So my mom's worried the market's gonna crash and wants to put her retirement nest egg under a rock cuz she lost 40% of it in 2008 that she never got back
I dunno what to say. It's currently in bonds and index funds
Why didn't she get it back? The market has come back? In general it's not a good idea to time the market.
On the other hand, if she's getting close to retirement, she probably wants that skewed less aggressively towards stocks.
Once retirement approaches, you can't necessarily easily wait 5-10 years for your nest egg to recover.
That said, the calculus has changed a bit. With the massive decrease in interest rates, bonds have nowhere to go but down, and inflation will utterly murder their return if you're in intermediate/long-term. The new thinking now is to actually keep it at 50/50, because stocks give the portfolio enough of a return to actually afford the 4% "safe" annual withdrawal rate (4.5% now).
Yikes. 50/50 on something as volatile as the stockmarket when you need to be relying on it is...woof.
Fucking bring back pensions, this is bullshit for planning for your average person.
She's 1 year from retirement. She didn't get the money back because something something Wells Fargo something something real estate something something upside down mortgage something something short sale.
Marty: The future, it's where you're going? Doc: That's right, twenty five years into the future. I've always dreamed on seeing the future, looking beyond my years, seeing the progress of mankind. I'll also be able to see who wins the next twenty-five world series.
She needs that money to last 30 years so that percentage of stocks isn't insane and I'd argue its not that aggressive (but that's an opinion).
You need an objective third party so use something like FINRA to find a fee only financial advisor. Pay them to look things over and give an assessment but don't let them sign you into anything long term or move her money into their funds.
Thanks, sounds good. If I don't screw up my life I'll be able to foot the bill anyway, but it would absolutely crush her spirit to end up having to depend on her kids. It's already super bumming her out that she won't be able to leave an inheritance.
Marty: The future, it's where you're going? Doc: That's right, twenty five years into the future. I've always dreamed on seeing the future, looking beyond my years, seeing the progress of mankind. I'll also be able to see who wins the next twenty-five world series.
So my mom's worried the market's gonna crash and wants to put her retirement nest egg under a rock cuz she lost 40% of it in 2008 that she never got back
I dunno what to say. It's currently in bonds and index funds
Why didn't she get it back? The market has come back? In general it's not a good idea to time the market.
On the other hand, if she's getting close to retirement, she probably wants that skewed less aggressively towards stocks.
Once retirement approaches, you can't necessarily easily wait 5-10 years for your nest egg to recover.
That said, the calculus has changed a bit. With the massive decrease in interest rates, bonds have nowhere to go but down, and inflation will utterly murder their return if you're in intermediate/long-term. The new thinking now is to actually keep it at 50/50, because stocks give the portfolio enough of a return to actually afford the 4% "safe" annual withdrawal rate (4.5% now).
Yikes. 50/50 on something as volatile as the stockmarket when you need to be relying on it is...woof.
Fucking bring back pensions, this is bullshit for planning for your average person.
Double social security so that it covers ~80% of income in retirement. Phase out tax favored retirement schemes to pay for it and prevent too much wealth inequality from coming out of that shift. Personal savings and various universal antipoverty programs can cover anything else and it completely separates retirement from being a fringe benefit where you work.
So my mom's worried the market's gonna crash and wants to put her retirement nest egg under a rock cuz she lost 40% of it in 2008 that she never got back
I dunno what to say. It's currently in bonds and index funds
Why didn't she get it back? The market has come back? In general it's not a good idea to time the market.
On the other hand, if she's getting close to retirement, she probably wants that skewed less aggressively towards stocks.
Once retirement approaches, you can't necessarily easily wait 5-10 years for your nest egg to recover.
That said, the calculus has changed a bit. With the massive decrease in interest rates, bonds have nowhere to go but down, and inflation will utterly murder their return if you're in intermediate/long-term. The new thinking now is to actually keep it at 50/50, because stocks give the portfolio enough of a return to actually afford the 4% "safe" annual withdrawal rate (4.5% now).
Yikes. 50/50 on something as volatile as the stockmarket when you need to be relying on it is...woof.
Fucking bring back pensions, this is bullshit for planning for your average person.
You wouldn't say that if you've seen how pension funds have been performing. A better description of them is "addicts desperate for their next fix" because some of those funds pledged benefits so high that they need 7%+ annual returns just to break even. They are constantly looking at ridiculously risky longshots to cover their withdrawals. They're also incredibly hit-or-miss as far as management - the Dallas PD pension fund, for example, managed to lose money during the greatest bull market run we've ever had.
About the only pension funds I'd trust are federal government worker pensions - as far as state and municipal ones go, you're better off just getting an IRA and throwing everything into a target date fund.
