The Racial Gap in Stock Market Participation

[No1]

You wouldn't park it in a savings account. I don't think you understand what that account actually does so I'll keep this simple:

You can throw all the money you do not immediately need into something that pays you .05% with a 10% return to the lender, or you can park it in another vehicle that pays 2% with a fee (money market or ETF account). Both are highly liquid. Which do you choose?

Only a fool or the financially illiterate would pick the former. If you want to SAVE money, do it while also getting paid a better premium that beats out inflation (sadly not much anymore). This is partially outside of this discussion, but the reason the saying exists about inflation and low interest rates being a punishment on savers and fools is true is because of that kind of thinking. Your money is losing value and you keep putting it out there to get abused.



Put it in an investment vehicle that's highly liquid with better returns. If you need cash that badly - get your network in order.

You don’t know what you’re talking about at all lmao. Most people put away 3 to 6 months worth of expenses in savings and then park their money elsewhere.

 

[NZA]

if you have a decent lifestyle, you actually need to keep some money around just in case. this will prevent you from liquidating things if something bad happens. chances are, if you are desperate, the asset you sell will go at fire sale prices and you will be extra screwed. any other advice is dame dash-level foolish.

 

[LV Koopa]

You don’t know what you’re talking about at all lmao. Most people put away 3 to 6 months worth of expenses in savings and then park their money elsewhere.

I make a lot of $$ and did it by taking advantage of the system. "Most people did X" is a logical fallacy. The fact you even think putting away 3-6 months of expenses in savings is a thing people with financial sense would do is telling.

If you know a good amount of high networth individuals, I'd ask you go around and question them about what you just said. I am being sincere in saying you'd be surprised that most people aren't putting "living expenses" in a savings account when it's just smarter to throw it in a liquid investment vehicle.

if you have a decent lifestyle, you actually need to keep some money around just in case. this will prevent you from liquidating things if something bad happens. chances are, if you are desperate, the asset you sell will go at fire sale prices and you will be extra screwed. any other advice is dame dash-level foolish.

Partially yes. Which is why you throw it in highly liquid vehicles or use your network if you are fortunate to have built one. You don't suffer from panic selling. The money you are keeping around as a buffer is in the market, easily accessible. Your worst case scenario is not being able to sell outside of market times if you don't have access to private exchanges or dark pools.

 

[No1]

I make a lot of $$ and did it by taking advantage of the system. "Most people did X" is a logical fallacy. The fact you even think putting away 3-6 months of expenses in savings is a thing people with financial sense would do is telling.

If you know a good amount of high networth individuals, I'd ask you go around and question them about what you just said. I am being sincere in saying you'd be surprised that most people aren't putting "living expenses" in a savings account when it's just smarter to throw it in a liquid investment vehicle.


Partially yes. Which is why you throw it in highly liquid vehicles or use your network if you are fortunate to have built one. You don't suffer from panic selling. The money you are keeping around as a buffer is in the market, easily accessible. Your worst case scenario is not being able to sell outside of market times if you don't have access to private exchanges or dark pools.

Your arrogance is disgusting. Everyone you’re quoting is a high income individual and we all think you sound extremely off base. Like you wreak of new money just made six figures in just the way that you talk to people. I would fix that before you even attempt to give advice. My financial advisors >>> you. And you don’t even know what a logical fallacy is. No one said because everyone does it that means it’s correct, what we said is that it’s the common choice and it will be advised by most professionals. So if you’re going against the grain don’t act as if you’re the status quo and take a haughty stance. @NZA explained it perfectly. I didn’t even read anything you had to say after your pretentious to ask around shyt. You would get escorted out of any meeting I’m in talking like that unless you’re the client and you have a major bag.

 

[LV Koopa]

LMAO...you keep emergency cash in a safe, liquid account. Who cares what the lender is getting, when you invest in stocks, the company you invest in is earning way more off your money as well. You don't put money you could need within a year into stocks - losing 10% or more + inflation is a worse off position than inflation itself.

Secondly, please don't think of all people you're schooling me...there's a reason I can have five figure sitting in savings...

Well that's incredible, because you just said when you invest in stocks the company is earning way more off you which is not true. When I buy MSFT options or stock it doesn't go in their pockets - they don't earn anything from me.

You DO care what the lender is getting if you're only getting less than 1%. You also don't lose 10% of your entire portfolio and just financially die. LOL.

