This gives them a very low bar to small investments for which they could see immediate returns. Even a $100 challenge on Robinhood is better than nothing.
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White House considering ways to incentivize U.S. households to invest in the stock market.
- Thread starter Sectorseven
- Start date
Because they don't give fuck all about them. This is just transparent Trump trying to keep Wall Street crawling higher because he knows the low IQ part of his base things the Economy = Dow Jones and the rich part of his base is able to reap the rewards of the markets rising.
The market never crashes until it crashes. Also historical data on current economies doesn't matter as that history is so short. In the grand scheme of things our current forms of Capitalism are toddlers at best.
It already exists - it's called the 401k, and most people aren't contributing the maximum anyway.
Perhaps the government can concentrate on something that will help more people - student loan relief/forgiveness would do way more economically than letting people throw a few more bucks into the stock market.
Perhaps the government can concentrate on something that will help more people - student loan relief/forgiveness would do way more economically than letting people throw a few more bucks into the stock market.
you aren't getting that from this government, that's for sure.
"A new batch of tax cut" ...
So it's the current tax rate that is stopping people to invest ?
Really ?
Because read like that it looks more like
- an electoral gift
- a perfusion to the upper part of the domestic economy
- A minor applications of "The empty-coffers policy", consisting into depriving the community from financial source of revenues, so plunging in into a deficit, and genuinely coming after and say "due to the debt crisis, we need to cut [what was attached to that source]".
So it's the current tax rate that is stopping people to invest ?
Really ?
Because read like that it looks more like
- an electoral gift
- a perfusion to the upper part of the domestic economy
- A minor applications of "The empty-coffers policy", consisting into depriving the community from financial source of revenues, so plunging in into a deficit, and genuinely coming after and say "due to the debt crisis, we need to cut [what was attached to that source]".
This is rediculous and only serves to further increase income inequality. The first thing I think about when everyone talks about how good Trump has been for the "economy". Is, "well that's great, but what about the other 80-90% of people".
52% of all Americans own stock. As in own anything at all.
But the real figures, even as of 2013 which I'm sure has gotten even worse is that the top 10% income bracket owned 81% of all stock, followed by 11% in the next 10% (middle class) and finally 8% amongst the bottom 80%. So I'd say it's a good time to stop treating the stock market as an indicator of overall financial health.
52% of all Americans own stock. As in own anything at all.
But the real figures, even as of 2013 which I'm sure has gotten even worse is that the top 10% income bracket owned 81% of all stock, followed by 11% in the next 10% (middle class) and finally 8% amongst the bottom 80%. So I'd say it's a good time to stop treating the stock market as an indicator of overall financial health.
Precisely this.
And for the vast majority of those earning 50k-200k it is only a way to entice scamming those individuals out of their money as well, to help the elite get more assets.
This is a net negative deal for America as a whole, but a few will dupe themselves into thinking it helps them personally.
That should be a given with some folks around here. "Progressive" ERA too has its share of "temporarily embarrassed millionaires".
Do you mean you have liquid money sitting idle making nothing? I made that mistake for a long time. You don't lose money but you certainly won't be making money. You can always start low and put like 20% invested as you learn. As most people say just pick various index funds and you cover the whole market instead of trying to find the next Apple Amazon etc..those stocks are already in those funds.
it's wild bc ppl are arguing oh they can just drop $100-200 it doesn't have to be much... like hello idiots, that IS much for low income people. You take $100-200 away from them and you've screwed them, that's rent, bills, payment they now can't pay
How do you recommend that I go about this? I would like to look into something soon. Would I be able to do it on my own with a Ameritrade or something similar?
Best way to incentivize investments in the stock market for lower to medium class people is to raise wages and mass educate the population. Period. Any other way is more than likely a grift, even more so coming from this administration.
Throw any money you won't need for the next 5+ years into a total market index fund. VTSAX or something similar.
Very very very easy to do on your own. Not for saving for something in the short term though.
