38-Year-Old Military Vet With Pension Wants High-Risk Bets for $500/Month – 'Should I Dump It All in TSLA or Go All-In On Leverage?'
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Tesla (TSLA) is one of the most talked-about stocks in the market, which has attracted both skeptics and avid supporters. Some investors see it as a game-changing company with much more to give, while others are not impressed by its stock volatility. For a 38-year-old military veteran with a rather strong financial foundation, this debate is quite relevant.
After retiring because of injuries sustained overseas, this veteran has achieved a remarkable setup: He has maxed out a $15K emergency fund, his Roth 401(k)s, IRAs and he has a steady income thanks to his business.
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With $500 monthly to allot to high-risk investments, he is debating whether to put his money into TSLA or go all-in on leverage. Due to his confusion, he contacted Reddit, where fellow investors advised him.
Skepticism About Leveraged ETFs
The consensus in the r/ETFs community thread started by the inquirer is that leveraged ETFs are not a good option for the 38-year-old military vet’s plans.
“No leveraged ETFs. As far as they shoot up, they can shoot back down. They are more an ultra short-term trade and nothing else,” a comment says.
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However, in a reply to this comment, another Redditor mentions a few newer options worth checking.
“There are some new leveraged ETFs that are leveraged for the long run. Check out BTGD. Bitcoin and gold for the long run,” the Reddit member says.
Plenty of Support for Index Funds
The support for Index Funds in the comments of this thread is astonishing. Although the investors on the board have different favorites, some have explained why.
“Something like VOO is more popular than the QQQs because of the expense ratios. You can expect the QQQs to eat up more of your earnings than something like VOO, however, the upside may be slightly higher,” explains a Redditor in the comment section.
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A second board member has enumerated all the funds he invested in and likely recommends that the military vet consider them, too.
