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Stonehenge
Alt Center


Registered: 06/20/04
Posts: 14,850
Loc: S.E.
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Re: Risk-Aversion & Building your Net Worth from the ground up [Re: memes]
#16946547 - 10/01/12 05:08 PM (11 years, 3 months ago) |
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You don't supposed increased demand and inflation could have any connection do you? You speak as though they are 2 things apart. X thinks its all because of speculation, you say it has to do with supply and demand, but you both seem to deny its going on. When prices go up, regardless of why you think they go up, its inflation. We don't always care why prices go up, we care that we have to pay more to live when prices go up. The govt thinks people live in a world where they don't use energy or eat food so they leave those things out of the equation. Also known as lying.
We will soon see who is correct. I and others say the gradual price rises will begin to take off. After the election most anything can happen. The 2 clowns running for office would just as soon be the captain of the titanic because they like being boss.
-------------------- “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835) Trade list http://www.shroomery.org/forums/showflat.php/Number/18047755
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qman
Stranger

Registered: 12/06/06
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Re: Risk-Aversion & Building your Net Worth from the ground up [Re: memes]
#16946639 - 10/01/12 05:21 PM (11 years, 3 months ago) |
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Quote:
meams said: I love how people talk about increases in food and gas prices and point to inflation but completely ignore the fact that there is a GROUP OF PEOPLE AS POPULOUS AS THE UNITED STATES (the new chinese middle class) that now has a disposable income where they didn't before. And that's just China. That ignores India and Brazil, and all the other developing economies with a burgeoning middle class. Heard of supply and demand? Looks like this:

Obviously, growing demand of commodities from emerging economies increases the demand picture.
So why the higher prices for commodities the last 11 years? Increased demand, and weaker currencies due to monetary policy, the net result is inflation.
The main question is, why does the Fed understate inflation today, that has not always been the case? This is because the Fed is trapped into a box, he could not hike interest rates even if he wanted to, remember there is $16 trillion of debt that needs interest payments, and how could he continue to print trillions (QE) of new dollars in the face of acknowledged inflation, he can't, therefore the Fed lies and will continue to lie about the real rates of inflation.
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memes
Blessed



Registered: 01/11/05
Posts: 27,785
Loc: In a Tree
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Re: Risk-Aversion & Building your Net Worth from the ground up [Re: geokills]
#17793807 - 02/13/13 04:48 AM (10 years, 11 months ago) |
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Quote:
geokills said: Unfortunately, this is not a risk-averse world. Low risk assets simply aren't going to provide a meaningful return in this climate. So if risk aversion is your primary goal, you'll probably be best saving your cash for the down payment on your house as step one. And of course, maxing out any sort of available employer match for retirement contributions, if available to you.
Hello everyone.
Bringing this post up from the dead. I've been in my new job for about half a year now, and I've gotten my Credit Card and sibling debts paid off. This has finally put me in a place where I have income above-and-beyond my requirements, and I am very excited to take the next steps in my financial life.
I have been contributing 5% to a traditional IRA (employer matches up to 5% for the traditional) and an additional percentage (I forget how much, maybe another 5%?) into a Roth IRA.
However, I broke up with my girl shortly after taking my new job, and I have tons of time now. I feel like some of this would be spent well doing industry and firm research, and employing a percentage of my disposable income in the stock market. Nothing crazy. No day-trading. Just trying to build a well-diversified portfolio slowly over time.
I'm in the process of comparing the various online vendors now. Etrade/TDAmeritrade/Chuck/Merill Edge/etc. Should be a few months until I'm opening an account somewhere, but I want to get the ball rolling. Already keeping my eye on the markets in general, just to get acquainted.
Should be fun
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Cannashroom
Smoke two Joints



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Re: Risk-Aversion & Building your Net Worth from the ground up [Re: memes]
#17801432 - 02/14/13 02:44 PM (10 years, 11 months ago) |
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Meams you should check out Medical Marijuana Inc. (MJNA).
I doubled my money on it recently and will be buying lots more soon. It is a penny stock currently but there is huge growth in that market.
I am hoping it will come down to .25 before going over $1.
There are also lots of other weed related stocks going insane.
Since October Weed Stocks have gained over 900%
S%P was 4.5%
Weed stocks outpacing the rest of the market at 200x growth.
I expect another 900% gain in the next year.
Just remember, no risk no reward.
My account went up $5000 today, penny stocks can give huge returns. Takes balls but fortune favors the bold I guess.
My account has doubled in the past 2 months. Partly long holds in some stocks, partly swing and day trading.
-------------------- "A human being is part of the whole, called by us 'Universe'; a part limited in time and space. He experiences himself, his thoughts and feelings as something separated from the rest -- a kind of optical delusion of his consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and affection for a few persons nearest us. Our task must be to free ourselves from this prison by widening our circle of compassion to embrace all living creatures and the whole nature in its beauty. Nobody is able to achieve this completely but striving for such achievement is, in itself, a part of the liberation and a foundation for inner security." Albert Einstein
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geokills
∙∙∙∙☼ º¿° ☼∙∙∙∙


