Got my signing bonus today - worthwhile to invest in the short run?
How are you guys keeping your signing bonuses until you have to move this summer (3 months from now)? Seems like a waste to just have it sitting in my checking account.
Checking account as opposed to what?
Invest it in stocks, bonds, mutual funds, ETFs, buy gold and put it in my closet, or any number of a billion possible investments someone can make for a 3 month period?
checking as opposed to just not looking for a way of posting on the forums that shows you got your offer without looking like a smug jackass?
Bingo.
An accurate analysis...
OP - buy RIM at 4x leverage, all in.
Since I believe in the semi-strong form of EMH, I don't think that's necessarily a worse idea than buying any similar beta stock 4x levered, but I'd rather just put my money into a diversified ETF. Brokerage fees worth it for 3 months though?
Investing in SPY for 3 months is a bad idea while investing in SPY over 30 years is a good idea? Explain your reasoning.
All of you guys be tripping, I've been open about having an offer since I made my account like half a year ago.
Geez everyone hating me because I'm with GS, what is this, Occupy Wallstreetoasis?
All of you guys be tripping, I've been open about having an offer since I made my account like half a year ago.
Geez everyone hating me because I'm with GS, what is this, Occupy Wallstreetoasis?
also interested
NICE HUMBLEBRAG BRAH
Oh Hey, Goldman in the house...
Could you please tell me which firm you are working for?? Please, please!
Sure, Goldman Sachs. Just check my 300+ posts.
You should buy a house with your 6k after tax signing bonus, congrats bro
Because $6k is so much money? Obviously it's not that much money, and I'm asking if it's even worth the hassle of trying to invest.
If you are now truly an employee at GS you should change your user name and I'm not kidding.
I'm not an employee until I start training this summer, so I'll keep this account until then. Thanks for your genuine advice though.
Shows an incredible lack of judgement to use your employer's name on a public message board like this, especially if that employer happens to be a top Investment Bank that is going through an ongoing PR crisis.
There is only downside. I'd change the name now. If anyone found out at work you had a user name "Goldman in da house" you'd a) be a laughingstock and b) probably subject to some kind of discipline or warning.
I've actually noticed your user name in the past but assumed you were some college kid who did NOT work for GS.
I keep my bonus in a shoe box under my bed.
3 months isn't a long enough time frame for you to make significant gains without taking a lot of risk.
front month deep OTM calls on GRPN
she's a coming back!!!!!!!!!!!!!!!!
HAHAHA
You are going to be on dealbreaker soon, with a revoked offer, and i will laugh.
The legit answer is no. After brokerage fees and taxes you'll have to pay on any capital gains, 3 months is not long enough to earn any real returns (without a lot of risk) worth devoting any time or thought to this. If you already have a money market account I'd put it there, but rates are so low the difference between that and your checking account for three months is going to be immaterial.
I'm not looking to make any large amount of money with my $6k, just don't want to miss out on possibly $40-60 in interest.
I always thought goldman only hiring jews was just a rumor
Hey thanks, I appreciate your honest response.
Hookers and chocolate, right after a pair of Ballys and a some homo socks in lavender.
It's kind of funny that this is the first time people have openly criticized me about my username like this when I've been posting since last August. Maybe it's because people saw it as a joke before haha.
My comments about RIM were just tongue in cheek because everyone else is so negative on them. I honestly have no idea if they are priced cheaply right now, my guess is they are still pretty expensive and the stock is hoping for an acquisition.
My point about volatility and mean reversion of returns is simply this: there is a mean return of the S&P 500 that follows some distribution and over time the annualized returns will revert to that mean. In the short term though, over a three month period for example, returns could fall across any number of points on that distribution. You are taking a solid risk that the S&P or whatever tracking ETF you pick up will decline in value over three months. Over 30 years, there is far less risk of that.
Shouldn't make a difference long term vs short term if you model the S&P like the game you are describing (expected returns as percentages), which has a unit root (AKA random walk with drift), which does not necessarily converge to the mean. Here's a slide show that talks about unit roots:
http://www.ssc.wisc.edu/~bhansen/390/390Lecture21.pdf
Now if you were talking about a game in which you were paid E(payment) = +10 with range from -10 to +20, then you would be right about a convergence to the mean. Playing the game once has more risk involved than playing many times.
why don't you just max out a retirement account for the year and blow the other 1000 on a suit or something.
This. If you don't need your whole signing bonus to move/live this summer and really want to put your money to work, you could sock part of it away through a Roth IRA for the long term. Even if you do end up needing it in a few years you can withdraw contributions (not returns) penalty free as well as take out money for a first home purchase. Think there may also be a few other exemptions.
Booth: I feel like there's a good reason RIM's so cheap now, and that it still has a ways to go. Why would someone want to buy RIM? What would one do with an acquisition?