Fidelity, Ameritrade, Schwab, Robinhood..a bunch don't even charge a fee anymore to trade. Vanguard is the most well know index / ETF funds. An ETF you invest in an entire sector like biotech, industrial, oil etc. instead of one company in that sector if your into that.
Starting early is because you want compound your money..I lost a lot of years staying idle in the market but luckily I've had a 401K with the same company a while for that part of my money.
Compound Interest: What It Is, Formula, Examples | The Motley Fool
Compound interest is the phenomenon that allows seemingly small amounts of money to grow into large amounts over time. Compound interest essentially means "interest on the interest" and is the reason many investors are so successful.
www.fool.com
And say you were getting 2% in a money market..which most aren't it takes you 35 years to double your money 0_o
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The Rule of 72: What It Is and How to Use It in Investing
The Rule of 72 determines how long an investment will take to double given a fixed annual rate of interest.
It's also funny they are doing this now when it will benefit the people less because eventually we will have it go back down to 15-20k. That will be the time to buy.
What amazes me too is that....there is a website RIGHT now (Vanguard) catered primarily towards inexperienced investors that - should you have the time - has available a plethora of detailed in-depth information to give anyone a basic run down of what investing actually entails.
Hell, they even virtually spell it out the type of investing which is more skin to gambling.
How is this getting past the House of Representatives? Or is this one of the things we have discovered can just be rammed through via other means, rendering Congress useless?
This is my main issue with this. In a void it's fine, but it really doesn't help anybody in low-income brackets, and it once again takes tax-payer money and puts it into corporate pockets. It would be far better if, say, the $10k was conditioned on only being invested in smaller entities/businesses, incentivizing riskier bets that would help grow the overall market/competition. You know, stir some ACTUAL economic growth instead of continuing to concentrate it into the few biggest pots.
It's mind boggling to me just how fucking stupid most people are about saving for retirement. Seen so many people cash out their 401(k) after switching jobs because short term gratification trumps all.Fidelity, Ameritrade, Schwab, Robinhood..a bunch don't even charge a fee anymore to trade. Vanguard is the most well know index / ETF funds. An ETF you invest in an entire sector like biotech, industrial, oil etc. instead of one company in that sector if your into that.
Starting early is because you want compound your money..I lost a lot of years staying idle in the market but luckily I've had a 401K with the same company a while for that part of my money.
Compound Interest: What It Is, Formula, Examples | The Motley Fool
Compound interest is the phenomenon that allows seemingly small amounts of money to grow into large amounts over time. Compound interest essentially means "interest on the interest" and is the reason many investors are so successful.
And say you were getting 2% in a money market..which most aren't it takes you 35 years to double your money 0_o
The Rule of 72: What It Is and How to Use It in Investing
The Rule of 72 determines how long an investment will take to double given a fixed annual rate of interest.www.investopedia.com
People are living longer. Contrary to popular belief, old people are pretty passionate about living. Chances are you'll still want to enjoy life when you're 65. Anyone who is able to save for retirement (even single-digit percentage of salary) and chooses not to is being myopic as hell.
Everyone should read "Simple Wealth, Inevitable Wealth" by Nick Murray.
It has never been easier and cheaper to invest in a diversified ETF fund. Trying to juggle individual stocks can be tricky, but ETFs make it super easy.
Those that do have some extra cash to invest should be putting it into stocks. ETFs are the easiest way.
No matter how low the risk, just mention the word "risk" and people use it as an excuse to not invest. It's totally understandable if a low income person has nothing to invest, but there are plenty of people who could invest for the their retirement and they don't. Even small amounts add up.
I've noticed that Americans tend to shy away from investing globally and have a large home bias.
Any time you try to tell them, it seems their eyes glaze over and they start day dreaming about stonks and forget all about what they were even talking about, snap out of it then start talking to each other about the how easy it is to make more money with more money! It's so easy I don't understand why nobody is doing it! *eyes glaze over again for some reason*
Fidelity, Ameritrade, Schwab, Robinhood..a bunch don't even charge a fee anymore to trade. Vanguard is the most well know index / ETF funds. An ETF you invest in an entire sector like biotech, industrial, oil etc. instead of one company in that sector if your into that.