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thatassemblyguyJanitor of Technical Debt.Registered Userregular
So my mom's worried the market's gonna crash and wants to put her retirement nest egg under a rock cuz she lost 40% of it in 2008 that she never got back
I dunno what to say. It's currently in bonds and index funds
Why didn't she get it back? The market has come back? In general it's not a good idea to time the market.
On the other hand, if she's getting close to retirement, she probably wants that skewed less aggressively towards stocks.
Once retirement approaches, you can't necessarily easily wait 5-10 years for your nest egg to recover.
That said, the calculus has changed a bit. With the massive decrease in interest rates, bonds have nowhere to go but down, and inflation will utterly murder their return if you're in intermediate/long-term. The new thinking now is to actually keep it at 50/50, because stocks give the portfolio enough of a return to actually afford the 4% "safe" annual withdrawal rate (4.5% now).
Yikes. 50/50 on something as volatile as the stockmarket when you need to be relying on it is...woof.
Fucking bring back pensions, this is bullshit for planning for your average person.
You wouldn't say that if you've seen how pension funds have been performing. A better description of them is "addicts desperate for their next fix" because some of those funds pledged benefits so high that they need 7%+ annual returns just to break even. They are constantly looking at ridiculously risky longshots to cover their withdrawals. They're also incredibly hit-or-miss as far as management - the Dallas PD pension fund, for example, managed to lose money during the greatest bull market run we've ever had.
About the only pension funds I'd trust are federal government worker pensions - as far as state and municipal ones go, you're better off just getting an IRA and throwing everything into a target date fund.
I'm arm-char quarter-backing this thought process, so take my speculation for what little it is worth.
It seems like the pension funds that still exist are a mirror on what the average retiree would also need for retirement. If pension funds have this level of required upkeep, it stands to reason a private IRA has the same level of required upkeep.
Privatizing retirement (IRA, 401k, etc) like we've done doesn't seem to have solved any of the underlying problems that pension funds were facing. Instead these problems were shifted to the individual to solve, and we see anecdotal articles about how little house holds have saved for retirement (boomers and beyond). I'm not sure this suggests the average individual can or will do better than a pension fund, but instead they can definitely do worse.
What really seems to be the problem here is the high-level of concentrated capital in the hands of a few, and lack of will of the governments to tax this capital at the appropriate rates to ensure proper funding of social security & medicare (which would obviate the need for individual pension funds).
So my mom's worried the market's gonna crash and wants to put her retirement nest egg under a rock cuz she lost 40% of it in 2008 that she never got back
I dunno what to say. It's currently in bonds and index funds
Why didn't she get it back? The market has come back? In general it's not a good idea to time the market.
On the other hand, if she's getting close to retirement, she probably wants that skewed less aggressively towards stocks.
Once retirement approaches, you can't necessarily easily wait 5-10 years for your nest egg to recover.
That said, the calculus has changed a bit. With the massive decrease in interest rates, bonds have nowhere to go but down, and inflation will utterly murder their return if you're in intermediate/long-term. The new thinking now is to actually keep it at 50/50, because stocks give the portfolio enough of a return to actually afford the 4% "safe" annual withdrawal rate (4.5% now).
Yikes. 50/50 on something as volatile as the stockmarket when you need to be relying on it is...woof.
Fucking bring back pensions, this is bullshit for planning for your average person.
You wouldn't say that if you've seen how pension funds have been performing. A better description of them is "addicts desperate for their next fix" because some of those funds pledged benefits so high that they need 7%+ annual returns just to break even. They are constantly looking at ridiculously risky longshots to cover their withdrawals. They're also incredibly hit-or-miss as far as management - the Dallas PD pension fund, for example, managed to lose money during the greatest bull market run we've ever had.
About the only pension funds I'd trust are federal government worker pensions - as far as state and municipal ones go, you're better off just getting an IRA and throwing everything into a target date fund.
I'm arm-char quarter-backing this thought process, so take my speculation for what little it is worth.
It seems like the pension funds that still exist are a mirror on what the average retiree would also need for retirement. If pension funds have this level of required upkeep, it stands to reason a private IRA has the same level of required upkeep.
Privatizing retirement (IRA, 401k, etc) like we've done doesn't seem to have solved any of the underlying problems that pension funds were facing. Instead these problems were shifted to the individual to solve, and we see anecdotal articles about how little house holds have saved for retirement (boomers and beyond). I'm not sure this suggests the average individual can or will do better than a pension fund, but instead they can definitely do worse.
What really seems to be the problem here is the high-level of concentrated capital in the hands of a few, and lack of will of the governments to tax this capital at the appropriate rates to ensure proper funding of social security & medicare (which would obviate the need for individual pension funds).
Pension funds have the problem that you've put your retirement in someone else's hands and there isn't good regulation to ensure that this person is acting in good faith. They're chronically under funded and often mismanaged to a ludicrous degree, the PD fund losing money in the longest bull market ever being a prime example. Given that it's also common for politicians to borrow or somehow take the money I'm skeptical that regulation is even an answer in the US political environment. Social security may be an answer but given the constant cuts I'm not holding out hope that it will be fixed to even maintain the expected payments.
