Let's talk about investing.

[Scipio2009]

I am not selling Elon's idea just describing it. When there is a new technology one never knows for sure what could happen. This is why there has to be strategy. Its to Musk's advantage to perfect the batteries but carefully enough so the technology cannot be pirated, or perfected thereafter easily. There are other people working on the problem as well...it is the obvious problem with solar.

There are differences but companies are remarkably similar in certain respects. GE is a money company, the problems it had had to do with lots of capital and what to do with it. Do you become a bank for your investors? a lot of mining companies do this, yielding absurd dividends when they manage to beat the averages. All companies hope to capitalize on market share in their sectors and industry and the best way to do this is to get their first on the new, not hold on to the old. Do you know who is the leader in Bottled water sales? or at least has been traditionally? Coke.

Would've figured Nestle, but Coke does make sense (EVA water is seen as a premium brand, in my experience anyway, in sub-Saharan Africa, and all it contains is water produced by the local Coca Cola bottling company in the market being served with Coca Cola products).

Still, will continue to watch Tesla from afar, wait for the the day that the likely consumer cars business gets spun off, and look at a way to get into the battery/solar business at a good price.

Good luck

[billeau2]

What not to do

So I want to "talk about investing" and say that if you want to know what not to do...follow the way your society, assuming you are a USA citizen, instructs you. If you want to know what to do...watch immigrants with some means who come to this country, let me explain:

Money is energy and money is never really static. Thats why if you put a dollar in a draw right now and pull it out in 30 years, it won't be the same dollar. Inflation will make it worth very little in all probability. Taxes will get the rest. So what happens when you allegedly "save" your money in a bank? Heres a hint: Banks started in the Western world when smiths were used as providers of vaults, the gold would be brought to the vault and stored in it, the Smith paid interest to hold the gold. Eventually a smart smith figured out that being that not everybody would want their gold tomorrow, he could make side loans, and charge interest, and nobody would be the wiser.

When you give your money to a bank it does not save it anymore than the smart smiths saved the gold. The bank lends it out in what is called arbitrage...they give you 2% and lend your dollar out at 5%... or some such interest rate. Ask yourself why YOU GIVE THE BANK THAT MONEY? when it will not even protect you from inflation and taxes? Are you stupid?

Thats the brain wash folks... They tell you this is safe also...yes it is safe...in the banks safe and safe for the banks. Save money they tell you, save for retirement, save save save. Save is a fancy word for giving your money to the bank to use and thats it.

Now lets talk about a favorite topic here on the boards: messicans, chiahanessse, Indians, etc... People who are lucky enough to come to this country and not know any better. Do you think Immigrant families put money in a bank? Nope. Most immigrant families pull resources and make a business. A restaurant is the common stereotype, or a lodging, etc. Do you know there was a segment on NPR about a mexican investment banker who was trying to get mexican people to save? It was so funny because he was going on about how these people had no savings, nothing for retirement in the bank, the irony escaped him.

Folks when you create a business you generate money. So your restaurant creates income. Second of all, the tax codes in this country are such that earned income is taxed, but a business DEDUCTS its liabilities, and gets paid back. If you are a messican family and you buy the building where your restaurant is, and you pay a very high mortgage because you only pay interest on the mortgage, you are getting back like 6% on your property tax, mortgage expense and the deductions from the restaurant... So you are not only generating almost tax free income, from the food, but benefitting from depreciation and mortgage/property tax write offs as well.

So think for a second here: should you save money or create income? should an old lady have a piece of solid real estate, or be a partner in a business owned by her family? or should she take money out that has been taxed from savings, and pay more tax on it? when you get older your kids are gone so your taxes go up even farther. If that old lady has a trust with a business that generates an income for the trust, she has nothng in her name and no tax liability. She can even take out cash llife insurance and borrow against her policy virtually tax free. Instead of paying for medical insurance, or burial insurance, have a cash account in the trust, as a cash life insurance policy and when the expense comes up, borrow your own money!

My point is very simple: brainwashing is such that the way people are told to do things is for the benefit of the banks, not for the benefit of you. Roth IRA's because they are taxed money coming in, are the only plan I would use. All my stocks and bonds are in cash life insurance policies, you have to research the best ones for this angle, but I don't want to give money to the banks and pay double taxes. Everything else is a business which generates an income and which I can deduct expenses instead of being taxed. In my case my business' are Real Estate, but any business well managed and run has similar structure.

If you look at the rich they own NOTHING in their name. Even the fancy properties and cars are all held in trusts. Trusts are like corporate beings, they are a fictional "pass through" that protects assets. I am allowed to ask my trust for anything I want, I can even create a trust within a trust, so property and businesses are protected.

Ever hear the expression "from short sleeves to long sleeves back to short sleeves?" Many second generation Americans are succesful because they don't know how to save. they open a business that they grow, their kids become Americanized and aim to get great jobs, and to save money, but a lot of useless crap, and wind up losing it all again, hence from the father's short sleeves, to the son flush with wealth, loses the wealth and to his sons short sleeves again.

