Ufot [he/him]

  • 0 Posts
  • 6 Comments
Joined 4 years ago
Cake day: July 29th, 2020
  • Ufot [he/him]@hexbear.nettochapotraphouse@hexbear.net•Trading stocks makes me feel dirtyEnglish
    9·
    8 months ago

    Maybe you can enlighten me on more ethical ways to invest my money because at this point I think not putting money into a 401k is a terrible financial decision.

    Tax deferred compounding interest is too good of a deal for the average person to pass up. Over 30 years you’ll be looking at anywhere from 100-150% return on investment.

    $50 a paycheck for 30 years with 5% avg return turns your $39k total contributions into $100k in retirement savings. $100 turns $78k in total contributions into $200k savings.

    For many people who find saving difficult, me included, being able to set it and forget it, plus the understanding it needs to be for retirement to get the full return, has allowed me to save money I would have spent/wasted otherwise.

    Due to the compounding factor, the sooner a person starts the better the return, so to discourage young people to not put money into a 401k is IMO actively harmful.

    IMO It’s like telling someone they shouldn’t have health insurance. Yeah it’s bullshit that society forces us to participate in a fucked up system but not having it puts future you at a terrible risk.

  • Ufot [he/him]@hexbear.nettonews@hexbear.net•Rich Dad, Poor Dad' author Robert Kiyosaki reveals he's in $1.2 billion debt.English
    12·
    9 months ago

    Loans are given out for 1 reason, to receive interest payments.

    If he’s making the interest payments, then they’re going to keep loaning him money.

    Lenders often make stupid decisions and risky loans but at its core, a loan is determined by two(three) things.

    1. Does the lender believe the borrower has enough income to pay the minimum monthly payments?

    2. Does the lender believe the borrower has enough assets, which if liquidated could pay off the remaining debt?

    3. Is it worth the risk?

    I’m no finance expert and there’s a lot of specifics between different types of loans that have different reasons. Like a personal loan, mortgage, car loan, business loan. Way more than that idk.

    There’s also reasons banks will or will not loan money that are a little more vibe based, ie racism, classism.

    But the lenders, either correctly or incorrectly, have determined he has the income streams and the assets(sounds like he owns lots of property), that risking 1.2 bil made financial sense. A lot of thst probably is tied to real estate.

    Having said all that holy shit that’s a lot of money. Assuming he’s paying only the interest at 3% apr that’s $36,000,000 a year. Fuck.