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| Green grass and high tides  |
Oh FFS flash. Get over yourself and your high flultening investment pal. You don't know me or anyone else here. Or know shit for that matter. Glad you got it all figured out for yourselves and everybody else.This message has been edited. Last edited by: old rugged cross, "Practice like you want to play in the game" | |||
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His Royal Hiney |
Sorry, but I have come to realize this is pablum. If you deposited $100,000 in a bank account and you didn't make any other transactions but your next statement says your account has only $50,000. Would you accept an explanation that says, "Don't worry. It'll only be $50,000 if you withdraw it all now?" That the asset may eventually recover is not a panacea. If you lose 50% of your investment, you have to earn a return of 100% just to be even. And, in the meantime, if you did earn 100% return and got back to your starting point, you missed out on the opportunity of earning 100% on the original investment had it not lost 50% in value. "It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946. | |||
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I Deal In Lead |
You obviously don't want to keep it civil, so: Blow me | |||
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| Member |
I shouldn't have started this thread. I suppose if you ask twenty people for financial advise, you'll get twenty different answers. | |||
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| Member |
^^^^^^^^^^^^^^ I disagree. You quickly realize who knows something about investing and who does not. Difference of opinion is what investing is all about. Ever heard the joke that no shares were traded today because everybody got the shares they wanted. | |||
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Fighting the good fight |
This incivility from certain members is a recurring issue in investing-related threads. | |||
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| Member |
I don't like seeing long time members being cross with one another. I've always tried to be polite to everyone I meet in life  | |||
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| Member |
The incivility seems limited to certain members in my opinion. The topic really does not matter. Most respond to a reminder from the Moderator. | |||
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| Peace through superior firepower  |
Manners from this point, or I'll be handing out disciplinary action. | |||
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| Member |
I'm fairly certain that I've never lost any of the money I put into a 401K. If I add up all of the money I've put into 401Ks since 1978, it isn't anywhere near the value of the accounts now. (And we've been living off of some of the gains since 2004.) All of our gains and losses have "only" been on paper. Of course it stings to compare the highest level in 2020 to today, but I try to remember I've been using other people's money. I still have mine. | |||
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| Member |
I believe it's really important and has helped me, is doing a yearly net worth statement. I sit down every birthday and do one. | |||
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| Member |
It does help though, you end up with more shares, even if the current value drops more. Those more shares earn you more dividends from the investments which get distributed to your account and invested into even more shares when those hit. The extra dividends and extra shares are huge over time as your assets continue to appreciate. ------------- $ | |||
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Member |
...And the best that you can hope for is to die in your sleep... Also Kenny Rogers | |||
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| Member |
That’s a completely different thing in my opinion. If you put $100k in the bank you are not expecting it to ever be worth more than that so you also have no expectation that it will ever be less than that. With investing everyone who has been doing it for more than a couple of years realizes it will always go up and down in value so if you happen to look now and it’s down then it shouldn’t come as any shock. If you have a balanced portfolio you have never had less money than you started with over the course of 5 years so unless you are old and will need that money within 5 years you are about as safe as you possibly could be while still growing your money. Over the course of time it’s been very easy to double your money every ten years. So in ten years that $100k will easily be $200k based on decades of history. That $100k you left in the bank will still be essentially $100k. 20 years $400k Bank $100k 30 years $800k Bank $100k 40 years $ 1.6 million Bank $100k The small risk is obviously worth it and the basic numbers above show how important it is to get started young. Years are your biggest ally. | |||
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| Green grass and high tides |
Yes, but a gallon of regular gas was .19 50 years ago  Historically money is never the same as it was many moons ago. So how much will 1.6 million be worth 40 years from now. A couple of house payments.  "Practice like you want to play in the game" | |||
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| Member |
Exactly. This is why putting your money in the bank versus investing is the absolute safest way you can be guaranteed to lose money. The amount you put in the bank doesn't go down, but its buying power continually erodes. ------------- $ | |||
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| Member |
Don't forget to factor inflation into this. That $100k you've got in the bank is still $100K, but due to inflation, in 40 years it won't have anywhere near the buying power it did when you put it in there. A reasonably diversified portfolio will give an average return which over time will best inflation by a pretty solid margin. Obviously how much you stand to gain depends on your risk tolerance and risk capacity. If you're retiring tomorrow, your risk capacity will be pretty low, but if you're just starting out, your risk capacity can afford to be be incredibly high. ------------- $ | |||
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| Help! Help! I'm being repressed!  |
I'm currently down about $65k from my high of $340k. | |||
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| Green grass and high tides |
I get the feeling the Dow will plummet shortly after the labor day weekend. Just a feeling. "Practice like you want to play in the game" | |||
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Fire begets Fire |
NASDAQ is dumping first … "Pacifism is a shifty doctrine under which a man accepts the benefits of the social group without being willing to pay - and claims a halo for his dishonesty." ~Robert A. Heinlein | |||
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