7 ms·

They probably want us to get into the stock market casino. Just lost half of your money? Remember you are in it long term. It'll go back up and you just need to

by w8rbt 9y ago

They probably want us to get into the stock market casino. Just lost half of your money? Remember you are in it long term. It'll go back up and you just need to diversify more (give the broker more money) so you won't lose as much during the next down-turn. I'm sorry if this sounds cynical, but that's my honest assessment of the stock market. Some very wealthy salesman is always trying to get me to put more money into it and continually tells me to just be patient. It feels like a big scam.

kspaans 9y ago
Is it a worse scam than savings accounts where you lose money to inflation? You don't have to invest 100% in stocks. If you want to see less volatility you could hold mostly bonds, less risk but less reward. You don't even have to pay that much in commissions if you don't want to. Use index funds to build a simple 3 or 4-fund portofolio. Contribute once per year, so even if you pay $10 per trade you're paying $40/years in fees, plus ~0.1% of assets in fund expenses.
icedchai 9y ago
I've been investing 20+ years, through the dot-bomb bubble, great recession, etc. Losing half of your money over a long term period (10+ years) is basically impossible if you are diversified. It's pretty simple: mostly buy index funds, invest regularly, avoid putting too much in a single stock, and , most importantly, don't panic. Sure, if you invested everything in Pets.com back in 2000, you'd be screwed, but that is easy to avoid if you never put more than x% in a single stock.
ryandrake 9y ago
I just took a new job and one of the benefits they offer is this health care savings account, where you get a high deductible plan and then also contribute to this other account tax free for medical spending. One of the "features" of this account (actually touted by the custodian's literature) is that you can stick that money--you guessed it--right into the stock market casino! So, now you want me to take money I'm already setting aside for something as important as my health and put it on the Wall Street roulette wheel? The mind boggles.
- kspaans 9y ago
  That's why there is a minimum contribution to the HSA before you're allowed to invest it. It's for healthy people who have saved up a big chunk and don't expect to need the money for 10 or more years, so they can park it somewhere to earn a decent return. The stock market is only a casino if you're in it for the short term.

by w8rbt 9y ago

kspaans 9y ago

Is it a worse scam than savings accounts where you lose money to inflation? You don't have to invest 100% in stocks. If you want to see less volatility you could hold mostly bonds, less risk but less reward. You don't even have to pay that much in commissions if you don't want to. Use index funds to build a simple 3 or 4-fund portofolio. Contribute once per year, so even if you pay $10 per trade you're paying $40/years in fees, plus ~0.1% of assets in fund expenses.

icedchai 9y ago

I've been investing 20+ years, through the dot-bomb bubble, great recession, etc. Losing half of your money over a long term period (10+ years) is basically impossible if you are diversified. It's pretty simple: mostly buy index funds, invest regularly, avoid putting too much in a single stock, and , most importantly, don't panic. Sure, if you invested everything in Pets.com back in 2000, you'd be screwed, but that is easy to avoid if you never put more than x% in a single stock.

ryandrake 9y ago

I just took a new job and one of the benefits they offer is this health care savings account, where you get a high deductible plan and then also contribute to this other account tax free for medical spending. One of the "features" of this account (actually touted by the custodian's literature) is that you can stick that money--you guessed it--right into the stock market casino! So, now you want me to take money I'm already setting aside for something as important as my health and put it on the Wall Street roulette wheel? The mind boggles.

kspaans 9y ago
That's why there is a minimum contribution to the HSA before you're allowed to invest it. It's for healthy people who have saved up a big chunk and don't expect to need the money for 10 or more years, so they can park it somewhere to earn a decent return. The stock market is only a casino if you're in it for the short term.