Mind blown @ adults not having any form of passive income

[Cudabrah]

Chasing dividends is not the only route. Dividend paying stocks do tend to be less volatile, but contrary to the potato advice posted earlier in this thread, dividends are taxed as income when you receive them.

So let's say you had 10k invested in two different accounts. You get 5% in dividends on one account. You now owe taxes on $500 immediately.

Your other account goes up by 5%, but you haven't sold any shares. You owe no taxes.

The dividend funds that I own are in tax free accounts.

[r32gojirra]

Just lol @ passive income threads coming from a grown man living in his parent's trailer in the arctic tundra.

He’s a shrewd financial investor

Saves 10 bucks by using someone else’s Netflix

****ing lol @ any able-bodied, average IQ male who's not able to make at least $10k a month.

That’s a lot of lyft fares especially considering you don’t even clear minimum wage

Mirin the hustle

Not srs

[ashin1]

What investments/stock would you recommend if I've got $10K to spend?

I'm just looking to increase a portion of my savings as opposed to it just sitting there in my account.

Refer to post 30

"Barely beat inflation".

you must be unfamiliar with anachron's cope.

Anyone who is investing in stocks should have an equally weighted bond position. When stocks drop interest rates get cut and bonds rise in value. Ironically, this is called a "barbell" strategy. Equally weighting for both bull and bear market scenarios.

Going in all with stocks maybe more exciting as you can see aggressive growth, but that is balance by increased risk and in the long run your big "ups" will be counterbalanced by big "downs".

Position yourself to absorb some of the losses associated with falling stock prices by being invested in the rising bond market. Remember, we are currently living in the longest economic expansion in modern history, its almost ten years old. At the very least we are approaching the top, if not right on it. Time to shift strategies to protect some of those gains on the way down...because it is coming, just a question of when.

Do you think in an economical down turn people are going to stop buying toilet paper and tooth paste?

If this is the best answer you can give on how your downside is protected alarm bells should be going off in everyone's head as they read this

Dividend income has more buying power when market pulls back.

Win win imo

Chasing dividends is not the only route. Dividend paying stocks do tend to be less volatile, but contrary to the potato advice posted earlier in this thread, dividends are taxed as income when you receive them.

So let's say you had 10k invested in two different accounts. You get 5% in dividends on one account. You now owe taxes on $500 immediately.

Your other account goes up by 5%, but you haven't sold any shares. You owe no taxes.

The dividend funds that I own are in tax free accounts.

But who was dividend tax credit?

[KirkMcquest]

I dont think people will stop buying toilet paper or toothpaste but that wont stop the stock price from falling. In a stock market crash, money will run out of all types of stocks to cover margins, and to seek safe-havens [ like bonds and gold ]. As a rising tide lifts all boats but a falling tide does the same thing in reverse.

If you have only been investing for 6 years you were not in the market during the 2008 crisis, or the stock market collapses that preceded it around 1999 and 2001. Things go up until they dont, then stocks crash and we find out who's been swimming without their trunks on.

[ashin1]

I dont think people will stop buying toilet paper or toothpaste but that wont stop the stock price from falling. In a stock market crash, money will run out of all types of stocks to cover margins, and to seek safe-havens [ like bonds and gold ]. As a rising tide lifts all boats but a falling tide does the same thing in reverse.

If you have only been investing for 6 years you were not in the market during the 2008 crisis, or the stock market collapses that preceded it around 1999 and 2001. Things go up until they dont, then stocks crash and we find out who's been swimming without their trunks on.

Patiently waiting for another crash.
srs

I'm 28, I got nothing but time.

[Hammersia]

I think i have some experience in the matter, but keep coping

Spoiler!

compounding effect is very real, haven't put a dollar into my investments for 2 years and they've made some solid gains regardless.



the whole spend every dollar you make on living it up never made sense to me either

2,500 CANADIAN dollars
Before tax

Per year

Just lol

Don’t bother telling us your ways

[Siyork]

Patiently waiting for another crash.
srs

I'm 28, I got nothing but time.

