/biz/ - Business & Finance

[Anonymous No.13838544]

I'm a total brainlet when it comes to investing. Are index funds a good low effort way to make money in the long run?

[Anonymous No.13838615]

>index funds

if you're a boomer then sure

if you have a brain then absolutely not just buy BTC/ETH/XMR

[Anonymous No.13838636]

10% per year, so you need at least 100k to make it. With crypto you can make it with $50 put into the right coin

[Anonymous No.13838672]

>>13838544
yes

[Anonymous No.13839073]

>>13838544
>Are index funds a good low effort way to make money in the long run?

Yes. Most mutual funds and stock pickers tend to not beat the market at it's own game. So if you can't beat em, join em.

[Anonymous No.13839106]

>>13838544
You can listen to the boomers and invest in stocks, maybe you'll make 12% per year. Maybe you'll even get some insane return and make like 20%.

OR you could simply hold onto BTC since we're at the start of the climb to somewhere between 60-100K within the next year, your choice. Even if you choose to invest in the stock market at it's all time high it would be incredibly foolish not to put even 10% into crypto IMO.

[Anonymous No.13839136]

>>13838636
Would that coin be [REDACTED]?

You know the one

[Anonymous No.13839232]

>actual richfag here

The stock market (with an index fund) yields an average 8% profit every year, as an investment device within a Roth IRA, considering compound interest and the fact that it's gains aren't taxed it's an excellent place to just park your money until you're 59. Stocks are a scam for most people, as nice as cryptos are, the system hasn't been prepared for it... the money you make would be much harder to use in your favor.

Try buying a house with crypto money as your down payment and getting the mortgage declined because you can't prove your income is high enough to afford it since cryptos aren't considered assets. It might as well be considered Runescape money.

[Anonymous No.13839271]

>>13838544
if you really don't give any fucks amd want year over year returns buy an S&P 500 ETF and just don't touch it. ETFs are basicly a mutual fund with no fees. Then buy like 1,000 in BTC/ETH in case they moon. But really you should learn some basic technical analysis even if you just want to buy and hold.

[Anonymous No.13839459]

>>13839232
Not YET they don't, that's the whole point of crypto in the first place as a speculative asset that may or may not be used in the future. That's why you cash out into FIAT and use the dollar to purchase what you want. Of course this is if or until crypto becomes big enough to where you can actually buy a house with it as the down payment (which looking at current market trends and upcoming propositions for bitcoin alone isn't unrealistic).

The fact that you're comparing an industry that has gone up by over 50,000% on one asset alone to "runescape money" is laughable at best, and at worst you're missing out on an opportunity that comes only once in every 10 generations. When bitcoin reaches $100,000 each and stabilizes enough for you to get a yearly price movement that fluctuates less than TSLA you'll finally say crypto is a legitimate investment opportunity. But by the time you do so all of the potential and opportunity cost might as well have been flushed down the toilet.

[Anonymous No.13839582]

>>13839232
>Try buying a house with crypto money as your down payment and getting the mortgage declined because you can't prove your income is high enough to afford it since cryptos aren't considered assets. It might as well be considered Runescape money
A of of people have bought houses with crypto gains. I saw someone use his bitcoin as proof of funds for a mortgage. He signed a message for the lender with an address holding substantial bitcoins. He did have to go to several banks before he got accepted for the mortgage.

You can also just buy some houses outright with bitcoin.

[Anonymous No.13839654]

>>13839232
Dude you just cash out and pay capital gains and then buy your house. Why would you ever buy a house direct with crypto? Its already hard enough to find a house you like enough to buy and then you have an extra constraint that the seller accepts crypto too? Not realistic

[Anonymous No.13839671]

>>13838636
>>13838615
Retardation. People say these things unironically and it’s bad advice. If you bought bitcoin in 2011, yes, that would have been a better investment. Or amazon in its infancy. Or x company. That doesn’t make crypto a better investment than the only reliable metric for reliable passive investing (a mix of bonds and index funds).

[Anonymous No.13839701]

Bitcoin cannot simultaneously be an investment and a currency. For bitcoin to not be a bubble, it has to be used for its intended purpose (a currency). Look around here and ask yourself if these people want to actually use crypto, or if they want to just sell it someone for more USD than they paid for it and buy a house/car/prostitutes.

[Anonymous No.13839736]

>>13839106
imagine actually believing btc will hit 60k

[Anonymous No.13839747]

>>13839671
This. It‘s like saying „well it‘s easy to get rich, just win the lottery. Last time the winning numbers were xxx, so you see, it‘s totally easy!“
Index Fund and/or even World ETF (MSCI World still contains 62% US Stocks) are probably the most reliable way to get actually rich in your lifetime, ignoring WW3 or a car hitting you tomorrow. The compound interest with 7% over 30-40 years is insane.

