Comments on: Saving up for something? Buy the stock first!

By: J. Money

J. Money — Fri, 24 Jan 2020 20:19:21 +0000

In reply to Andrea. Your dad sounds like someone I'd be friends with :)

By: Andrea

Andrea — Wed, 22 Jan 2020 15:32:39 +0000

My dad did this for us back in the 70s…..and no, none of us got rich off of it. While it was neat to open the newspaper and read the stock prices, none of us kids really appreciated what he had done for us at the time. None of us wanted to fork over our hard-earned babysitting $$ for this either – there were records to buy! Ha!
I received one share each of:
– Standard Brands Paint – belly-up, now long gone
– American Airlines – split to 2 shares, and then the company cancelled my stock (bought out by….?)
– Abbott Labs – Now about 25 shares, courtesy of dividend reinvestment. I still own it. Since they’re a drug co, I guess this could be considered a “deferred purchase”? I’m not there yet! Ha! :-)

By: J. Money

J. Money — Tue, 21 Jan 2020 12:36:10 +0000

In reply to Papa Foxtrot. :)

By: J. Money

J. Money — Tue, 21 Jan 2020 12:35:48 +0000

In reply to SimplifiByTheBay. I'll admit I'm tempted to pick up a Tesla too :) good thing they don't come in minivan styles yet or I'd be in trouble!

By: Papa Foxtrot

Papa Foxtrot — Tue, 21 Jan 2020 02:09:32 +0000

How would you handle buying healthcare stocks before buying the product?

All kidding aside, this is a great post to bring around delay of gratification, especially for vehicles and real estate.

By: SimplifiByTheBay

SimplifiByTheBay — Mon, 20 Jan 2020 18:26:20 +0000

I do something similar. I’d love a Tesla but instead I bought stock and I’m bidding my time till I can buy one of their cars second hand. Can’t see myself spending 30-100k on a car.

Also lots of Apple and Amazon cause most of the tech products in our house are from there. I only wish I bought more stock:). They are the reason we could both RE.

By: J. Money

J. Money — Mon, 20 Jan 2020 16:56:34 +0000

In reply to Shaun Stuart.

Yeah, the idea is that once you’ve “saved” enough you’d then change your mind and hold onto the stocks in a perfect world, but even if you only did that half the time you’d still come away with extra assets in the end… regardless of how they performed (though you would have to deal with reporting it all on taxes at the end of the year which would be annoying…)

By: J. Money

J. Money — Mon, 20 Jan 2020 16:51:54 +0000

In reply to BC | FrugalWheels. True true, but not everyone is as obsessed with index funds as we are OR even investing ;) If this gets them more excited about it then I'm all for it... Especially since it's already money allocated to be *spent!*

By: J. Money

J. Money — Mon, 20 Jan 2020 16:44:13 +0000

In reply to Mr.FightToFIRE. Haha, there you go...

By: Shaun Stuart

Shaun Stuart — Mon, 20 Jan 2020 16:05:09 +0000

This is….stupid. This would double the cost of whatever item you want. Unless you are advocating buying the stock and holding it short term, then selling it to get your item. But then, stocks are incredibly volatile over the short term, so odds are good you’d lose money.