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re: Does the middle class not invest?
Posted on 7/19/20 at 8:02 am to jlovel7
Posted on 7/19/20 at 8:02 am to jlovel7
quote:
Does the middle class not invest anymore? Why did this become something associated only with the ultra wealthy? Getting money diversified in the stock market as early as possible is one of the smartest things anyone can do financially and it really doesn’t even take that much to really gain steam over time as long as you keep at it.
Thoughts?
Most people live well beyond their means. I'm 42 and have been trying to convince my wife we don't need a bigger house. Ours will be paid off in another 4 years or so and we will be debt free and her daughter will be out of the house but she still keeps talking about how she wants a bigger house. I finally told her that I am paying for this house, if she wants a bigger house she will have to make more money to pay for it.
0
Posted on 7/19/20 at 8:03 am to BestBanker
I think you’re full of shite with that response. If you’re putting aside each paycheck into a mutual fund for a 401(k), you’re investing. It may not be with a financial advisor on a custom portfolio, but it’s being invested.
Posted on 7/19/20 at 8:05 am to RealityTiger
Investor here
Posted on 7/19/20 at 8:15 am to Rust Cohle
quote:
Cheap money (low interest rates). No need to invest if you can finance the things now type mentality, and it’s encouraged.
Posted on 7/19/20 at 8:21 am to jlovel7
Middle Class does, in fact save. In a 401K, or pension, or Simple IRA.
The difference is that the middle class tends to buy things before they have cash to pay for it. Ask those things tend to not generate income.
Wealthy people tend to spend money on things that generate new income streams. When the wealthy buy something like a boat, they pay cash, for example.
The difference is that the middle class tends to buy things before they have cash to pay for it. Ask those things tend to not generate income.
Wealthy people tend to spend money on things that generate new income streams. When the wealthy buy something like a boat, they pay cash, for example.
Posted on 7/19/20 at 8:24 am to jlovel7
I invested when I lived in Louisiana and my cost of living was low enough to save. Living in Austin is a lot more expensive so now I tend to break even with little cash left to invest. Mortgage and kids make it tough to find the cash.
This post was edited on 7/19/20 at 8:42 am
Posted on 7/19/20 at 8:29 am to jlovel7
I yolo
Posted on 7/19/20 at 8:30 am to jlovel7
We started when we were I think 24 or 25 so yes. Now 50/51.
Posted on 7/19/20 at 8:33 am to Screaming Viking
quote:
When the wealthy buy something like a boat, they pay cash, for example.
How do you know that? I have one person in my family that is very wealthy. He purchased a boat that cost around $275K recently and financed it.
He's sitting on at least $5 million, but the low interest rate didn't make sense for him to pay cash for it.
I get what your point is, but the paying cash for stuff (hi Dave Ramsey) gets tiring to hear.
Posted on 7/19/20 at 8:34 am to jlovel7
Most people live at the top of their means with the belief that they will make more money as they move up the ladder. In part, this is because so many of my age are still fighting student loans. In part, it’s because money is cheap and they can buy $500k homes on a $100k salary. Regardless, a lot of people want wealth and want it now, so they will buy the $50k new F150 instead of buying it used or without all the trim packages. They will buy want is really just junk all the time and eat out all the time. Money discipline is not existent.
Posted on 7/19/20 at 8:35 am to jlovel7
I invest a pretty significant % of my income.
Posted on 7/19/20 at 8:50 am to jlovel7
I thought everyone’s employer had a retirement plan
Posted on 7/19/20 at 8:51 am to GreatLakesTiger24
quote:
I invest a pretty significant % of my income.
You aren’t middle class bro
Posted on 7/19/20 at 8:53 am to jlovel7
The keeping up with the Jones’s class can’t afford to invest
Posted on 7/19/20 at 8:55 am to jlovel7
quote:
Does the middle class not invest?
It’s time to redefine what you think is middle class if you think they don’t invest. I can’t think of a single close friend co-workers, doctors, lawyer, sales, etc... that do not invest. In fact, I would be willing to bet that 95% of dudes on the Money Board are middle class.
This post was edited on 7/19/20 at 8:57 am
Posted on 7/19/20 at 9:05 am to OysterPoBoy
quote:
We invested in a nice travel trailer a few years ago.
Unless you're renting that travel trailer out to other people, at a profit, you didn't "invest" in anything.
Posted on 7/19/20 at 9:05 am to jlovel7
People live beyond their means.
I joke with the wife that I'd bet we have highest income in subdivision.
People buy the most expensive car, house, etc they can get financed for.
I joke with the wife that I'd bet we have highest income in subdivision.
People buy the most expensive car, house, etc they can get financed for.
Posted on 7/19/20 at 9:07 am to geauxtigers87
quote:Fortunate has nothing to do with it. People rarely luck into disposable income. They make the decisions that lead to it.
Not everyone is fortunate to have disposable income
Posted on 7/19/20 at 9:07 am to jlovel7
They should, it has become very easy to buy stocks. Seems like most banks offer free stock trade accounts. I think Chase will give you $200 to open a checking account, $200 to open a savings account, and up to $750 to open a brokerage account.
Stocks that earn good dividends are cheap now. A lot of energy stocks are paying about 10% in dividends. (Another topic, but oil isn’t going away. Just about everything you buy has something in it that is petroleum based.). For the price of eating out (say $25), you can buy a share of BP and earn 10%, not to mention the value will eventually go back up to double what it cost now. Bank stocks are another good deal now. Airlines aren’t paying dividends, but their values are sure to go back up to previous amounts. I bought a couple hundred dollars of Spirit Airline stock at $8 a share a couple of months ago and it is now bouncing between $17 and $19 a share. Not a fortune in total value, but it all adds up. Energy, banks, airlines are all great deals now.
My daughter just graduated from college and I gave her a small portfolio ($500) as a graduation present and incentive to start investing early. She adds $50 worth of stock to it every couple of weeks. Sometimes she has decided to just cook at home and take what she avoided spending and buying another XOM share. Over time, combined with a Roth, it will add up. Investing doesn’t require huge sums of money, just $50 here and there. You also don’t have to continuously sell stock to make money, just keep buying little by little. Take the dividends you earn and buy more stock. Do that every week and in about 20 or 30 years you’ll be amazed at your portfolio value.
Stocks that earn good dividends are cheap now. A lot of energy stocks are paying about 10% in dividends. (Another topic, but oil isn’t going away. Just about everything you buy has something in it that is petroleum based.). For the price of eating out (say $25), you can buy a share of BP and earn 10%, not to mention the value will eventually go back up to double what it cost now. Bank stocks are another good deal now. Airlines aren’t paying dividends, but their values are sure to go back up to previous amounts. I bought a couple hundred dollars of Spirit Airline stock at $8 a share a couple of months ago and it is now bouncing between $17 and $19 a share. Not a fortune in total value, but it all adds up. Energy, banks, airlines are all great deals now.
My daughter just graduated from college and I gave her a small portfolio ($500) as a graduation present and incentive to start investing early. She adds $50 worth of stock to it every couple of weeks. Sometimes she has decided to just cook at home and take what she avoided spending and buying another XOM share. Over time, combined with a Roth, it will add up. Investing doesn’t require huge sums of money, just $50 here and there. You also don’t have to continuously sell stock to make money, just keep buying little by little. Take the dividends you earn and buy more stock. Do that every week and in about 20 or 30 years you’ll be amazed at your portfolio value.
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