Best Tip/suggestion for UG.

[TXMED_1695]

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[efle]

Lmao, of course he would tell you to take student loans to invest. Smh. This is like telling someone that because you took out student loans, put it all on black and won, they should too.

 

[Astra]

Im a nigerian banker and if you send me $1000 USD, I guarantee a 100x return. I look forward to your messages friends

 

[TXMED_1695]

Terrible reasoning, and not even close to a valid correlation. 71% of students take out student loans to finish their UG, let me guess you happen to be one of the students that didn't. Most students take out more in loans then they actually need for their UG. I was (like most students) already going to take out loans for my UG, he just showed me a smarter way to do it. He told me to invest the remainder of the loan (I clearly stated that above), that I was already taking out . The fact that you compared Apple stock to, "putting it all on black," is the dumbest comment I have read on finances in a long time. No one is telling anyone to gamble on black, but the suggestion/tip is talk to a CFP about planning their future fiances (CARS score?). Commonly accepted ignorance. 44 million people graduated college with debt, and I will not be one of them. Also, google how effectively students spend their student loans. You can correlate that with your "brilliant" analogy.

Lmao, of course he would tell you to take student loans to invest. Smh. This is like telling someone that because you took out student loans, put it all on black and won, they should too.

 

[gyngyn]

He actually told you to borrow money to invest with him?

 

[efle]

Terrible reasoning, and not even close to a valid correlation.

Stop trying to sound smart

71% of students take out student loans to finish their UG, let me guess you happen to be one of the students that didn't.

My financial need got me full tuition support and I covered the rest by working part-time and taking loans. Even if I had been born with a silver spoon and all that...you'd still be wrong to advise this.

Most students take out more in loans then they actually need for their UG. I was (like most students) already going to take out loans for my UG, he just showed me a smarter way to do it. He told me to invest the remainder of the loan (I clearly stated that above), that I was already taking out

The smart thing is to save it and take less in loans the following semesters.

The fact that you compared Apple stock to, "putting it all on black," is the dumbest comment I have read on finances in a long time. No one is telling anyone to gamble on black, but the suggestion/tip is talk to a CFP about planning their future fiances

You don't understand finances

CARS score?

I guarantee you don't win the MCAT e-peen contest with me

Commonly accepted ignorance. 44 million people graduated college with debt, and I will not be one of them. Also, google how effectively students spend their student loans. You can correlate that with your "brilliant" analogy.

Try googling "should I take out loans to invest them in the stock market"

 

[deleted781806]

The smart thing is to save it and take less in loans the following semesters.

^This^: Gambling loan money on the stock market is the #1 easiest way to "piss it all away", I'd rather waste it on tangible items at least.

Also, can we all please stop using this idiotic "CARS score?" insult in threads, it's like the fifth time I've seen it today and it's just getting old.

 

[TXMED_1695]

Yes, after he went over my fiances, he suggested that I take out student loans, but not strictly to invest the loans. He suggested (and explained the risk) that I could invest the remainder of the loans that were not used for housing and tuition, instead of using the remainder of the loans for daily operations. From my understanding, investing into something like Apple is as conservative as it gets in the stock market.

He told me to take out student loans, but do not piss away the money (his words, not mine).

He told me to open a brokerage account with him to invest the remainder of my student loans.

He actually told you to borrow money to invest with him?

 

[efle]

He suggested (and explained the risk) that I could invest the remainder of the loans that were not used for housing and tuition, instead of using the remainder of the loans for daily operations. From my understanding, investing into something like Apple is as conservative as it gets in the stock market.

What did he say about simply using it the next semester and taking less?

Apple is considered a very safe bet as far as stock market goes. Still wiser not to bet at all and just save your leftovers though

 

[gyngyn]

Yes, after he went over my fiances, he suggested that I take out student loans, but not strictly to invest the loans. He suggested (and explained the risk) that I could invest the remainder of the loans that were not used for housing and tuition, instead of using the remainder of the loans for daily operations. From my understanding, investing into something like Apple is as conservative as it gets in the stock market.

I would not consider this good advice.
No one knows which investments are going to pay more than the combined loan and interest over time. I have lost plenty in my retirement account on very conservative investments. At a minimum, you need to include the cost of fees (which you won't have if you don't borrow it in the first place).
Not taking out more in loans than you absolutely need is good advice.