The financial knowledge needed to retire is very minimal and straight forward so I'd rather not rely on both politicians and managers acting in good faith when history has shown that they do not.
My buddy has about 100k in the gamespot stock from about $2000 investment. He's holding out for $1000 a share. I told him not to get greedy.
When it closed at $150 yesterday, I didn't think it would more than double again but here we are. I probably would have sold yesterday.
There's a dude who, at market close yesterday, had made something like $25 million. Can't wait to see his post at the end of the day today.
The part of that story that gets lost is that he invested in this like 1.5 years ago. Why? For what purpose? It's an amazing win for him but... why?! It made zero financial sense at all for him to do it when he originally did it, he had no idea this would ever happen.
I think folks analyzing the user ("deepfuckingvalue" on Reddit) are overlooking the fact that they're a member of a subreddit designed exclusively for meme and yolo stock buys. It's not called "RedditSmartBuys", it's WallStreetBets. The sole purpose was betting, and there are screencaps floating around from conversations with that user being challenged on GME in particular and their response amounts to, "Okay, but what if it works though?"
Personally, I don't have a ton of liquid capital but I temporarily moved some stuff out of my Wealthfront dedicated investment account over to Robinhood and grabbed some GME on Monday. Just about an hour ago, it crossed the $500 threshold and kicked off my limit sell that bails out my seed money. Everything past this point is icing on the cake. I've got a few shares left over to experiment just how far GME goes, maybe place some long-term holds on BB, and to lend to the resounding Fuck Yous to the hedge fund folks that are getting screwed out of lots of money by not getting their hands on the GME stock.
Edit: Also, the advantage of Robinhood over, for example, by 12-year-old TDAmeritrade account, is that it allows purchasing fractional shares (TD Ameritrade will not offer this until sometime later in the year when their acquisition by Chuck Schwab is finished), and you can start investing as soon as you open an account. I created a login Monday night, it prompted me to send some money from my bank, and before the ACH transaction was finished I was able to start trading.
Is it really an advantage that people can buy fractional shares because they don't have enough wealth to invest in full shares? Is it really an advantage that you can start "investing" right away?
So I didn't realize before that you couldn't just buy stocks at any time. I wanted to buy one share in AMC last night when it was $14, but instead it set up an order to buy when the market opens, and now the share price is more $20, which is more than I initially put down. I went ahead and put in an order to buy $36 more just now. This was on the Robinhood app, btw.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
So I didn't realize before that you couldn't just buy stocks at any time. I wanted to buy one share in AMC last night when it was $14, but instead it set up an order to buy when the market opens, and now the share price is more $20, which is more than I initially put down. I went ahead and put in an order to buy $36 more just now. This was on the Robinhood app, btw.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
If you don't know how stocks work should you be buying and selling them?
This is my whole point re: Robinhood.
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ChanusHarbinger of the Spicy Rooster ApocalypseThe Flames of a Thousand Collapsed StarsRegistered Userregular
there is an Australian mining company called GME that apparently saw its share price briefly bounce because people who don't know what they're doing bought the wrong stock trying to get in on the action
Is it really an advantage that people can buy fractional shares because they don't have enough wealth to invest in full shares? Is it really an advantage that you can start "investing" right away?
It was for me. Up to the individual to decide.
It could have all gone ass-over and I could have burned five grand before it even hit my investment account. But it didn’t!
As for fractional shares, I think it makes trading more accessible. Everyone knows the name Apple and knows it’s profitable a lot of the time. But Joe and Jane Schmoe may not have $100 or whatever it is per share to invest and ride the wave, maybe they’ve got $50. They can invest that $50 into a partial stock and still make gains. It removes the barriers to most people being able to trade successful blue chip stocks.
So I didn't realize before that you couldn't just buy stocks at any time. I wanted to buy one share in AMC last night when it was $14, but instead it set up an order to buy when the market opens, and now the share price is more $20, which is more than I initially put down. I went ahead and put in an order to buy $36 more just now. This was on the Robinhood app, btw.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
I'm pretty sure Robinhood specifically only buys and sells when the US market is open. So the "after hours" prices you're seeing are from elsewhere in the world and other institutions that have the privilege of trading outside the market time.
So I didn't realize before that you couldn't just buy stocks at any time. I wanted to buy one share in AMC last night when it was $14, but instead it set up an order to buy when the market opens, and now the share price is more $20, which is more than I initially put down. I went ahead and put in an order to buy $36 more just now. This was on the Robinhood app, btw.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
If you don't know how stocks work should you be buying and selling them?
This is my whole point re: Robinhood.
It wasn't like I dropped a thousand bucks or anything. Besides, isn't this the financial literacy thread? I assumed questions like mine would be okay to ask here.
