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/biz/ - Business & Finance

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17265513 No.17265513 [Reply] [Original]

Here's the plan. I'm going to sock my $13,000 away into my Robinhood account. 75% S&P 500, 25% Total Bond Market ETF. Average returns are 12%.

I'm 26 years old now. If I put $7,200 in every year for 24 years, I will have $1,002,504 by the time I'm 50 years old.

At 50, I'll start pulling 4% from the account annually, meaning I have a steady income of about $40,000 just off the interest of the account. At that point in time, I can keep working, but I won't *have to* work.

Foolproof? Retarded? Let me know.

>> No.17265546

>>17265513
Why do you want boomer gains? Do you not read about what’s going on in crypto?

>> No.17265561

>>17265546
Looks like all of you are losing all of your money.

>> No.17265584

>>17265513
By that time due to inflation a loaf of bread will coast $50,000
>Have you ever heard of cryptocurrencies or blockchain?

>> No.17265589

>>17265513
> Average returns are 12%.
This is pretty damn optimistic. Adjust for crappy years and inflation to find your real rate of return and I'd bet it's gonna be closer to 4-5%

> Robinhood account
Max your tax advantaged accounts first (Roth, IRA, 401k, HSA etc.) before doing this. Don't want to get eaten alive by Uncle Sam. Also, look for a broker more stable than Robinhood for long term holds. I doubt Robinhood will even be around in 30-40 years, honestly. It's great for day/swing trading.

> I have a steady income of about $40,000 just off the interest of the account
Again, you need to account for inflation. Depending on your lifestyle, it may be hard to live on 40k in 40 years, when it will be the equivalent of like 28k or something.

>> No.17265590
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17265590

>>17265513
>$1,002,504 by the time I'm 50
that will be like 10k where we are going
AIM HIGHER

>> No.17265600

>>17265513
That million will be worth about half as much by that time, just so you're aware.

>> No.17265605

You must be lost man, you are looking for reddit.com/r/personalfinance

>> No.17265617

>>17265513
just buy eth/btc for 1-2 years THEN focus on boomer stocks

>> No.17265660

>>17265513

BUY

>> No.17265668

>>17265513
$40k will be min wage in 50 years

>> No.17265678

>>17265513
1. You're too young for bonds. There's literally no point. Your investment risk right now should be much higher. You have a lot of time before you need to draw from it and can easily weather whatever "correction" we have.
2. By investing in the S&P500 you're only owning the 500 largest US companies. You're somewhat diversified. But what about small and mid US companies? International companies? Emerging markets? Real estate? Yes large growth companies have done well the past couple years, but they're so overpriced at this point.
3. Don't use Robinhood unless you're trading options. Their fees suck. Open an account at Vanguard or something.
4. Consider investing a portion into a Roth IRA unless you're dead-set on stopping work at 50.
5. Inflation is a killer. You might have $1M, but it won't buy you as much as you think.
6. I'm sure there's some other stuff, but that's what I can think of off the top of my head.

>> No.17265698

good idea op

i am going for the same thing but I am gambling 150k in leverage etfs to see if that will get me a few extra bucks

sso tqqq and such

I heard of a guy that left his money in sso thru thick and thin and still came out with a good 15% return

>> No.17265764

>>17265561
Maybe swingtrading retards, Just buy link anon on the next dip please for your sake

>> No.17265789

>>17265513
Based and boomerpilled

>> No.17265797

>>17265764
Link is a shitcoin

>> No.17265803

>>17265513
>If I put $7,200 in every year for 24 years

is there a max on IRA/Roths? if you over contribute, you're taxed 6%. factor that in.

>> No.17265820

>>17265803
It would be in a taxable account, because a Roth won't let you pull money from it until you're like 60.

>> No.17265822

>>17265600
So what do you suggest?

>> No.17265823

>>17265513
are you retarded? capital gains will destroy you. the fuck woudn't you do this in an IRA? You need to reevaluate your plan my guy.

>> No.17265835

>>17265823
With an IRA, you can't touch the money until you're 60+, and that's 10 years later than I'd like to be able to be financially independent.

>> No.17265868

Get a vanguard fund. They have an 80/20 fund.
You will get drip, lower expense ratios and you don't have to buy whole shares.

>> No.17265878

>>17265617
>>17265764
your internet coins are fool's gold. just like everything else wrong with our society today-- all spectacle with no substance.

>> No.17265960

>>17265513
24 years to become a millionaire, come on.

Bitcoin is just 11 years old, you'll have 100s of opportunities to become rich before you're 50

>> No.17266031

>>17265878
t. I have no idea what I’m talking about. Later on, whether it be 1-5 years, you’re gonna see what happened with link and you’ll remember your arrogance and my posts. At least read about it before you shit on it

>> No.17266067

>>17266031
>be a stupid fuck who knows nothing about finance
>lash out at anyone who tells you the truth about your stupidity

A fool and his money.

>> No.17266084

>>17265513
>Planning on playing the Boomer Market for the next 24 years
>Buying the top
I have bad news for you OP.