 

[deleted781806]

There was a thread like this a few weeks ago about using loan money to invest in index funds. The only time it would make sense to do such a thing is if your loan interest rate was substantially lower than the conservative estimate of the index fund's growth, which is almost impossible to do nowadays (or ever, honestly). Also putting all your money onto an expensive stock, like Apple, is a horrifically slow way to make money on the stock market.

 

[efle]

It's just such high risk for most people that must borrow for college. Apple trends up but it regularly dips, too. If OP had found themselves short on $ for something they really needed to pay for at the wrong time, they would have lost a big chunk of what they'd invested.

I mean just look at the trends. Buying in 2013 was, in hindsight, great for OP. Doing the same in Feb 2015 and then needing that money in May 2016 would be terrible.

 

[TXMED_1695]

What he had me do worked out perfectly though (not saying it does every time, and I understand what you are saying because it is true). But the status quo in taking loans out is not really any different than this though. If the data suggests that most student take out more money than they need and spend it foolishly. How would this alternative be defined as more risk? Also, my results were more of an encouragement to plan your future fiances with a CFP. The CFP I use has worked on Wall Street for over 30 years, and has an amazing track record. I am not saying, go ask Uncle Bob for financial advise.

I would not consider this good advice.
No one knows which investments are going to pay more than the combined loan and interest over time. I have lost plenty in my retirement account on very conservative investments. At a minimum, you need to include the cost of fees (which you won't have if you don't borrow it in the first place).
Not taking out more in loans than you absolutely need is good advice.

 

[gyngyn]

What he had me do worked out perfectly though (not saying it does every time, and I understand what you are saying because it is true). But the status quo in taking loans out is not really any different than this though. If the data suggests that most student take out more money than they need and spend it foolishly. How would this alternative be defined as more risk? Also, my results were more of an encouragement to plan your future fiances with a CFP. The CFP I use has worked on Wall Street for over 30 years, and has an amazing track record. I am not saying, go ask Uncle Bob for financial advise.

Do not borrow money that you do not need on the hope that your investments will beat the loan principal, interest and fees.
Invest money that you have already earned and do not need for daily survival.

 

[efle]

What he had me do worked out perfectly though (not saying it does every time, and I understand what you are saying because it is true). But the status quo in taking loans out is not really any different than this though. If the data suggests that most student take out more money than they need and spend it foolishly. How would this alternative be defined as more risk? Also, my results were more of an encouragement to plan your future fiances with a CFP. The CFP I use has worked on Wall Street for over 30 years, and has an amazing track record. I am not saying, go ask Uncle Bob for financial advise.

You were extremely fortunate. Again, the answer for what should people do with their left over $ instead of "pissing it away" is save it for next semester's housing/tuition. This alternative is more risky than that for the reason I described above - some stocks are reliable in the long run rough trend sense, not in the sense that when you graduate X months from now it will definitely have risen more than loan fees and interest.

 

[deleted781806]

If the data suggests that most student take out more money than they need and spend it foolishly. How would this alternative be defined as more risk?

Entirely depends on how you define "foolishly". Spending money on non-essentials can increase a person's quality of life and help them take care of themselves from a self-esteem kind of perspective. Throwing all of your money into the stock market and losing it is equivalent to putting it into a shredder. Obviously you should save the money and put it towards next semester, but saying losing money in the stock market is the same as buying "foolish" things is not really true.
Also, your (n = 1) experience of winning-out is really not representative of the large risk you took with your loan money, which could have went much much worse.

 

[TXMED_1695]

There is a plethora of data out there on student loans, and the way students spend the money. For the most part, and from what I've read, they do not have anything to show for the remainder of their loan (that does not go toward their education). In my mind that's "foolish".

Also, your (n = 1) experience of winning-out is really not representative of the large risk you took with your loan money

You have no way to prove that as factual. If my broker had lost all my investment, how is it any different from the average person taking out a student loan? Neither of us have anything to show for the remainder of the loan. How did I take more risk than them?

