
Last and most important rule: Don't panic.
Disclaimer: I may or may not be a financial planner who may or may not also play one on TV.
I would say this is generally good advice, but
I would argue against. Why?
Because numerous studies have shown that actively managed funds (as in, a professional investor like a mutual fund manager), CANNOT beat the market over the long-term. Do you know how many actively managed funds, both equity and fixed income, managed to beat the S&P 500 in the last 5 years? Zero. None. If you take it out over long periods of times, same result. Sure, a fund might beat the market in any given year, but none of them do it over a meaningful period of time.
So why do people pay someone to manage their money, when they can't beat the market over the long-term? Chasing performance, which is almost always a losing battle. Herd-mentality. FOMO. Investors often mistake their luck (which is almost always the case) for skill, because market timing doesn't work.
Even so-called "sophisticated investors" like hedge fund managers generally can't beat the market, so it's asinine to pay exorbitant fees. Same for a mutual fund and their loads (fees).
IMHO, what DOES work is regular contributions to both a tax-advantaged and after-tax brokerage account, buying nothing but super low-cost index funds. And combine that with the power of compound interest (as mentioned earlier) over time, having a long-term horizon (10+ years and longer), and not panicking in a down year.
Of course, if you're closer to retirement age and want to de-risk, it's a different story, but for most younger and middle-aged folks who aren't as knowledgeable about investing, index funds or ETFs with miniscule fees (expensive ratio that's like .03%) is the way to go. Even investors who are more knowledgeable will most likely benefit.
Branching into sector ETFs like technology or energy is the next logical step...again, emphasis on low cost, as fees eat into your returns and will make a huge difference in your balance over time.
It's a shame that most high schools don't offer or make mandatory classes in personal finance. Financial literacy should absolutely be a must...
Because numerous studies have shown that actively managed funds (as in, a professional investor like a mutual fund manager), CANNOT beat the market over the long-term. Do you know how many actively managed funds, both equity and fixed income, managed to beat the S&P 500 in the last 5 years? Zero. None. If you take it out over long periods of times, same result. Sure, a fund might beat the market in any given year, but none of them do it over a meaningful period of time.
So why do people pay someone to manage their money, when they can't beat the market over the long-term? Chasing performance, which is almost always a losing battle. Herd-mentality. FOMO. Investors often mistake their luck (which is almost always the case) for skill, because market timing doesn't work.
Even so-called "sophisticated investors" like hedge fund managers generally can't beat the market, so it's asinine to pay exorbitant fees. Same for a mutual fund and their loads (fees).
IMHO, what DOES work is regular contributions to both a tax-advantaged and after-tax brokerage account, buying nothing but super low-cost index funds. And combine that with the power of compound interest (as mentioned earlier) over time, having a long-term horizon (10+ years and longer), and not panicking in a down year.
Of course, if you're closer to retirement age and want to de-risk, it's a different story, but for most younger and middle-aged folks who aren't as knowledgeable about investing, index funds or ETFs with miniscule fees (expensive ratio that's like .03%) is the way to go. Even investors who are more knowledgeable will most likely benefit.
Branching into sector ETFs like technology or energy is the next logical step...again, emphasis on low cost, as fees eat into your returns and will make a huge difference in your balance over time.
It's a shame that most high schools don't offer or make mandatory classes in personal finance. Financial literacy should absolutely be a must...
That's one reason I don't actively trade individual stocks anymore. Too much mental bandwidth involved and anxiety. I was obsessing over it when I should have been obsessing over other things (like Asian pussy). Also beating yourself up when you don't sell at the top and end up holding on to a stock too long. It can make you crazy. I still own individual stocks, but at this point in my life, I am mostly in them for the dividends. I leave the MF managers worry about the growth opportunities.
I have some core funds I've made quite a bit on over the years. The ones I stick with do routinely outperform the S&P 500. I also have some index funds and ETFs too The ETFs are mostly sector ETFs which often go in and out of favor. Like I said, when I was younger, I used to play the market a lot more actively. Now, I feel like I got better things to do and don't have to chase after every last dollar.
I'll repeat what I said at the beginning: a balanced approach is best, especially after 50. You won't maximize your returns, but you will do okay while preserving your wealth. The latter is especially important as you near retirement.
I have some core funds I've made quite a bit on over the years. The ones I stick with do routinely outperform the S&P 500. I also have some index funds and ETFs too The ETFs are mostly sector ETFs which often go in and out of favor. Like I said, when I was younger, I used to play the market a lot more actively. Now, I feel like I got better things to do and don't have to chase after every last dollar.
I'll repeat what I said at the beginning: a balanced approach is best, especially after 50. You won't maximize your returns, but you will do okay while preserving your wealth. The latter is especially important as you near retirement.
To be honest with you. I don’t believe your annual gross income matters. Especially, if you live in a high rent or in a high cost of living region in the Northeast or the West coast. 250k will disappear quickly if you pay an expensive mortgage, fancy car, and high taxed. An old fart with no mortgage, and a decent life savings will have money to hobby. One who makes 100k, and living in a low cost area will probably have more money in his pocket to hobby.
I don't know how anyone makes it on $30K a year anymore, especially in an urban area. Unless you are living with your parents. Unfortunately, I know too many people who are using their credit cards to make ends meet. That's a recipe for disaster.
My advice is to stop mongering until things turn around for you. Porn is free and you can do the rest yourself.
My advice is to stop mongering until things turn around for you. Porn is free and you can do the rest yourself.
I don’t live with my parents but I have zero play money after rent is paid.
I agree. I’m currently going into debt every week deeper and deeper, but honestly when I’m mongering, it’s the only part of my day where I don’t want to eat a bullet, so I really don’t care what’s happening financially . Yeh I’m in financial ruin, but my life is also in ruins, so meh, you know?
I agree. I’m currently going into debt every week deeper and deeper, but honestly when I’m mongering, it’s the only part of my day where I don’t want to eat a bullet, so I really don’t care what’s happening financially . Yeh I’m in financial ruin, but my life is also in ruins, so meh, you know?