View Full Version : The Best investment advice nobody ever gave you?
Averageman
09-13-14, 09:48
So what have you learned the expensive way as far as investments?
For me.
1) Your guess as as good as mine when it comes to setting up your 401K and where the money goes. I have handled my own money and choices and done as well or better over the years with this than the Pro's
2) A career in the Army is paying a lot better than the 20 years other guy's in my high school class spent chasing a career.
If you decide to jump on board with what everyone else has been doing well on, you're too late.
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montanadave
09-13-14, 10:13
I adhere to the Gomez Adams school of investment: "Buy high, sell low."
It has NEVER failed to yield the predictable results.
1. Don't try to time the market.
2. Pigs get fed, hogs get slaughtered.
3. Don't put all of your $ in 1 stock.
Moose-Knuckle
09-13-14, 10:54
"Don't get married and or have children."
I didn't take the advice and I'm happy that I didn't. "Money cannot buy you happiness" . . . and all that.
Moose-Knuckle
09-13-14, 10:59
Get a Pre nup.
I almost did for my firearms lol, but I live in TX and if it's MINE before the marriage it's MINE after it too.
sell on the death cross, buy on the golden cross.
You have to look at the 50 and 200 day moving averages. You also have to be prepared to lose a little as the market starts down and not gain as much as the market starts up. I think in the past 100 years or so there have been 13 death/golden cross's and 11 of them have been winners. There are a lot of big time financial guys that buy and sell based on this "theory", Harry Dent being one that I follow. He does it a little different in that he doesnt wait till the 50 crosses the 200, he sells(or buys) as soon as the actual stock price goes 2% below or above the 200 day moving average. The 50 and 200 lag(obviously) so maybe his take on the theory(stock crossing the 200) gets you out and in a little quicker than the 50/200 theory.
Crow Hunter
09-13-14, 12:07
So what have you learned the expensive way as far as investments?
For me.
1) Your guess as as good as mine when it comes to setting up your 401K and where the money goes. I have handled my own money and choices and done as well or better over the years with this than the Pro's
2) A career in the Army is paying a lot better than the 20 years other guy's in my high school class spent chasing a career.
-Age in bonds or -10 or -20.
If I had followed this, I could be retired right now....:mad:
-Don't just randomly pick stuff make a plan and stick to it
If I had done this, I could be retired right now....:mad:
-MAX OUT your tax advantaged space every year, every $ you don't put into a 401k, 457, 403b, Roth, tIRA that you could have and you don't that compound growth is gone forever.
If I had done this, I could be MUCH closer to being retired right now....:mad:
-Don't listen to Dave Ramsey about investing. He doesn't know what he is talking about. Getting out of debt, yes. Investing, no. You need bonds.
Dave says to only put 15% into your retirement then pay off your house. Bull$hit. Those same compound returns that he goes on and on about are much more valuable in a tax advantaged account than paying off a fixed % taxed deductible loan while paying extra income tax. If you have enough to max everything else out, then maybe.
-Simple is better. The more complicated it is, the more likely it is for me to screw up.
Everyone's life is different and everyone will have different investment strategy.
My grandfather always said, "invest in your own dreams, not someone else's" I have no clue if it's the wisest investment strategy, but it's worked well enough for my family.
I'm a third generation self employed business owner. My grandfather retired off the business he built. My parents are retired off the business they built and some real estate. I am doing the same thing.
The government scares me the most. What may be a tax advantage today, may be gone tomorrow. As our national debt continues to go into the crapper they are going to look for new sources of income. Those tax advantaged accounts might not be such a good deal in the future. Same goes for my strategy of buying equipment and expanding my business so I can depreciate it and not pay taxes.
Crow Hunter
09-13-14, 15:03
Everyone's life is different and everyone will have different investment strategy.
My grandfather always said, "invest in your own dreams, not someone else's" I have no clue if it's the wisest investment strategy, but it's worked well enough for my family.
I'm a third generation self employed business owner. My grandfather retired off the business he built. My parents are retired off the business they built and some real estate. I am doing the same thing.
