OFFICIAL STOCK MARKET AND ECONOMY THREAD VOL. A NEW CHAPTER

27,250
17,129
Joined Jul 13, 2005
Its funny, but at the same time it's not. Really shows how many people live paycheck to paycheck. Cant afford to lose anything at all.
 
3,568
2,208
Joined Mar 14, 2014
Its funny, but at the same time it's not. Really shows how many people live paycheck to paycheck. Cant afford to lose anything at all.
also a lack of education. In the market. Shouldnt be in in the first pl but shouldnt have to to make ends meet. Forced to play the game to just to have a chance. Its all ****ed up.
 
27,250
17,129
Joined Jul 13, 2005
also a lack of education. In the market. Shouldnt be in in the first pl but shouldnt have to to make ends meet. Forced to play the game to just to have a chance. Its all ****ed up.
Its really mostly trial and error and emotions. If you got into a good stock like AAPL let’s say at the ATH of $157 earlier this month. Now it’s down to $140 by end of month you might panic sell if you think you can’t afford to lose more. Probably think it’s all scam. Lots of luck and patience involved. Most who live paycheck to paycheck have neither on their side.
 
3,568
2,208
Joined Mar 14, 2014
Right. But lets say investing was taught a bit in hs. And college. Where u would learn basics like don’t invest what u cant lose. Trends and history. Lots of variables but at least have more of a chance at success. Just spitballing
 
10,659
7,562
Joined Oct 14, 2008
Right. But lets say investing was taught a bit in hs. And college. Where u would learn basics like don’t invest what u cant lose. Trends and history. Lots of variables but at least have more of a chance at success. Just spitballing
It would help, however again, most people don’t have enough for a $500 emergency bill. How does that leave them cash for investing? Let alone money that they can lose.
 
27,250
17,129
Joined Jul 13, 2005
I spoke to some people who don't believe in crypto to just DCA $20 a week. They don't even want to put money aside for that. Apparently too much for them. I think in general people have poor spending habits and like you said a lack of basic investing education.

The general population only hears of people making millions in stocks or losing it all in stocks. Rarely hear about the people who make steady (10-20%) gains every year. They're not tryna hear that.
 
7,703
4,294
Joined Dec 3, 2007
Right. But lets say investing was taught a bit in hs. And college. Where u would learn basics like don’t invest what u cant lose. Trends and history. Lots of variables but at least have more of a chance at success. Just spitballing
I use to be on the "personal and beginners investing finance should be taught in high school" bandwagon. Then the pandemic happened, and I realized that if basic science can become politicized, because it is in the best interest of the powerful to keep as many people uninformed and hostile to knowledge, then standardizing finance knowledge in K-12 will never happen.

Sadly, there are entire industries in America that rely on people being uninformed about finance. The minute they got wind of this k-12 personal finance agenda, that is--an agenda to help people become more knowledgeable,, they'd lobby like hell and kill it. If you don't believe me, look up what Turbo tax did in the state of California when a professor tried to get a bill passed for a simplified tax submission form.


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10,659
7,562
Joined Oct 14, 2008
I use to be on the "personal and beginners investing finance should be taught in high school" bandwagon. Then the pandemic happened, and I realized that if basic science can become politicized, because it is in the best interest of the powerful to keep as many people uninformed and hostile to knowledge, then standardizing finance knowledge in K-12 will never happen.

Sadly, there are entire industries in America that rely on people being uninformed about finance. The minute they got wind of this k-12 personal finance agenda, that is--an agenda to help people become more knowledgeable,, they'd lobby like hell and kill it. If you don't believe me, look up what Turbo tax did in the state of California when a professor tried to get a bill passed for a simplified tax submission form.


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Relating to the last point., it’s also why we don’t have an automatic filing like euro countries where we just get the return and review it from the IRS before it’s finalized and approved. It’s to keep HR and Trubotax functioning.and they’ve been lobbying for decades now.

Now don’t get it Twisted, as a tax CPA myself, I want the tax code as complicated and convoluted as possible for people who are better off and for businesses. But to not allow basic people to file automatically and free is just dumb.
 
3,568
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Joined Mar 14, 2014
All very good points. Dont even have enough to invest and spending habits. Thankfully we have the internet where we could learn on our own. And why i think btc or the like will be the new currency that frees us!!
 
23,381
12,712
Joined Dec 23, 2009
How’s that fantasy stock draft going?
Who knows? Lol I'll try to update tomorrow. Todays the final day so yall better hope this recent **** market didnt kill your chance at bragging rights of being the best lucky guesser.
 
13,365
4,531
Joined Sep 28, 2004
^those guys sound like gamblers. Too many stories of pump and dumpers glory.

Yikes.
From yesterday to today, my 401k went from +20% to +18.5% YTD performance. Buying time. Worst month for the s&p500 since 3/20. Now that would the fear time for me to reallocate some percentages away from the s&p.

I’ve mentioned before. That retirement savings credit for low to lower middle class is quite the come up, if you can find people who want to change their spending habits just a touch. At the lowest bracket, they’ll give you 50% of a max of $2,000 invested as tax credits. So any taxes owed is erased up to that point, and given back to you if the feds withheld anything. In reality it’s more of a poverty plan as the income thresholds are pretty low on a lot of it. 10% back is right around lower middle class.
Some examples of this
Youre making $19,000/year. All else equal, a single filer will owe about $660 in taxes. With the retirement savings active, if you invest just $1000, they’ll give/erase $500 of what you owe, so you can argue that you’re already up $500 on investments. Now invest in something steady and it should make you marginally more money long term. Not many are too keen on tax liabilities and even what withholdings mean. The money you invest also lowers your tax liability, so that $660 you owe is actually $560. Your agi drops.

In the example above, if this person had $800 withheld throughout the year to cover the $560, he would get quite a bit back as the $500 kicks in. He would get back almost everything he withheld instead of owing.

And at the worst/highest threshold, they will offer back 10%. This may be for the tax threshold but far too many people withhold at the old zero level and want the most back. They don’t realize a small investment can actually have the governments money working for them.

Even if you are at the 10% threshold, the lowered tax liability on top of 10% from the government still nets you some 20-25% gains with or without the market even functioning.

At the upper threshold, a married couple filing jointly making $65,000 qualifies for 10% back on up to $2,000 in investments. They would owe $4432 from the onset before any investments. . With $2,000 invested, they would end up owing around $4,000 ($200 less from the 10% and around $200 less from a lower agi). The government is giving you 10% gains if you do it right.
 
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