Starting early is because you want compound your money..I lost a lot of years staying idle in the market but luckily I've had a 401K with the same company a while for that part of my money.
Compound Interest: What It Is, Formula, Examples | The Motley Fool
Compound interest is the phenomenon that allows seemingly small amounts of money to grow into large amounts over time. Compound interest essentially means "interest on the interest" and is the reason many investors are so successful.
And say you were getting 2% in a money market..which most aren't it takes you 35 years to double your money 0_o
The Rule of 72: What It Is and How to Use It in Investing
The Rule of 72 determines how long an investment will take to double given a fixed annual rate of interest.
thank both of you. Looking into this now
Say what you want about the guy but this seems like a good idea. The market is absurdly good right now.
investing in something at record highs sounds like a good idea to you?
And in this case investing your future livelihood and wellbeing in a record high stock market that the president has directly put his thumb on the scales via dangerous and recklessly low interest rates?
Beanie Babies, aka Boomer Bitcoins would be smarter right now.
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I can't speak to bitcoin, but this is the greatest bull market in all of history, if you have the money why wouldn't you invest?
While sensible people will include stock or related instruments as part of an investing and retirement strategy there are a few serious a few reasons to be extremely cautious:
1. this is being pitched as an alternative to traditional pensions and to help bouy or boost an already unnaturally swollen market
2. It's always wise to divest your investments to spread risk and reduce potential harm.
3. This won't help the Americans who most need help and on the contrary will continue the spreading gulf between the rich and the poor.
4. Literally every single boom in stock market history has been followed by a bust and a recession has been predicted by even optimistic economists as inevitable.
5. 401k as a replacement for company or government retirement plans is being pushed as a cost saving measure for the private sector- a sector that also pushes for tax reductions that exacerbate the problem.
6. The Trump administration and its chief economic officer Steve Mnuchin have literally no idea how the economy works and believe they're insulated from negative consequences by wealth and power and have shown almost sociopathic disregard for the middle and working class. One of his chief economic influences and most senior is a tv stock market pundit who told Americans to stay in the market and in housing as the Great Recession was seen as inevitable and imminent by people he knew.
7. Donald Trump has frequently made statements and policy decisions that suggest he thinks the stock market is the economy.
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There are many legitimate points here but I disagree with 6 at the very least. Beyond that the S&P is up 30% in the past year. The average American should be able to profit off that. Not just the rich.
I shy away from foreign markets because those funds tend to have higher expense ratios (which hurt even more when US equities are outperforming foreign ones). I still have about 10% of my 401k in an international fund but I get tempted to liquidate it for the above reasons.
You can't time the market. There is no bad time to invest in good companies. You can dollar cost average so if the market is bad you get a better price. If the alternative is a bank account and you choose that as your good idea I don't know what to tell you.
If you're talking about a person who can afford it right now I don't disagree- but the thread is about an insincere government attempting to outsource American retirement and small-s social security.
the actual average American - not the median income or somewhat fabulist 50s ideal of a nuclear family- can't afford to do anything meaningful with any market conditions and can't survive even a couple of missed paychecks. People who can comfortably afford those risks over time are almost invariably doing so.
I'm personally benefiting from the current situation but I think it's disastrous to ask the bottom half of the population to consider the stock market as anything other than a slow burn aspect of a long term plan is worrying in the big picture. If this were say W or Clinton I wouldn't be adding that aspect.
The average American should be able to benefit from massive corporate profits without having to play the stock market. We should be incentivizing better compensation and higher taxes to fund government programs and benefits. This plan would be a wolf in sheep's clothing.
It's not just Americans, it's all people with wealth from all over the world. The US stock market is the only game in town right now to make money. You can thank the BOJ and ECB for instituting negative rates for that.
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Hey I agree but we're not getting that. At least not soon, better to profit if you can anyways.