Stock Market is the bottom in?

[Apple Junkie]

Our contrarian approach is to invest in assets which has valuation growth that grows faster than inflation AND give a positive cashflow.

This makes complete sense, but what exactly are those assets you're suggesting? Bonds, Inflation protected securities, preferred stock? ...or just owning stock in place of cash or bonds? Thanks.

 

[BuckSutherland]

Gonna be helping our 17 year old daughter get a ROTH IRA going here shortly. Want to get in the max contribution for 2021 and 2022. She's making good money working at the nursing home. She also took 20 college credits as a junior in high school, and is doing the same next semester and next year. Whatever she has left for college she will probably get plenty of scholarships. I told her that we will be managing her roth by ourselves. Should be a great learning experience for her. Likely going mostly for stocks, maybe a fund or two, and a bit of bitcoin/ethereum.


I second what you guys say about investing early and often. I didnt have any type of retirement until about 37-38 years old cause I was busy building my businesses. Some real wealth potential getting going early. Started a 529 plan for our youngest. I'm simply amazed how much that has grown in 3 years. Abundantly clear to me now at 41 years old that real wealth isn't built from punching the clock, otherwise the wife and I would be multi millionaires.

 

[cbw]

So you post a clear sales pitch about "our contrarian approach" to investing but it's only about your personal finance decisions? mmmk

Ah, I see the confusion. Our == me, wife and how I’m training our kids.


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[Telemark]

This makes complete sense, but what exactly are those assets you're suggesting? Bonds, Inflation protected securities, preferred stock? ...or just owning stock in place of cash or bonds? Thanks.

Rental properties, farmland, dividend stocks, startups, etc.

 

[hunts_with_stick]

How many people think here will,be a market correction soon? I’m not sure what to think. I’m thinking their won’t be, I just don’t see the government allowing that to happen,

 

[cbw]

Rental properties, farmland, dividend stocks, startups, etc.

Exactly!

For us, we have focused on multi family rentals (at this point, professionally managed because they are 2 hrs from where we live) and business ownership.

My oldest son (25yo) and his wife just bought their second duplex—house hacking. By living in one side and renting out the other, they own an asset that pays them to live there.

I’ve read a lot, but their are two resources that all my kids are exposed to: Dave Ramsey’s course to learn how to spend less than they make, and the evils of consumer debt and Robert Kiosaki’s _Rich Dad, Poor Dad_ to learn how to think about assets and liabilities, good debt and bad debt, and business ownership.

Growing up poor and seeing my parents go through bankruptcy during the ‘80s farm crises had a big impact on how I think about money.


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[BuckSutherland]

How many people think here will,be a market correction soon? I’m not sure what to think. I’m thinking their won’t be, I just don’t see the government allowing that to happen,

I think 2022, will be a nice bull run in the stock market. TRILLIONS on the sidelines looking for a home. When everyone else is afraid and running for cover its time to start putting money in. Several of the people I communicate with regularly have been prognosticating the doom of the world for the market in 2022. "It cant go higher, there's gonna be a huge correction, I'm pulling my money out before the crash, values are too high, blah blah blah." Those comments are clear signs that it has room to run. There is a new paradigm for stock values with the amount of money sitting on the sidelines. Just because 10x a company's sales was high in 1990, doesn't mean shit in 2022. Maybe 50-100x is the new normal.

 

[BuckSutherland]

Exactly!

For us, we have focused on multi family rentals (at this point, professionally managed because they are 2 hrs from where we live) and business ownership.

My oldest son (25yo) and his wife just bought their second duplex—house hacking. By living in one side and renting out the other, they own an asset that pays them to live there.

I’ve read a lot, but their are two resources that all my kids are exposed to: Dave Ramsey’s course to learn how to spend less than they make, and the evils of consumer debt and Robert Kiosaki’s _Rich Dad, Poor Dad_ to learn how to think about assets and liabilities, good debt and bad debt, and business ownership.

Growing up poor and seeing my parents go through bankruptcy during the ‘80s farm crises had a big impact on how I think about money.


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When my oldest goes to college in a few years I told her that I want to buy a house and find a couple people to rent from her and they pay the mortgage on the house so she can essentially live for free. Wish I would have had opportunity like she is gonna have. I hate this CC debt bullshit. I dont know how so many people can be so damn stupid to run up a CC. Have used my cash back credit cards wisely for as long as they have been around. They have EASILY paid for all habitat improvements on my hunting land. I dont pay interest, only collect it. Probably the number 1 financial tip I could give to a young person. Of course the schools are complete SHIT!!! They dont teach any financial responsibility whatsoever.

 

[SD51555]

How many people think here will,be a market correction soon? I’m not sure what to think. I’m thinking their won’t be, I just don’t see the government allowing that to happen,

There will only be one if the bankers and government allow it to happen. We've been riding a fake economy since 1971. We've been in a constant state of stimulus and inflation ever since. Don't listen to what the bankers or governments say, watch what they do. And their MO has always been to protect the bubble because the bubble is owned by the wealthy. This policy has benefit lots of us well in that we converted worthless paper to tangible assets and they skyrocketed in value, but not because they've suddenly increased in real value. The underlying standard by which they're measured is cratering in credibility.

