Title: Gatlins Stock tips and money advice Source:
[None] URL Source:[None] Published:Feb 5, 2018 Author:Hopefully Gatlin Post Date:2018-02-05 18:32:47 by A K A Stone Keywords:None Views:20067 Comments:167
You wanna get rich? You just might if you follow this advice.
First - don't invest in anything you do not understand. You probably do not really understand Bitcoin. Scarcely anybody does. Don't invest in that sort of thing.
Second - remember taxes, and remember that the "net gains" tables that are sometimes provided showing you gains net of taxes hardly ever include state taxes, or city taxes, both of which are over and above the federal taxes. Do the calculation yourself of what $100 gain will leave YOU with, after federal, state and local income taxes OR short term or long term capital gains federal, state and local taxes OR federal, state and local taxes on gains on commodities (25% federal tax on gains in gold held, for example) OR taxes on dividends, OR Taxes on interest. However you're going to make money in the investment, you're going to be taxed. To properly compare one investment to another, the number that really matters is what you have left in your hand after taxes.
Third - Remember transaction costs. It costs money to sell a security, and more money to buy another one. Every time you change positions, you pay an exit fee and you pay an entrance fee.
Fourth - Remember "loads" on mutual funds, and management fees. Understand how the financial manager will pay himself every month out of your money in any managed product.
Fifth - Remember tax-advantage investments like IRAs and 401(k)s, but also remember the disadvantages of such structures: you money is trapped, and your options are limited.
Example: You're probably better off buying a 4.4% municipal bond and holding it to maturity than you are buy a 7% corporate bond and holding it to maturity.
First - don't invest in anything you do not understand. You probably do not really understand Bitcoin. Scarcely anybody does. Don't invest in that sort of thing.
What a silly comment. After reading this one sentence of your entire rant, I decided to comment as you are making HUGE assumptions while simultaneously making reality out of wild hubris.
Anyone that takes you for an investment advisor needs a beating.
After reading this one sentence of your entire rant, I decided to comment as you are making HUGE assumptions while simultaneously making reality out of wild hubris.
Anyone that takes you for an investment advisor needs a beating.
I was quoting somebody without attribution. I'll give the attribution this time:
“Never invest in a business you can’t understand.” - Warren Buffett
Pretty sure that bit of common sense from Warren Buffett is not wild hubris.
Likewise, pretty sure that anybody who read the moderate language and thoughtful suggestions I put into my series of writings here would not call what I provided a "rant".
Mine has an effective interest rate of 1.392%, so if I can earn a steady fixed rate of after tax return of greater than 1.392%, it does not make sense for me to pay that particular debt off at any greater speed than I do.
As inflation kicks in, the cost of paying back the mortgage over time decreases further and further, because when inflation is above 1.392%, the value of the principal invested in the house shrinks with the 2002 dollars that bought the place, but the eventual resale value of the property rises.
