General discussion - whats a more effective strategy, passively investing through a index tracking fund, or seeking out individual stocks with high dividend yields (income investing through stocks)?
It's actually best to do real estate instead of either of those
>>1180538
Totally agree, but I took the somewhat stupid decision to do a PhD, so I don't have the capital for that yet.
You go into the s&p 500 for a minimum liability monetization.
It's not the best thing in the world, as this year shows the s&p can dip for periods of months on end, and that's time you've lost potentially monetizing the money.
If you are a financial analyst or have lots of free time/are a fulltime daytrader, you can manage the liability of short term trading and make large gains. Outside of that, the capital gains tax makes daytrading not really worth it.
Anyway those are the meme answers. There are dramatic exceptions to them, but they are rarer.
>>1180444
If I am somehow wrong I apologize, but one of the things I heard most in the Personal Finance class that I took was that the S&P 500 index fund consistently outperforms actively managaged funds. Also from what I found, Vanguard (500 index fund) is pretty much the way to go for investing in it, because they have low fees.
Anyways, if it outperforms actively managed funds with experts that have all sorts of resources to analyze information they are getting, how could a single person investing for themselves have a hope of reliably doing better?
>>1180665
I get where your coming from, and I agree that seems to be the case from most of the stuff Ive read too.
The alternative approach (income investing) would be similar in some aspects. Buy and hold, only from the S&P, diversified etc. The only difference would be instead of buying the basket of stocks, buying the stocks individually when they are paying a high dividend of say around 5%, and with historically stable or growing dividends. But like using a Vanguard fund it would still be from the 500 and would be bought to held till life/retirement
>>1180444
If what I understand from lurking these threads is true:
1) Index investing is the only way you losers will ever make money.
2) Day trading is for suckers, they all lose their money.
3) Cryptos and penny stock memes are where all the profit is at.
4) RobinHood is da shit,only fagits pay comissions
I've made 40k/year average from flipping property in gentrifying areas. Buy shitty, dirty houses with good bones, live in, repair and sell tax-free. My 401k makes me like -.05% not including match.
I just keep a couple of index funds and also buy individual stocks with 2months - year targets, or longer if there is a realy good reason.
this year alone has been ~30% profit from initial,,
(index not includet)
>>1180444
You should put it all in Nikkei it has great returns wink wink
>>1180543
But you think you have enough money to profit through investments?
>>1182065
I do ( OP here, using a different computer and IP so id changed). I have a bit saved from teaching and a bit of consultancy on the side. Where I live I don't have nearly enough to put a deposit down on a house where it would be worth me renting it out but enough to put it in the markets.
So the logic is if I invest in a few dividend stars in the index, is that likely to generate a better return than a slightly more diversified portfolio over an entire index.