Honestly It scares the **** out of me that I’ve been waiting over 5 years for this latest bubble to pop (housing and stocks) and it’s not showing signs of happening

[samsbolton]

How far long is your ocean front property op?

You’ve missed a question trashin..

[KillahJon]

where's ur blog that you were shilling 2 years ago? it was good lol

[FullGluteSpread]

Anyone who is investing in stocks should have an equally weighted bond position. When stocks drop interest rates get cut and bonds rise in value. Ironically, this is called a "barbell" strategy. Equally weighting for both bull and bear market scenarios.

Going in all with stocks maybe more exciting as you can see aggressive growth, but that is balance by increased risk and in the long run your big "ups" will be counterbalanced by big "downs".

Position yourself to absorb some of the losses associated with falling stock prices by being invested in the rising bond market. Remember, we are currently living in the longest economic expansion in modern history, its almost ten years old. At the very least we are approaching the top, if not right on it. Time to shift strategies to protect some of those gains on the way down...because it is coming, just a question of when.

Although you aren't wrong in what you'r saying, this isn't a barbell strategy.

[FullGluteSpread]

OP saved a dividend's worth of money by having his hair french braided instead of getting a haircut

[MetroBrah]

I'm a povertycel and even I've got a maxxed out IRA. Total market ETF + Technology ETF ftw boyos. Let's gooo. Secure that bag! Secure it!

[300Lane1]

You'r point? It's by no means an easy job and doesn't mean my pay should be just barely enough to live off of. The job is very taxing and causes a great deal of stress. One of the reasons I stopped working out and gained so much weight over the last 5 years. You have to deal with people with authority complexes all the time, irate parents, misbehaved students (becoming worse and worse every year), and sometimes mountains of work. I know people who quit due to the stress and people who died because of this job. Our pay is a flat rate, no bonuses, no holiday pay, we go 2 months out of the year without a paycheck unless we choose to have a piece of our check removed every month to cover it. Oh and we still have to work a set amount of mandatory overtime without pay by giving time for after school events, clubs or other school planned things where they need manpower to help run it because they set a double standard on what is constituted as our work day.

Holidays and breaks are subjective to the school district as well. Just because we don't work specific days doesn't mean it's a holiday for us. I'm always grading something even on our winter break, fall, and spring breaks and when I'm not grading I'm at training, or I'm at very boring meetings that go nowhere that we're forced to attend, or having to be prepping for some dumb test that won't prepare you for life. When you become a teacher it is a lifelong commitment for a lot of people. You give your all into the job and get little in return. It's rewarding and taxing on your body and mentality at the same time.

Why is it that every teacher complains about grading homework? Do they not tell you guys you'll be grading homework in college?

[hockeyman1]

at least he didnt mention bit coin

[xpin2winx]

I put like $17k a year into a combination of Traditional TSP (S&P500 & Dow) and Vanguard Roth IRAs(2050 TDF). All my other money goes into certificates of deposit which average over 3%. I think im doing something somewhat smart.

[KirkMcquest]

Although you aren't wrong in what you'r saying, this isn't a barbell strategy.

Its a metaphor for a strategy that is equally weighted with opposites. The term can be applied to many different scenarios there isnt one definition.

[AgRyan]

Anyone who isn't using M1 finance I'd highly recommend it for investing. No fees and you can buy partial shares, as well as setup automatic deposits. It's a great easy way to setup a personalized investment account you make make into your own ETF basically.

[Mansion700]

So if I understand correctly:

The proper way to protect against a stock market crash is "dollar cost averaging" where you buy more stock after the crash because the stock is cheaper, so your average price becomes lower.

Does that still work with major crashes (like the 2008 crash)?

[PurpleInMyCup]

So if I understand correctly:

The proper way to protect against a stock market crash is "dollar cost averaging" where you buy more stock after the crash because the stock is cheaper, so your average price becomes lower.

Does that still work with major crashes (like the 2008 crash)?

Having a safety net kept in savings/checking outside of the market is important. Just a comfortable safety net, and if you're doing well, ideally a generous 'safety net' because if a huge drop DID happen, i'm talking big not just a couple/few percent but like 10% or more, that is ideally the time to buy if you can....but

DCA and not trying to time the market is most important.

