38-Year-Old Retired Military Veteran Wants High-Risk Bets for $500/Month - "Should I Put All in TSLA or Go All-In on Leverage?"

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Tesla (TSLA) is one of the most talked-about stocks on the market, having attracted both skeptics and enthusiastic supporters. Some investors view it as a game-changing company with much more to offer, while others are unimpressed by the stock volatility. For a 38-year-old military veteran with a fairly strong financial foundation, this debate is quite relevant.

After retiring due to injuries sustained overseas, this veteran has made remarkable progress: He has a $15,000 emergency fund, maxed out his Roth 401(k)s and IRAs, and has a stable income.

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Since he allocates $500 each month for high-risk investments, he is considering whether to invest his money in TSLA or leverage it. Because of his confusion, he contacted Reddit, where other investors gave him advice.

Skepticism about leveraged ETFs

In the r/ETFs community thread started by the questioner, the consensus is that leveraged ETFs are not a good option for the 38-year-old military veteran’s plans.

“No leveraged ETFs. As far as they shoot up, they can also shoot back down. “It’s more of an ultra-short-term trade and nothing else,” one comment said.

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However, in a reply to this comment, another Redditor mentions some newer options worth checking out.

“There are some new leveraged ETFs that are leveraged for the long term. Check out BTGD. Bitcoin and gold in the long term,” says the Reddit member.

Lots of support for index funds

The support for index funds in the comments of this thread is amazing. Although investors on the board have different favorites, some have explained why.

“Something like VOO is more popular than the QQQs because of the expense ratio. You can expect QQQs to eat up more of your earnings than something like VOO, although the upside potential could be a little higher,” explains one Reddit user in the comments section.

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A second board member has listed all the funds he has invested in and is likely to recommend that the military veteran consider those as well.

“I invest 100% in marketable, index-based, low-cost mutual funds. Specifically, I primarily use Vanguard’s Total Stock Market, Total Bond Market, Total International Stock Market and Total International Bond Market funds.”

High risk alternative suggestions

Many more cautious investors who chose the low-risk ETF route suggested the veteran consider these types of investments as they would make him a lot of money in the long run.

“VGT and IYW are proven winners. If you really want to take moon shots, you should consider TOPT, MAGS or SMH. “Each of these could take a pretty hard hit when the inevitable market crash occurs, but if you stick with it over time, I think you’ll be printing money later,” one risk-taker said in the comments.

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Another member of the r/ETF community on Reddit mentioned active ETFs as not as risky as leveraged ETFs and a great alternative, and listed a few that the retired veteran can look up.

“You can try active ETFs like JEPQ, JEPI, QYLD. They use technical options to hold. Good return. “They are good for the bull market, but still provide a return for the bear market,” the investor said.

TSLA and individual stocks

No one in the comments specifically recommends TSLA as a good investment and advises against buying individual stocks and shares.

“Buying individual stocks or industry funds involves unnecessary and uncompensated risks; I avoid doing this,” writes one Redditor.

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This article: 38-Year-Old Retired Military Veteran Wants High-Risk Bets for $500/Month – “Should I Put All in TSLA or Go All-In on Leverage?” originally appeared on Benzinga.com

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38-Year-Old Retired Military Veteran Wants High-Risk Bets for $500/Month – “Should I Put All in TSLA or Go All-In on Leverage?”

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