Many people have hopped off the asset train along the way and tried to hide out in cash or precious metals only to see their wealth swiftly halved or worse. Will they let it blow at some point? Maybe. There's money to be made there too. I'd have my eyes peeled for the next stimulus to keep this going. If that doesn't come in some form, be it an increase in cash payments to the poor and middle class, an income tax cut, an interest rate cut, or a massive increase in government spending, then I'd start to worry. The angry dog of inflation is hot on our tail, and the math ain't looking good unless the money printers can run faster.

 

[SD51555]

Keep your eyes peeled on tax refund season. There are 35 million people getting half their child tax credits ahead time, and they don't realize their tax refund checks are going to come in $2,000-$7,000 short of what they expected while at the same time costs of keeping the lights on continue to march higher. The situation will almost require an extension and expansion of the timing and scope of the program.

 

[Mortenson]

Keep your eyes peeled on tax refund season. There are 35 million people getting half their child tax credits ahead time, and they don't realize their tax refund checks are going to come in $2,000-$7,000 short of what they expected while at the same time costs of keeping the lights on continue to march higher. The situation will almost require an extension and expansion of the timing and scope of the program.

Exactly. I had a friend think it was all extra money. He bought a $4k Redneck on those child advances and then basically stopped talking to me when I explained it. Many in the same boat.

 

[b116757]

My company has a Roth 401k option that I max out at $19,500 a year or whatever the max is for the tax year and they match some. They only started the Roth option about 4-5 years ago. I’ve really been considered rolling some of my pretax 401k into a Roth IRA and paying the taxes on the rollover out of pocket. This is particularly urgent because I heard the Dem’s are pushing to do away with that option for us tax payers.

 

[SD51555]

My company has a Roth 401k option that I max out at $19,500 a year or whatever the max is for the tax year and they match some. They only started the Roth option about 4-5 years ago. I’ve really been considered rolling some of my pretax 401k into a Roth IRA and paying the taxes on the rollover out of pocket. This is particularly urgent because I heard the Dem’s are pushing to do away with that option for us tax payers.

Check to see if your 401k plan allows an 'in-plan conversion'. That would at least spare you the penalty. Not all plans allow it.

 

[John B]

Keep your eyes peeled on tax refund season. There are 35 million people getting half their child tax credits ahead time, and they don't realize their tax refund checks are going to come in $2,000-$7,000 short of what they expected while at the same time costs of keeping the lights on continue to march higher. The situation will almost require an extension and expansion of the timing and scope of the program.

I've never received a child tax credit so no real world experience with this but didn't they increase the child tax credit from 2k to 3.6k. People will still get 1800 per child on their tax returns as they only started paying in June unless im mistaken?

 

[westonwhitetail]

I've never received a child tax credit so no real world experience with this but didn't they increase the child tax credit from 2k to 3.6k. People will still get 1800 per child on their tax returns as they only started paying in June unless im mistaken?

That was my understanding of it.

 

[S.T.Fanatic]

Keep your eyes peeled on tax refund season. There are 35 million people getting half their child tax credits ahead time, and they don't realize their tax refund checks are going to come in $2,000-$7,000 short of what they expected while at the same time costs of keeping the lights on continue to march higher. The situation will almost require an extension and expansion of the timing and scope of the program.

We opted out. There was no way I wanted to be burdened with coming up with 10K to mail uncle joe in April.

 

[Mortenson]

That was my understanding of it.

Looks like you guys may be right.

 

[jsasker007]

The Feds are so out of touch they think a few hundred bucks is life changing for us peasants.

 

[b116757]

I tried to opt out of it couldn’t get their shit website it to work online finally just gave up trying. Figured I’ll just square up at tax time but I really have no interest in their BS. I’m already going to have to pay quarterly in January for a property sale this year to avoid penalties for long term capital gains it should be a blood bath for me this year at tax time. Had to spend money like drunken sailors at the end of this year to keep my mother in laws farm income in the 12% tax bracket. Lots of smaller businesses I’m sure end up in this boat at the years end. Buy equipment or supplies at the end of the calendar year to avoid being bumped into the 22% bracket from the 12%.

$39,000 taxable income $3680 in taxes
$40,000 taxable income $8800 in taxes

Spend whatever it takes to save almost $5000 in taxes is a no brainer as long as your reasonable close to making the cut off. I bought $6300 welding trailer rig with Miller bobcat 250LP welder for the farm just to keep her in the 12% tax bracket this year. Spend $6300 on a piece of equipment we can use or pay an extra $5000 in taxes for the government to squander.

 

[Telemark]

$39,000 taxable income $3680 in taxes
$40,000 taxable income $8800 in taxes

Wait. How does that work? Wouldn't she only pay 22% on the last $1000?