>> No.17266116

>>17266031
you're an actual, literal, and complete shill for your preferred flavor of crypto because you have a vested interest in people investing in it.

>> No.17266163

>>17265513
you are retarded.. the stock market, bond market, equity market in general are at all time high, you won't be buying "safe" assets, you will be buying the peak of a generational bubble.
you would be better of opening a low-leverage short on the S&P 500 or just accumulating fiat. Once the bubble burst, then you can buy your boomer shit..

>> No.17266186

>>17266163
>the stock market, bond market, equity market in general are at all time high

The market often reaches all-time highs. This alone isn't sufficient indicator of a bubble.

>> No.17266211

>>17266067
I don’t know what you think you know but you don’t know shit about what’s going to happen with chainlink.
>>17266116
>muh gribtoe
Cmon OP you’re smarter than that. I don’t give a fuck if you buy it or not cause the train will roll on without you that’s for sure. I’m altruistically telling you to look at something that would benefit you out of my desire to see everyone on this board do well. Anyway my “shilling” is over. Look into it yourself or don’t

>> No.17266266

>>17266211
>I’m altruistically telling you to look at something that would benefit you out of my desire to see everyone on this board do well.

No you're not. You're encouraging others to hop on the bandwagon with you because you feel insecure being on there alone.

>> No.17266327

>>17266186
we have reached an all time high, every year for the last 10 years..
the market is cyclic in nature, a downtrend will follow an uptrend, with one or two exceptions then there has never been a longer uptrend in history, a downtrend is bound to happen and it will probably happen sooner rather than later.

>> No.17266360

>>17266327

That's not what a bubble is.

>> No.17266389

>>17266266
i feel very very secure. im up about 500%

>> No.17266434

learn what is inflation, learn what is money, learn why dollar purchasing power keeps dropping, then you will automatically save your wealth into deflating assets/assets that don't lose value over time, you'll also naturally laugh at boomer scams such as what you're referring to

>> No.17266452

>>17266186
check out any of the following:

yield curve inversions
company operating profits vs. stock price
company earnings vs. stock price
manufacturing index
effects of QE
overnight repo liquidity injections
recent post by Scott Minerd

>> No.17266463

>>17266360
you are retarded, when i say bubble i mean it in the sense you are buying an asset that is overvalued and buying into a needlessly high price.
you asked a question, i gave you my take, not gonna argue semantic with you, and you are honestly stupid if you browse /biz/ and cannot see the fundamental value of crypto and how it inevitably will become implemented into cyberspace.

>> No.17266473

>>17265878
Are you sure you're not already 50?

>> No.17266573

>>17266463
>use term incorrectly
>get told you're using it incorrectly
>hurr i'm not going to argue semantics retard

Okay.

>> No.17266653

>>17266573
you are 26 years old and have no money, your master plan is to retire at age 50 and live off something akin to a Mcdonalds wage..
wtf mate?

Also, i stand by my statement that the stock market is in a bubble, and i stand by my definition of a bubble.. feel free to find a dictionary and look up the definition.

>> No.17266673

>>17266653
>calling samefaggotry on a board with poster IDs

oof

>> No.17266679

>>17266666

>> No.17266985

>>17266473
touché, a lot of people say i'm a grumpy old man.

>> No.17267079

>>17265589
this. especially if interest rates stay low.
If interest rates get high again, maybe equity will have better returns

>>17265678
> somewhat diversified.

While I agree S&P 100% is probably bad, this diversification meme needs to die. 90% of volatility is eliminated by owning just 5 different assets (could be stocks in different sectors).

Part of this is fallacy comes from grouping. Some individual stocks are diversified across many industries like BRK. Others have one product.
Is 500 stocks "one unit" of diversification?

>> No.17267109

>>17266327
>>17266463

sell short then genius.

>>17266360
this. When everyone is calling it a bubble its not a bubble. When everyone is caught up despite obvious mania and you start to feel the FOMO, that's when you know it's a bubble.

>> No.17267157

>>17265561
Millionaire here.
I got in crypto at your age with the money you are talking about.
This is just a bit of waves.
Crypto is the emerging 5th asset class.

Precious metals, stocks, bonds, cash, real estate and crypto.

The smallest of the other 4 is 10 trillion.

Wake the fuck up.

>> No.17267197

>>17265513
When rates start going up from their historic lows again your bond market etf will get raped. Look up interest rate risk.

Inflation doubles the cost of living by halving buying power every 20ish years. Your 40k will. Be like 20k best case.

S&P500 is 100% us stock. Do you think ghat is wise?

>> No.17267226

>>17267079
Diversification gives diminishing returns to the point of stupidity around 50 stocks, not 5.

>> No.17267709

>>17265513
the only problem with your genius plan here buddy is you are betting on the US Dollar.
before you turn 50 all of your US dollars will literally be worthless bc of hyper inflation.
the USD inflates on avg at retail level 16% a year and it keeps going up.
central banks are abandoning the USD in droves
and the US DOD is desperately reaching out to financial institutions for ways to save the already failing USD.

your plan is about as retard literal boomer tier as it gets. you will die homeless and begging for BTC, ETH, LINK, RSR, and PNK.