Overview -- Posted July 12, 2024

 

 

Investing. Link here.

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Contents

• Pyramid
• Emergency funds
• Insurance, life
• insurability
  
• whole: grows in value but not to be used for investing purposes
• term: only for "x" number of years
  
• annuities
• auto
• deductibles
• Savings / Checking accounts
• Retirement
  
• Investing For Retirement
• Then (your great-grandfather, grandfather) vs Now (your parents, you)
  
• Transition (papa, grammy)
  
• Vehicles for Retirement Savings
• active (work, salary, hourly pay) vs passive income (mailbox money): 
• only active income allowed for retirement accounts
  
• IRA --
• two types
  
• traditional
• Roth -- RECOMMENDED
  
• how managed
• managed by professionals (see below) -- RECOMMENDED
  
• mutual funds (see below)
• load / no-load (see below)
• brokerage firms (see below)
• self-directed (see below)
• 401 (k) -- through your employer
  
• TSP -- secret sauce -- Federal government / military pay
  
• Pension -- more secret sauce -- including military pay
  
• Social security -- how it works
  
• How businesses raise money 
• stocks
• bonds
  
• How to read "the business page."
• the big three exchanges / the three big equity markets / stock markets
  
• Dow
  
• NYSE (New York Stock Exchange)
  
• Dow: 30
  
• (Dow industrial vs Dow transport)
  
• "everyone follows" Dow" (Dow industrial)
• "no one follows Dow transport
  
• S&P 500
• perhaps most important
  
• old days, NYSE:S&P500::10:1
  
• NASDAQ 100
  
• Others:
• Russell 2000
• jargon 
• VIX -- volatility index -- jargon -- important later on
  
• bull market, bear market, recession
  
• ticker: 3-letter vs 4- / 5-letter
• P/E (p/e) -- "sells for"
• dividend -- "pays"
• cash
• stock 
• stock split
  
• how to invest in stock market
• mutual funds
• load
• no-load
  
• stock brokers
• full service -- high commission; lots of help but expensive
  
• discount (no commission but no guidance): Robinhood, Schwab, Fidelity
• hybrid: Edward Jones -- moderate commission, but lots of guidance
  
• taxes 
• progressive: the more you earn, the more you pay
• even if you don't owe any money, you want to file
  
• income
• active income
• passive income (investments)
• dividends
• capital gains
• credits: dollar-for-dollar reduction of taxes owed (really nice)
  
• deductions: reduces taxable income (nice)
• itemizing / not itemizing: big change over the decades
• Business media
• your dad would likely have better suggestions
• WSJ
• Barron's
• CNBC
  
• Spaceholder