I am schooling you because that's 3 posts where you've exposed you do not have financial sense and keep speaking as if you do. You're a mark. It's ok. Everyone starts somewhere.

 

[LV Koopa]

Your arrogance is disgusting. Everyone you’re quoting is a high income individual and we all think you sound extremely off base. Like you wreak of new money just made six figures in just the way that you talk to people. I would fix that before you even attempt to give advice. My financial advisors >>> you. @NZA explained it perfectly. I didn’t even read anything you had to say after your pretentious to ass around shyt. You would get escorted out of any meeting I’m in talking like that unless you’re the client and you have a major bag.

My bad bro. I didn't know I'd rile up some feathers in here.

I don't care if you or anyone else is a high income individual - if you do not understand basic finance you're straight up wrong. Don't care about you're fantasy meetings or who you know either. I'm sure plenty of us have connections around here and I also don't care about your financial advisors. I'll show up at your next big client meeting and talk circles around your people. Send me a DM of the time & place of your next deal and we can see what's up.

 

[dora_da_destroyer]

Well that's incredible, because you just said when you invest in stocks the company is earning way more off you which is not true. When I buy MSFT options or stock it doesn't go in their pockets - they don't earn anything from me.

You DO care what the lender is getting if you're only getting less than 1%. You also don't lose 10% of your entire portfolio and just financially die. LOL.

I am schooling you because that's 3 posts where you've exposed you do not have financial sense and keep speaking as if you do. You're a mark. It's ok. Everyone starts somewhere.

companies raise capital in public markets to put to work - yes, they make money off their stock being purchased, their stock being performance also affects employee pay...but ok, me investing in them gives them no benefit

no, you don't care, every single channel for money - banks, ETFS, mutual funds, stocks and bonds creates a benefit for the end holder, all you can do is index for what your needs are.

no one said you financially die - i said the impact of losing some of your investment + inflation is a bigger loss than inflation - if you invested in VTI a year ago and need the money for expenses, you lost 10% plus your money is worth less with inflation...the whole point of investing is long tern growth should beat inflation. your cash however, in the short term, has only been degraded by inflation...so please oh wise one, explain to me how someone with their emergency savings in VTI is better after one year of investing there vs saving in an account?

 

[LV Koopa]

companies raise capital in public markets to put to work - yes, they make money off their stock being purchased, their stock being performance also affects employee pay...but ok, me investing in them gives them no benefit

no, you don't care, every single channel for money - banks, ETFS, mutual funds, stocks and bonds creates a benefit for the end holder, all you can do is index for what your needs are.

no one said you financially die - i said the impact of losing some of your investment + inflation is a bigger loss than inflation - if you invested in VTI a year ago and need the money for expenses, you lost 10% plus your money is worth less with inflation...the whole point of investing is long tern growth should beat inflation. your cash however, in the short term, has only been degraded by inflation...so please oh wise one, explain to me how someone with their emergency savings in VTI is better after one year of investing there vs saving in an account?

When I buy stock in Microsoft I didn't know the exchange gives them a cut. You know exactly what I was referring to, stop being obtuse
You said they earned off my investment, don't play word games now

You make those investments because it is the best way to outpace inflation. Take the chance and get your value versus having it surely die in a commercial bank account. I favor speed and intelligent risk taking, especially for people who need a financial education. I just see throwing $$ into a savings account as foolishness borne from laziness.

As to the bolded, you can pick any stock or index and look at a 1 year timeframe and say what you should've done in hindsight. For example, instead of investing in the VTI index fund, you might've put your $$ in Exxon stock or their 1 year LEAPs and saw you're portfolio rise by 60%.

The point is you can take a chance and put your money to use to increase its value and beat out inflation, generating real wealth in the process, or let it surely lose value by putting it into a place where it earns less money than inflation. If you or others do not want to take that chance that is fine, but to deny the foolishness of that latter choice, as if it is an intelligent decision for people who want to really make it out here is dishonest.

But we've beaten this argument to death already so neither one of us is gonna budge. You do what you feel is best with your cash.

 

[dora_da_destroyer]

When I buy stock in Microsoft I didn't know the exchange gives them a cut. You know exactly what I was referring to, stop being obtuse
You said they earned off my investment, don't play word games now

You make those investments because it is the best way to outpace inflation. Take the chance and get your value versus having it surely die in a commercial bank account. I favor speed and intelligent risk taking, especially for people who need a financial education. I just see throwing $$ into a savings account as foolishness borne from laziness.

