What's your reason for investing?
Some do it for the thrill (like myself). Some are looking to just have a retirement plan. Some are looking to make a dollar into a million. Why do you invest? Is it your job? Is it necessary?
I really want people to chime in on this even if it's one word answers. You guys and gals know so much about investing. If you really made that much money, why do you continue to do it? I'm going to stop myself before I start asking a few more questions within this one.
I do it for the thrill of it right now. I can't wrap my head around putting away money for the long run yet. I need to discipline myself first in order to get everything else going smoothly.
Thanks in advance!
Answers
105 points
tourima answered one year ago …
money. ahaha. plus it IS fun to talk about financial things around less intelligent people and watch them stumble to cope with your vocabulary.
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699 points
7million7years answered one year ago …
This is actually a very good question; it's not as obvious as it might sound:
I actually started investing when I (finally) started breaking even in my small businesses (i had two at the time) ...
... I did it (instead of spending the money ... and, boy, did we need the 'pay rise' at the time) to create a 'safety net' in case the businesses folded.
Little did I know that this simple strategy of increasing cashflow and ploughing it into 'safe' buy-and-hold investments (mainly real-estate and stocks ... nothing fancy) would take me from ($30k) in debt to $7 million in the bank in just 7 years.
Now, I invest for a totally different reason (and, with different strategies ... but still in real estate, businesses, and stocks) ... why? Simple! Wealth preservation + passive income for life!
7m7y.
PS I write about my journey at 7million7years.com ....
202 points
Lobo answered one year ago …
Okay, I'm not sure I can figure me out too accurately, but.... First, the alternative investments are not really there to compete with the stock market. Does a savings account keep up with inflation? Seems like a bad time to focus on real estate and real estate and other enterprises have risk and capital demands. If a a business opportunity comes around it isn't often going to make you rich and the time span between profitable non-stock market trading is usually measured in years.
Secondly, there is in fact a thrill to it! How do we define or achieve that thrill? Is is all about gold and glory? Why do some devote time and study to playing good chess or checkers? It must be for the thrill of the competition since there is rarely gold in winning a board game, just a wee bit of glory and personal satisfaction In the market, too, there is the thrill of the competition, though not against any particularized person. The strategies of trading keep the old brain active and competitive pulses surging. There is always another challenge, always more to learn. And there is a thrill in learning and seeing your learning give good results when you put it into practice.
More importantly perhaps, within each individual we have different faults to discover and to learn to overcome. In general, I'm gaining patience and I have better control of emotional impulses to trade, trade, trade, than when I was young and knew everything. In investing in stocks, we come to grips with living without expectation of luck or mercy. If the dog eats our homework we flunk the class with no appeal or sympathy. There is no stock market mommy to clean our bloody noses. We stand on our own feet or fall of our own decisions. Perhaps such a harsh reality is not for everyone, I don't know.
There are many ways to trade. The market can also have its stress, yet in my own domain, my little portfolio, it's mine to control, however imperfectly I do it. The market is stressful, but relaxing; at times greedy and at times generous--and all of that without any emotion of hatred or love towards me. It is exciting and satisfying to achieve the victory we call a profit. All the above boils down to saying, "I trade for the thrill of it, too."
2172 points
ChaosNantuko answered one year ago …
I fall under the "looking to make a dollar into a million" category here. I'm finishing high school either this year or next year, so i figure if i can make that million within the next 5 years, the rest of my life will be a lot more interesting :D
On top of that, I am genuinely interested in the stock market, so that keeps me learning about it as well. I suspect i won't stop once i hit my financial goals.
3970 points
EthanR answered one year ago …
Chidog, go to the link below and figure out how much money you can have if you put even small amounts into investments, like $100 or $200 a month, every month, until you are 50 or 60 years old. I can see from your picture that you are still very young, and maybe you think that 50 is a million years away, but let me tell you, you will get there faster than you think it will! Then when you are 50 or 60, would you rather be working for some ding dong boss at a job you may not even like, or would you like to have the financial freedom to do whatever you desire?
Also, be careful, because the "thrill" you are talking about, sounds a lot like gambling rather than investing. But if you like the thrill too much to give it up, then simply allocate a certain percentage of your money toward investing and a certain percentage toward thrills. For example, $200 a month into a S&P 500 mutual fund or ETF, and $100 a month into some higher risk/higher reward individual stocks. Here is the link that I mentioned:
http://www.daveramsey.com/etc/investmentcenter/?Fuseaction=dspInvestmentCa lculator
237 points
josephconlin answered one year ago …
In no particular order, here are some of my reasons.
1) Being in the computer industry, I see a lot of outsourcing. I see labor unions fighting to save jobs in other industries. In the end, I see that a lot of what I do can be done by someone else for less money. Since I don't want to take less money, I am preparing myself to have enough money on my own to control what job, if any, I need to take in the future.