The government scares me the most. What may be a tax advantage today, may be gone tomorrow. As our national debt continues to go into the crapper they are going to look for new sources of income. Those tax advantaged accounts might not be such a good deal in the future. Same goes for my strategy of buying equipment and expanding my business so I can depreciate it and not pay taxes.
That is 100% true.
That is also why I went against "conventional wisdom" and continued to put money aside in a deductible tIRA until I wasn't able to do it anymore rather than the usual 401k match then Roth IRA then finish maxing 401k. I don't trust the government to hold it's promises on Roths being tax free. I would rather have the bird in my hand (current tax deduction) than the 2 birds in the bush (future tax free withdrawls).
I can imagine being a business owner under normal circumstances is stressful enough, under Obama and the continuous threat of more regulations, it has to be more so.
I couldn't do it. No matter how much I would love to have and run a combination gun/jewelry store.
Call it Bangles and Boomsticks or Boom and Bling.:cool:
Moose-Knuckle
09-13-14, 15:11
I couldn't do it. No matter how much I would love to have and run a combination gun/jewelry store.
Call it Bangles and Boomsticks or Boom and Bling.:cool:
Catchy.
I always thought it would be a hoot to open a strip club/FFL and indoor range. I'd call it "Pistol Pete's Pie Pantry", "The Quad-P" for short . . . ;)
Crow Hunter
09-13-14, 15:43
Catchy.
I always thought it would be a hoot to open a strip club/FFL and indoor range. I'd call it "Pistol Pete's Pie Pantry", "The Quad-P" for short . . . ;)
I would go to that. :)
Although you might run into the issue of jealous wives coming to visit the range at the same time their husbands visited the other side.
I was actually serious about trying it at one time. I have always had an interest in gemstones/jewelry making as well as guns. I figured I could sell guns to the husbands and gems to the wives. One of those "I will buy you this, if you will let me buy this."
Never got up the nerve to try it though. My wife though claims that if she gets this VP position where she works (and gets the salary and bonuses her current boss gets) that I can "retire" and pursue that dream.
We will see. I'll be sure to get a banner ad here if I do. :D
Investing is another form of "gambling."
Don't gamble more than you can afford to lose.
Catchy.
I always thought it would be a hoot to open a strip club/FFL and indoor range. I'd call it "Pistol Pete's Pie Pantry", "The Quad-P" for short . . . ;)
If only I had the money to do the strip club part. I'd simply call it "Boom Booms."
ramairthree
09-13-14, 19:22
I retired from the Army and my raise was huge. I could have been making a lot more. Maybe would have got out sooner if no war on.
I was told the absolute three most predictable was to lose a ton of money, that sounds like a joke, but the stats are there for a man:
1- Don't get married
2- If you did get married don't have kids
3- If you are married and have kids do not get a divorce
Well, I'm on stage 3 I guess...
1) I got married. It was the best thing I've ever done. I was on a downward spiral of alcohol and bad choices. She lifted me up and provided incentive to excel that I had somehow lost. She provides intelligence and perspective to our businesses that I don't have. We make a good team and I doubt either of us would have been better off single.
2) We had kids right away. We weren't planning on it, but we're that .1% that get pregnant on the pill...twice. My kids drove me to excel further. Having the responsibility of mouths to feed and support forced me to step up my game. They have been the reason I get up at the crack of dawn every day. I doubt very much I would have had that much drive without them. They are my greatest accomplishment, and all the money in the world would never make me as happy as my kids do.
3) No much I can say about this without coming off as some naive kid, but we are happier now than we were 20 years ago.
I laugh at the statistics of how much marriage and kids cost. Sometimes you have to spend money to make money. The stability a good family provides is worth every penny and in my mind assisted me to be financially successful.
TriviaMonster
09-14-14, 20:09
Community college will save you a lot of money. My school was mostly scholarships, but I know others who will be paying for a long, long time. Do your first 2 at community college and don't have debt.
Put 5-10% (depending on funds) of every paycheck into a savings account, and never touch it. My economics teacher said by doing so you could retire on this comfortably and never have to worry about stocks/401k/investing/retirement package and the crooks & cons there in. The trick is having self discipline not to touch $$..... And not have the Gov confiscate savings account/IRA/etc. claiming "hoarding".