I really just wanted to take a chance just in case AMC stock shoots up like GameStop stock did.
"How would you feel about school taking up an extra hour every day to teach basic "adult stuff" like washing clothes, basic cooking, paying taxes?"
I'd like to direct you specifically to a comment thread where many point out that this is already taught in high school, and it's more the issue that 15-18 year olds can't be forced to care about something.
My personal stance agrees: "adulting" has been taught in high school for a while; just not as explicitly as some would like (or remember). Also some of these classes are non-mandatory, depending on the curriculum (e.g. I didn't take Auto Shop in high school but I can do a significant amount of work on my car. I *did* take a typing class and it's arguably the single most valuable class I took in high school). Also the basics of the stock market are touched on in multiple places (e.g. US history [great depression], Math, Business classes if you have them, and some IT-related classes may even teach how computers affect the market)
So I didn't realize before that you couldn't just buy stocks at any time. I wanted to buy one share in AMC last night when it was $14, but instead it set up an order to buy when the market opens, and now the share price is more $20, which is more than I initially put down. I went ahead and put in an order to buy $36 more just now. This was on the Robinhood app, btw.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
If you don't know how stocks work should you be buying and selling them?
This is my whole point re: Robinhood.
It wasn't like I dropped a thousand bucks or anything. Besides, isn't this the financial literacy thread? I assumed questions like mine would be okay to ask.
The short version is this: Buy and Sell actions for retail investors typically take place at the end of a given trading day. So you can watch midday prices all you want, you'll actually pay for - or receive - the price at market close.
So I didn't realize before that you couldn't just buy stocks at any time. I wanted to buy one share in AMC last night when it was $14, but instead it set up an order to buy when the market opens, and now the share price is more $20, which is more than I initially put down. I went ahead and put in an order to buy $36 more just now. This was on the Robinhood app, btw.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
If you don't know how stocks work should you be buying and selling them?
This is my whole point re: Robinhood.
It wasn't like I dropped a thousand bucks or anything. Besides, isn't this the financial literacy thread? I assumed questions like mine would be okay to ask.
The short version is this: Buy and Sell actions for retail investors typically take place at the end of a given trading day. So you can watch midday prices all you want, you'll actually pay for - or receive - the price at market close.
I should clarify: apps like Robinhood process their transactions at the end of a trading day (from what I recall). You *can* set up a day-trading account if you want to move stocks between Open and Close. You'll need an account somewhere like E*Trade or Wealthsimple. Those platforms typically have a set fee per trade but I don't know the details of timing of when fees are assessed against your balance.
Well, scratch everything I said about Robinhood. They’ve disabled the ability to buy GME, BB, AMC, basically any of those popular stocks.
So FUCK Robinhood. I’m closing my positions and moving brokers.
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ChanusHarbinger of the Spicy Rooster ApocalypseThe Flames of a Thousand Collapsed StarsRegistered Userregular
they don't want to deal with a bunch of angry people who didn't understand what they were getting into once this all goes tits up
So I didn't realize before that you couldn't just buy stocks at any time. I wanted to buy one share in AMC last night when it was $14, but instead it set up an order to buy when the market opens, and now the share price is more $20, which is more than I initially put down. I went ahead and put in an order to buy $36 more just now. This was on the Robinhood app, btw.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
If you don't know how stocks work should you be buying and selling them?
This is my whole point re: Robinhood.
It wasn't like I dropped a thousand bucks or anything. Besides, isn't this the financial literacy thread? I assumed questions like mine would be okay to ask here.
I really just wanted to take a chance just in case AMC stock shoots up like GameStop stock did.
@Hexmage-PA Sorry didn't mean to shame you. Just like, typically you should get financial advice before doing the money thing
"How would you feel about school taking up an extra hour every day to teach basic "adult stuff" like washing clothes, basic cooking, paying taxes?"
I'd like to direct you specifically to a comment thread where many point out that this is already taught in high school, and it's more the issue that 15-18 year olds can't be forced to care about something.
My personal stance agrees: "adulting" has been taught in high school for a while; just not as explicitly as some would like (or remember). Also some of these classes are non-mandatory, depending on the curriculum (e.g. I didn't take Auto Shop in high school but I can do a significant amount of work on my car. I *did* take a typing class and it's arguably the single most valuable class I took in high school). Also the basics of the stock market are touched on in multiple places (e.g. US history [great depression], Math, Business classes if you have them, and some IT-related classes may even teach how computers affect the market)
It depends I think. On the one hand, I wish I had discovered the concept of index investing in my early 20's instead of my early 30's, but on the other hand poor financial choices stem more from behavior problems (impulsiveness, being incurious, stubborness etc.) than lack of knowledge. Case in point, I just didn't care about money when I was that young.
I once taught some Grade 8's who thought being a manager at McDonald's would be an amazing career because you could make $40,000 CAD / year. These were "rich kids".