Entirely depends on how you define "foolishly". Spending money on non-essentials can increase a person's quality of life and help them take care of themselves from a self-esteem kind of perspective. Throwing all of your money into the stock market and losing it is equivalent to putting it into a shredder. Obviously you should save the money and put it towards next semester, but saying losing money in the stock market is the same as buying "foolish" things is not really true.
Also, your (n = 1) experience of winning-out is really not representative of the large risk you took with your loan money, which could have went much much worse.

 

[efle]

How did I take more risk than them?

Why is the only allowable comparison to the *******es that piss everything away? Why can't the smart careful kid that saved as much as he could and took minimal loans in the last year be an option?

Let me put it this way:

saving leftovers > gambling with leftovers > wasting leftovers

 

[Knicks17]

Im a nigerian banker and if you send me $1000 USD, I guarantee a 100x return. I look forward to your messages friends

I legit thought you had 152 likes on your comment and i was like 😵, clever username there!

 

[deleted781806]

...they do not have anything to show for the remainder of their loan (that does not go toward their education). In my mind that's "foolish".

You could also have easily had nothing to show for the remainder of your loan and would have been equally foolish.

If my broker had lost all my investment, how is it any different from the average person taking out a student loan? Neither of us have anything to show for the remainder of the loan. How did I take more risk than them?

They could have had 80 more bottles of wine in their life than you did, and you wasted that chance. In all seriousness, as efle has said, obviously winning in the stock market would be better than pissing away your loan on pointless items, but when you are comparing yourself to the frugal student who put the remainder of his loan back towards essentials, you're the one who is much more likely to be burned by their strategy.

 

[TXMED_1695]

According to a lot of different research articles that I have read, you're trying to compare me and my results to a scarce group. There is probably a nice mean of students that were successful, and those that failed investing with student loans. Your terminology for the stock market is so negative, did you have a bad experience? Obviously, our own experiences make us bias in our opinions of what is the best option.

frugal student who put the remainder of his loan back towards essentials, you're the one who is much more likely to be burned by their strategy.

 

[TXMED_1695]

In regards to student loans, the data suggests there are more irresponsible borrowers than responsible. Thus, the controversy surrounding student loans(obviously, for a lot of reasons). The end result of that is the 1.3 trillion dollars in student loan debt. I mean you can correlate your statements with the smallest group, but that does not make any sense.

Why is the only allowable comparison to the *******es that piss everything away? Why can't the smart careful kid that saved as much as he could and took minimal loans in the last year be an option?

Let me put it this way:

saving leftovers > gambling with leftovers > wasting leftovers

 

[efle]

In regards to student loans, the data suggests there are more irresponsible borrowers than responsible. Thus, the controversy surrounding student loans(obviously, for a lot of reasons). The end result of that is the 1.3 trillion dollars in student loan debt. I mean you can correlate your statements with the smallest group, but that does not make any sense.

Let me get this straight - you think people are too stupid to listen to advice to simply save the leftovers, but they'll listen to advice to go consult a CFP? Come on man.

 

[deleted781806]

According to a lot of different research articles that I have read, you're trying to compare me and my results to a scarce group.

According to those studies, people who invest their money in the stock market are also in the slim percentage. Saying that "well, most people just lose their money anyways" isn't grounds to say "well, just put it in the stock market and at least you have a chance to gain something back", the proper response is "become more responsible with your money".

No, I have not had any bad experience with the stock market, I just know that it is (and always will be) a gamble. Long-term investing in the stock market is generally a good idea because that is how market trends work and the basis for almost all retirement plans, but to say the stock market is a good "short-game" plan is ridiculous, no one can have that much certainty on their return of investment to justify such a nonsensical strategy.

*Edit*: An example: If you bought Apple stock in September 2012 and sold in May 2016 you would have lost 4% of your investment, even with a peak occurring between those two time-points. If you panicked and sold at it's lowest point in 2013 you would have lost 37%. These are losses of money you don't actually own, and you'd still be on the hook for that loan repayment later on. This is even with a "conservative" type of stock.

Also, please stop misusing the word "correlate".

 

[Astra]

guys, stop feeding the troll. He's gonna develop type 2 diabeetus

 

[mwsapphire]

Why is the only allowable comparison to the *******es that piss everything away? Why can't the smart careful kid that saved as much as he could and took minimal loans in the last year be an option?