As to the bolded, you can pick any stock or index and look at a 1 year timeframe and say what you should've done in hindsight. For example, instead of investing in the VTI index fund, you might've put your $$ in Exxon stock or their 1 year LEAPs and saw you're portfolio rise by 60%.

The point is you can take a chance and put your money to use to increase its value and beat out inflation, generating real wealth in the process, or let it surely lose value by putting it into a place where it earns less money than inflation. If you or others do not want to take that chance that is fine, but to deny the foolishness of that latter choice, as if it is an intelligent decision for people who want to really make it out here is dishonest.

But we've beaten this argument to death already so neither one of us is gonna budge. You do what you feel is best with your cash.

Breh, you ain’t saying nothing. Of course investing over the long term is better than sitting all your money in an account. We’re talking a year timeframe cuz your ass is arguing people shouldnt hold emergency savings in a bank account. You don’t know when an emergency will hit and having to liquidate stock that can be in a down cycle, some shyt is back to 2018 levels, is not smart, let alone you could’ve lost actual money you were saving.

But do you…just please stop acting like you’re teaching something as No1 said, you’re beating your chest at people who are doing more than on for themselves

 

[BlackCinema]

Curious as to how a 2022 survey looks instead of 2017/18 considering what the pandemic did to shift how a lot of peeps I know invest now.

 

[dangerranger]

I don't fully agree with this. If you don't have the "money to invest" (whatever that means) then you need to BUST YOUR ASS and get it. Very, very few people do not have the ability to earn disposable cash that can be thrown into the stock market. Let's stop with the bullshyt. If you have 2 legs, 2 arms, and a functioning mind and body you can find a way. Lack of ability is an excuse. If you WANT it, you will find a way.

You do not need to hyper focused on managing the investment either - general approach for newbies is to take a long position on a company they think will be around in 10 years, dollar cost average or buy dips, and sit on the sidelines.

As for the 401K part, I'm largely in agreement - let's just say paying a fund manager to do what you can do yourself with 4 hours worth of education is somewhat silly. Especially since they get paid whether the market goes up or down. Only reason I'd advocate to keep a 401K or any other company investment vehicle is if they give a good matching % or bonus. If so, max the shyt out. Otherwise just open up a Roth or identical account if you want to do long term retirement planning. Then again this is somewhat getting off topic but in general that's my approach.

Hey, I'm all for the get up and go get it attitude but the reality is most people just aren't. That's unfortunate. I also believe we need to take into account people's salaries and living expenses. To get a significant amount of shares takes time, dedication, and sacrifice which is something most people across the board aren't willing to do. Too many of us have short term thinking and can't see beyond even a month. Many have this live for today mentality and that social security or maybe their 401k is enough. So I hear you and agree with you, I wish people cared to know more and took actionable steps to allow more financial security for themselves and their families in the long run.

 

[acri1]

Having a lot of capital certainly helps, but waiting to get to that level is an excuse and laziness. You can start investing with less than $100, just to learn how the markets and brokerage/trading platforms work. Also, just getting in and learning the finance behind stocks is extremely cheap. There is NO excuse - all the information is on the internet for free.

Investing is much better than using a savings account, and has been for like 15 years straight up for people without a lot of income due to inflation and shytty interest rates banks offered you.

The problem is the average person on the street doesn't have years to learn the stock market and may not want to risk it.

Personally I have way too much stashed in savings and I admit it's not financially best but I just don't feel like I know enough about stocks to take that chance. Last thing I want is to lose my $$$ because of a stock market crash.


I came of age during the 2008 crash so that soured me on stocks to be honest. At some point I'll try to get into stocks though.

 

[GoldenGlove]

 

[Pimp]

How much disposable income do blacks typically have. Even if they make great money, a lot black people still directly or indirectly support other family members whom may not be doing as well.

Just like the common phrase in Atlanta “Put me on” is real.

People who are not doing well did it to themselves. Why make your life harder for someone who failed. They will just bring you down with them. I don't help anyone. My money is in the market and my money has to make money.

 

[Pimp]

The problem is the average person on the street doesn't have years to learn the stock market and may not want to risk it.

Personally I have way too much stashed in savings and I admit it's not financially best but I just don't feel like I know enough about stocks to take that chance. Last thing I want is to lose my $$$ because of a stock market crash.


I came of age during the 2008 crash so that soured me on stocks to be honest. At some point I'll try to get into stocks though.

you already lost money by not having it invested.