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ChanusHarbinger of the Spicy Rooster ApocalypseThe Flames of a Thousand Collapsed StarsRegistered Userregular
i guess a thing to keep in mind
if you put $20 on GME for funsies last month when it was $20, you'd be sitting on $350 right now
even this stock having a ridiculously huge jump in its price isn't making anyone rich who wasn't already rich and nobody should expect these kinds of gains or anything close to them to basically ever happen
+10% on the year is a more realistic big win in the vast majority of cases
"How would you feel about school taking up an extra hour every day to teach basic "adult stuff" like washing clothes, basic cooking, paying taxes?"
I'd like to direct you specifically to a comment thread where many point out that this is already taught in high school, and it's more the issue that 15-18 year olds can't be forced to care about something.
My personal stance agrees: "adulting" has been taught in high school for a while; just not as explicitly as some would like (or remember). Also some of these classes are non-mandatory, depending on the curriculum (e.g. I didn't take Auto Shop in high school but I can do a significant amount of work on my car. I *did* take a typing class and it's arguably the single most valuable class I took in high school). Also the basics of the stock market are touched on in multiple places (e.g. US history [great depression], Math, Business classes if you have them, and some IT-related classes may even teach how computers affect the market)
It depends I think. On the one hand, I wish I had discovered the concept of index investing in my early 20's instead of my early 30's, but on the other hand poor financial choices stem more from behavior problems (impulsiveness, being incurious, stubbornness, etc.) than lack of knowledge. Case in point, I just didn't care about money when I was that young.
I once taught some Grade 8's who thought being a manager at McDonald's would be an amazing career because you could make $40,000 CAD / year. These were "rich kids".
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ChanusHarbinger of the Spicy Rooster ApocalypseThe Flames of a Thousand Collapsed StarsRegistered Userregular
"How would you feel about school taking up an extra hour every day to teach basic "adult stuff" like washing clothes, basic cooking, paying taxes?"
I'd like to direct you specifically to a comment thread where many point out that this is already taught in high school, and it's more the issue that 15-18 year olds can't be forced to care about something.
My personal stance agrees: "adulting" has been taught in high school for a while; just not as explicitly as some would like (or remember). Also some of these classes are non-mandatory, depending on the curriculum (e.g. I didn't take Auto Shop in high school but I can do a significant amount of work on my car. I *did* take a typing class and it's arguably the single most valuable class I took in high school). Also the basics of the stock market are touched on in multiple places (e.g. US history [great depression], Math, Business classes if you have them, and some IT-related classes may even teach how computers affect the market)
It depends I think. On the one hand, I wish I had discovered the concept of index investing in my early 20's instead of my early 30's, but on the other hand poor financial choices stem more from behavior problems (impulsiveness, being incurious, etc.) than lack of knowledge. Case in point, I just didn't care about money when I was that young.
I once taught some Grade 8's who thought being a manager at McDonald's would be an amazing career because you could make $40,000 CAD / year. These were "rich kids".
i don't know how much you actually can teach in schools that will matter. kids already learn arithmetic in grade school and algebra in middle school. that's all the math you need to understand anything financial most people will ever encounter
i think it's more important to teach kids how to think for themselves and do their own research instead of just memorizing what they need to know for their exams
good teachers still do this but the system is no longer set up this way after 20 years of abysmal education reform policy
if you put $20 on GME for funsies last month when it was $20, you'd be sitting on $350 right now
even this stock having a ridiculously huge jump in its price isn't making anyone rich who wasn't already rich and nobody should expect these kinds of gains or anything close to them to basically ever happen
+10% on the year is a more realistic big win in the vast majority of cases
And 10% is high tbh
And 2020 through now has been an insane bull run on the market
If you picked a random stock in April
You probably won
It’s not normally like that
(Lmao wish I picked more random stocks in April, but hey, is what it is)
So I didn't realize before that you couldn't just buy stocks at any time. I wanted to buy one share in AMC last night when it was $14, but instead it set up an order to buy when the market opens, and now the share price is more $20, which is more than I initially put down. I went ahead and put in an order to buy $36 more just now. This was on the Robinhood app, btw.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
If you don't know how stocks work should you be buying and selling them?
This is my whole point re: Robinhood.
It wasn't like I dropped a thousand bucks or anything. Besides, isn't this the financial literacy thread? I assumed questions like mine would be okay to ask.
The short version is this: Buy and Sell actions for retail investors typically take place at the end of a given trading day. So you can watch midday prices all you want, you'll actually pay for - or receive - the price at market close.
I should clarify: apps like Robinhood process their transactions at the end of a trading day (from what I recall). You *can* set up a day-trading account if you want to move stocks between Open and Close. You'll need an account somewhere like E*Trade or Wealthsimple. Those platforms typically have a set fee per trade but I don't know the details of timing of when fees are assessed against your balance.