Let me put it this way:

saving leftovers > gambling with leftovers > wasting leftovers

OP must be from a ( relatively) privileged background ( not every single person who receives FA is from an totally equally disadvantaged background)
If it it worked for OP that's fine, but its far from sound advice.

 

[deleted781806]

guys, stop feeding the troll. He's gonna develop type 2 diabeetus

Fair enough, I wasn't exactly sure what kind of thread this was, because I don't put it past people for giving terrible advice sincerely.

 

[TXMED_1695]

Now you are just throwing around variables. You were talking about defining risk, and now you are talking about money philosophy. Obviously, the average person needs to become more responsible with their money. Additionally, I never said for anyone to put their money into the stock market
but to consult a CFP.

According to those studies, people who invest their money in the stock market are also in the slim percentage.

Saying that "well, most people just lose their money anyways" isn't grounds to say "well, just put it in the stock market and at least you have a chance to gain something back", the proper response is "become more responsible with your money".

I have no idea what you are talking about, and I do not see how this pertains to the subject.

OP must be from a ( relatively) privileged background ( not every single person who receives FA is from an totally equally disadvantaged background)
If it it worked for OP that's fine, but its far from sound advice.

 

[mwsapphire]

Now you are just throwing around variables. You were talking about defining risk, and now you are talking about money philosophy. Obviously, the average person needs to become more responsible with their money. Additionally, I never said for anyone to put their money into the stock market
but to consult a CFP.




I have no idea what you are talking about, and I do not see how this is pertains to the subject.

Well if you had less money to spare, you would be more careful with it, and do what efle was saying, saving it for next semester instead of risking it in the stock market.

 

[deleted781806]

Now you are just throwing around variables. You were talking about defining risk, and now you are talking about money philosophy. Obviously, the average person needs to become more responsible with their money. Additionally, I never said for anyone to put their money into the stock market but to consult a CFP.

 

[mwsapphire]

He sounds like JALBY TALKING ABOUT TOP SCHOOLS I CANT

 

[aalamruad]

Looks like OP thinks he's @Goro , writing above the posts he quotes instead of below

 

[mwsapphire]

Looks like OP thinks he's @Goro , writing above the posts he quotes instead of below

LOL I didnt realize that was trade mark Goro ^TM

 

[Lawpy]

Looks like OP thinks he's @Goro , writing above the posts he quotes instead of below

Yeah i saw a lot of members doing that. No idea why. I associate that posting style to Goro's since he's famous for that and I got used to reading his posts that way. But it becomes distracting when more people start doing that. In the end, it's individual preference.

 

[Doctor-S]

Paging @The White Coat Investor for comment.

 

[Dagrimsta1]

I love when people write according to "research articles" or "the data states".

It's the equivalent of me believing Trump when he said Mexico is gonna pay for the wall.

 

[TXMED_1695]

It does not take a rocket scientist to find information. There is a plethora of data/studies, on student loans and the way students spend the money. Investing is a horrible idea, if the other option is Cancun.


LendEDU found that 31% of students, or roughly 2.4 million kids, admitted to using student loan money to fund their binge drinking trips to Cancun and Daytona Beach for spring break.

Factoring in our data, and assuming the claims made in our survey are accurate, this means that 2.38 million students are using money received from student loans to pay for their spring break excursion this year.

I love when people write according to "research articles" or "the data states".

It's the equivalent of me believing Trump when he said Mexico is gonna pay for the wall.

 

[Fireman]

It does not take a rocket scientist to find information. There is a plethora of data/studies, on student loans and the way students spend the money. Investing is a horrible idea, if the other option is Cancun.


LendEDU found that 31% of students, or roughly 2.4 million kids, admitted to using student loan money to fund their binge drinking trips to Cancun and Daytona Beach for spring break.

Factoring in our data, and assuming the claims made in our survey are accurate, this means that 2.38 million students are using money received from student loans to pay for their spring break excursion this year.

Investing in a kick ass party for a week is probably a better use of that money than investing in Apple. If you're going to be dumb, at least have some fun and get laid.