Dollar Cost Averaging isn't 'waiting for the crash'. That may be never. Or the crash might be in a couple years and still will be higher than todays value, even though it crashed (because it goes up a lot in two years, historically).

Dollar Cost Averaging is like investing a certain set percent of every paycheck into the market, every two weeks or whatever, regardless of the current price. Just set that chit up automatically even. If you ran into a lot of $, you can make your own timeframe, but say you have $100k to invest, consider dropping like $10k in the market every week for the next 10 weeks. or $20k every two weeks for the next 5. something like that.

Not timing the market is not trying to predict the future. could go up tons or crash tomorrow. People that do trading for a living and went to school for it, the very vast majority of them don't even beat the market. (sure they might one year, but in the span of many years, very very very few 'professionals' succeed).


-----------

All of my dividend income (so 100% passive) comes from $SPY which isn't a high paying stock, it's just the general stock market (S&P 500). But I get almost $8k a year from those dividends alone, and it's set up to automatically reinvest back in to $SPY as well. So that's only once a quarter (so ~$2k/quarter as of today) i get the dividends yields, but that's technically Dollar Cost Averaging too lol. Set up on autopilot. And of course i add more myself if/when i comfortably can, and my 'safety net' is proper.

[BostonRockets]

People just aren't that smart but once they hit 40/50 all of a sudden they're throwing out advice like they're Warren Buffet when their entire life's track record has nothing to show.

How many times as a teenager or guy in your 20's have you heard some old dude try to give you advice like they know everything yet they're still poor themselves? Then if you don't listen they chuckle like you're an idiot.

[ashin1]

Having a safety net kept in savings/checking outside of the market is important. Just a comfortable safety net, and if you're doing well, ideally a generous 'safety net' because if a huge drop DID happen, i'm talking big not just a couple/few percent but like 10% or more, that is ideally the time to buy if you can....but

DCA and not trying to time the market is most important.

Dollar Cost Averaging isn't 'waiting for the crash'. That may be never. Or the crash might be in a couple years and still will be higher than todays value, even though it crashed (because it goes up a lot in two years, historically).

Dollar Cost Averaging is like investing a certain set percent of every paycheck into the market, every two weeks or whatever, regardless of the current price. Just set that chit up automatically even. If you ran into a lot of $, you can make your own timeframe, but say you have $100k to invest, consider dropping like $10k in the market every week for the next 10 weeks. or $20k every two weeks for the next 5. something like that.

Not timing the market is not trying to predict the future. could go up tons or crash tomorrow. People that do trading for a living and went to school for it, the very vast majority of them don't even beat the market. (sure they might one year, but in the span of many years, very very very few 'professionals' succeed).


-----------

All of my dividend income (so 100% passive) comes from $SPY which isn't a high paying stock, it's just the general stock market (S&P 500). But I get almost $8k a year from those dividends alone, and it's set up to automatically reinvest back in to $SPY as well. So that's only once a quarter (so ~$2k/quarter as of today) i get the dividends yields, but that's technically Dollar Cost Averaging too lol. Set up on autopilot. And of course i add more myself if/when i comfortably can, and my 'safety net' is proper.

Well said, and mirin dividend income.

Will rep on rc

[Mansion700]

Having a safety net kept in savings/checking outside of the market is important. Just a comfortable safety net, and if you're doing well, ideally a generous 'safety net' because if a huge drop DID happen, i'm talking big not just a couple/few percent but like 10% or more, that is ideally the time to buy if you can....but

DCA and not trying to time the market is most important.

Dollar Cost Averaging isn't 'waiting for the crash'. That may be never. Or the crash might be in a couple years and still will be higher than todays value, even though it crashed (because it goes up a lot in two years, historically).

Dollar Cost Averaging is like investing a certain set percent of every paycheck into the market, every two weeks or whatever, regardless of the current price. Just set that chit up automatically even. If you ran into a lot of $, you can make your own timeframe, but say you have $100k to invest, consider dropping like $10k in the market every week for the next 10 weeks. or $20k every two weeks for the next 5. something like that.

