2022 Real Estate Observations (Boston, Cambridge: earnings, education, commute to)

[id77]

Originally Posted by msRB311

I think it's hard to know which stocks to put it in

That's what ETFs are for.

[WestieWhitie]

Originally Posted by msRB311

What would you suggest they put them in?

QQQ or SPX

[yesmaybe]

Originally Posted by id77

Mike touched on it already with stocks. The general rule of thumb is leave enough for emergency/short term (less than one year) needs in cash/CD, invest the rest.

Building up $300k in cash with an effective negative annual return is swimming upstream, but building up $300k through investments that return 7-10% annually is not. Risk is involved of course, but no pain no gain. Even in the current market, the S&P is still up from October 2020 valuations.

Only reason the S&P hasn't fallen even further is because people are literally gambling that the Money Printer will be turned back on soon. Really, the Money Printer is the sole reason the market has done well since 2008.

I'm expecting the market to crash after the elections, btw.

[charolastra00]

Originally Posted by WestieWhitie

I mean, it is easy given the absolutely crazy stock market run-up since the early 2000s, those who didn't blow every last penny partying should be sitting on $300K at the very least by now, and that's not even counting their 401K.

Or getting diagnosed with cancer in America.

[WestieWhitie]

Originally Posted by charolastra00

Or getting diagnosed with cancer in America.

That too unfortunately, though there's probably at least 10,000 avocado toast over-indulgers for ever cancer patient.

[msRB311]

Originally Posted by WestieWhitie

I mean, it is easy given the absolutely crazy stock market run-up since the early 2000s, those who didn't blow every last penny partying should be sitting on $300K at the very least by now, and that's not even counting their 401K.

Not everyone is into the stock market in their 20's or even 30's though. I wasn't. I really didn't get into all that until i was 40. I put money into my work 401k starting at about 25, that was it. I wish i had invested more but i also know i'm not the only person in this situation. I can recall men being more into stocks than women and that still seems to be the case.

I also get that many people did invest and have a fortune now but to assume that everyone did/does is naive.

[simplexsimon]

Originally Posted by msRB311

I think it's hard to know which stocks to put it in

No need to pick stocks, although I do pay attention and like talking about how companies are doing.

I follow buy-and-hold and have been investing in the same couple of index funds since I started working 15 years ago. There's ups and downs along the way but there's comfort in knowing one's not doing worse than the market is.

[matrix5k]

All I was saying is don't be so quick to judge young people with money, they don't always get help from parents.

My buddy graduated from state school in 2006 with a comp sci degree. He rented a cheap apt with roommates and put every dollar he could into stocks during the 2008 crash. I think he bought mostly blue chips like Microsoft, Apple, Google. By 2011-12 he had put at least 20% down on a house in San Francisco, the actual expensive city not a suburb. He was under 30 at the time so it can be done. He's rented out the other rooms which paid for the mortgage the whole time.

[WestieWhitie]

Originally Posted by msRB311

Not everyone is into the stock market in their 20's or even 30's though. I wasn't. I really didn't get into all that until i was 40. I put money into my work 401k starting at about 25, that was it. I wish i had invested more but i also know i'm not the only person in this situation. I can recall men being more into stocks than women and that still seems to be the case.

I also get that many people did invest and have a fortune now but to assume that everyone did/does is naive.

401K is stocks though, at least until you start getting close to retirement and since you're in your mud-40s I assume you've done quite well and are sitting on well over $300K at this point. Problem is there are plenty of people who choose not to contribute at all and instead blow their paychecks on Canada Goose of every available color and trendy $25 (plus tip) cocktails.

[id77]

Originally Posted by yesmaybe

Only reason the S&P hasn't fallen even further is because people are literally gambling that the Money Printer will be turned back on soon. Really, the Money Printer is the sole reason the market has done well since 2008.

I'm expecting the market to crash after the elections, btw.

Unless you're a bear of the 'the market will not recover for 20 years' variety, a crash is going to help someone putting money away for a down payment in 5-10 years by allowing them to buy even more at a discount this year.

Again, there's always some risk involved, but I can say that trying to get to $300k by dropping it $100 at a time into a savings account that returns less than money inflates is absolutely not the way to get there.