 

[Turkishking]

LOL I didnt realize that was trade mark Goro ^TM

He keeps it short and simple. He's honest too. I've asked him a myriad of neurotic questions, and he is always answering them.

 

[Welshman]

You have to sign around 45 forms saying, "you understand that you can lose every cent of this money".

I think this is fancy finance lingo for "I'm breaking every fiduciary standard I've ever promised to uphold and may God have mercy on your soul."

 

[Dagrimsta1]

It does not take a rocket scientist to find information. There is a plethora of data/studies, on student loans and the way students spend the money. Investing is a horrible idea, if the other option is Cancun.


LendEDU found that 31% of students, or roughly 2.4 million kids, admitted to using student loan money to fund their binge drinking trips to Cancun and Daytona Beach for spring break.

Factoring in our data, and assuming the claims made in our survey are accurate, this means that 2.38 million students are using money received from student loans to pay for their spring break excursion this year.

What's your point though? Students are stupid, reckless, and like to have fun? I didn't know you needed research articles and studies to clarify that for you.

Be smarter with your own money that's it.

 

[deleted781806]

LendEDU found that 31% of students, or roughly 2.4 million kids, admitted to using student loan money to fund their binge drinking trips to Cancun and Daytona Beach for spring break

Ah yes, "using money to fund trips to Cancun" means "using every cent I had left from my loan". A student could spend $20 of their loans on the trip and would fall under that broad definition.

Also, as I have said before (and others immediately above), wasting money on a fun trip with friends is a much better way to waste money than losing it in the stock market or other investments. There's at least a tangible benefit, and the cost of a vacation isn't going to put you in a cardboard box later on in life. Obviously you should still spend frugally, but using this statistic as a sticking point to your argument doesn't make much sense.

 

[aprilfools]

This is actually the worst piece of "advice" I have ever read on this site. So kudos for that.

 

[longhaul3]

Why did you, a sage investor, agree to open an account with this guy just so he would buy you Apple stock?

You are the easiest boat payment your "family friend" has ever made.

 

[mwsapphire]

I would say this was an April Fools post but its wasn't posted on the right day.

 

[TXMED_1695]

They took out loans because they could not afford tuition. But they can afford to travel to Cancun, and only spend $20.00 dollars of the student loan money on their trip... I think you may be right on this point. I've heard you can ride in a cargo plane to Mexico, and it only costs $5.00 (round trip), you can sleep on the beach too.

Ah yes, "using money to fund trips to Cancun" means "using every cent I had left from my loan". A student could spend $20 of their loans on the trip and would fall under that broad definition.

Wasting your student loans on a vacation has a tangible benefit, but investing the remainder of the loan is going to put you in a cardboard box later on in life. 10-4

There's at least a tangible benefit, and the cost of a vacation isn't going to put you in a cardboard box later on in life.

There is more to it than just purchasing a position. Everyone thinks they are an expert.

Why did you, a sage investor, agree to open an account with this guy just so he would buy you Apple stock?

You are the easiest boat payment your "family friend" has ever made.

 

[mwsapphire]

"Everyone thinks they're an expert"
So do you? You also think you're an expert, and you're literally a pre-med like the rest of us.

 

[aprilfools]

So why don't you just go take out as many loans as you can from every bank that will loan you money and just invest all that money?

 

[TXMED_1695]

I am not an expert in finances, but is this suppose to be a smart loaded question - it's not. You do realize people take out loans and invest them into a lot of different stuff, right? The idea of taking out a loan for investment purposes occurred way before I was born. You are relating my action of investing the remainder of my student loan (interest free) to the extreme of, "why don't you take out as many loans as you can," it's just an ignorant comparison.

So why don't you just go take out as many loans as you can from every bank that will loan you money and just invest all that money?

 

[deleted781806]

But they can afford to travel to Cancun, and only spend $20.00 dollars of the student loan money on their trip...

I'm sorry that sarcasm doesn't travel well across a screen, but of course I wasn't being literal about the $20 comment. You're being ridiculous.

Wasting your student loans on a vacation has a tangible benefit, but investing the remainder of the loan is going to put you in a cardboard box later on in life. 10-4

Not what I said in the slightest.
For the second time today, I'm going to learn to move on from these things and hit the lovely ignore button. Bye bye now.