This isn't true. Your trades are executed almost immediately. It really depends on if there's a counterparty for your trade available. Ie, someone willing to buy what you're selling (and if you've set a price then at the price you've set). Mutual funds are settled end of day.
So I didn't realize before that you couldn't just buy stocks at any time. I wanted to buy one share in AMC last night when it was $14, but instead it set up an order to buy when the market opens, and now the share price is more $20, which is more than I initially put down. I went ahead and put in an order to buy $36 more just now. This was on the Robinhood app, btw.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
If you don't know how stocks work should you be buying and selling them?
This is my whole point re: Robinhood.
It wasn't like I dropped a thousand bucks or anything. Besides, isn't this the financial literacy thread? I assumed questions like mine would be okay to ask.
The short version is this: Buy and Sell actions for retail investors typically take place at the end of a given trading day. So you can watch midday prices all you want, you'll actually pay for - or receive - the price at market close.
I should clarify: apps like Robinhood process their transactions at the end of a trading day (from what I recall). You *can* set up a day-trading account if you want to move stocks between Open and Close. You'll need an account somewhere like E*Trade or Wealthsimple. Those platforms typically have a set fee per trade but I don't know the details of timing of when fees are assessed against your balance.
This isn't true. Your trades are executed almost immediately. It really depends on if there's a counterparty for your trade available. Ie, someone willing to buy what you're selling (and if you've set a price then at the price you've set). Mutual funds are settled end of day.
Day trading refers to buying and selling the same thing on the same day. Edit: Oops, meant to edit and not double post.
Well, scratch everything I said about Robinhood. They’ve disabled the ability to buy GME, BB, AMC, basically any of those popular stocks.
So FUCK Robinhood. I’m closing my positions and moving brokers.
Yeah, I'm fucking pissed. Are there any alternatives to Robinhood that are legit? I don't want to be cheated out of any money because the app arbitrarily disallowed people from buying stocks.
Hexmage-PA on
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ChanusHarbinger of the Spicy Rooster ApocalypseThe Flames of a Thousand Collapsed StarsRegistered Userregular
Well, scratch everything I said about Robinhood. They’ve disabled the ability to buy GME, BB, AMC, basically any of those popular stocks.
So FUCK Robinhood. I’m closing my positions and moving brokers.
Yeah, I'm fucking pissed. Are there any alternatives to Robinhood that are legit? I don't want to be cheated out of any money because the app arbitrarily disallowed people from buying stocks.
i don't mean to sound condescending but please do more research into how all this works before you start throwing money in hoping for a fun windfall
Well, scratch everything I said about Robinhood. They’ve disabled the ability to buy GME, BB, AMC, basically any of those popular stocks.
So FUCK Robinhood. I’m closing my positions and moving brokers.
Yeah, I'm fucking pissed. Are there any alternatives to Robinhood that are legit? I don't want to be cheated out of any money because the app arbitrarily disallowed people from buying stocks.
i don't mean to sound condescending but please do more research into how all this works before you start throwing money in hoping for a fun windfall
I'll do what I want with my $50. It is my money, after all. The fact Robinhood doesn't respect a person's choice to invest how they want makes me want to severe all ties with them, especially when no such limitations are imposed on the rich.
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ChanusHarbinger of the Spicy Rooster ApocalypseThe Flames of a Thousand Collapsed StarsRegistered Userregular
So, again, what are legit alternatives to Robinhood? A Google search shows me several results, but Robinhood is the only one I've ever seen people use and don't want to give out my banking information to just anyone.
EDIT: Fuck, I've got to figure out how to cancel the pending deposit to Robinhood, too. Apparently even if it's still pending it only gives you the option the day you initiated it. So you can't go back on your orders, but apparently they can cancel your orders if they don't like how the plebs are investing.
I guess I'll go to my bank and see if they can cancel the pending deposit.
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ChanusHarbinger of the Spicy Rooster ApocalypseThe Flames of a Thousand Collapsed StarsRegistered Userregular
i don't know that there are any legit direct alternatives to Robinhood, as in brokerage firms that don't charge transaction fees
I dont use robinhood, (i dont think it is available in Canada), but my understanding is they are really good because of the no fees, no comissions, etc.
You go somewhere else and they will nickle and dime you more. Researching the fee structure of brokers is in my view the main thing to consider in choosing one.
If you want my advice on investing smartly here’s what I told my friend
Go to bogleheads website
Read the start here page
Then read the three fund portfolio page
Start there
Then once you understand things better you know, do what you will
As long as you remember that riding things like this craziness is gambling and risky
(Which, you know, is fine, you just need to know that’s what it is)
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Yikes. 50/50 on something as volatile as the stockmarket when you need to be relying on it is...woof.
Fucking bring back pensions, this is bullshit for planning for your average person.
