@princessval And the advice they give isn't even necessarily how they made their money. Buffet made his from being hands on value investing, not an indexer. He's now so rich that the bonds in that 90% S&P 500/10% bonds portfolio could be enough to distribute over a billion each year. Him and his family may be insulated from risks that normal people should need to take into account.
10 Years of Personal Finance Advice in under 10 minutes
- Thread starter seekeroftruth343
- Start date
baselinezone1
New member
@seekeroftruth343 Man, to have the confidence of a 28 year old single guy…
alwayscurious
New member
@seekeroftruth343 Lost me at Dave Ramsey. He’s got good tips for people who need a hard and fast guide to get their spending under control. But his strategies are garbage for building and maintaining wealth. If you’re not starting out buried in debt, his strategies can harm rather than help.
The Kardashians have more money than most. Are we all supposed to make sex tapes with g list rappers and get tons of plastic surgery?
You have some great tips in your post. But it’s mixed in with the arrogance of someone who hasn’t yet had a major catastrophe. You acknowledge that which is good.
Go forth and continue to succeed.
The Kardashians have more money than most. Are we all supposed to make sex tapes with g list rappers and get tons of plastic surgery?
You have some great tips in your post. But it’s mixed in with the arrogance of someone who hasn’t yet had a major catastrophe. You acknowledge that which is good.
Go forth and continue to succeed.
@alwayscurious Completely agree about Dave Ramsey. The advice was initially good in that I went from spending excessively to saving....but the psych components really need to be separated from his otherwise heinously bad advice. I was rushing to pay off loans with like 4% interest rates while I had no idea about retirement accounts and didn't pay attention to interest rates cause Dave told me not to and just aggressively pay off debt from smallest to biggest.
@seekeroftruth343 ... the rich dad poor dad guy is ALL over the news right now for owing the bank almost a billion dollars. No thank you.
lillianjacks
New member
@seekeroftruth343 80-90% of your post is a solid although common reddit wisdom advice but damn you are full of naive confidence
Its overall a good thing but makes it hard to read the post for me, just remember that life happpens. Kids happen. Family and health issues happen etc.
I would only suggest not doing 100% SPY in your twenties, diversifying isn't bad. And maybe try to find a way to own the place you live in since you won't always be young and mortgages take damn long to pay off.
Its overall a good thing but makes it hard to read the post for me, just remember that life happpens. Kids happen. Family and health issues happen etc.I would only suggest not doing 100% SPY in your twenties, diversifying isn't bad. And maybe try to find a way to own the place you live in since you won't always be young and mortgages take damn long to pay off.
bigpearlyjane
New member
@starward I'm 47, and almost exactly where OP is financially at the same age.
For saving money, I just did 2 things. I got a roommate and drove a cheap, paid off car.
I did not put all my investments in index funds tracking the S&P500 as OP suggests. I regret that. I had a lot in SPY, but I was in a bunch of foreign investments (I worked overseas).
My 30 year old self would be shocked to know that I found a wife and now have children. There would've been no way to convince me that was possible when I was 30. I was almost 40 before that happened.
For saving money, I just did 2 things. I got a roommate and drove a cheap, paid off car.
I did not put all my investments in index funds tracking the S&P500 as OP suggests. I regret that. I had a lot in SPY, but I was in a bunch of foreign investments (I worked overseas).
My 30 year old self would be shocked to know that I found a wife and now have children. There would've been no way to convince me that was possible when I was 30. I was almost 40 before that happened.
@bigpearlyjane
Going broader than the S&P 500 can both help increase returns and reduce volatility. There's been plenty of times where it was the US falling behind. Don't let outcome bias influence your decisions about the future, the US just happened to have had an usually good run that shouldn't be expected to continue. There will always be something better, but you won't know that after the fact. A globally diversified and diversified into additional market cap weight portfolio should be seen as a more sound strategy than betting on just large caps of a single country.
The S&P 500 isn't even the best historical or point term expected future returns within the US. Smaller caps are.
These can help show how adding ex-US can be beneficial (I have many more, but I'm trying to keep this comment short):
• https://www.investopedia.com/terms/f/factor-investing.asp
• https://www.fidelity.com/bin-public...ity/fidelity-overview-of-factor-investing.pdf (PDF)
Edit: Typo
Going broader than the S&P 500 can both help increase returns and reduce volatility. There's been plenty of times where it was the US falling behind. Don't let outcome bias influence your decisions about the future, the US just happened to have had an usually good run that shouldn't be expected to continue. There will always be something better, but you won't know that after the fact. A globally diversified and diversified into additional market cap weight portfolio should be seen as a more sound strategy than betting on just large caps of a single country.
The S&P 500 isn't even the best historical or point term expected future returns within the US. Smaller caps are.
These can help show how adding ex-US can be beneficial (I have many more, but I'm trying to keep this comment short):
- https://www.bogleheads.org/wiki/Domestic/International and expanding on part of that: by TropikThunder
- https://www.fidelity.com/viewpoints/investing-ideas/international-investing-myths if that link doesn't work: https://web.archive.org/web/2020111...investing-ideas/international-investing-myths (Archived copy from Archive.org's Wayback Machine)
- https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index - invest in the S&P 500, but don't end there (this covers info on both the US extended market and ex-US markets)
- The last decade or so of US outperformance was mostly just the US getting more expensive, not US companies being much better than foreign companies: https://www.aqr.com/Insights/Perspectives/The-Long-Run-Is-Lying-to-You (click through to the full version), I believe this is referenced in the YouTube link above
• https://www.investopedia.com/terms/f/factor-investing.asp
• https://www.fidelity.com/bin-public...ity/fidelity-overview-of-factor-investing.pdf (PDF)
Edit: Typo
bigpearlyjane
New member
@bigpearlyjane Idk what you mean by foreign investments. But getting everything into SPY isn't the best idea at any age. Its the easiest safe-ish aggressive choice. But i belive maintaining a healthy short list of 10 15 etfs di ersified across industries, commodities, energy and us and international stock is better.
00familyman
New member
@seekeroftruth343 Lost me at Dave Ramsey and Rich Dad Poor Dad.
@seekeroftruth343 Dave Ramsey suggests taking 8% a year for retirement instead of the 4%. Making a blanket statement like this will exhaust most retirement funds barring incredible luck with the market and most likely run out of money and have to go back to work in your 70s 80s.
@seekeroftruth343 Cool story bro.
davidscancer
New member
@seekeroftruth343 Not using credit cards is a bad piece of advice imo.
@seekeroftruth343 Solid advice for a single person. Kids changes everything especially that big 3 calculation. The new big 3 are Childcare, Housing, and Replacing All The Shit They Lose, Outgrow, Or Destroy
mc_squared
New member
@seekeroftruth343 I think it’s very cool of you to want to share this with others. Sounds like you’re in a great place financially. My favorite part about kids who grew up poor who learn how money works is them wanting to share that knowledge with other kids who grew up poor and didn’t get that education.
Keep on doing that!!
Keep on doing that!!