How do you handle "fun money"?

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Mr F
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Re: How do you handle "fun money"?

Post by Mr F »

I once saw a candid interview with Robert Wilson from the mid to late 80s.

He mentioned how his life outside of investing was ultimately quite dull. His sense of thrill came from the shorting of stocks.

Point being. We all get our adrenalin rushes from various aspects life offers us. Why can’t stocks or the market be one of them?
When you're chewing on life's gristle. Don't grumble, give a whistle. And this'll help things turn out for the best. Always look on the bright side of life.
arsenalfan
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Re: How do you handle "fun money"?

Post by arsenalfan »

Ive found other fun hobbies, because investing fun money isn't that interesting to me.

I dedicated 1% to fun money. Mostly FOMO water cooler stuff that passed my cursory due diligence.

I got luck on a few, and cocky so I sold those for gains and said hey, I'll do in my Roth so no tax drag.

Then I picked some real dogs, and had losses. But no TLH since Roth.

And overall, I had more fun picking up golf/guitar/travelling/entering world series of poker, which cost far less than the 1%.

So...I've learned to keep at my set AA, and spend my fun money somewhere else.
am
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Re: How do you handle "fun money"?

Post by am »

It’s a tough time now with the pandemic and if betting on stocks and cryptos does it for you, then more power to you. No travel or eating out leaves less to do with disposable income. :sharebeer
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Nicolas
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Re: How do you handle "fun money"?

Post by Nicolas »

Carol88888 wrote: Sat Nov 14, 2020 4:32 pm With fun money I buy a $2.00 lottery ticket when the jackpot is very high. It's a terribly stupid thing to do but at least $2.00 won't cause any harm.

More than I can say about losing 10% to a bad stock pick.
I used to buy a ticket from time to time for that very reason, when the jackpot was ridiculously high, but that was when the cost of a ticket was $1, now that it’s $2 I can’t bring myself to flush that much at once, because that’s really what you’re doing.

However it could be bad if I actually won one of those jackpots, life would get difficult.
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TomatoTomahto
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Re: How do you handle "fun money"?

Post by TomatoTomahto »

Nicolas wrote: Sun Nov 15, 2020 5:58 pm
Carol88888 wrote: Sat Nov 14, 2020 4:32 pm With fun money I buy a $2.00 lottery ticket when the jackpot is very high. It's a terribly stupid thing to do but at least $2.00 won't cause any harm.

More than I can say about losing 10% to a bad stock pick.
I used to buy a ticket from time to time for that very reason, when the jackpot was ridiculously high, but that was when the cost of a ticket was $1, now that it’s $2 I can’t bring myself to flush that much at once, because that’s really what you’re doing.

However it could be bad if I actually won one of those jackpots, life would get difficult.
I used to do that also, but then thought about it. Even if the Expected Value is higher when the jackpots get really high, the disruption to a peaceful life is also higher. When someone wins $500M, everyone is in their business. If you win, $50M the media leaves you alone

So, I’d rather win $50M.
I get the FI part but not the RE part of FIRE.
Broken Man 1999
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Re: How do you handle "fun money"?

Post by Broken Man 1999 »

TomatoTomahto wrote: Sun Nov 15, 2020 6:09 pm
Nicolas wrote: Sun Nov 15, 2020 5:58 pm
Carol88888 wrote: Sat Nov 14, 2020 4:32 pm With fun money I buy a $2.00 lottery ticket when the jackpot is very high. It's a terribly stupid thing to do but at least $2.00 won't cause any harm.

More than I can say about losing 10% to a bad stock pick.
I used to buy a ticket from time to time for that very reason, when the jackpot was ridiculously high, but that was when the cost of a ticket was $1, now that it’s $2 I can’t bring myself to flush that much at once, because that’s really what you’re doing.

However it could be bad if I actually won one of those jackpots, life would get difficult.
I used to do that also, but then thought about it. Even if the Expected Value is higher when the jackpots get really high, the disruption to a peaceful life is also higher. When someone wins $500M, everyone is in their business. If you win, $50M the media leaves you alone

So, I’d rather win $50M.
I'll never win as I have never bought a lottery ticket!

Still, I'd imagine with $500mil (less taxes) I could buy a pretty robust amount of privacy. I'd give it a whirl, for sure. :D

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
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abuss368
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Re: How do you handle "fun money"?

Post by abuss368 »

I never bothered with “funny” money. Never interested me. I figured I work hard for that Dollar and I want it to work hard for me.
John C. Bogle: “Simplicity is the master key to financial success."
JSPECO9
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Re: How do you handle "fun money"?

Post by JSPECO9 »

mokaThought wrote: Sat Nov 14, 2020 9:24 am If it’s fun money, why calculate it as a portion of your portfolio at all? Do you calculate a ski trip based on percentage of your portfolio?

If picking stocks is fun, great, but consider it consumption money.
+1.

This is how I treat my individual stocks. It's completely separate from my portfolio and not factored in at all for me. I love investing in companies, reading annual reports, financial statements, listening to calls, etc, buying when others are selling, etc.

It's a hobby for me. I limit myself to whatever I want, as it's my entertainment. The same way I limit how often I eat out, have beers at a bar, travel, go to the movies, etc.

Pick your own limit, stick with it. The only advice I do have is keep it completely separate from your money from retirement, college, home purchase, etc.
Marseille07
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Re: How do you handle "fun money"?

