What's a good strategy for relatively short term, (<10 year), returns?

[John Freeman]

Crypto arbitrage

 

[sillybillyguy]

My dad recommended Vanguard funnily enough, I'm just unsure if my timetable is amiable to that kind of thing

It all depends on how much you are putting in. Another part is you need to make sure your returns are beating inflation. Which is why most savings accounts are worthless these days. My old man told me about how his savings account had a 10 percent return on it when he was younger I wanted to strangle him.

What I've been doing is splitting a part of my paycheck into a second account. Once it hits a certain amount, I'll drop it into one of the indexes. I think the indexes themselves have buy in minimums so keep that in mind.

If you have access to one of those apps like Acorn, Raiz, or Spaceship that takes a bit of money every day or with every purchase you can quickly build money to invest elsewhere. As long as you pull your money before it meets their threshold most of the time there is no fee or penalty.

 

[Anti Snigger]

It all depends on how much you are putting in. Another part is you need to make sure your returns are beating inflation. Which is why most savings accounts are worthless these days. My old man told me about how his savings account had a 10 percent return on it when he was younger I wanted to strangle him.



If you have access to one of those apps like Acorn, Raiz, or Spaceship that takes a bit of money every day or with every purchase you can quickly build money to invest elsewhere. As long as you pull your money before it meets their threshold most of the time there is no fee or penalty.

From what I'm reading and thinking, it makes sense to have a savings account in order to maintain liquidity for emergencies or necessary purchases, but beyond that I need to do what I can in order to outpace the fed money printer

 

[macrodegenerate]

S&P 500 Index ETF. You're pretty much betting on the American stock market. It's a combination of the top 500 publicly traded companies on the market.

Many an investor has been humbled by their arrogance in believing they can beat the market.

Edit:Always keep at least 6 months worth of expenses in liquid assets. Saved my ass more than once.

 

[General Emílio Médici]

an aggressive portfolio. Like SCHG/SCHD. 60/40 split.

https://seekingalpha.com/article/4640132-schd-schg-buying-both-way-to-go

>SCHG and SCHD ETFs, owned by Schwab

But I don't want to help the Antichrist!

 

[BigO-in-Ohio]

It all depends on how much you are putting in. Another part is you need to make sure your returns are beating inflation. Which is why most savings accounts are worthless these days. My old man told me about how his savings account had a 10 percent return on it when he was younger I wanted to strangle him.



If you have access to one of those apps like Acorn, Raiz, or Spaceship that takes a bit of money every day or with every purchase you can quickly build money to invest elsewhere. As long as you pull your money before it meets their threshold most of the time there is no fee or penalty.

My uncle bought long treasury bonds at 15% yield but remember that inflation was probably 13%. Probably what your old man was facing when his savings account was at 10%; so not really so different now, money market rates are 5% and inflation is running at 3%?

 

[tehpope]

>SCHG and SCHD ETFs, owned by Schwab

But I don't want to help the Antichrist!

You could do VIG and VUG. But they don't perform as well. The Schwab ETFs seem to have better performances. Though Vanguard tend to be cheaper. You could just buy VTI or VT for a total market ETF VOO or SPY for a S&P 500 ETF. But again, they don't perform as well as those more focused ETFs. But they're less risky and tend to perform really good verses buying random stocks or day trading. VTI is good as well, but it doesn't perform as well as S&P ETFs.

SCHG/SCHD > MGK/VIG > VUG/VIG > SPY = VOO > VTI > VT

Edit: You could swap VUG for MGK and get almost as good performance (MGK 60 / VIG 40) as Schwab.

 

[Aiōn]

I'm probably going to get rated autistic at least once for this but if you are looking for guidance, I would recommend that you take a look at your D2 (Hora chart) which is the divisional chart for your wealth. There is a summary of how to read it at the bottom of that page. I also recommend that you pray for assistance when making any important decisions and tithe when you can.

 

[Audit]

Heads up, for those advocating keeping money on the side for emergencies, make sure you keep that money in a high yield cash account. Vanguard has a 4.7% savings account option right now that you can freely move money in and out of as needed. Effectively, I think this sort of thing is tied to treasury bonds.

 

[Thorndyke Special]

My old man told me about how his savings account had a 10 percent return on it when he was younger I wanted to strangle him.

My broker loves to tell me about how he started his career trying to sell people 30 year tax free bonds with a 14 percent interest rate and he had trouble moving them because money markets were paying comparable rates at the time.

 

[TheRedChair]

My broker loves to tell me about how he started his career trying to sell people 30 year tax free bonds with a 14 percent interest rate and he had trouble moving them because money markets were paying comparable rates at the time.

He's probably talking about either the hyper inflation years or during the dot.com era.

