3 ms·

Educate yourself. You don't need to know the intricacies of how markets operate, but a little financial understanding is, I believe, a must for everyone. Also,

Educate yourself. You don't need to know the intricacies of how markets operate, but a little financial understanding is, I believe, a must for everyone. Also, be aware that even when you do educate yourself and you do everything you think is in your power to 'safe guard' your nest egg, that there are are still a billion and one ways that it can all be wiped out tomorrow. Micro managing you're finances if you don't know what you're doing is a fantastic way to wipe it out. As the good old saying goes, “The market can stay irrational longer than you can stay solvent.”

chosenbreed37 7y ago
> Educate yourself. You don't need to know the intricacies of how markets operate, but a little financial understanding is, I believe, a must for everyone. I second this. Lot's of good advice here about letting the 401k ticking along. In the meantime start building some knowledge. It may take a bit of time but it will be worth it. But the basics should be accessible to everyone. There are many sources of information (of varying quality). Youtube, blogs, financial section of major newspapers, MOOCs, and last but not least books
chii 7y ago
so to sum it up, don't do anything, and hope? Because even if you attempt to educate yourself, it'd be like trying to learn to do your own surgery. Not impossible, but... What i want to really know is what people with a lot of money actually do - and when i say a lot, i meant a lot. networth in excess of 8-9 digits. What do they invest in? What diversification measures do they do? Which country? And finally, how they dodge taxes (as they inevitably seem to be able to - so if you can't defeat 'em, join 'em?)
- lethologica 7y ago
  They usually pay other people to worry about it at that stage .
- ccffph 7y ago
  they invest in businesses/franchises to keep a constant cash flow. that and fixed income due to low risk. taxes are avoided by keeping things offshore unless absolutely necessary to tunnel back to the us.
- wbl 7y ago
  Put it all in the S&P 500. I lived on a street with a bunch of Wall Street higher ups growing up. They all were Vanguard customers.
  - ericd 7y ago
    Most people, if they’re honest with themselves, don’t have the stomach for a 100% equity portfolio. That includes the intestinal fortitude not to panic and sell when the market drops 50% or more.
avn2109 7y ago
A bunch of people have given well intentioned but super vague answers to your question, such as "watch videos on khan academy" or "read newspapers." These are Bad Answers and instead you just need to read and obey two books and two books only: 1) https://www.amazon.com/Bogleheads-Guide-Retirement-Planning/dp/0470919019 https://www.amazon.com/Bogleheads-Guide-Retirement-Planning/... 2)https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365 https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Lar... If you do this, it will prevent you from being any more screwed than anyone else, regardless of market conditions. You will also not become flamboyantly rich overnight in the way that Crypto speculators do.
- JohnJamesRambo 7y ago
  >You will also not become flamboyantly rich overnight in the way that Crypto speculators do. Yeah who would want that???
- bananasbandanas 7y ago
  You might also want to check out the Bogleheads Wiki [1] first. It gives a good overview of what these books are about. [1] https://www.bogleheads.org/wiki/Main_Page https://www.bogleheads.org/wiki/Main_Page
  - narcindin 7y ago
    Here is their getting started page (https://www.bogleheads.org/wiki/Getting_started https://www.bogleheads.org/wiki/Getting_started)

chosenbreed37 7y ago

> Educate yourself. You don't need to know the intricacies of how markets operate, but a little financial understanding is, I believe, a must for everyone. I second this. Lot's of good advice here about letting the 401k ticking along. In the meantime start building some knowledge. It may take a bit of time but it will be worth it. But the basics should be accessible to everyone. There are many sources of information (of varying quality). Youtube, blogs, financial section of major newspapers, MOOCs, and last but not least books

chii 7y ago

so to sum it up, don't do anything, and hope? Because even if you attempt to educate yourself, it'd be like trying to learn to do your own surgery. Not impossible, but... What i want to really know is what people with a lot of money actually do - and when i say a lot, i meant a lot. networth in excess of 8-9 digits. What do they invest in? What diversification measures do they do? Which country? And finally, how they dodge taxes (as they inevitably seem to be able to - so if you can't defeat 'em, join 'em?)

lethologica 7y ago
They usually pay other people to worry about it at that stage .
ccffph 7y ago
they invest in businesses/franchises to keep a constant cash flow. that and fixed income due to low risk. taxes are avoided by keeping things offshore unless absolutely necessary to tunnel back to the us.
wbl 7y ago
Put it all in the S&P 500. I lived on a street with a bunch of Wall Street higher ups growing up. They all were Vanguard customers.
- ericd 7y ago
  Most people, if they’re honest with themselves, don’t have the stomach for a 100% equity portfolio. That includes the intestinal fortitude not to panic and sell when the market drops 50% or more.

avn2109 7y ago

A bunch of people have given well intentioned but super vague answers to your question, such as "watch videos on khan academy" or "read newspapers." These are Bad Answers and instead you just need to read and obey two books and two books only: 1) https://www.amazon.com/Bogleheads-Guide-Retirement-Planning/dp/0470919019 https://www.amazon.com/Bogleheads-Guide-Retirement-Planning/... 2)https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365 https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Lar... If you do this, it will prevent you from being any more screwed than anyone else, regardless of market conditions. You will also not become flamboyantly rich overnight in the way that Crypto speculators do.

JohnJamesRambo 7y ago
>You will also not become flamboyantly rich overnight in the way that Crypto speculators do. Yeah who would want that???
bananasbandanas 7y ago
You might also want to check out the Bogleheads Wiki [1] first. It gives a good overview of what these books are about. [1] https://www.bogleheads.org/wiki/Main_Page https://www.bogleheads.org/wiki/Main_Page
- narcindin 7y ago
  Here is their getting started page (https://www.bogleheads.org/wiki/Getting_started https://www.bogleheads.org/wiki/Getting_started)