Recent comments in /f/personalfinance

Wan_Haole_Faka t1_j2ekero wrote

Reply to What to do with emergency fund? by jammun14

Ally is giving like 3.3% or something now. I just opened an account with them. I think I'm going to slowly buy into I bonds in order to build up 50% of my emergency fund.

Who cares if you've never heard of it before? Just make sure they're FDIC insured.

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nothlit t1_j2ekaie wrote

Reply to comment by BrandonQuinnDixon in Question about dividend re-investment strategy by BrandonQuinnDixon

There is no guarantee the stock will be worth $100 after the dividend is paid. In fact, it is far more likely to be worth $96.

https://www.fidelity.com/learning-center/investment-products/stocks/why-dividends-matter

> A stock price adjusts downward when a dividend is paid. The adjustment may not be easily observed amidst the daily price fluctuations of a typical stock, but the adjustment does happen.

> …

> This downward adjustment in the stock price takes place on the ex-dividend date. Typically, the ex-dividend date is 1 business day prior to the record date. The ex-dividend date represents the cut-off point for receiving the dividend. You have to own a stock prior to the ex-dividend date in order to receive the next dividend payment. If you buy a stock on or after the ex-dividend date, you are not entitled to the next paid dividend. If this sounds unfair, remember that the stock price adjusts downward to reflect the dividend payment. Therefore, while you are not entitled to the dividend if you buy on or after the ex-dividend date, you are paying a lower price for the shares.

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Cruian t1_j2ek9v3 wrote

Reply to comment by ToenailRS in VTI or VTSAX which is the better choice long term? by ToenailRS

Ex-US might look unappealing now if you simply look at a back test. However, to some of the more knowledgeable, that bad looking back test can be a very good thing.

For reasons on why diversifying beyond the US can be very important, please see:

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IndexBot t1_j2ek6mn wrote

Reply to Am done with wellsfargo by Blinkys101

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BastidChimp t1_j2ejvhy wrote

Reply to I need some clarification on "diversifying" investments by athminbri

Go with the Vanguard 500 Index Admiral fund since tracks the SP500. Just set it and forget it even during market corrections until you retire.

There is a book you can borrow from your local library. The Little Book of Common Sense Investing by John Bogle. This book was written for beginner investors emphasizing investing in broad market exchange traded funds (ETFs) like VTI or VOO for their simplicity. Just set it and forget it. Broad market ETFs for the win. VOO is basically the ETF version of the Vanguard 500 Index Admiral fund.

Expense ratios indicate what you are paying your fund manager to maintain your investments annually. The lower the expense ration the better.

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EnvironmentalCry3898 t1_j2ejqlv wrote

Reply to $50 isn't much, but I want to start somewhere. by lost_girl_2019

great idea.

I do not laugh at it.

I was closing my robinhood for a pdt trigger (I ama badass illegal day trader with my 50 dollars)

and I put 33 bucks left into gold.

it is now +40%.. and my only invest that stayed green.

took 1.5 months, I digress.

my other cash account was 213.. now 425. all straight shares, no options, no margin.

+100% in 60 days.

of course investing is exponential to starting money, unless you get a unicorn (ie: KALA) in some premarket scan... while it is low . I do not want to tell you my story about that one...

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BetterFuture22 t1_j2ejpi4 wrote

Reply to Need help deciding if it makes sense aggressively paying off private low interest student loan or saving/investing by ausb781

Pay off all cc debt immediately unless there's a zero intro rate.

Leave student loans in place & make minimum payments so you can build up cash to finance your desired move.

Do not be eager to pay off student loans - those are really cheap rates that you can't get elsewhere. Is pretty close to "good debt"

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