• captainlezbian@lemmy.world
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    5 days ago

    In part because they understand that investment works, but not why. I could be much poorer if I didn’t understand that the purpose of investment is to provide money to create value to get more money later. NFTs failed the “where does the money come from” test as well as the “why am I not too late to make a bunch of money” test.

    Nobody’s out there offering guaranteed massive returns to everyone who invests. Legitimate safe investments don’t try to be exciting or induce fomo. They’re boring and reasonable because they can afford to be.

    • wonderingwanderer@sopuli.xyz
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      1 day ago

      Yeah I guess you’re right. The volatility makes them attractive for day-traders, especially on the penny market, but that same volatility makes them awful long-term investments

      Legitimate safe investments don’t try to be exciting or induce fomo. They’re boring and reasonable because they can afford to be.

      That’s why I love mutual funds. Stable, low-risk, low-maintenance, and managed by someone who knows what they’re doing (unlike me). I’ve gotten a pretty consistent 5% APY on those.

      That’s why that’s the metric I use for “if I invest X amount, I can get Y yearly dividends” calculations. For example, if I had a million dollars invested I could reliably get $50k+ in annual dividends. A modest retirement income, with room for growth.