Registered: 05/08/01
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Re: Risk-Aversion & Building your Net Worth from the ground up [Re: memes]
#17830146 - 02/19/13 12:33 PM (10 years, 11 months ago) |
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Satisfied TDA customer with $7 commissions (starting rate is $10), though there are less expensive platforms available (InteractiveBrokers comes to mind). You've probably already read it, or at least heard it mentioned in passing, but I wrote up a somewhat comprehensive Stock Market Primer that covers some of the basic considerations. I have a mind to revise it to emphasize some of the more important considerations and provide more off-site resources/links for further explanation. http://www.investopedia.com is a good resource, and I'd still recommend grabbing a copy of Jim Cramer's Real Money to use as a basic primer for understanding market and basic investment fundamentals.
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-------------------- ┼ ··∙ long live the shroomery ∙·· ┼ ...╬π╥ ╥π╬...
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memes
Blessed



Registered: 01/11/05
Posts: 27,785
Loc: In a Tree
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Re: Risk-Aversion & Building your Net Worth from the ground up [Re: geokills]
#17830697 - 02/19/13 02:38 PM (10 years, 11 months ago) |
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Thanks so much Geo. I have read that Primer you wrote up, and will be reading it again more times over before I put money into an account this spring/summer.

Thanks for the response
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PDU
travel kid vs.amerika



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Re: Risk-Aversion & Building your Net Worth from the ground up [Re: memes]
#17870490 - 02/26/13 05:19 PM (10 years, 10 months ago) |
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What percent of your income would you allocate to stock market investing Meams?
-------------------- GO OUTSIDE.
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Brian Jones
Club 27



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Re: Risk-Aversion & Building your Net Worth from the ground up [Re: xtokex]
#17960528 - 03/15/13 01:41 PM (10 years, 10 months ago) |
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Quote:
xtokex said: Everything suggested in here is good, so I will add my piece of advice: See a financial planner. They can be of use great use especially to people like you just starting out and who have a lot of plans for the future. They can manage your money for you and get you good rates of return and get you to retirement with more money than you know what to do with. I especially recommend seeing one if you have a significant other (Perhaps you plan on buying a house and/or getting married and maybe having a kid in 3-5 years?).
They generally charge a percent of assets managed for comprehensive planning/ management (say 1% a year of whatever money they manage. )
Regarding the original post, I recommend paying of your debts first. Retirement plans (401k's especially) have hidden fees (management fees, administration costs, etc.) which really force a lot of active monitoring and participation on the part of the plan participant (you). Otherwise, those hidden fees (which just became mandatory to disclose based on Department Of labor regulation implemented this summer) will erode hundreds of thousands of dollars of your retirement account's potential value over the life of your career. (this is where the advise of your own financial planner can really help). 401k's often have registered representatives of broker dealers who act as investment advisors, but under ERISA law can't act as fiduciaries (conflict of interests since they work for broker/dealer). All they can do is describe facts about a mutual fund, but they can't actually give you advise. Some 401k plans have Registered Investment Advisors (RIA's) which are actually fiducaries, but these plans charge higher plan fees (you get what you pay for)
Everything I have read says you should not use a financial planner that charges you by a percentage of your assets annually. If you need a financial planner, you should use one that operates on a fee only basis. He will tell you what he is going to do regarding your investments, insurance and whatever, and you pay him one fee. If your conditions change, you can consult him and pay him once again. But you wont be paying him every year. You will already be paying an annual expense ratio on your mutual funds (Usually around 1 percent on actively managed funds (they pick the stocks for the fund), and one fifth of one percent for index funds that match the market, or some segment of it. You don't want to be paying an additional annual fee to the guy who told you which funds to by.
-------------------- "The Rolling Stones will break up over Brian Jones' dead body" John Lennon I don't want no commies in my car. No Christians either. The worst thing about corruption is that it works so well,
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Hotnuts
old hand



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Re: Risk-Aversion & Building your Net Worth from the ground up [Re: Brian Jones]
#17968652 - 03/17/13 12:55 PM (10 years, 10 months ago) |
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Long time, no see, Meams. Glad you're doing good! Another option that may be up your ally is- getting educated about and building yourself a High Yield Portfolio. Here's 2 links that may interest you and get you started.
http://www.fool.co.uk/Investing/guides/The-High-Yield-Portfolio.aspx
http://mobile.businessinsider.com/high-yield-portfolio-what-is-hyp-investing-2012-9
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