Ways to convince friends to invest in the market and/or F.I.R.E?

[F.I.R.E User]

I guess CC companies and mortgage companies can also be codependent.

Same company?

 

[Gumby]

....

Now, I do blame my friend for being a credit junkie, but what credit organization(s) give credit to him with his record?? YMMV

Don't you remember the runup to the Great Recession in 2008? Mortgage companies were making loans with no verification of income, for more than 100% of the purchase price, with no down payment and negative amortization.

 

[F.I.R.E User]

Don't you remember the runup to the Great Recession in 2008? Mortgage companies were making loans with no verification of income, for more than 100% of the purchase price, with no down payment and negative amortization.

Subprime loans.

 

[Koolau]

Maybe he has good credit.

Yes! Actually, that is what he tells me. Anytime he wants more credit, someone will give it to him. He seems to be able to get a new credit card or car loan whenever he asks for it. He does have decent income from SS. He and wife are on their own fairly good earnings records. I'm guessing they pull down close to $80 grand/year though I've never asked. So I guess they give him credit on that basis. But I just couldn't live like that. Most of his income is already committed to various credit cards and other loans. Still, I can't argue that he is enjoying his retirement because he definitely is. More power to him, I guess.

 

[F.I.R.E User]

One friend spends hundreds a month on S-clubs. He is 30.

 

[F.I.R.E User]

Yes! Actually, that is what he tells me. Anytime he wants more credit, someone will give it to him. He seems to be able to get a new credit card or car loan whenever he asks for it. He does have decent income from SS. He and wife are on their own fairly good earnings records. I'm guessing they pull down close to $80 grand/year though I've never asked. So I guess they give him credit on that basis. But I just couldn't live like that. Most of his income is already committed to various credit cards and other loans. Still, I can't argue that he is enjoying his retirement because he definitely is. More power to him, I guess.

Well creditors love borrowers like him if we pays the minimum on time every time.

 

[JoshTrent]

A few anecdotes..
My best friend.. of 25 years and I will talk about investing regularly. That started a long while ago after we both demonstrated LBYM lifestyle. It's always been a "this is what I'm holding" or "this is what i'm looking at" conversation.. never pushy or judgmental. We both hold similar portfolios, and tend to Buy & Hold. I credit him to exposing me to BitCoin, which I reluctantly purchased in 2017. I sold most of that position at a substantial gain, and he always has a wry smile whenever it comes up in conversation. If BTC had gone the other way.. I have no doubt we would still be best friends.

My Brothers.. I have always been open with my brothers about my financial position, by answering their questions directly. I have never given unsolicited advice or details without their interest first. Last Feb, I announced to my Family that I am taking a break from employment this year, with plans to re-enter this winter/spring. Upon hearing this news, both of my brothers (separately) approached me about how I would be able to float it. I walked each of them through my details (budget, assets, anticipated income, etc.) and their eyes got big. They both asked for advice on how to get where I am.. I told them that they were probably already there but didn't realize it. They are both very successful with spouses that are equally as successful. I've offered to sit down with them once I return to the US - so we will see how that goes.

My Ex.. She doesn't trust the Stock Market, and would rather put her money in her mattress. (reason #xx she is my Ex) The QDRO she received from my Retirement Accounts will set her for life when she retires - IF she lets it be. Overall, we are amicable and chat somewhat regularly. I avoid asking about the investments, figuring that I had set the AA when separating the accounts, and given her apathy, she hasn't changed anything.

To Others.. if someone else were to approach me about finances, my first question would be one which gave me a sense of their LBYM status. If one can't spend less than they make, then they have no business investing.

 

[JoshTrent]

Glad you liked the video.
This is also a great video for young ones too but some of it maybe a little controversial. This guy is pretty intertaining.

https://youtu.be/EKIhc3tS0os

Full Disclosure.. I haven't watched this video yet.

But.. I am a little suspect of a video that lays out in its Description:

FIRST: GET A CREDIT CARD

...

FOURTH: STAY OUT OF CONSUMER DEBT

Perhaps it's just me, and the contradiction really doesn't play out in the video.

 

[RobbieB]

Yeah, basic.

If you don't save, you can't invest. If you can't invest, you don't make money work.

If you don't make money work then you have to. For the rest of your life!

 

[2HOTinPHX]

Full Disclosure.. I haven't watched this video yet.



But.. I am a little suspect of a video that lays out in its Description:



FIRST: GET A CREDIT CARD



...



FOURTH: STAY OUT OF CONSUMER DEBT



Perhaps it's just me, and the contradiction really doesn't play out in the video.

Ok...now watch the video and let us know what you think...you might be surprised.

 

[2HOTinPHX]

Yeah, basic.

If you don't save, you can't invest. If you can't invest, you don't make money work.

If you don't make money work then you have to. For the rest of your life!

Bingo...and the other big one....it's time in the market not timing the market...the power of compounding. Just like the video I advised watching shows.

