how do you invest your money in long run ?

[fresh]

cars, art, and real estate do seem to be decent choices if you choose well enough when making the acquisition.

 

buying house is like get trapped. tax will kill you. and how soon you can sell it out and get the money is another BIG problem.

[swansont]

 

buying house is like get trapped. tax will kill you. and how soon you can sell it out and get the money is another BIG problem.

 

Compared to renting, the nature of US tax law means that it's generally advantageous to buy, even if your house does not appreciate in value, as long as you aren't over-extending yourself with a mortgage that's larger than the rent. Both the interest and the tax are deductible.

[CharonY]

Also, I think the question was for long-term investments, so getting out in the short term would be less of an issue.

[iNow]

buying house is like get trapped. tax will kill you. and how soon you can sell it out and get the money is another BIG problem.

In addition to swansont and charonY's comments above, you just cannot make sweeping generalizations like this. So much of it depends on the market, demand, local laws and tax policies, etc.

[Arete]

Strippers, illicit substances, and what's left goes on black... that counts as long term on a postdoc salary, right?

[fresh]

what are you guys investing now ? what's the minimum return rate you can get ?

[CaroCross]

I have never though about buying real estates or stocks and so on… It is simply far too risky for me, so I haven’t informed myself about the several possibilities I would have. Furthermore, I am pretty broke, so I will continue investing my money in holidays and clothes until I earn enough to buy stocks and estates

[fresh]

Doing financial investment always makes me upset and nervous, no wonder why some of top professionals in this field have depression and even commit suicide.

[Endy0816]

Why?

[fresh]

Why?

after you tried, you would feel the same way.

[Endy0816]

Not really useful to get emotional about it. You are trying to make a rational risk/reward assessment.

[fresh]

Not really useful to get emotional about it. You are trying to make a rational risk/reward assessment.

you get to know this market, you will definitely change your words.

[zapatos]

What market are you in?

[fresh]

financial market. it applies to all financial market in the world (such as Wall street ).

 

Being nervous, anxious, crazy is what we have to go through.

[Endy0816]

I just look at the investment as a math problem. Complex, with limited information, but a math problem nonetheless. If I see a profit, great. A loss mild annoyance and I adjust as needed.

 

You may need to change the amount of risk you are taking if it is negatively inpacting your wellbeing.

[zapatos]

financial market. it applies to all financial market in the world (such as Wall street ).

 

Being nervous, anxious, crazy is what we have to go through.

I've been investing in the Dow, the S&P, Mutual Funds, and Government Bonds for 30 years now. I can't say I've ever been "nervous, anxious, crazy".

 

I thought perhaps you were investing in some very risky markets or individual stocks of leading edge start ups.

[fresh]

I've been investing in the Dow, the S&P, Mutual Funds, and Government Bonds for 30 years now. I can't say I've ever been "nervous, anxious, crazy".

 

I thought perhaps you were investing in some very risky markets or individual stocks of leading edge start ups.

zapatos, how can you be so carefree ? you must be very good at it !

what's your annual return ?

[CharonY]

It is the difference between short-term and long-term investments. The latter is less affected by economic downturns. The corollary is that one is limited to invest what is not needed in the short- to mid-term.

[zapatos]

zapatos, how can you be so carefree ? you must be very good at it !

what's your annual return ?

 

I am not stressed about it because I keep a few things in mind:

 

1. The market does two things; it goes up and it goes down. If you know that going in it won't bother you when it does one or the other.

2. In the long run, the market makes money. I only invest for the long run, so I don't care when my wealth goes down as I know it will go back up eventually.

3. In the long run, you cannot do better than the market. So I don't try to do better. I mostly invest in index funds, which mimic the markets.

 

My average annual return is something less than the overall S&P average growth rate.

 

I am not good at it, I just follow a strategy that lets me make a reasonable amount of money with minimal effort and stress.

Edited March 21, 2016 by zapatos

[iNow]

^ +1

 

fresh - I'll tell you my strategy for making money in the long run, but first you must mail me $1,000 and sign a note promising never to tell anyone.

[fresh]

^ +1

 

fresh - I'll tell you my strategy for making money in the long run, but first you must mail me $1,000 and sign a note promising never to tell anyone.

hahaha.

zapatos, it doesn't seem as simple as you said. this market is so unpredictable, it may go down for many years(5-7 years and even longer ). i have been there.

 

I am not stressed about it because I keep a few things in mind:

 

1. The market does two things; it goes up and it goes down. If you know that going in it won't bother you when it does one or the other.

2. In the long run, the market makes money. I only invest for the long run, so I don't care when my wealth goes down as I know it will go back up eventually.

3. In the long run, you cannot do better than the market. So I don't try to do better. I mostly invest in index funds, which mimic the markets.

 

My average annual return is something less than the overall S&P average growth rate.

 

I am not good at it, I just follow a strategy that lets me make a reasonable amount of money with minimal effort and stress.

what is the overall S&P average growth rate ? 5% ?