aesma
8mo ago
ah, i shouldn't have assumed. non-US residents can invest in US securities but of course there will be tax implications both in the US and your country. probably too complicated unless you have a high net worth.
the general principles apply - most countries have some sort of tax-deferred retirement savings vehicle. also index funds instead of single stocks. savings accounts / CDs tell you the rate of return up front and are the lowest risk.
to some extent your government does this for you. norway has an absolutely massive sovereign wealth fund managing something like $250k per citizen
aesma
8mo ago
broadly speaking 'leverage' means borrowing money to buy an asset. as long as the rate of interest you are paying on the borrowed money is lower than the rate of return on your asset, the difference between those rates is pure profit.
the risk is that your rate of return is not guaranteed to be higher. without leverage, the most you can lose is the money you put in. with leverage, you could lose your money + be on the hook for the money you borrowed.
aesma
8mo ago
low risk:
- I bonds from treasury direct. pays a fixed rate + inflation rate calculated twice a year, compounds semiannually. if you cash it before 5 years, you give up 3 months of interest. $10k limit per person per year. rates were ~10% last year, now it's 4.3%. inflation pegged means it's better than cash.
- CDs. these are paying 3-5% right now depending on the term, and lock-in vs no penalty withdrawals. shop around for the best rates, it's usually marcus (goldman) or synchrony.
- target date funds. these are commonly available in 401k plans. they have a 'target date' for when you expect to retire (2045, 2060, etc) and automatically adjust the allocations of stocks and bonds. usually highly diversified
moderate risk:
- VOO, or QQQ. these are index funds tracking the S&P 500 (SPX) and and Nasdaq 100 (NDX) respectively. NDX is more heavily weighted towards big tech (so much so that they are doing a special rebalancing for the first time soon). Over the long term (decades) just investing in these ETFs will beat almost every active investing strategy. but over the short term (like last year) you could be down 30%. so maybe not a place to park your downpayment for a house.
- for more diversification, VTI (total US market) or VXUS (total international market). more diversification means potentially less downside - also potentially less upside.
- sector specific etfs like XSD (semiconductors), XLE (energy), REITS like O. beware of high expense ratios
someone below mentioned leverage. if VOO/QQQ and chill just works why not just apply a ton of leverage and eat that carry? well, because of leverage decay. there are levered ETFs like TQQQ (3x levered QQQ), and the catch is that it's 3x daily. so say you put $100 hundred into TQQQ day 1. on day 2 QQQ is up 10%, so you're up 30%, hooray you have $130! Then day 3 QQQ is down 10%, and you are down 30% of $130. You have $91. And you're paying a higher expense ratio. levered etfs haven't been around that long so there isn't a consensus on how much sense they make to hold long term - there's been some respectable attempts to be empirical about it.
other points:
- always max out your 401k if you have one. if you get an employer match, it's literally free money.
- roth ira too, if you're below the income limit
- megabackdoor roth. this is a little complicated, and only works for some employers' plans, but basically you may be able to contribute post-tax dollars to your 401k and roll it into a roth
- evidence suggests lump sum investigating beats dollar cost averaging, but it's marginal
aesma
9mo ago
u missed the point. everyone admitted to hypsm meets some min bar of intel. what im saying is that they don’t have what the zoomers call ‘the rizz’
also, it’s very typical of ghee drinkers to downplay the importance of physical fitness. but it’s important u know
aesma
9mo ago
writing the biggest hits in cinema, writing the best selling novels
wordcelry. who’s actually on screen?
making computer games? The biggest twitch streamers and youtubers
vidya
i get that this board is a bit of a ‘tism bubble. try and think of what mainstream americans think of as culture
aesma
9mo ago
notice that the asians that are cool are not the rubik’s cubecels
jimmy chin isnt applying to harvard. the techlead phenotype is
aesma
9mo ago
you're indian, you've never really interacted with black people. they're undeniably much cooler than asians - see their overrepresentation in sports and entertainment, where they absolutely mog asians without any sort of AA boost.
in fact, given that the real filter is vibe cultivation (something that only shaperotatorcels deny the importance of), the ~25% of boring asians with interchangeable personalities that harvard admits are actually beneficiaries of a different sort of AA
it's because europeans have lower disposable income and less wealth in general. a fraction of europeans invest in stocks compared to americans. high taxes (including wealth taxes) to fund their social safety nets.
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