Post by Marseille07 »

JSPECO9 wrote: Sun Nov 15, 2020 8:48 pm
mokaThought wrote: Sat Nov 14, 2020 9:24 am If it’s fun money, why calculate it as a portion of your portfolio at all? Do you calculate a ski trip based on percentage of your portfolio?

If picking stocks is fun, great, but consider it consumption money.
+1.

This is how I treat my individual stocks. It's completely separate from my portfolio and not factored in at all for me. I love investing in companies, reading annual reports, financial statements, listening to calls, etc, buying when others are selling, etc.

It's a hobby for me. I limit myself to whatever I want, as it's my entertainment. The same way I limit how often I eat out, have beers at a bar, travel, go to the movies, etc.

Pick your own limit, stick with it. The only advice I do have is keep it completely separate from your money from retirement, college, home purchase, etc.
It's a tough situation for me, I started off with a risky portfolio then later started a boglehead portfolio. My dry powder is going to the BH side but the size isn't as big as my risky portfolio.

Now, I'm close to retirement if I include the risky port; not so much if I don't. I thought about slashing the risky stuff and transfer the cash over, but that would add a lot of dry powder that I'm currently struggling to DCA with.

The best course of action I've come up with is to withdraw from the risky port (or whichever is bigger in value) and keep the size in check.
Hyperchicken
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Re: How do you handle "fun money"?

Post by Hyperchicken »

I don't have fun money, I only have normal money. If I want to treat 95% of my money in a certain way, why would I want to treat 5% differently?
2tall4economy
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Re: How do you handle "fun money"?

Post by 2tall4economy »

I take stock every year and reset what is the 10% or 5% based on ending portfolio value.

Sometimes I let it ride, sometimes I don’t.

To be fair, most of my fun money is classic or exotic cars so usually I’m adding in absoltue dollars to offset depreciation, but occasionally I make some money on them and it flows the other way.
You can do anything you want in life. The rub is that there are consequences.
Grt2bOutdoors
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Re: How do you handle "fun money"?

Post by Grt2bOutdoors »

Gabelli2020 wrote: Sat Nov 14, 2020 8:36 pm Nothing “fun “ about losing any money. With that being said, I’d go nuts if ALL of my portfolio was VFIAX. Nothing wrong with individual stocks If you buy what you know and love. I bought HD when it opened in my town in Fla. 25 years ago.. I bought Costco when I joined 20 years ago. Apple after my first iPad. JNJ, MRK, PFE,BDX and others when I was working as a physician. All up at least 500%, some much more. Buy and never sell. But my index fund VFIAX is always my secure baby, even if it isn’t my home run.
Also consider rental real estate. With today’s interest rates you may be able to get a single family starter for peanuts. Rent it out, and there’s some “fun” that you won’t squander
Ha! I bought BDX when I saw what you were jabbing me with all these years! :)
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Grt2bOutdoors
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Re: How do you handle "fun money"?

Post by Grt2bOutdoors »

TomatoTomahto wrote: Sun Nov 15, 2020 6:09 pm
Nicolas wrote: Sun Nov 15, 2020 5:58 pm
Carol88888 wrote: Sat Nov 14, 2020 4:32 pm With fun money I buy a $2.00 lottery ticket when the jackpot is very high. It's a terribly stupid thing to do but at least $2.00 won't cause any harm.

More than I can say about losing 10% to a bad stock pick.
I used to buy a ticket from time to time for that very reason, when the jackpot was ridiculously high, but that was when the cost of a ticket was $1, now that it’s $2 I can’t bring myself to flush that much at once, because that’s really what you’re doing.

However it could be bad if I actually won one of those jackpots, life would get difficult.
I used to do that also, but then thought about it. Even if the Expected Value is higher when the jackpots get really high, the disruption to a peaceful life is also higher. When someone wins $500M, everyone is in their business. If you win, $50M the media leaves you alone

So, I’d rather win $50M.
Win the $500M then divvy it up amongst 15 of your closest friends - Misery loves company!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
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TomatoTomahto
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Re: How do you handle "fun money"?

Post by TomatoTomahto »

Grt2bOutdoors wrote: Mon Nov 16, 2020 12:52 pm
TomatoTomahto wrote: Sun Nov 15, 2020 6:09 pm
Nicolas wrote: Sun Nov 15, 2020 5:58 pm
Carol88888 wrote: Sat Nov 14, 2020 4:32 pm With fun money I buy a $2.00 lottery ticket when the jackpot is very high. It's a terribly stupid thing to do but at least $2.00 won't cause any harm.
More than I can say about losing 10% to a bad stock pick.
I used to buy a ticket from time to time for that very reason, when the jackpot was ridiculously high, but that was when the cost of a ticket was $1, now that it’s $2 I can’t bring myself to flush that much at once, because that’s really what you’re doing.
However it could be bad if I actually won one of those jackpots, life would get difficult.
I used to do that also, but then thought about it. Even if the Expected Value is higher when the jackpots get really high, the disruption to a peaceful life is also higher. When someone wins $500M, everyone is in their business. If you win, $50M the media leaves you alone
So, I’d rather win $50M.
Win the $500M then divvy it up amongst 15 of your closest friends - Misery loves company!
Since we won’t be having a “proper Thanksgiving” this year due to COVID, please indulge me in this giving of Thanks. I stopped buying lottery tickets altogether because I feel so blessed to have found our house that I feel that we’ve already won the lottery. The repairs and such aside, it has given us the gift of being near wildlife, having a koi pond, letting our dogs enjoy the land, and more. Color me grateful.

So, I will win neither $50M or $500M, but I’m happy 😁
I get the FI part but not the RE part of FIRE.
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