Rising Star
Related Posts
hey folks, I am going to join Oracle ossi in Hyderabad location. I have never been to Hyderabad, and will be relocating. Please guide on what would be good areas to look for rent. Also, what would be rent like for 2/3 bhk. Ideally my budget for rent would be <25k. Initially I will be going but in future my family will join me once I am settled. Any points to note or any other gotcha to keep in mind ? Please suggest.
More Posts
Blueberry lemon cake with Almond flour.
Anyone from Capability Network - T&O?
Hi all,
I joined KPMG around 3 months ago but I am not getting work here. Although, I qualified some project's interview, yet due to some internal reason, they considered someone else, and I again came on bench.
I am unable to figure out what can be done now.
Should I start searching work outside.
(I hardly see any job openings these days)
(sap domain)
How's the resource management here?
(do they lagOff?)
Any inputs will be helpful.
Thanks!
Mentor
Additional Posts in Personal Investment Chatter
Is stock market surging tomorrow?
Pro
Tendies? 😊 🤚💎🤚
Conversation Starter
If you have cash that you want to invest. Please consider Treasury Series I Savings Bond (Electronic). Interest is 7.12% right now. While it's not guaranteed that the 7.12% will remain until next year, it's still a good deal.
My SO and I just invested 20k (10k max per person even married).
https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm
Fidelity, who asked for this?
Conversation Starter
Thoughts on Jumia stock?
New to Fishbowl?
unlock all discussions on Fishbowl.
Chief
That's not what that graph says. That graph basically says that it took 25 years for the dow to recover from the high before the great depression.
Im not against dollar cost averaging, I do it myself. But that's because I don't have enough liquid funds to dump a bunch of money into the stock market quickly. Time in the market is key, and if you had 250k now and you wanted to invest that money, you would be quite stupid to average that investment out over a 25 year time period. You're almost guaranteed to come out ahead with a more aggressive investment time frame.
This is absolutely true!
Thank you! Now I finally understood DCA! No sarcasm at all.
Sir. How much is 10k form the Great Depression worth today?
People weren’t making 10k during the Great Depression 😂 hamburgers were like 5 cents
This is a terrible argument. If you invested $260K at the Great Depression low of ~$41, you would have $2.4M instead, so that’s much better.
All things equal, if you believe you can’t time the market, expected value is higher to invest as much as you can as soon as you can.
If you think you can time the market, then just invest when you think the best time is. Likely can’t time lows though.
What DCA does is it 1/ makes it more easier to invest as folks generally invest from their paychecks and 2/ it does reduce the variance of your net return. Your expected return will be lower (less time in the market), but you will be less likely to have very large, or very small, returns.
@EY2 agreed.
Hypothetically that argument could apply after it dropped from $350 to $100 though - there is no way until after the fact to call what is the bottom.
In 1920, the Internal Revenue Service reports, the average income was $3,269.40 per year. The average today is about $48,672. This would mean a person needed to invest 3 years worth of the avg annual salary per year. That is the equivalent of investing $150k per year today. Assuming you’re aiming to reach this goal by retirement you’d have to start investing this rate by 40. Unless you’re already really wealth at 40 I don’t think the avg person would be able to invest $150k per year in the market after all expenses. Correct me if I’m wrong.
You’re not wrong ... but these are just example numbers.
Eg: $1.5M in 1954 is equivalent to ~$14M today and I would expect anyone trying to reach that value by retirement to be much much wealthier than the average adult
This chart includes no dividends making the recovery look much longer.
https://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html?referringSource=articleShare
hello money guy fam!
Ok, so if you put 99% of your investments in during the Great Depression (and one nominal investment at the “top”) you’ll make a lot of money?
This makes no sense. Can someone here explain to me how it goes from $260K to $1.5M with Dow going up only $2?
Rising Star
260k was the $$ you put in (10k each year x 26 years). The amount of wealth you have built at the end of the 25 years is 1.5M because you bought the dow when it was at its low and your investment from that essentially doubled. (Even though your first deposit of 10k at the peak before the crash made zero gains). You also have some dividend reinvestment in there.
Graph is not really helpful, in fact almost distracting.