Employ the BBM network? No real need for that between e-mail on phones and shit like WhatsApp, both of which work whether you're on iOS or Android.
Use the BlackBerry OS? iOS and Android together account for, what, 80% of the US smartphone market?
Sell BlackBerries? Ahahaha... nah.
RIM's goin' down like an aging hooker - cheaper and cheaper by the day.
Can he have a Roth? He will be over the income cap I believe.
OP, I would save the $6K in a "high interest" savings account (ING or Schwab work) and use it as your emergency fund. Need to start building that anyways first. Unless of course you have consumer debt, then well pay that shit off.
Isn't goldman a SA? How would his AGI be > $110K?
Good point - looks like you can contribute up to AGI of 110k, and then reduced contribution up to 125k.
http://www.irs.gov/retirement/participant/article/0,,id=188238,00.html
double post.
Oh, I was thinking he was FT
Had no idea you couldn't contribute to a roth if you made over $125,000...that's some bullshit.
Gotta get in early to get that compounding interest working for you... I started one as a freshman in college.
^ goldman, sachs or goldman's deli?
Or maybe his last name is Goldman.... eh? eh?
he's definitely a yid though.
You are a mega tool
Call me the hammer man because I'll nail your girl
hahahaha
a comeback the only reinforces how true the original insult was
First, you can't invest over a three-month period- you can only speculate. If you speculate, you must be fully prepared to lose every dime. If you are not, then don't. As for speculation ideas, that would be telling...Depending on what part of the firm you have been hired to work for (based on the question, I'm guessing it is not trading), you might want to start considering what you could do in that space. But, frankly, you are simply anxious- leave the money alone and enjoy the next few months.
it's only $6K, you either blow it all before you start to enjoy your last bit of freedom prior to slaving 100+ hour weeks or stash it all in some low risk shit.
The amount is too small to even put much thought into it.
I read the whole thread and unfortunately only came to the conclusion that OP is a troll way too late.
^^^man, story of my life...
15mins of my life I'll never get back
Use as margin to short Eurostoxx and buy AAPL. Worked almost everyday so far this year.
Assuming you're serious about your desire to invest -- I'd say you put your money in F or AAPL, both of which are conviction stocks in my portfolio.
Ford has moved side ways for a while now after their earnings miss, but people are missing the bigger picture. They need to realize Ford has one of the highest operating margins among its peers, a great management team that is not going away in the short term (contrary to popular headline-swayed opinions), a mid-decade goal that is well on track, a low-quality earnings miss in 4Q11 due to commodity prices (non-core miss).
AAPL has steam to run some more. If you have looked at the stock for a while, you'd find it very attractive on a risk-adjusted basis. On a risk-off day, people hold onto AAPL, as people dump social media, bank stocks, and cyclicals for blue chips. On a risk-on day, AAPL gains a solid 1-2%, citing rising consumerism being directly beneficial to ipad sales, smart-phone penetration rate, and more. The recent Foxconn scandal is a positive catalyst in disguise. Retail investors sell off thinking Foxconn issue would reduce margins of Apple. Think again, Foxconn is also the major supplier for Apple's competitors, who will suffer a lot more vis-a-vis Apple due to less bargaining power.
Or, if long choices are slow for you, look for a safe entry point in Yelp intra-day, and make 40-60 bucks in 20 minutes with your 6k.
Travel. It's a better human capital investment if you are from the us and anywhere near as smart as you claim.
Leave this faggot alone. He obviously suffers from low self-esteem and we wouldn't want to degrade him any further by pointing out his blatant failure to brag in a socially appropriate way. Really everyone, have some respect.
Vanguard > buy VTSAX > dont touch it.
Election year...better get in soon
unless you have some smartass way to invest it, keep it in your account. move in cost easily run into the thousands. your new closet will run into high hundreds at least.
also the average 1st & 2nd yr analyst nowadays are no longer getting paid. this may just be your biggest pay out in a while.
also did you already get it in cash into your account? if not-- note: the cash you'll get after tax is about 1/2 nominal, which covers just about your move-in+work cloths expense
Didn't realize getting a signing bonus was so abnormal in WSO to the point where talking about it was bragging. My bad peoples.
Guess I'll just keep the dough in my checking account. I was thinking about opening a brokerage account with etrade since this is the first time I have this much excess cash to play with.
You are a douche-nozzle either way.
As much as I love trolling, this was an honest question about where others are keeping their signing bonuses. Not many people on WSO are in my position I guess (which is understandable, WSO is for college kids trying to break in and occasionally industry professionals who are bored at work). Not sure what's with this crazy splurge of haters though. Go ahead and keep at it though, tell yourself I made this to brag on the internet about having an offer (as opposed to being unemployed?) and let's see how many posts we can get this thread to!
NBA playoffs coming up
Don't be a nerd, spend it on an awesome experience - go travel with your bonus
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