I tried teaching it to OGers long ago, many times, but it never got going because they would rather than troll and be poor than listen and make coin. Let's see if you guys can do any better LOL.
So, I'm going to start with something relatively minor, but a valuable tool in the big scheme of things.
Go look up BOXX. Go to finance.yahoo.com and plug it in. Go to the max chart (graph). Look how it basically NEVER goes down materially. Ever. A nice, straight line going up and up and up.
Now, it does not go up very fast, that is true. Its IRR is over 5% since inception, however.
Compare that to a bond fund. Type in BSV for example. That is a short-term bond fund, so supposed to be less volatile. But how does it compare to BOXX? Got look at its chart/graph. Waaaaay more volatile, you see it taking big up and down swings. And its annual yield is just over 3%. Compare that to over 5% (growth) on the BOXX.
But the fun doesn't stop just there. That ~3% annual yield on the BSV? Fully taxable. Each and every year. So you can only re-invest the after-tax earnings. Compare that to the BOXX, that pays NO dividend or interest, it just compounds automatically for you. No dividends = no tax.
And I ain't done yet! When you finally do want to sell BOXX, you ain't even taxed at ordinary income rates! As long as you've held the motherfucker for over a year you get long term capital gains rates on the gains! Far, FAR better than any bond fund or anything comparable.
What is also cool (as if you've not had enough lol) with BOXX is that when the market is on a tear, many times you get apprehensive about reinvesting some of your winnings or investing more because you know how big and bad those pullbacks can be when the market is going hot and heavy. You don't have to be with BOXX. Because you know that motherfucker is only going UP. So you can invest your winning/more into BOXX, knowing full well that even if the market has a hard pull-back, your (additional) investment in BOXX will keep going up (and help to offset some of your other losses on the pullback). Then, when the pullback occurs, you can sell some BOXX to buy the dips at the time and place of your choosing.
And, while you might say, "But 'Slice, my main man, if I sell BOXX, don't I get taxed on any gains?" And that is true. Pro tip - make sure your brokerage account setting for BOXX are LIFO - last in first out - which will mean when those pullbacks happen and you sell you will be selling the most recent purchases, so there won't be much gains to tax at all.
Now, BOXX is a little less attractive to the poor. If your effective tax rate is 0.00% because you are low income, the ability to defer the tax and convert ordinary income into capital gains is worth a lot less. But still, that motherfucking straight up growth curve!!!
Hope you enjoyed this episode, more to come. If you are not dicks LOL.
So, I'm going to start with something relatively minor, but a valuable tool in the big scheme of things.
Go look up BOXX. Go to finance.yahoo.com and plug it in. Go to the max chart (graph). Look how it basically NEVER goes down materially. Ever. A nice, straight line going up and up and up.
Now, it does not go up very fast, that is true. Its IRR is over 5% since inception, however.
Compare that to a bond fund. Type in BSV for example. That is a short-term bond fund, so supposed to be less volatile. But how does it compare to BOXX? Got look at its chart/graph. Waaaaay more volatile, you see it taking big up and down swings. And its annual yield is just over 3%. Compare that to over 5% (growth) on the BOXX.
But the fun doesn't stop just there. That ~3% annual yield on the BSV? Fully taxable. Each and every year. So you can only re-invest the after-tax earnings. Compare that to the BOXX, that pays NO dividend or interest, it just compounds automatically for you. No dividends = no tax.
And I ain't done yet! When you finally do want to sell BOXX, you ain't even taxed at ordinary income rates! As long as you've held the motherfucker for over a year you get long term capital gains rates on the gains! Far, FAR better than any bond fund or anything comparable.
What is also cool (as if you've not had enough lol) with BOXX is that when the market is on a tear, many times you get apprehensive about reinvesting some of your winnings or investing more because you know how big and bad those pullbacks can be when the market is going hot and heavy. You don't have to be with BOXX. Because you know that motherfucker is only going UP. So you can invest your winning/more into BOXX, knowing full well that even if the market has a hard pull-back, your (additional) investment in BOXX will keep going up (and help to offset some of your other losses on the pullback). Then, when the pullback occurs, you can sell some BOXX to buy the dips at the time and place of your choosing.
And, while you might say, "But 'Slice, my main man, if I sell BOXX, don't I get taxed on any gains?" And that is true. Pro tip - make sure your brokerage account setting for BOXX are LIFO - last in first out - which will mean when those pullbacks happen and you sell you will be selling the most recent purchases, so there won't be much gains to tax at all.
Now, BOXX is a little less attractive to the poor. If your effective tax rate is 0.00% because you are low income, the ability to defer the tax and convert ordinary income into capital gains is worth a lot less. But still, that motherfucking straight up growth curve!!!
Hope you enjoyed this episode, more to come. If you are not dicks LOL.