Finance Advice Thread

[AlternativeAcc.]

I bought RKT (rocket companies) at 19, 10000 shares.

Up 70%

Theyre making a killing lately with low rates and people refinancing. Earnings tomorrow. Will make around 3 billion in profit for the quarter. We'll see if they give any guidance.

[bladefd]

I made 100k buying calls last week

If you knew how to trade options you could quit your day job in a month in this market.

Where did you learn about options? That's my next thing I want to learn about

[AlternativeAcc.]

Where did you learn about options? That's my next thing I want to learn about

I read a book about it and started playing with them during the whole covid thing.

Just Google some guides to get the basic concepts down. It took me a day to understand and start trading. Whatever app/brokerage you use make sure you say you have 3-5 years of experience and are a high risk trader or they may not approve you for options trading.

Options are extrmely volatile, moreso than even crypto. Its not for everybody. I recommend starting very small until you understand what you're dealing with.

[FromDowntown]

Be honest, who was shorting stocks and getting roasted right now?

[rawimpact]

Thinking about getting back into it. Unfortunately I don't have money to buy many of them. Only $150 worth of them. I bought 2 square stocks last week so I am broke now.

So that's about 40 Sach stocks. Return of what? $20/yr. Unless if you own 100k worth of REITs, I don't see it as enough to live off of. Unless if there is something about REITs I'm not understanding

So you're trying to retire off of 150 dollars worth of stock? Stop being an idiot, it's about percentage return and so you'll get back a percentage of what you put in annually.

Invest $300/month in Sach for a year and you'll total 3,600 dollars... a more reasonable amount to even consider Sach as part of your portfolio.

Assuming sach will go up to 4 dollars a share that buys you 900 shares.

48c/share average annually yields you 438 dollars in dividends. Is it much? No not really, but again, you only invested 3,600 dollars and are set to make a yearly 12% return.

[bladefd]

So you're trying to retire off of 150 dollars worth of stock? Stop being an idiot, it's about percentage return and so you'll get back a percentage of what you put in annually.

Invest $300/month in Sach for a year and you'll total 3,600 dollars... a more reasonable amount to even consider Sach as part of your portfolio.

Assuming sach will go up to 4 dollars a share that buys you 900 shares.

48c/share average annually yields you 438 dollars in dividends. Is it much? No not really, but again, you only invested 3,600 dollars and are set to make a yearly 12% return.

I have not run the numbers but I do wonder how many years it would make to get a sizeable return at 13% per return.. Do REITs typically get dividend increases in percentage? I want to run some numbers and compare to say a stock like us bancorp, which has 4% dividend but greater expected growth over next 4-5 years.

[~primetime~]

Just buy straight stocks...United Airlines is at $36 a share...it was up to $96 before covid...buy now and hold on to it for a couple years, you'll make 100% at least, maybe 200%. It's going to recover. Easy money...and pretty safe too, the Gov will bail them out until the end of time....but even safer just spread it out through all the major airlines. Humans aren't going to stop traveling...in fact there will probably be a traveling explosion after covid.

[rawimpact]

I have not run the numbers but I do wonder how many years it would make to get a sizeable return at 13% per return.. Do REITs typically get dividend increases in percentage? I want to run some numbers and compare to say a stock like us bancorp, which has 4% dividend but greater expected growth over next 4-5 years.

REITs give dividends based on profitability. Sach happens to split it quarterly, some do monthly and others annually -- just depends... but at the end of the year, 90% of the profits must be paid out.

REITs for that reason can be high risk, but as you can see from the DIV% its high, VERY high return rate. It is generally a good idea to spread your stocks around in different markets (Real estate, Tech etc.) so in case one market dives you still have some value.

My investment in REITs is what I consider to be money I can live without if it disappeared. All the dividends I get from it I just reinvest back into it in hopes I'll have something in thirty years that can supplement my other investments. Boeing for example is another manufacturer we talked about a few months ago when I bought it at 120 or so.