Think about it! Good obs all virtually pay the same and you give most of it away...Not the best way to go. you would sheik if you knew how much real tax liability you actually take on. build and buy businesses

[BostonGuy]

Sorry for the late response: Sure no problem, this is what you have bolded, if there is anything else let me know...

Finally get in quick if you find a niche! I used tax liens for years, averaged very high, about 12% until all the banks put together syndicates that buy these in bulk now. Crypto is next, the illuminati tried to break it and they couldn't there is a chance to make a fortune in the next year but after that? the big boys will jump in.

Ok Big Picture First:

lets talk about the process of what I call syndiction. I am 53 and when I was a young stud (lol yeah right) real estate was used, especially prior to the Savings and loan Crisis, as a tax dodge. Consequently in times of urban crisis the city would literally give houses away to contractors, and in programs. Baltimore started the dollar house program for example...you could get a huse for a dollar and a great loan for fixing it...

well people got smart, not only can you do a lot of **** with a loan interest loan, but those houses made a fortune for smart individuals. The banks saw this...hop ahead to the great crisis in Detroit where a black Executor sold his own people into financial bondage...the greedy vultures, not content to gentrify a few areas, got together with the banks, and if you look carefully one will notice that downtown Detroit, as one of the few cities with prewar apartments (like New York, Philly, Baltimore) worth a fortune...but if one had tried to get a loan on one of those, good luck! Downtown Detroit was given to the gentrification vultures who went in flush with capital from the banks...you know those same banks who tell people "we don't want your property we can get you a repayment plan"... and together this ad hoc sydication of these investors and bank capital bought downtown detriot en mass.

That is syndication. Where as before a real estate investor (like myself) could come in and maybe buy a few units cheap in one of these prewar buildings, the banks and the greedy saw an opportunity to take over the market and they did and today? the same citizens who lived in neighborhoods cannot afford to live there. or socialize in that area. That market is much more difficult to operate in...As a REal Estate person one must be lucky, smart, or find another opportunity. The next market is the materials in the old houses in Detroit in some of the bad areas: Smart people have found things like Bricks, wood, etc are worth a lot of money, so...you enter that market for a while until the big boys see it is profitable and take it over...See how it works?

Syndication means a bunch of greedy vulture capitalists get together and don't just try to buy things, but...try to take the market over. Romney made a fortune doing this... You get banks to create an ad hoc board that flushes you with capital and you buy the resources en masse. Now lets get specific.

For years Tax Liens were a nice little secret. You go to counties in each state and purchase the option to pay the taxes to the county in return for which, you are rewarded with a handsome return, or...rarely, sometimes (not as often as they say) the actual property itself. Each state and county has its own auction and rules. You now have a lot of hawkers selling information on tax liens but the truth is, to actually get good properties and good, not great, returns is almost impossible because...the syndicates are in on it and institutional investors, vis a vis banks and capital flushed individuals, are buying the liens in bulk.

Crypto currency is the next big thing. Heres what you should know: they have tried for years to break the back of crypto currency, the elites hate it! Banks manipulate currency so it works for them: Try an experiment one day... ask a 3rd grader the following question: " If a bee keeper looks after the bees, and if a milk farmer looks after the cows, what does the flower shop owner look after?" Kid will say flowers because kids are about no bull**** right? You then say "ok good" then ask the following, If the president looks after the country, who looks after money in the country? is it the police? the federal reserve, or the treasurer?" Heres the point: Any reasonablly intelligent kid, much less an adult, knows instinctively (like Meno in the Socratic dialogue knows how to double the sides of a square with a little prompting) that money is "treasure" and that the treasurer is supposed to look after money. This exerscize shows how crazy it actually is that we let the Federal REserve, a quasi private organization profit off our resources.

With that said, crypto currency is like Gold in that it is not diluted. And, because of the Dark Web primarily, which cannot be destroyed by the authorities, the currency cannot be broken.
they have tried to sabatoge it numerous times... The inventor of bit coin (yes he is known* denies inventing it... he lives like a monk in a Japanese hermitage.

Now, eventually the institutional investors will figure out a way to get into the game, but right now is a splendid time to take advntage because these currencies will rise, especially since the trend is not for the dollar to get stronger...the dollar is actually pretty damn strong right now. Once these currencies are bought in bulk they can become overinflated. In other words, they become so valuable that they have to be diluted.

For anyone who wants to know why this is so important: the value of an asset not being diluted, look at Berkshire Hathaway, the company held by Warren Buffet. The cost per a share is very high, something like 20k I believe because Buffet refuses to dilute the value.

So thats the thing with cyrpto currency. There are many details abbout how to buy it, and which ones to buy. If the dollar weakens and the Euro is built on a house of cards to begin with... there could be major ramifications for buying these currencies. Until the big boys determine how they want to play it, this is a great opportunity. They cannot strengthen the dollar too much, and they cannot weaken the dollar too much and, if they flush crypto currencies with cash, that could backfire horribly... Mostly because nobody really knows how much assets are on the deep web and what their value is, including the bad things that sustain the elites: child ****, human bondage, weapons and drug smuggling, money laundering and drugs.

