Simple Investing for Noobs

Simple Investing for Noobs

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Time and Money Decay

Money (aka Fiat currency) loses value over time. This is partially due to inflation, and probably other means. How does inflation occur?

• Printing money is one reason

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How?

An Increase supply of money injected into the economy leads to a shift. More dollars competing for a finite of goods and services. This leads to the devaluation of Money

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Example of devaluation

Assuming 2% inflation every year and no interest on savings:

• $10,000 in savings after 1 year -> $9800 value
• $10,000 in savings after 5 years -> $9039.21 value

Every year to you have paid more dollars to buy the same goods and services!!!

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What can we do??

Noobs investment Strats

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Investment Types

• Real Estate - Too much capital needed
• Crypto - Almost like gambling, too risky / volitale
• Hedges (Silver / gold) - Store of Value
• Stocks - Easiest to start with minimum setup (just need a phone, DL app, and bank account)

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ETFs (Exchange Traded fund)

Collection of stocks managed by a group

Advantages Disadvantages

• You don't need to do research
• You don't need to check your stock every day
• Less stress because it's managed
• Automation (I don't personally use)

• some ETFs have a fee (IE expense ratio for SPY 0.09% which is deducted from the net asset).

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Performance Comparison

(Assuming you invested $500)

S&P 500

Gold

HYSA

After x-time, you would have...

Assuming %5 every year

• 6 months - $614
• 1 year - $599.50
• 5 years - $1046
• 10 years (3.4x ratio) - $1700

• 6 months - $600.50
• 1 year - $730
• 5 years - $1067.50
• 10 years (3.63x ratio) - $1815

• 6 months - ~$513
• 1 year - $525
• 5 years - $638
• 10 years - $ 814.45

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Thank you!

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