Not timing the market is not trying to predict the future. could go up tons or crash tomorrow. People that do trading for a living and went to school for it, the very vast majority of them don't even beat the market. (sure they might one year, but in the span of many years, very very very few 'professionals' succeed).


-----------

All of my dividend income (so 100% passive) comes from $SPY which isn't a high paying stock, it's just the general stock market (S&P 500). But I get almost $8k a year from those dividends alone, and it's set up to automatically reinvest back in to $SPY as well. So that's only once a quarter (so ~$2k/quarter as of today) i get the dividends yields, but that's technically Dollar Cost Averaging too lol. Set up on autopilot. And of course i add more myself if/when i comfortably can, and my 'safety net' is proper.

Nice yield.

I get that DCA is not just "waiting for the crash", but if we had another 2008-style crash, you would just see it as another opportunity rather than a loss?

Sorry if I'm being pedantic, but I just don't see why people freak out over a market crash if a market crash just presents an opportunity to buy more stock for cheaper than before.

[OutdoorsBrah]

If your trying to make legit gains after fee's, taxes, and all that... you will need ALOT of $$$.





I mean I get where you are coming from, but even making 1 grand in profit of investments will get chewed up in fee's. Unless you into something super volatile and high risk, even 10% annually is ambitious and not worth it unless the investment is big $$$

[PurpleInMyCup]

Nice yield.

I get that DCA is not just "waiting for the crash", but if we had another 2008-style crash, you would just see it as another opportunity rather than a loss?

Sorry if I'm being pedantic, but I just don't see why people freak out over a market crash if a market crash just presents an opportunity to buy more stock for cheaper than before.

I mean it would suck dik ofcourse, but yes if i had money to spare and/or a good job with good security even at that point, i would see it as an opportunity for sure. A great one depending on how much i can safely buy ha. Of course it would overall suck but i try to look at the optimistic sides of things, if it crashed and i didnt have a rather fat chunk of change to reinvest at that time, yes id be real shook because i just lost potentially hundreds of thousands of dollars. still wouldnt sell (for SURE) unless i absolutely 100% had to. that especially is not the time to sell..

[Boyguy]

Ashin - HUGE passive income guy

TFW your landlord is using you for passive income lol I wouldn't know that feel

[PurpleInMyCup]

If your trying to make legit gains after fee's, taxes, and all that... you will need ALOT of $$$.

I mean I get where you are coming from, but even making 1 grand in profit of investments will get chewed up in fee's. Unless you into something super volatile and high risk, even 10% annually is ambitious and not worth it unless the investment is big $$$

I mean tax sucks an absolute fat dink no matter what you do, but you do know that you only pay taxes on the gains you made, right brah? and you only pay that when you sell the securities. not like you're taxed on your holdings that never were sold/unsold every year, that'd be nuts. i bet the dems would love to do that though!

[nosirrahx]

nothing is "passive" everything requires some form of work/maintenance/upkeep or it erodes quickly

Yeah, dividends don't exist.

[PurpleInMyCup]

TFW your landlord is using you for passive income lol I wouldn't know that feel

That's literally every landlord ever but yes, renting is lameee. took me a while even after buying my house almost 2 years ago (just turned 27), how silly renting is/the true benefits of buying. I didn't buy for an investment but my future self thanks me so much...brb 30yr FIXED, 2% annual inflation rate roughly, that means if i were to renting, in just TEN years from now, rental prices will AT LEAST be like 21% more than they are today. My payment? still same. Let alone 20 or 30 years from now. And that's if your city stays stagnant and gets no better LOL and i love my city and am a firm believer in its future (and it's already killer). And your equity goes up every payment you make. (more ownership of home...rent goes down the drain as the renter), and house values go up. So many wins that rentcels simply can't even begin to comprehend.

[Boyguy]

You probably make 50k per year you peasant

LOL level 1 financial services rep, rentcel, roomatecel, and also poorcel all in one. I wouldn't even rent to you srs

[Vhagar]

OP are you talking about your allowance again?