site banner
birb_cromble  3d ago (text post)   646 thread views

Weekly Finance Thread

A weekly thread to discuss financial matters - from personal all the way up to global.

Ground Rules

  • Remember that we're all just Internet randos. Don't bet your life savings on a hot tip from this thread.
  • Keep culture war in the culture war thread. Yes, global events may impact our personal finances, but that does not mean we have to incessantly harp on culture war aspects here. If you are going to discuss it, please stick to the practical impacts of it on an individual level.
  • Be kind. Remember that everyone here comes from different circumstances. We all have different resources available and different risk tolerances.
  • Don't let the perfect be the enemy of the good. Better is better. Celebrate people when they take a step up and work to move their finances in the right direction. Don't flame out because they haven't followed what you consider the optimal path. Everybody has to start somewhere.
1
Top Bottom Old Controversial Comments
Jump in the discussion.

No email address required.

Can someone help me think about bonds properly? I’ve been buying FTBFX as part of a 20-30-50 portfolio and over the past like 5+ years my return is 0.25% or so—I’d have been better off with just money market. Are my expectations off? I get keeping some ballast for rebalancing but the bonds are just melting away it seems with inflation.

O_____O

I hope to god you are trolling, but I fear you are not.

You don't buy frickin' BONDS in 2020 or 2021, when the interest rate is close to zero and can only go up, making your bonds worth less, and when liquidity is being pumped like crazy from the central banks, inflating all equity valuations massively. You've taken a net loss from inflation and a massive opportunity cost.

Don't flame out because they haven't followed what you consider the optimal path. Everybody has to start somewhere.

I'm not a mod, but please don't lead with accusations of bad faith. It's clear you have a lot of experience in this area, and I fear you're assuming that the layman's level of expertise is much higher than it is.

If you're not a mod, don't try to mod. I leaned towards good faith, as you could see.

Though, I'll try to be a bit nicer in my tone. It's just bizarre to me how little care goes into some people's handling of their savings.

It's just bizarre to me how little care goes into some people's handling of their savings.

A lot of people just aren't really taught, so they go with "well, I heard this is good and simple", which is... often not the worst choice! The only thing my father ever really taught me about retirement was "get the company match, it's free money." The company was good enough to auto-invest in a TDF as a default. And then that got me started and gave me time to learn a bit more, both online, at the water cooler, and at the company sponsored "financial education" sessions. I'm still not saying I'm a genius, but I definitely know a lot more than I used to.

A lot of people just aren't really taught, so they go with "well, I heard this is good and simple"

This is just a restatement of how little care people put in, not an explanation, though. Because, even as-of 20 years ago it was essentially trivial to teach oneself how to properly manage one's savings, and yet so many people even today stick to "well, I heard this is good and simple."

My pet theory is that people (certainly including myself) have weird hangups when it comes to things that clearly affect their status that prevents them from wanting to know too much, and so they proactively prevent themselves from learning even the most trivial of things. I see this in weight and diet as well, where people are hesitant to do the most basic work of measuring calories in/calories out before just declaring it too hard for them to lose weight.

What is this place?

This website is a place for people who want to move past shady thinking and test their ideas in a court of people who don't all share the same biases. Our goal is to optimize for light, not heat; this is a group effort, and all commentators are asked to do their part.

The weekly Culture War threads host the most controversial topics and are the most visible aspect of The Motte. However, many other topics are appropriate here. We encourage people to post anything related to science, politics, or philosophy; if in doubt, post!

Check out The Vault for an archive of old quality posts. You are encouraged to crosspost these elsewhere.


Why are you called The Motte?

A motte is a stone keep on a raised earthwork common in early medieval fortifications. More pertinently, it's an element in a rhetorical move called a "Motte-and-Bailey", originally identified by philosopher Nicholas Shackel. It describes the tendency in discourse for people to move from a controversial but high value claim to a defensible but less exciting one upon any resistance to the former. He likens this to the medieval fortification, where a desirable land (the bailey) is abandoned when in danger for the more easily defended motte. In Shackel's words, "The Motte represents the defensible but undesired propositions to which one retreats when hard pressed."

On The Motte, always attempt to remain inside your defensible territory, even if you are not being pressed.


New post guidelines

If you're posting something that isn't related to the culture war, we encourage you to post a thread for it. A submission statement is highly appreciated, but isn't necessary for text posts or links to largely-text posts such as blogs or news articles; if we're unsure of the value of your post, we might remove it until you add a submission statement. A submission statement is required for non-text sources (videos, podcasts, images).

Culture war posts go in the culture war thread; all links must either include a submission statement or significant commentary. Bare links without those will be removed.

If in doubt, please post it!


Rules


Recommended Posts And Communities

Recommended Realtime Chats