 

[SonofCohoes]

I had the same discussion with coworkers that I couldn’t even get to invest in 401k to match funds. I guess 100% on your money yearly wasn’t good enough…….

 

[JoshTrent]

Ok...now watch the video and let us know what you think...you might be surprised.

Ok.. so having just watched the video, I have the following comments:

While his intention to "educate" the younger generation is a noble one, I believe that his deliverables are mis-guided. Obviously he is a content provider that is looking for (and compensated for) views, and is providing advice targeted to a crowd which is probably more vulnerable than most. Specifically, I take exception with the following..

He infers that having a Credit Card will make you money (1:19) - I don't know any Credit Card that will make you money. I use my Fidelity Card, which provides me with 3% into my Brokerage Account - but I don't consider that income.

He then qualifies the idea of needing a Credit Card with a statement about being denied a loan on an investment property from a bank (2:05) because he didn't have "credit". - I am sure this would be the case. However, if he truly wanted to leverage into an investment property, alternatives can be found. I think it's a misnomer that "credit" is required to borrow money for a business. I mean, look at all the RE developers that have Bankrupted, and are still able to borrow money. (yes, that was tongue in cheek)

Point #5 - Go Get a Job - this should be #1. Call me Old-Fashioned, I think developing one's work ethic while sourcing one's own working capital, should be the priority.

LBYM - this should be #2 - However, during this point, most of his oration pertains to his Real Estate experience, and how successful he has been "buying at the bottom of the market" (12:43) - Quite the self-promotion on what is more likely to be a chance happening or an over zealous boast.

Also in the LBYM section, he states that he saves 99.997% of his income (12:49). Which equates to 0.003% of his income covering all of his expenses. Just to ballpark expenses at $1k a month (prior to rent/mort, because I'm going to assume he still lives with his parents) with $12k worth of annual expenses, he brings in $4M a year. While not out of the realm of possibility (I have no idea what Youtubers make), I think his statement is misleading & disingenuous at best.

All that said.. he is out there grinding, and that deserves some respect.

Lastly, I opened my Roth when I was 17, and I would suggest doing that as early as one has taxable income.

 

[Koolau]

One friend spends hundreds a month on S-clubs. He is 30.

Heh, heh, you forgot the rest of the scenario: "The rest of his money, he just wastes."

 

[F.I.R.E User]

I had the same discussion with coworkers that I couldn’t even get to invest in 401k to match funds. I guess 100% on your money yearly wasn’t good enough…….

Some give excuse for less take home pay.

 

[The Cosmic Avenger]

One friend spends hundreds a month on S-clubs. He is 30.

OK, I give up, what are they? The only things I could find for "S-club" were a British pop band or something to do with the Sims. Some golf club results, but none actually contained "S-clubs".

 

[Koolau]

OK, I give up, what are they? The only things I could find for "S-club" were a British pop band or something to do with the Sims. Some golf club results, but none actually contained "S-clubs".

I guess you're being too analytical, but YMMV.

 

[F.I.R.E User]

OK, I give up, what are they? The only things I could find for "S-club" were a British pop band or something to do with the Sims. Some golf club results, but none actually contained "S-clubs".

I wasn’t sure if I was allowed to say that but it’s an adult club.

 

[ejman]

OK, I give up, what are they? The only things I could find for "S-club" were a British pop band or something to do with the Sims. Some golf club results, but none actually contained "S-clubs".

Easy, it's a smoke club. People get together and smoke expensive cigars and such. Personally I think its not very healthy but to each his own.

 

[F.I.R.E User]

Easy, it's a smoke club. People get together and smoke expensive cigars and such. Personally I think its not very healthy but to each his own.

No. There are dancers there.

 

[The Cosmic Avenger]

Ah, I've heard "social club" as a euphemism, but never "S-club". That makes a difference, as I can see how he might waste a rather unusual amount of money there.

 

[F.I.R.E User]

Ah, I've heard "social club" as a euphemism, but never "S-club". That makes a difference, as I can see how he might waste a rather unusual amount of money there.

He also thinks the dancer loves him which is not true. She is laughing her behind off all the way to the bank.

 

[RobbieB]

I started contributing to 401 as soon as I could. And the cool thing is although your check is less, it's not as big a loss because of less fed and state tax. That and the company match make it a great plan.

Yeah, if you're worried about less pay then you are more concerned about spending vs saving and no amount of advice will be heeded.

 

[The Cosmic Avenger]

I've started pointing out to younger coworkers that (assuming they're in the 25% bracket; if they're not, it's probably 22%, so close enough) for every $1000 they put in their 401(k), they only have to give up $750 of take-home pay. It's like free money!

 

[WestUniversity]

Fought that battle for years at MegaCorp. Every encouragement to get the employees to at least put in enough money to get the full match, the free money from MegaCorp, fell on deaf ears. The excuses were everything from, “I can’t afford it” to “the money they give me is going to put me in a higher tax bracket”. There was little we could do to dissuade them or correct their thinking…