Here are a few simple rules I've followed and as long as I maintain my current course I will retire quite comfortably.
- Pay yourself first. Save at least 10% of your income in a place where it isn't easy for you to get to and leave it alone.
- Don't play the lottery, it is a fools savings plan. Put that money somewhere it will work for you instead.
- Don't run up your credit cards, pay your balances off monthly and use that 30+/- day float to your advantage. (Beat them at their own game.)
- Don't live beyond your means, or feel like you have to impress others, or worse, keep up with the Jone's. For all you know the Jone's are up to their eyeballs in debt.
- Pay your bills promptly and monitor your credit rating with all three credit rating agencies.
brickboy240
09-15-14, 09:53
Unless you buy a house in a very trendy, upscale or high end neighborhood...you home is NOT an "investment" but merely a place to live.
The typical big company 401K will NOT make you wealthy.
-brickboy240
Doc Safari
09-15-14, 10:51
Money can't buy happiness, but it's better to be rich and miserable than poor and miserable.
Really, the older I get the more I realize that people fail you, possessions fail you, beliefs fail you...but money rarely fails you.
Other than that:
The stock market is just a huge gambling casino. The "house" is going to win most of the time. It's set up so that the people with the inside track make the money while you read your stock performance stats like a horoscope or something.
Unless you buy a house in a very trendy, upscale or high end neighborhood...you home is NOT an "investment" but merely a place to live.
The typical big company 401K will NOT make you wealthy.
-brickboy240
Sucks if that is your experience.
1) All of my homes have outpaced inflation, some by a wide margin. My current home, a 100 acre ranch, is now my biggest asset.
2) I do not know what typical is, but my 401K from a tech company I maxed out in was outstanding, generous match, invested in FMAGX/FCNTX. Got in in 1992.
My investment advice is simple, buy what you know (OK that is Peter Lynch), and be patient as time is your friend.
If I can't explain to somebody in short order why I own an investment, then I have no good reason to own that investment.
I'm OK with losing money on certain risks this way, a house I've lived in I'll have gotten something out of even if it depreciates, and it does keep me to the classic Peter Lynch advice of investing in what I know (or at least am sufficiently comfortable with).
You will never get rich working for someone else.
It is better to be poor (doing something you love) than to be rich (and miserable).
Debt makes you a slave to the lender. It keeps you in a job that you hate, area that you hate or house that you hate.
Save money (10% or more of your income) and you will be able to retire at an early age.
C4
ramairthree
09-16-14, 11:45
Well, I'm on stage 3 I guess...
1) I got married. It was the best thing I've ever done. I was on a downward spiral of alcohol and bad choices. She lifted me up and provided incentive to excel that I had somehow lost. She provides intelligence and perspective to our businesses that I don't have. We make a good team and I doubt either of us would have been better off single.
2) We had kids right away. We weren't planning on it, but we're that .1% that get pregnant on the pill...twice. My kids drove me to excel further. Having the responsibility of mouths to feed and support forced me to step up my game. They have been the reason I get up at the crack of dawn every day. I doubt very much I would have had that much drive without them. They are my greatest accomplishment, and all the money in the world would never make me as happy as my kids do.
3) No much I can say about this without coming off as some naive kid, but we are happier now than we were 20 years ago.
I laugh at the statistics of how much marriage and kids cost. Sometimes you have to spend money to make money. The stability a good family provides is worth every penny and in my mind assisted me to be financially successful.
yeah, I have 25 years of marriage under my belt my belt and still three teenagers running around under the roof and would not have done it different.
Talk to those who are paying for that house and kids after their wife screws them over, and from a financial only perspective they made about a 50/50 decision for financial ruin.
brickboy240
09-16-14, 12:18
Dad always taught us to save our money...plan for emergencies and live below our means.
He said we could either work for the banks, mortgage companies, auto finance companies and credit cards OR work for ourselves.
Not always easy to do when your buddies all have huge houses, newer cars and take fancy vacations but I have more savings than they do and will retire with not owing anyone a damn thing. It is also easy, knowing I do not have the stress of tons of piled up debt.
-brickboy240
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