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291
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20
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Devin Mann
  • Investor
  • Ascutney, VT
20
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291
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is there a stock trading version of bigger pockets?

Devin Mann
  • Investor
  • Ascutney, VT
Posted

i need some financial saving advice.

i know basics about stocks.  i learned some stuff about trading options but not enough to be trading every week. i was thinking about just doing a buy and hold for months at a time

right now im saving money, but they tend to say that savers are losers . im not saving enough money fast enough.

i was thinking about throwing $20 or so a week into a stock until next year, or until im financially set to buy my first house.

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7,658
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Roy N.
  • Rental Property Investor
  • Fredericton, New Brunswick
4,303
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7,658
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Roy N.
  • Rental Property Investor
  • Fredericton, New Brunswick
ModeratorReplied

@Brent Coombs

Back in the late 1980s when savings accounts were earning 8-10% the "not stellar" improvement in return was true.  

In today's low interest rate environment the spread will be considerable higher.   We park a portion of our reserves in a blue chip DrIP and are getting a return of ~5.5% which is 4.5 - 5 times what a savings account pays (in this country anyway).

It's not about waiting for the stock market to peak ... you are buying a company at or below its intrinsic value, not the market ... a very similar approach to not buying real estate at retail.

If Devin cannot afford to service a loan to invest in real estate at this point in his life, it is of little utility for us to tell him that is what he should do.  To his question about whether investing in a stock is better than a savings account, the answer is a qualified, "Absolutely" with the qualifications being that you do your diligence in selecting the stock and the manner in which you acquire it.   If this approach keeps his capital just enough out of reach that he is not tempted to spend it (frivolously), then it is an even better idea.

  • Roy N.
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