38-year-old navy veteran with pension needs high-risk bets for $500/month – “Ought to I drop the whole lot in TSLA or guess on leverage?”

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Tesla (TSLA) is likely one of the most talked about shares out there, which has attracted each skeptics and ardent supporters. Some traders see it as a game-changing firm with much more to offer, whereas others are unimpressed by the volatility of its shares. For a 38-year-old navy veteran with a reasonably stable monetary basis, this debate is fully related.

After retiring because of accidents sustained abroad, this veteran achieved a exceptional setup: he maxed out a $15,000 emergency fund, his Roth 401(ok), his IRAs, and he has an earnings secure because of his enterprise.

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With $500 a month to spend on high-risk investments, he wonders if he ought to make investments his cash in TSLA or go all-in leverage. As a result of his confusion, he contacted Reddit, the place different traders suggested him.

Skepticism of leveraged ETFs

The consensus within the r/ETFs group thread began by the asker is that leveraged ETFs usually are not a very good choice for the 38-year-old navy veteran’s plans.

“No leveraged ETFs. To the extent that they shoot, they will return fireplace. That is extra of a really short-term commerce and nothing else,” one remark learn.

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Nevertheless, in a reply to this remark, one other Redditor mentions just a few newer choices price testing.

“There are new leveraged ETFs which are operated over the long run. Uncover BTGD. Bitcoin and gold in the long run,” says the Reddit member.

A number of assist for index funds

The assist for index funds within the feedback of this thread is astonishing. Though board traders have totally different preferences, some have defined why.

“One thing like VOO is extra fashionable than QQQs due to the expense ratios. You possibly can count on QQQs to eat up extra of your earnings than one thing like VOO, nonetheless, the upside could also be barely larger,” explains one Redditor within the feedback part.

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A second board member listed all of the funds he has invested in and certain recommends that the navy veteran contemplate them as properly.

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