[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 208 KB, 900x900, The Idiot.jpg [View same] [iqdb] [saucenao] [google]
21869570 No.21869570 [Reply] [Original]

I'm investing. My family is stupid and is trusting me to successfully invest their money for their retirement for them because i took up an interest in finance as a hobby.

i made a plan, that i separated in three blocks:
----------------
1200 IBB - biotech etf
1200 IGM- general tech etf
----------------
500 Amazon
500 Tesla
----------------
500 jet blue
500 delta airlines
1000 boeing
300 hilton inn
300 marriot
----------------
first block is just safe portfolios for security and so my family members don't freak out about the number going low if they get scared. Tech has been unaffected by covid and biotech goes up during a pandemic.

Second block was a negotiation with my family, they really liked tesla, and i saw their recent growth and offered to take some stock but also split it with amazon who has show similar stellar returns this year for some added security

The last block is my attempt to hold out for a vaccine in about 12 months. US won't let boeing and airliner companies fail, and when people start going traveling again i anticipate them to to rise back up to pre covid levels.

if anyone has experience with finance i'd like to hear their criticisms or advice.

>that's me in pic related.

>> No.21869674

>>21869570
Please dont invest your parents money. You'll be a disgrace forever if you lose anything

>> No.21869698

>>21869570

Never invest other people's money. They will not be grateful if you succeed, but they will hate you if you fail.

>> No.21869720

>>21869570
You should probably look for better reasoning behind the "safe" and "secure" choices. There's nothing riskier than prioritizing "safety".

In general stick to options.

>> No.21869767

That's a lot of pressure if you lose their money.

>> No.21869801

>>21869674
>>21869698
>>21869767
I don't mind the risks or the pressure, or their impression of me but i do want to make sure their later years are financially secure, and i know they can't do it themselves.

>> No.21869805
File: 54 KB, 793x786, 1560273043392.jpg [View same] [iqdb] [saucenao] [google]
21869805

>>21869570
bad idea. do not invest their money. heed our warnings. even if they don't hate you WHEN you fail, which you will, you will hate yourself.

listen, it's hard enough trading with your own loses, but trading with another's, you will trade in pain, with stress, and inevitably make huge mistakes. you will regret this, newfriend. don't do it.

>> No.21869823
File: 46 KB, 622x647, smug_anime_girl.jpg [View same] [iqdb] [saucenao] [google]
21869823

Go to a casino and put it all on red

>> No.21869838
File: 424 KB, 1440x1440, 1589531168774.jpg [View same] [iqdb] [saucenao] [google]
21869838

>>21869720
>>21869570

It also helps to go beyond stocks. Mix in real estate, and something more store of value/uncorrelated like fine art or precious metals. For yourself learn crypto, it isn't going away and the experience will be worth it for you down the line.

>> No.21869888

>>21869570
Put all their money in link.

>> No.21869897

>>21869570
first, don't invest other people's money
second, why the fuck are you giving someone TSLA as a long term hold? Just put it in ETF's

>> No.21869924

>>21869823
Better odds than crypto.

>> No.21869994

>>21869838
i know people with real estate, i'd like to do that in the future, but i don't have assets big enough to go into that, the word on the street is that real estate is going to go back down, and i'm guessing that corporate real estate like offices are going to be shot after covid now that working from home has been such a success.

As for precious metals and crypto, i don't trust futures, or at least i'm not confident with them and they don't seem like a winning game for someone trying to learn the ropes.

>> No.21870024

>>21869570
This is the worst plan I’ve probably ever seen while browsing these boards. Two of the biggest sins, getting mixed in money deals with family, and also picking single stocks. You are not a professional. They need a professional. Tell them that a $500 consultation can gain them 10x what they paid for the information.
Just imagine if you lost it all, your relationship will be scarred for the rest of your existence. And if they don’t have retirement money they’re gonna be looking at you when they’re ready to stop working

>> No.21870034

>>21869888
This.

>> No.21870031

>>21869897
they demanded it, They like tesla. they just wanted me to put it in there and i talked them into splitting it 50/50 with amazon.

>> No.21870092

>>21870031
jesus
maybe, in this case it is better for you to take over

>> No.21870163

>>21869994
I took $3000 in march a complete crypto newbie and now use the profits to buy real estate. It's not hard if you aren't retarded, it's just that most of biz is.

