Related Posts
More Posts
Bowl Leader
Agree or disagree?
Enthusiast
256th day of the year!
Additional Posts in Personal Investment Chatter
Rising Star
Rising Star
I know it's a favorite among this crowd ..
ABNB @ $144. Invest or not?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Honestly these are great questions imo and I also fear the strategy of simply DCAing into index funds will not work out for this generation the way it did for our elders.
I feel like it’s going to be manipulated and we’ll all get the short end of the stick. The Dow reasonably shouldn’t go to go to 300k like it went from 3k-36k in our previous generations lifetime. I’m doing it but I’m worried about blindly investing and hoping for the best
The market goes down when there are more people looking to sell and goes up when there are more people looking to buy.
Just make sure you’re diversified and set up automated rebalancing and you’ll be good. We’ve seen much worse in the past. This is the time to really grab em and increase your contributions.
It almost feels like an elaborate Ponzi scheme.
A 401k is not a ‘mechanism of investing’ it’s simply a tax wrapper around very vanilla stock and bond investments
Mutual Funds/ETFs are not stocks. They track against a target where the underlying composition is a set of stocks. Look up VTI for instance - you can see the holdings that comprise the fund. They move up or down based on their composition.
Retirement contributions, while large, are a minor force in the overall market - easy enough to Google this one. Your contribution has little to no impact on the underlying securities.
If your 401k provider created a new investment vehicle with no correlation to the market, then yes, it'd (probably) behave as you wrote. But that's not how it works.
That makes sense. So many fractional shares it’s not that large of an impact on the overall market
We may not get the same returns as previous generations did, but there’s no reason to believe the market as a whole won’t continue rising as the economy and population both grow / technology advances. If you bet on individual stocks though, it’s much riskier because many will inevitably die over the long term.
Rising Star
BTFD!
Rising Star
Free cash from companies you don’t get if you don’t participate. I only put enough in to get the full match. No extra.
Rising Star
Ira. And I have my own investment account with vanguard.
What’s the alternative ? Holding it as cash ? It’ll have no purchasing power when you retire
No just other opportunities for capital building (real estate, e-commerce, doubling down on saving for a side hustle venture) basically the trade off between rapidly achieving a goal while the stock market is on hold and putting capital somewhere else vs. buying stocks at a “good price” when the market hadn’t remotely changed in 6 months with further downturn expected. Most of the money can’t be touched without penalty once it’s placed until 60 there which is why I bring it up (unless I’m mistaken)
You can’t expect to make a lot of profit but it surely brings down your taxable income.