Other non-REIT stocks can give out a dividend if they want... generally it's a lot lower. Some will even stop paying dividends if say they want to keep cash (like harley davidson, expedia or general motors)... there is no requirement for them to continue paying dividends.

[bladefd]

REITs give dividends based on profitability. Sach happens to split it quarterly, some do monthly and others annually -- just depends... but at the end of the year, 90% of the profits must be paid out.

REITs for that reason can be high risk, but as you can see from the DIV% its high, VERY high return rate. It is generally a good idea to spread your stocks around in different markets (Real estate, Tech etc.) so in case one market dives you still have some value.

My investment in REITs is what I consider to be money I can live without if it disappeared. All the dividends I get from it I just reinvest back into it in hopes I'll have something in thirty years that can supplement my other investments. Boeing for example is another manufacturer we talked about a few months ago when I bought it at 120 or so.

Other non-REIT stocks can give out a dividend if they want... generally it's a lot lower. Some will even stop paying dividends if say they want to keep cash (like harley davidson, expedia or general motors)... there is no requirement for them to continue paying dividends.

The part that I'm thinking of is that yes I agree the annual dividend percentage return is 3x higher than say bancorp, but there is minimal growth annually in REITs. Bancorp has 1/3 the dividend but a much bigger growth year to year.

I would have to either a) make a much more sizeable investment in a REIT (probably if I was retiring with capital from decades of work or if I was just rich) or b) hold for very long time for compound interest to snowball (if I was young and wanted to build wealth over next 20-30yrs).

I am looking at next 5-6yrs rather than right now or in 30yrs. Unless if you are extremely healthy, who knows how things will be like in 30yrs health-wise or whatever issue will arise. I don't even know if I will be around in 20-30yrs. You see what I'm saying? The probability is very very high that I will still be around in 5-6yrs to enjoy it, but 30yrs? No guarantees. I am not very healthy due to chronic pain issues, minor lung issue, etc. I don't want to even think about it 20yrs down the road.

Tell me that is flawed thinking on my end and counter that. I am sure others like kblaze can chime in too. Do you invest as if tomorrow is guaranteed or invest for what you believe is pretty much guaranteed probability-wise

[Kblaze8855]

I read a book about it and started playing with them during the whole covid thing.

Just Google some guides to get the basic concepts down. It took me a day to understand and start trading. Whatever app/brokerage you use make sure you say you have 3-5 years of experience and are a high risk trader or they may not approve you for options trading.

Options are extrmely volatile, moreso than even crypto. Its not for everybody. I recommend starting very small until you understand what you're dealing with.

What book would you suggest? I’m working overnights with nothing to do for like 6 months minimum. I’m sitting at work online bullshitting from like 11-5 every single ****ing night. Might as well learn something.

[Kblaze8855]

And apparently peloton is about to release a report. Covid shutting down gyms likely made them to crazy business so they are rising in anticipation. I threw some money on it for the hell of it.

[Kblaze8855]

Oh and I’m taking all suggestions on what to do with incoming bonus money. I’d be shocked if it were under 5k and I have nothing planned to do with it. It’s play money. If you have anything you believe in I’ll hear you out. Im trying to leave all my 2020 bonuses in.

[Shogon]

Bitcoin.

[~primetime~]

Oh and I’m taking all suggestions on what to do with incoming bonus money. I’d be shocked if it were under 5k and I have nothing planned to do with it. It’s play money. If you have anything you believe in I’ll hear you out. Im trying to leave all my 2020 bonuses in.

spread it out on major airlines, banks, hotel chains, restaurant chains....leave it there for a year or two...you will have doubled or even tripled your money

that's what I've been gearing up for

[bladefd]

I keep coming back to AMD. I don't know why but I just have that gut feeling. I thought seriously about sach, but I don't have enough money to even dent dividends return to be worth it. AMD I can buy couple and just wait through 2021 to potentially double.

Problem is I'm not very diversified. Can't have 80% in tech. If tech drops, I am screwed. I don't have enough money to throw a lot into stocks so I don't have enough capital to buy little of everything - I have to go big or go home and nothing has been bigger than tech this year. That's a conundrum