>> No.21870208

>>21869823
I already said i'm investing in tesla.

>> No.21870227

>>21869570
Pretty dumb overall. We’re talking about retirement. I guarantee you that an S&P 500 index fund will beat any active management over a 30-year time horizon.

>> No.21870253

>>21869994
Pls don’t do dis
Your risk is tenfold when buying single stocks. Index funds at the minimum. Getting rich quick on stocks is only achievable if you’re good at it. Nobody wins in the stock market and wonders how they succeeded. They know exactly what they did and why they did it. You’re just guessing.

>> No.21870269

>>21870163
I don't know i feel pretty retarded. If you have any good reading material to learn with then i'll take it up. I'm going to be doing the mit course on crypto this year. maybe i'll learn something to get more confident at it.

>> No.21870302

>>21869570
That's pretty fucking retarded OP. Please go 100% SPY, VTI, VT, or NOBL so you don't lose your family to memes and the next 4-5 dotcoms we are bound to have.

Fuck you're dumb.

>> No.21870331

>>21870253
I mean i'm not day trading. that amazon tesla stock is not there for money it's because they wanted it.

That airline hotel stock thing is just an experiment because the market is so irrational. 17/18 times i'd only be in ETF's like the two at the top.

>> No.21870412

>>21870331
You don’t know how you’re going to act when your folio is down 40%. Could you imagine that? That’s what happens when you buy single stocks. The problem is your lack of knowledge and inexperience is going to cause you to do stupid things. Emotions are the number one dream killer when it comes to investing.

>> No.21870434

>>21870412
Forgot to add, sure they could rebound and folio would be 2x after 12 months, but the problem is what you’d do in those 12 months to ruin it, and the stress/fear would eat you alive especially if you’re working with a large sum

>> No.21870476

>>21869801
extremely bluepilled

>> No.21870589

>>21870412
I have imagined that yes.
>The problem is your lack of knowledge and inexperience is going to cause you to do stupid things.
I took the time to consider if it was down 50% and if i lost all of it. I already told them the money got set on fire. If that 6000 was gone i would not be concerned. This is in many ways my first attempt at surfing the wave, and i do understand i might fall off my board.
>Emotions are the number one dream killer when it comes to investing.
I agree 100% it makes people irrational. I do want to know what kind of metal i'm made of for the future.

>> No.21870616
File: 115 KB, 1200x1283, 1592407446943.jpg [View same] [iqdb] [saucenao] [google]
21870616

>>21870269
Not directly crypto but read Kiyosaki's first few books (Rich Dad, Cashflow Quadrant, Guide to Investing, Retire Early) as "financial pallete cleanser" from bad ideas you've got baked in.

Good cheap starter course: https://www.udemy.com/course/complete-cryptocurrency-investing-course-passive-active/


Good TA course: https://bitcoin-academy3.teachable.com/

Good rundown on fundamentals to look into for coins (and jumping off point for a lot of individual projects): https://youtu.be/GIfihSBT6Bc

Use a trading bot site like Shrimpy. Their research blog and backtesting tool are good resources for finding effective general portfolio builds (20-25 assets, even allocation, 1% rebalance threshold, more focus on mid-cap in alts).

>> No.21870644

>>21870269
Read A Random Walk Down Wall Street please

>> No.21870672

>>21869805
Agreed. When a couple of my "friends" found out I made a fortune trading (and quit my actual job) they basically wanted me to tell them what to invest in and constantly babysit their investment by updating them on when to sell. I told them to fuck off.
You will get 10x as much hate for losing money than appreciation for gaining money.

>> No.21870674

>>21870331
This is not a bad plan for long term. But do it with your own money. You want leverage? Borrow it from them for interest in return. If we’re talking like 10k then you’re fine and they’re already fucked, but if you only make like 20k- 40k/yr and their folio is 100k+ DONT DO IT

>> No.21870725

>>21869570
Do NOT do this.

Put some of their money in a global, passive index fund with low costs. Put the remaining in low risk bonds. If they are close to retiring, put more of it in bonds.
Ask them if they want to take a little risk, and if they do, put 1-1.5% MAX in bitcoin.

You do absolutely NOT want to be risking your beloved parents money. Don’t be an idiot.

Since I don’t know the tax rules where you live, what you really should do is to talk to a good INDEPENDENT personal finance advisor.

TLDR discard your plan immediately, index funds minimum.

