Doesn’t have to be thousands of dollars. Just a thing you spent money on that turned out to be a complete waste.

  • dingus@lemmy.world
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    20 days ago

    This is why I don’t invest. I tried it for a relatively short span of time. It was a large company that isn’t a scam or anything but I can’t remember the name of it. They had three sort of options for investing…1. high risk/reward, 2. Medium risk/reward, and 3. Low risk/reward.

    I either picked 2 or 3 or something. Can’t remember which. All that stupid thing did was lose money due to broker fees. I watched the money slowly drop over the span of around a year from “fees” with literally never earning a dime. I thought it was ridiculous so I pulled the rest of the funds.

    I instead chose to place that money in a high yield savings account. Does it earn money quickly? No. But it isn’t wildly unpredictable like investing and it will never lose money unless I take money out. Investing isn’t for me.

    • partial_accumen@lemmy.world
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      19 days ago

      I instead chose to place that money in a high yield savings account. Does it earn money quickly? No. But it isn’t wildly unpredictable like investing and it will never lose money unless I take money out. Investing isn’t for me.

      Even though I do invest in stocks, until recently I was a long time user of high yield savings accounts for years for my “safe” money. What I eventually realized was how the bank was able to pay me the comparatively higher interest rate for a savings account. Whatever money I had in the savings account they’d just buy short term US Treasuries (probably 4 week Tbills), they shave off .5%-1% interest earned for their company profit, and passed the remainder onto me. I finally sat down and learned how to cut out the middle man and buy the Tbills myself. So instead of the High Yield savings account paying me 3.01%, I’m earning 3.94% on the same money.

      Also understand that Savings accounts and even Tbills usually drasically underperform compared to broad stock index funds. For example 2025 was 16.39% and 2024 was 23.21% returns for boring S&P500 funds.