[Anonymous No.13839764]

>buying into the boomer ponzi
Not gonna make it

[Anonymous No.13839840]

>>13839747
>>13839671
the point is that putting $2000 in an index fund is not worth it. if you have a career and can store away a percentage of each paycheck or if you happen to have a large sum of money fall into your lap, great, then index fund. its a great way to make money long-term provided you already have lots of money/a decent job where you don't live paycheck to paycheck and can allocate some to investments. i think crypto should only be 10-15% of your portfolio unless you're a brokeass millennial/NEET that wants a bigger payout (95% of /biz/?), but then you have to accept the obviously greater risk

[Anonymous No.13839866]

>>13839232
i'm literally in this exact process right now regarding a mortgage. been going back and forth with my bank loan agent to get more info for the underwriter. if you've realized gains trading crypto and owed taxes you can show them your taxes for the last two years to prove your income from crypto, that part & getting the down payment $$ was easy but now using my crypto assets where only half are held on exchanges that im verified on is making it difficult trying to go about proving i actually own all this stuff to them lol. sick of throwing away over $1k a month renting in the city though i figure its worth at least trying now that i have 2 years of taxable income from trading

[Anonymous No.13839885]

>>13839866
enjoy throwing away your money with (interest, property taxes, HOA, insurance, maintenance)

[Anonymous No.13839919]

>>13838544
If you know you’re a brainlet and can’t hope to beat the market, you are already better off than 99% of the tards on here.

Yes, index funds, Roth IRA maxed out, DCA monthly and don’t ever fucking mess with it. That’s the recipe and it’s all you need.

I say this as a degenerate gambler like everyone else here, and if you know you aren’t interested in risking it, you’ll do better than almost all of us

[Anonymous No.13839928]

>>13839736
>imagine actually believing btc will hit $1
>imagine actually believing btc will hit $10
>imagine actually believing btc will hit $100
>imagine actually believing btc will hit $1000
>imagine actually believing btc will hit $10000
>imagine actually believing btc will hit $100000

Imagine if you actually did your own research and had more than a few seconds of original thought. It'll plateu at some point, and that's when you can buy in with the rest of the normies and boomers because it's "too volatile to be a real investment"

[Anonymous No.13839949]

>>13839885
i live in a part of the country that you can buy a livable home for under $100k and a nice home for under $200k. a mortgage for a 3bdr home is the same as rent for a studio or 1bdr in the city im living in, including taxes & home insurance (no HOA im going to live out in the country). also i have friends i plan to rent rooms out to so now im paying the same amount as i was in the city but can rent out two rooms as well. Maintenance is part of the deal & nothing is perfect but thats like saying doing maintenaince on your car to keep it running is "throwing it away". I'm not "throwing" my money away renting in the city either technically since it's providing me with somewhere to stay for a year but i don't get any of that money back like i would if i did a mortgage and eventually sell the home down the road. I mean I have enough to pay outright but i'd rather keep the large amount invested if possible. if none of that works out i just continue to bum hard in an even cheaper place than i am now and put the 25k i was gonna use for home into btc probably.

[Anonymous No.13840067]

Buy low, sell high.

Be greedy when others are fearful, be fearful when others are greedy.

Basically you need to be able to read the macroeconomic conditions and decide where in the credit cycle we currently reside.

All you have to do is look back at news articles and general sentiment when markets have reached their ultimate lows (2009, 2002) and realize that is when the time is to pounce on stocks. Getting within 10% of a low is impressive, the same with a topping action.

[Anonymous No.13840141]

>>13839885
Profit from holding bitcoins will more than make up for interest on a mortgage

[Anonymous No.13840893]

>>13839840
>Not worth it
Tell that your 65 year old self when you retire in 40 years with 29k, all from that measly 2k back then. Of course you‘re not rich, but it‘s enough for a car or for travelling around the world. Of course, gambling with 5-10% of your assets in crypto is nice too. But it‘s no viable financial strategy whatsoever for the entire stack

[Anonymous No.13841555]

>>13838615
Hurrr durr dumb boomer just trade in the equivalent of penny stocks with absolutely zero regulations or security from bankruptcy

[Anonymous No.13842225]

>>13839582
I struggle to believe this.

[Anonymous No.13842258]

>>13838544
Stop LARPing you faggot, you're a whale

[Anonymous No.13842606]

>>13841555
why do you need regulation? they aren't protecting you from anything. Just don't be a brainlet

> security from bankruptcy
no such thing