/biz/ - Business & Finance

>>50531694
i would buy a small 10k bag of RLC on coinbase if I were you

>>50531755
I don't want to speculate on volatile cryptos I know nothing about

>>50531694
you are genuinely stupid

>>50531765
Well I never claimed to be a finance expert. What makes you say I'm stupid?

Bump.

>>50531694
That's based on historical returns, there is no guarantee of anything in the market you are taking risks to make those returns

>>50532416
Right but it seems like the historical returns have gone on for such a long time and may continue too. I also feel like it's less risky doing what I am doing than leaving the money in bank account with this inflation

>>50532429
It's a reasonable assumption just know it's not free money

>>50531694
https://www.reddit.com/r/personalfinance/

>>50531694
"average" returns is doing a lot of heavy lifting here. On a 20 year time frame this may be true, but you shouldn't plan on it occurring on a yearly basis.

>>50532466
I plan to leave this money in stocks for at least 10 years if not a few decades more so I'm fine with that

>>50532494
then go for it dude, and pray our society doesn't collapse

He's saying ur stupid because while on average the US broad market index returns ~8% a year theres a lot of volatility and draw down year to year. Its not a steady rate.

Some years are good some bad some uneventful. Add em up divided by number of years thats how the avg return is arrived at.

Also pulling the entire expected yearly return isn't what you're supposed to do if you want longevity to maintain the purchaisng power of the capital cause dun dun dun inflation. You need to keep some of the return in the principal to ensure to holds up purchasing power over the years and decades.

Should be able to pull ~ 3% - 5% safely, "4%" rule, sort of depends on persons age/time horizon, risk tolerance.

Lastly the price you're accoomulating said broad market stocks at matters too. Scary turbulent times. You could all in at the worst possible time and get F'ed in the A. See stock market early 00s and that decade.

Maybe DCA in if its not a LARP.

I dunno whatever good luck. How'd I do am I retarded too?

Source - NEET cause I said so

>>50532494
You will probably be ok unless we have a 1929 90% draw down/melt down which is a low prob event

Most normal people tend to panic sell the bottoms and miss all of the upside but if you are going to diamond hand it for years you'll probably be ok

>>50531694
NO
NO
NO

We're entering a recession and at the end of the business cycle. INDEX INVESTING WILL YIELD 0 RETURNS OVER THE NEXT DECADE.

https://www.youtube.com/watch?v=aNrxggYT2s8

I suggest you buy TLT!!!!

>>50532516
Sorry I didn't explain it well. I have other cash that can sustain me for few decades so I will not be taking out any profits from this. I will reinvest everything and leave it in stocks for at least 10-15 years. Thanks for info

>>50532687
Cool in that case I'd suggest DCA (dollar cost averaging) in as opposed to Lump Sum Investing.

You can do the due diligence on that. People seem to lean on lump sum investing "time in the market beats, timing the market" yadda yadda pull out the proverb quote book when SHTF cause were in some crazy times.

Basically space out buys, space out sells.

You'll have to make your own decisions on the nuances. Which ETFS (SP500, NASDAQ) what brokerages to use. Tax savvy strats to offset pulling cap gains, if youre DCAing or LUMP summing. If you want to keep a minority allocation in bonds to smooth out the ride.

But yeah you'll figure it out. Just keep digging around

>>50531694
If you're putting it in just add slowly. Don't do all 400k at once. Average in especially during this bear market. Things WILL drop further.

>>50533526
I was planning on drip feeding it into market. Should I put like 200k in to start and then do the rest over 6 months or so?

>>50533857
Try slowly dripping into the market by putting in 50k every month for the next few months. This is called dollar cost averaging and it's one of the best things you can do in a market like this

Buy a dividend stocc and collect dividends every quarter. My pick is ZIM, has a ridiculously low P/E and $2/share dividend. Basically you'd make 18k 4 times a year. I think you can do the math. Just when you sell, make sure to sell at a lower price than what you bought at, as is the /biz/ way.

OP, I have been listening to an audiobook of a guy who recommends to go all in on Vangard global index funds
The name of the book is "The Simple Path to Wealth", I am abotu to finish it, and I think it is a great book. Maybe that could help you

>>50531694
put the 200k all into crypto. Life is too short to not massively gamble with all that you own.

OP, assuming this isn't a larp, avoid the index fund.
Buy some dividend companies that you can see continuing to payout forever.
I would recommend:
>KO
>JPM
>CAT
>MMM
>CVX
>MCD

Split 60% between these companies. The rest you just should throw into Berkshire, which historically beats the S&P index.
This method will give you superior income and higher quality companies. The divvies you can reinvest or use for spending.