38% bonds, 12% Treasury Bills, 2% MBS, 48% stock. Everything is indexed ETFs
Doc: That's right, twenty five years into the future. I've always dreamed on seeing the future, looking beyond my years, seeing the progress of mankind. I'll also be able to see who wins the next twenty-five world series.
You need an objective third party so use something like FINRA to find a fee only financial advisor. Pay them to look things over and give an assessment but don't let them sign you into anything long term or move her money into their funds.
Doc: That's right, twenty five years into the future. I've always dreamed on seeing the future, looking beyond my years, seeing the progress of mankind. I'll also be able to see who wins the next twenty-five world series.
Double social security so that it covers ~80% of income in retirement. Phase out tax favored retirement schemes to pay for it and prevent too much wealth inequality from coming out of that shift. Personal savings and various universal antipoverty programs can cover anything else and it completely separates retirement from being a fringe benefit where you work.
You wouldn't say that if you've seen how pension funds have been performing. A better description of them is "addicts desperate for their next fix" because some of those funds pledged benefits so high that they need 7%+ annual returns just to break even. They are constantly looking at ridiculously risky longshots to cover their withdrawals. They're also incredibly hit-or-miss as far as management - the Dallas PD pension fund, for example, managed to lose money during the greatest bull market run we've ever had.
About the only pension funds I'd trust are federal government worker pensions - as far as state and municipal ones go, you're better off just getting an IRA and throwing everything into a target date fund.
I'm arm-char quarter-backing this thought process, so take my speculation for what little it is worth.
It seems like the pension funds that still exist are a mirror on what the average retiree would also need for retirement. If pension funds have this level of required upkeep, it stands to reason a private IRA has the same level of required upkeep.
Privatizing retirement (IRA, 401k, etc) like we've done doesn't seem to have solved any of the underlying problems that pension funds were facing. Instead these problems were shifted to the individual to solve, and we see anecdotal articles about how little house holds have saved for retirement (boomers and beyond). I'm not sure this suggests the average individual can or will do better than a pension fund, but instead they can definitely do worse.
What really seems to be the problem here is the high-level of concentrated capital in the hands of a few, and lack of will of the governments to tax this capital at the appropriate rates to ensure proper funding of social security & medicare (which would obviate the need for individual pension funds).
Pension funds have the problem that you've put your retirement in someone else's hands and there isn't good regulation to ensure that this person is acting in good faith. They're chronically under funded and often mismanaged to a ludicrous degree, the PD fund losing money in the longest bull market ever being a prime example. Given that it's also common for politicians to borrow or somehow take the money I'm skeptical that regulation is even an answer in the US political environment. Social security may be an answer but given the constant cuts I'm not holding out hope that it will be fixed to even maintain the expected payments.
The financial knowledge needed to retire is very minimal and straight forward so I'd rather not rely on both politicians and managers acting in good faith when history has shown that they do not.
I think folks analyzing the user ("deepfuckingvalue" on Reddit) are overlooking the fact that they're a member of a subreddit designed exclusively for meme and yolo stock buys. It's not called "RedditSmartBuys", it's WallStreetBets. The sole purpose was betting, and there are screencaps floating around from conversations with that user being challenged on GME in particular and their response amounts to, "Okay, but what if it works though?"
Personally, I don't have a ton of liquid capital but I temporarily moved some stuff out of my Wealthfront dedicated investment account over to Robinhood and grabbed some GME on Monday. Just about an hour ago, it crossed the $500 threshold and kicked off my limit sell that bails out my seed money. Everything past this point is icing on the cake. I've got a few shares left over to experiment just how far GME goes, maybe place some long-term holds on BB, and to lend to the resounding Fuck Yous to the hedge fund folks that are getting screwed out of lots of money by not getting their hands on the GME stock.
Edit: Also, the advantage of Robinhood over, for example, by 12-year-old TDAmeritrade account, is that it allows purchasing fractional shares (TD Ameritrade will not offer this until sometime later in the year when their acquisition by Chuck Schwab is finished), and you can start investing as soon as you open an account. I created a login Monday night, it prompted me to send some money from my bank, and before the ACH transaction was finished I was able to start trading.
So, how long does it take to sell a stock? Is it instant? And can you only sell a stock when the market is open?
This is my whole point re: Robinhood.
https://www.msn.com/en-au/news/techandscience/australian-mining-company-with-the-same-stock-ticker-as-gamestop-has-seen-its-share-price-surge-today/ar-BB1da6sR
It was for me. Up to the individual to decide.
It could have all gone ass-over and I could have burned five grand before it even hit my investment account. But it didn’t!
As for fractional shares, I think it makes trading more accessible. Everyone knows the name Apple and knows it’s profitable a lot of the time. But Joe and Jane Schmoe may not have $100 or whatever it is per share to invest and ride the wave, maybe they’ve got $50. They can invest that $50 into a partial stock and still make gains. It removes the barriers to most people being able to trade successful blue chip stocks.