Hope this helps

[BostonGuy]

You can take money out of Roth IRA anytime, but you pay huge penalties, like 50% of something crazy like that, unless you are at retirement age.

A normal brokerage account, you can pull money in and out.

ROTH IRA- strictly retirement

Brokerage account- everything else

You pay an automatic 10% early withdrawal unless you meet one of the hardship exclusions such as health expenses, first time homebuyer, etc. The distribution is also taxed as ordinary income.

[billeau2]

And "what if I told you"

Thanks for the timely reply to the information I requested.

[Monaco Slim]

Unless you have a natural talent for it, stick to the blue chip banking stocks, find ones with low SP and high yield dividend

[Sugar Adam Ali]

You pay an automatic 10% early withdrawal unless you meet one of the hardship exclusions such as health expenses, first time homebuyer, etc. The distribution is also taxed as ordinary income.

Ok, thanks for clarification..

Is that for Roth or just standard IRA?

[Sugar Adam Ali]

Unless you have a natural talent for it, stick to the blue chip banking stocks, find ones with low SP and high yield dividend

Bank stocks are always solid if they are a big boy like jpm..

Over the past decade I have made a killing on jpm, c, bac.

But right now, banks going to have a pullback when fed slowly rises interest rates. As rates go up, banks will slide short term.. will be a good buying opportunity if u patient

[Sugar Adam Ali]

Being under 30 is a great time to start investing.

There is a difference between investing and trading.

Trading is actually earning a living, short term profit, constant trades, and is very hard and need a fairly decent bankroll to get started, plus a working knowledge of how the market works. This isn't for the average guy

Investing is what normal people do, stick money away and let it grow long term, constantly reinvesting dividends and gains, to hopefully build a nice nest egg for retirement. It's very possible for an average person or couple to be able to build a 500k+ nest egg over a 30+ year period.

Investing is very simple for long term gains.

Here is my advice:

1. I can suggest starting an online account with Charles schwab, it costs nothing but you have to deposit $500 into you account initially. I use them myself, had them for years and can't complain, very simple, good customer service, extremely cheap on fees

2. Setup a Roth IRA. This is a retirement account that you can't touch until your 65 but it's all taxfree when it comes out in retirement. If you take it out sooner, you face you penalties, fees and taxes, so DONT touch it.. it is capped at only 5,500 annually when your young and then rises to 6,500 when you hit 55 years old. Your first goal will be to fully fund the 5,500 every year and "max out"

3. With money in your ROTH IRA, simply invest in index funds using dollar cost averaging which means instead of investing a large sum at once you break it up over smaller payments over time to catch a nice average price point for the year. I suggest investing only in schwab funds because their is no commission/fees, and their index funds are the cheapest fees in the industry. %0.03 for a fee which most are %.0.50 if not a full 1%. I suggest investing in the s&p index swppx and schx which is their large cap index ETF, which is basically the same thing except ETFs are trading like stock, unlike mutual funds which generally are bought in quan****** of money amounts and not number of share. PUT ALL YOUR MONEY INTO THESE FIRST UNTIL YOU MAX OUT YOUR ANNUAL LIMIT OF 5,500.

4. REINVEST ALL DIVIDENDS AND GAINS. You can set this to do it automatically so you never have to worry about doing it yourself. This will have a huge snowball effect on your investment.

5. If you find yourself with more money to invest and have already fully funded IRA then open a normal brokerage account with schwab, this has no limits but different tax ramifications depending on how quickly you buy/sell a stock. 30 days, 12 months, 24 months, usually anything after 5 years of holding will have the lowest tax ramifications.

6. In the brokerage account, do the exact same thing and continue to invest commission free into swppx fund and schx eft.

7. Once you have hit 10k in a year investing into swppx and schx, then you can target individual stocks like Apple, Amazon, etc or just continue to plug money into the index fund and index etf.

8. JUST BE SURE THE FIRST 5,500 GOES TO ROTH IRA, NEXT 4,500 GOES TO BROKERAGE, ALL OF IT INVESTED IN SCHWAB INDEX FUNDS AND ETFS. REINVEST ALL DIVIDENDS AND GAINS

9. Be sure to do dollar cost averaging, which means invest a few times a month rather than once a month. Instead of 1,000 at the 1st of each month, do $250 a week, that way you can catch all the dips and get some bargains and lower your overall price point, which will increase returns. I personally have mine setup to auto invest on the 5th and 20th of each month

10. Follow these steps, and in 30 years, when you are 58, you will have a huge nest egg, and at 65 it will be even bigger. Easily over 500k and close to a million if not more.

Bump....


hayZ


This should be some good beginner advice

[b Murphington]

I have a Roth, but I'm not maxing out because I spend too much money on stupid ****. I think I'm only putting something like $2,000 per year in.