2) I find the topic interesting. I don't know that I would be involved in the markets nearly as much if I didn't enjoy learning the material.
3) Somewhat related to number 1, there is always the chance that some physical disaster might strike me and leave me incapable of doing the work I do (granted, if I can't sit at a keyboard after this disaster, my market abilities will be severely limited as well!). The markets provide a means to take the money that I have and make it work for me instead of me always having to work to make money.
4) I find my heartstrings tugged by various good causes. I also want to help the university that gave me my education improve its ability to provide education to others. I would hope that investing will allow me to reach a point where I can give to others in amounts that feel more meaningful to me than the $10 to $50 that I could sporadically give now.
5) My job doesn't provide me the ability to take enough time off to take extended vacations with my family and explore the world. I would like to visit certain areas of South America on an extended trip and get to know not only tourist sites but people and cultures of the area. I have interests outside of investing that will be more easily explored if the investing works out in my favor. I would rather spend a month making memories that last a lifetime than working a job to make money that won't last past the end of the month.
Just some thoughts from an early 30's guy.
2709 points
Oldman answered one year ago …
My background is biomedical research...and even before computers, one had to make some guess (hypothesis) and rigorously define the parameters of the hypothesis to decide how any experiment would help to support or refute the hypothesis. One would really get annoyed if the experiment, trial, mixture of ingredients, didn't produce a definitive result. That's the thrill for me in investing...will this position make money or not...is this an area of growth or not.
I never wanted to be dependent on the gov't./ family/ luck for retirement funds, and am happy to say that while I do use social security payments, having contributed for over 45 years, they're not essential, because I began to save for retirement before I finished High Scool at 15, and ever since..
699 points
7million7years answered one year ago …
EthanR,
Just be a little careful because one man's 'thrill' can be their business (Chaos) and COULD be the seed that makes him rich ... of course, he needs a safety net ... hence your "put a little here and put a little there" advice :)
And, another man's 'safe' investment can be downright dangerous ... e.g. putting your retirment nest-egg into a Index Fund without the cushion of enough time (how much time depends on whether you are aiming for 'average' returns - 5 to 10+ years - or 'guaranteed' returns - 30 years).
But, overall ... wise words indeed!
7m7y.
312 points
mjrenn answered one year ago …
This a good question.
When I was about 15 my parents went broke. Not overly traumatic for me but very traumatic
for them. Nothing breaks the spirit like poverty. So from that age I have had this deep deep
desire to avoid poverty.
I left school at 16 with no qualifications but it didn't matter because the only thing I was ever
going to do was ride horses. I am a trackwork rider you see. I'm the person that does all the
hard work so that the jockey can do all the easy work. At 18 I got work for a well off family
in New York(I'm from NZ). It was there that I got my introduction to the markets.
Trackwork riders don't usually get wealthy but I have been saving since I was 5 years old
and at least 50% of my salary has always gone to savings/investment.
I'm 45 now & still a trackwork rider. I go to work everyday with bounce in my step & a smile
on my face that a big man couldn't take away simply because I want to work. I don't need to work.
The security that comes from investing has allowed me to get paid to do work that
I would do free. Because I don't rely on any one job for huge amounts of income I have been able
to take riding work wherever I feel like and I've been around the world a few times.
Riding horses is usually a high risk affair and injury could cause me to stop work at any time so
another reason to invest. Like Joesph Conlin I feel for those less well off than me and stand
ready to give at any time. I read the following on a plane to Malaysia at Christmas
and was inspired enough to feel obligated to do the best that I can as long as I am able.
http://www.usatoday.com/news/nation/2007-12-21-secret-santa_N.htm
I&# 039;m no genius and some of the members here are so brilliant I feel idiotic. If I can do well
in the world might I suggest you unwrap your head and start putting money away real
quick.
Lastly, if you can feel the same positive thrill from investing that I feel from riding horses
then nothing will stop you reaching your goals.
312 points
mjrenn answered one year ago …
Just having a bit of trouble posting. Thats not how it looked when I submitted it.
Read more from mjrenn flag as abuse great answer
3680 points
MNSL answered one year ago …
Main Reasons: To earn additional income and for my present and future commitments.
To face for the ever increasing inflation
To become successful investor in the long run
To learn what is happening in the market and world.
In addition this is a very interesting place to be. I can make use my knowledge in
Economy, interest rate, currency movement and general knowledge etc. I never got an opportunity to use my investment knowledge in my working career. So I am using my all knowledge to invest in the stock market.
102 points
lachatte answered one year ago …
investing is a harsh word for me right now.... I invested almost all my money in a house in Edmonton and after 6 months, try to get a line of credit on it and I didn't get nothing because my house worth 80 000 less....I also have some mutual funds which I don't dare looking at because my agent tell me it is for the long run.... I just don't know where to start.....just a normal job is not enough....I need to get my own business... I don't know what.
Deseperate
