The official lounge stock market & investment advice thread

[Don Pichardo]

Tradional IRS, 403bs, 401ks also grow tax free. You pay the tax when you take distributions.

With Roths you pay the tax upfront. So in essence, you're paying tax today instead of paying the tax in, say, 30 years - when you take it in distributions.

For me, I'd rather pay the tax in 30 years than paying it today.

Also, if you are in a high tax bracket right now, you're better off contributing to a traditional IRA or 401K.

If you are in a very low tax bracket and you think you're gonna be in a higher tax bracket when you retire, then it makes sense to do the Roth and instead of the traditional.

Why in the world would you want to pay taxes later. After it’s grown 10-20x. ThAts insane. Pay the taxes now on the small contributions and don’t pay the taxes on the 100s of thousand or millions it will become

[Don Pichardo]

Why would you want to pay tax later and be taxed on your growth?

If I put in 10 thousand in when I’m in my 20s, by the time I’m 65, it could be 50k. Paying taxes on 10k even at a higher rate, is much more efficient than paying taxes in 50k at age 65.

Steps of investment allocation
1. Fully max 401k to the extent of matching funds by employer.
2. Once that maxes and they don’t match, put it in a Roth.
3. Once Roth is maxed, and you still have investable income, then put it back into your 401k minus the employer matching.

This is the best strategy end of discussion.

The next issue is which mutual funds to invest in...

[ShoulderRoll]

I have a rental property that pays (after expenses) a lil every month. Also, been accumulating stocks for the last 11 years and I’ll receive around $7,000 in dividends this year. Not a tremendous amount of extra income but it gradually grows larger and larger every year. The key is to be disciplined and invest frequently and over time it grows to something meaningful

Do you reinvest the dividends or pocket them?

I'm looking into high dividend stocks with an eye towards pocketing the payouts. But the amount of the investment required to make it worthwhile is high...something that can only happen over a long period of time as in your case. Or with a sizeable initial investment which I don't have at the moment.

[BostonGuy]

Do you reinvest the dividends or pocket them?

I'm looking into high dividend stocks with an eye towards pocketing the payouts. But the amount of the investment required to make it worthwhile is high...something that can only happen over a long period of time as in your case. Or with a sizeable initial investment which I don't have at the moment.

Yes, I have all dividends auto-reinvested to buy more shares. My way of investing is not a get rich quick method but long term wealth creation.

[siablo14]

Yes, I have all dividends auto-reinvested to buy more shares. My way of investing is not a get rich quick method but long term wealth creation.

Can borrow a $100 bucks? Or can you just make it a grant instead?

i noticed no one answered your Uber/Lyft probe but i believe it depends on what will happen with drivers earnings because place s like NYC has set a flat rate for drivers and when that happens the price is forced up. A bunch of drivers protested the day of the iPO for better wages and benefits. This like that will impact earnings so lets see how Uber handles that.

[siablo14]

Yes, I have all dividends auto-reinvested to buy more shares. My way of investing is not a get rich quick method but long term wealth creation.

Cost of living in Boston is high?

[!! Anorak]

It's the official lounge stock market investment advice thread.

I have been interested in the markets and investments since I was a kid and have been an active investor since my teenage years.. I have a degree in business and a minor in finance and accounting.

I have a fairly good track record over 2 decades of investing..

If you have any questions about investing or how the stock market works, or bonds, etc. please feel free to post them. I will answer all questions..

I'm not expert, but no one really is.. The market has too many variables, but there is a way to pinpoint good value and make wise investments..

My strategy involves long term investments and not get rich quick type trading


So please, ask away and I shall answer

This is a bit of a heavy topic for me... can you direct me to the unofficial lounge stock market & investment advice thread?

[Sugar Adam Ali]

Anyone bullish on Uber and/or Lyft?

Can borrow a $100 bucks? Or can you just make it a grant instead?

i noticed no one answered your Uber/Lyft probe but i believe it depends on what will happen with drivers earnings because place s like NYC has set a flat rate for drivers and when that happens the price is forced up. A bunch of drivers protested the day of the iPO for better wages and benefits. This like that will impact earnings so lets see how Uber handles that.

Hate Lyft, was intrigued by Uber since they have other things like Ubereats, etc. but after looking at them, I’m gonna pass.

Both companies are burning cash and will continue to do so. They are basically subsidizing the cost of the ride with investors money. When money is running low, they just do another round of funding and get more investor money and remain afloat.

The more rides they sell, the more their costs and cash burn go up. The market has already seen this with Netflix and Tesla, so these new IPOs aren’t fooling investors now and people are much more critical.

I read an outstanding breakdown of this problem in an article on seekingAlpha, if I can find it again, I will link it.

[Sugar Adam Ali]

Anyone bullish on Uber and/or Lyft?

Can borrow a $100 bucks? Or can you just make it a grant instead?

i noticed no one answered your Uber/Lyft probe but i believe it depends on what will happen with drivers earnings because place s like NYC has set a flat rate for drivers and when that happens the price is forced up. A bunch of drivers protested the day of the iPO for better wages and benefits. This like that will impact earnings so lets see how Uber handles that.

Here is a great article about Uber/lyft IPOs

https://seekingalpha.com/article/426...-wrong-reasons

[siablo14]

Here is a great article about Uber/lyft IPOs

https://seekingalpha.com/article/426...-wrong-reasons

Thank you........