I'm pretty sure Robinhood specifically only buys and sells when the US market is open. So the "after hours" prices you're seeing are from elsewhere in the world and other institutions that have the privilege of trading outside the market time.
It wasn't like I dropped a thousand bucks or anything. Besides, isn't this the financial literacy thread? I assumed questions like mine would be okay to ask here.
I really just wanted to take a chance just in case AMC stock shoots up like GameStop stock did.
https://www.reddit.com/r/AskReddit/comments/l6o4jb/how_would_you_feel_about_school_taking_up_an/
"How would you feel about school taking up an extra hour every day to teach basic "adult stuff" like washing clothes, basic cooking, paying taxes?"
I'd like to direct you specifically to a comment thread where many point out that this is already taught in high school, and it's more the issue that 15-18 year olds can't be forced to care about something.
My personal stance agrees: "adulting" has been taught in high school for a while; just not as explicitly as some would like (or remember). Also some of these classes are non-mandatory, depending on the curriculum (e.g. I didn't take Auto Shop in high school but I can do a significant amount of work on my car. I *did* take a typing class and it's arguably the single most valuable class I took in high school). Also the basics of the stock market are touched on in multiple places (e.g. US history [great depression], Math, Business classes if you have them, and some IT-related classes may even teach how computers affect the market)
The short version is this: Buy and Sell actions for retail investors typically take place at the end of a given trading day. So you can watch midday prices all you want, you'll actually pay for - or receive - the price at market close.
I should clarify: apps like Robinhood process their transactions at the end of a trading day (from what I recall). You *can* set up a day-trading account if you want to move stocks between Open and Close. You'll need an account somewhere like E*Trade or Wealthsimple. Those platforms typically have a set fee per trade but I don't know the details of timing of when fees are assessed against your balance.
So FUCK Robinhood. I’m closing my positions and moving brokers.
i don't blame them
It depends I think. On the one hand, I wish I had discovered the concept of index investing in my early 20's instead of my early 30's, but on the other hand poor financial choices stem more from behavior problems (impulsiveness, being incurious, stubborness etc.) than lack of knowledge. Case in point, I just didn't care about money when I was that young.
I once taught some Grade 8's who thought being a manager at McDonald's would be an amazing career because you could make $40,000 CAD / year. These were "rich kids".
if you put $20 on GME for funsies last month when it was $20, you'd be sitting on $350 right now
even this stock having a ridiculously huge jump in its price isn't making anyone rich who wasn't already rich and nobody should expect these kinds of gains or anything close to them to basically ever happen
+10% on the year is a more realistic big win in the vast majority of cases
i don't know how much you actually can teach in schools that will matter. kids already learn arithmetic in grade school and algebra in middle school. that's all the math you need to understand anything financial most people will ever encounter
i think it's more important to teach kids how to think for themselves and do their own research instead of just memorizing what they need to know for their exams
good teachers still do this but the system is no longer set up this way after 20 years of abysmal education reform policy
And 10% is high tbh
And 2020 through now has been an insane bull run on the market
If you picked a random stock in April
You probably won
It’s not normally like that
(Lmao wish I picked more random stocks in April, but hey, is what it is)
This isn't true. Your trades are executed almost immediately. It really depends on if there's a counterparty for your trade available. Ie, someone willing to buy what you're selling (and if you've set a price then at the price you've set). Mutual funds are settled end of day.
Day trading refers to buying and selling the same thing on the same day. Edit: Oops, meant to edit and not double post.
Yeah, I'm fucking pissed. Are there any alternatives to Robinhood that are legit? I don't want to be cheated out of any money because the app arbitrarily disallowed people from buying stocks.
i don't mean to sound condescending but please do more research into how all this works before you start throwing money in hoping for a fun windfall
I'll do what I want with my $50. It is my money, after all. The fact Robinhood doesn't respect a person's choice to invest how they want makes me want to severe all ties with them, especially when no such limitations are imposed on the rich.
EDIT: Fuck, I've got to figure out how to cancel the pending deposit to Robinhood, too. Apparently even if it's still pending it only gives you the option the day you initiated it. So you can't go back on your orders, but apparently they can cancel your orders if they don't like how the plebs are investing.
I guess I'll go to my bank and see if they can cancel the pending deposit.
You go somewhere else and they will nickle and dime you more. Researching the fee structure of brokers is in my view the main thing to consider in choosing one.
Go to bogleheads website
Read the start here page
Then read the three fund portfolio page
Start there
Then once you understand things better you know, do what you will
As long as you remember that riding things like this craziness is gambling and risky
(Which, you know, is fine, you just need to know that’s what it is)
Hmm I don’t get charged transaction fees on most of my trades in fidelity
But I haven’t done research I’ve just been with fidelity my whole adult life
i said i don't know shaz