As stated before My most conservative rate at the time of the dot.com era was 17%. I got out of the market 6 months before it crashed. People thought I was incredibly stupid in not staying and placing my earnings into a 7% mutual fix rate.

As stated before I made a shit load of money during the Dot.com era.

I can say with clarity I've seen several hundred if not thousands of people in Silicon Valley lose everything. And of course at the time I've stated "Whose stupid now you dumb fucks".

Moral of the story. I'm rich. They are not because I'm not a greedy fuck.

Be smart with your investments... DO YOUR RESEARCH.

 

[Tom Nook's Gloryhole]

It all depends on how much you are putting in. Another part is you need to make sure your returns are beating inflation. Which is why most savings accounts are worthless these days. My old man told me about how his savings account had a 10 percent return on it when he was younger I wanted to strangle him.

Honestly once inflation started going bezerk I put any spare cash I had left per month into index funds. The stock market could have an autistic meltdown tomorrow but over time you'll end up with far more money than if you'd just left it to 'build' in a savings account.

It's also an interesting switch when you go from being a kid wondering why companies only cared about their share prices over the human cost, to hoping X company starts flaying kids alive if it helps their stock price rise by half a percent.

 

[SCV]

Hopefully this isn't too much of a necro (the thread is on page 2) but IMO anything over 5-7 years is long term enough that stocks are the way to go. That means broad market index funds. I would also have somewhere between 0 and 40% in an international index fund depending on exactly how much of a real 'merican you are. Then whatever you decide contribute regularly (ie. set up auto contributions), turn on auto-re-invest, and then ignore it.

I also think "emergency funds" are for retards. You are essentially paying the inflation tax on several thousand dollars for no reason. You should be able to absorb any immediate emergencies on credit that gives you a 1-2 month window to cover them interest free either just via your income or temporarily pausing your investment contributions. Sure have a few hundred in cash at your house but any "emergency" fund at a financial institution is dumb.

Anyway, I'm going to use the vanguard funds as they're what I'm familiar with for the tl;dr:
1 brain cell: 100% VTWAX
2 brain cells: 66%/33% split VTSAX / VTIAX
america brain cells / I trust warren buffet implicitly: 100% VTSAX

 

[wtfNeedSignUp]

Sell your organs. You'd probably survive the first 10 years before things go very wrong.

Stealing from the mob is another.

 

[Alexander Thaut]

how good are corporate bonds for the purpose of investment?

 

[Fascist Kirk]

Defense
-a small portion in tlt, or 30 years treasuries is not out of the question.
-Get out of debt, or liabilities.
-if you bought a house in the last 3 years expect the value to correct (go Down), so if you locked a 3% morguage durring covid, does the monthly savings matter when the asset you paying on goes down 25 - 50%
Live below your means, Physical gold or silver a small portion
if you have cash sitting in a bank not getting a fair market interest rate, pull it out of bank or credit union.
Portion of physical paper cash


Boom and bust cycles have been a normal part of a free market, but the last
3 times the bust comes, the fed reserve and congress blue ball the market with bail outs.
it can go either way

be vigilant and liquid, Lack of Liquidity means you are a broke ass nigger

 

[Fascist Kirk]

how good are corporate bonds for the purpose of investment?

The Higher the yeild the more risky the asset . . .

 

[SCV]

how good are corporate bonds for the purpose of investment?

Pretty fucking grim, IMO. The classical reason to buy bonds was to diversity so everything wasn't in stocks. But if you hold 10 shares of Ford and 10 eight percent bonds that Ford issued then Ford does poorly enough to default on those bonds you're fucked. As has been noticed

The Higher the yeild the more risky the asset . . .

They have a higher yield which has been getting close to just equity yields. tl;dr; corporate bonds are essentially just equities at this point.

I would say if you want stocks buy an index fund. If you want bonds either buy actual bonds (TIPS, 10-year treasury notes, whatever), get a government bond index or just screw it an dump it into VMFXX.

 

[Stoneheart]

Bicycles... everybody is selling them cheap because they want ebikes and you can make a huge profit by paying somebody to turn them into e-bikes.

 

[Major]

Pretty fucking grim, IMO. The classical reason to buy bonds was to diversity so everything wasn't in stocks. But if you hold 10 shares of Ford and 10 eight percent bonds that Ford issued then Ford does poorly enough to default on those bonds you're fucked. As has been noticed

They have a higher yield which has been getting close to just equity yields. tl;dr; corporate bonds are essentially just equities at this point.

I would say if you want stocks buy an index fund. If you want bonds either buy actual bonds (TIPS, 10-year treasury notes, whatever), get a government bond index or just screw it an dump it into VMFXX.

Invest in bond funds. I have one that gets nearly 7% and increases in value slowly over time.