>> No.21870809

>>21870672
This is sooo true. Your wins are easily ignored and you just want more, but losses are always in the corner of the room to remind you to keep feeling that pain in your chest. Stress kills.
I doubled a 5 digit investment this year and had fun for 3 days. I lost 5k on a stock and felt the pain for a couple of weeks.

>> No.21870885

>>21870616
This guy knows what’s up. If you’re in debt then watch Dave Ramsey, adopt his money saving ideas and watch your net worth grow at double the rate it used to while doing all of this.

>> No.21870923

>>21870674
the folio is 6 grand

I feel 100% confident that i could lose it all and pay them back before they retired if they wanted me to.

>> No.21870971

>>21870885
Kiyosaki and Ramsey are complete opposites. You only need to pay off uncollateralized debt, not waste opportunity and happiness getting yourself back to zero. People who actually make money know debt is good so long as it leads to positive cashflow.

>> No.21870974

>>21870923
I guarantee if you disclosed this in the first post then you wouldn’t get as much hate. 6k is nothing, go for it lol

>> No.21871067

>>21869570
great book
I would never invest someone else's money

>> No.21871094

>>21870971
Yes I mentioned his money saving ideas, aka getting out of consumer debt. The investment side is garbage. Also when you’re a cash-only person, you’re much more inclined to spend less. Rewards trick you into thinking you’re gaining something while spending. $100k spent for $1k cashback is horrible
Credit card companies have domesticated the planet. There’s a reason they the highest advertising budget in the world

>> No.21871121

>>21870923
>>21870974
Haha no doubt, still better than my mom though. $1500 to name to invest, still renting, no assets, not even a 401k, 50 years old. I told her I'm only helping her get to the down payment for her first rental and relieving myself of that responsibility afterwards, so if she doesn't get off her ass and learn something like real estate she'll still be poor in 15 years.

>> No.21871172

>>21870974
I mean i put it all at the top, it all adds up to 6 grand, also i'm not sure a lot of people are telling me i'm stupid for not looking at index funds, but the first block are index funds, they look a little esoteric, but i did take the time to learn about portfolios and how they work with covariances and stuff. I'm not just going out guns blazing to be the next warren buffet. This is just my first step in the water, and i wanted to see if i had intuition when markets behave irrationally. I'd like to learn about these weird market periods that are happening right now.

>> No.21871231

>>21871121
oh yeah they didn't start their 401k until they were in late 60's. and i feel pretty confident they will need me to financially support them in the future if i don't plan out their money now. they do have a house and a rental home. They were actually thinking about selling it and putting it all in the stock market which i talked them out of.

>> No.21871285

>>21870644
>>21870616
Sure, i'll start looking into them this week.

>> No.21871302

>>21871121
She needs financial peace university. It’s perfect for the common consoomer boomer. It’s literally her only chance. Sit her down and tell her you’re worried for her and give her the course (only if she promises to attend). Ask her how it would be to live on $900/mo, and then be sure to inform her that it’s her future. She may be expecting you to take care of her, do your best to avoid that burden.... that would equate to you financing todays irresponsibilities. Those daily $10 lunches? You’re paying for those.

>> No.21871312

>>21871231
Wait how old are your parents? Are they already retired and depending on social secruity? There's no point doing a low risk route if they'll be dead before they can use it, medical bills will make them sell that house at that rate. You might as well swing for the fences.

>> No.21871412

>>21871302
She's taking: https://experts.richdadworld.com/dashboard/programs/real-estate-cashflow-blueprint/

with me right now and actually doing the work. She's intelligent enough to do it, just lacked confidence to try. I sat her down and talked to her a month ago and now I'm baby stepping with her.

>> No.21871467

Don't suppose you've read The Idiot OP?

>> No.21871665

>>21871467
It's my favorite book. Yes i'm aware it doesn't go well for him. Such is life. I just want to make sure they're not on the street when they're old.

I chose the picture because i wanted to make it clear that i understood the lunacy and stupidity i'm walking in here with, plainly telling you about my very imperfect plans, and imperfect reasoning, because i'm not going to get anywhere being quiet about it or pretending i have a better plan than i do.

>> No.21871724

>>21871312
they're able to draw but haven't retired.

>> No.21871939

>>21871665
Ah ok wasn't sure if the irony was lost. Best of luck anyways.