Asset - puts money into your wallet
Liability - takes money out of your wallet
Job? House? Car? Rental property? "Underwater" rental property? Appreciated-value owner/occupied home?
(correction: the above definitions are oversimplified and technically incorrect. The mortgage is a liability, the underlying house is an asset)
Markets:
- Private companies, clubs, have criteria to join (buy a seat)
- Pinksheets / OTC
- NASDAQ (NDAQ)
- NYSE (NYX)
- LSE
- After hours?
Instruments:
- Stocks (equity, ownership) dividends vs reinvest
- Growth
- Dividend stock
- Bonds (debt, ratings S&P, Moodys, junk, munis)
- High yield (junk)
- High grade corporate bonds
- Treasury, Munis
- Other debt: commercial paper
- Options
- Put (right to sell, hedge?)
- Call (right to buy, default)
- Futures
- Pork bellies
- Oil
"There is only one risk: the price you pay" Gold v Treasury v Equity v Bond
Should you have a Treasury earning 2% or single stock earning 4%?
- Mutual funds (Vanguard)
- ETFs - Trade close to NAV, generally track indexes
- Net Asset Value, fees, "expense ratio"
401(k)
- Roth (taxed up front)
- Traditional (no taxes up front)
- What I suggest people, cause its free monies!
IRAs: Roth & Traditional
(Warning: Social security wasn't original taxed)
"Sophisticated Investor" ($2.5MM net worth or > $250K in returns)
- Hedge Funds
- pre-IPOS
- Investor regulations
Interactive Broker (APIs), RobinHood, Crowdfunder, Wefunder
Build your own Mutual fund: Motif, Folio, etc.
How should I allocate my funds? 50/50, 75/25
What are the opportunity costs?
What is your time horizon?
Don't know what to do? Look at VOO
- Good: VOO generally beats 50% of mutual funder folks
- Bad: You won't get the thrill of victory nor the agony of defeat
- Ben Graham, Warren Buffet, Mohnish Pabrai, etc.
- Fundamental analysis (spoiler: it's just like analyzing your finances)
- A basic strategy or two
I am not an advisor. I don't know how to beat the market, and investing in VOO or some other index would probably be the smartest option.