[HN Gopher] Ask HN: How to Invest Savings?
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Ask HN: How to Invest Savings?
After having sold my small business and having landed a well paying
job, I find myself with some money to start saving for the first
time in my adult life. I'm in my late 20s, in a long term
relationship, no kids, no money I can count on from my parents, and
have ~70K sitting idle in my bank account. My goal is to preserve
it, defend against inflation, and in general being responsible with
it. I could open a savings account and let the bank take care of
it, but it looks to me that managing savings is not rocket science:
ETF / index fund should do the trick. And I could save in fees.
Also, I'd like to learn. Am I right? How can I learn how to manage
my finances? What tools to use, what simple strategies to pursue,
and whatnot. Tried to Google it / find YT videos but it's all a
huge content marketing mess. Everyone pitching "how to retire
early" or "how to make money in the stock market". I'm not
interested: I just want to be proactive and prepared with my
personal finances, so that in 10 years from now I can buy a house
(not interested in taking a mortgage now: I value flexibility more)
and take care of my potential future family. Would love to hear
your strategies and your advice on how I can learn.
Author : hansaw
Score : 14 points
Date : 2022-05-30 20:46 UTC (2 hours ago)
| dangle1 wrote:
| I think you're on the right track with your thinking.
|
| If your job is pretty secure, then I think it makes sense to put
| much or all of your long term savings into an index ETF such as
| (or exactly as) VTI. Make sure you guys are maxing out any tax
| advantaged retirement plans available to both of you before
| putting money into your taxable long term savings.
|
| Savings for short term purchases/emergencies that exceed what a
| couple of paychecks will pay for can go in things like CD ladders
| or Series I bonds.
|
| You're right, lots of people, many of whom mainly want to make
| money from your money, will recommend more complex strategies and
| products. I started saving before ETFs became a mainstream thing
| I felt comfortable with, and ended up with a palette of mutual
| funds before I switched to only buying more VTI, and some of them
| have done better than VTI over time, and some worse, and each
| costs more than VTI.
|
| However, I've just coached my son to pile everything into VTI
| while he debates adding home ownership to his mix.
| manca wrote:
| My advice is to read "The Bogleheads' Guide to Investing". It's
| an amazing read written by people who strongly believe in Jack
| Bogle's (founder of Vanguard) vision to democratize the
| investment world and make average investors reap the benefits of
| slow, compounding effects of the regular investments over long
| periods of time.
| rschachte wrote:
| I second this advice. Best book and netted me a lot of money
| since. It's a lifelong process, but bogle is a great start.
| Also it's a fairly passive strategy that ignores media hype.
| muttantt wrote:
| $TSLA call options
| leobg wrote:
| For play money, yes. But know that if your timing is off,
| you'll lose it all. With the stock, you at least have the
| option of sitting it out if things go south.
| chewz wrote:
| https://www.youtube.com/c/Wealthion
|
| https://www.youtube.com/c/cambridgehouseintl1
|
| https://www.youtube.com/user/StansberryMedia
|
| A mix of gold, energy companies and t-bonds should do well during
| stagflation...
|
| But with 10-year horizon it would be best to stay in cash and
| patient and informed. There would be a couple of unique
| opportunities - both macro and event driven. In other words don't
| be invested in all the time.
| nickff wrote:
| Timing the market is basically impossible for a retail
| investor, and I think it's an especially bad idea for someone
| who has no idea what they're doing.
| auxym wrote:
| https://rationalreminder.ca/podcast/150
|
| The data shows that gold actually isn't that great of an
| inflation hedge. It does keep a relatively stable real value,
| but only on a timescale of centuries. For any investment
| horizon on the scale of a human life, it's too volatile.
|
| Highly recommend this podcast in general, though it does go
| pretty deep into technical stuff sometimes. They recently had
| an hour long interview with Nobel prize winner Eugene Fama (of
| efficient market hypothesis fame) for their 200th episode. On
| the topic of investing for retirement, I do recommend their
| interview with Wade Pfau among others. They also had an arc of
| a few episodes on the topic of the psychology of money and the
| relation with happiness, which I thought was super interesting.
| yuppie_scum wrote:
| Set aside 3 months salary in savings for emergencies
|
| Max out 401k
|
| Max out Roth and Trad IRA as applicable
|
| Then Vanguard, Vanguard, Vanguard
| throwaway019254 wrote:
| Put everything in SPY and and let it compound over long period of
| time.
| PaulHoule wrote:
| QQQ
| mtmail wrote:
| https://old.reddit.com/r/personalfinance/ and as a start point
| their wiki https://old.reddit.com/r/personalfinance/wiki/index
| fnordpiglet wrote:
| Not crypto.
|
| There's tons of robo investors that do fine. Indexes do fine.
| Find tax advantages and save a lot more than you spend. It's
| controversial but I also suggest buying a house and paying off a
| mortgage, then buy a more expensive house and pay it off again. A
| mortgage gives you leverage but paying the mortgage gives you
| guaranteed returns. You live in your house which has intrinsic
| value. And being relatively illiquid you won't be tempted to pull
| it in a risky direction or spend it. Do it 20 years and you'll be
| in a beautiful home that's fully paid off. If you do it right you
| can keep the houses along the way and rent them out to build a
| steady cashflow for eventual retirement.
|
| These are the things I did. But by far investing myself into my
| career earned me the most, most reliably.
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