This is for putting in $83k. The second option seems to make the most sense - if my Dad dies before 10 years I get paid the $600/month until the end of that 10 years. But the price still seems crazy given $600/month for 10 years is $72k.
This stuff isn’t fun to think about. I think I’ll just keep paying the $600.
There are tax benefits as well. But those are much more significant (especially compared to fees) over a long time horizon
Also if you invest 83,000 in the stock market and subtract 7200 dollars every year you’d expect $63,000 after 10 years and $26,000 after 20
So you’re saying I should put $83k on AMC and let it ride?
I don’t really know anything about Cinemark, other than it seems like they’re less leveraged than AMC and actually earned a profit in 2019 (unlike AMC).
And to be clear, I don’t really have an opinion about buying an AMC lottery ticket either. It seems like a crappy company with a correspondingly low stock price. Maybe it will go up! It’s just not the kind of stock I’d ever be interested in. My guess is that most of the value is in the possibility that it gets acquired by someone.
I’m just trying to avoid significant bankruptcy risk. I’m not quite that lottery-level. I didn’t do my homework on AMC. In retrospect the $5 price should have been a red flag.
How is MoviePass doing these days?
correct
I’ve long thought that stocks that have significant perceived bankruptcy risk should over perform on average. Like they should demand a higher risk premium even if priced rationally, right? Any research been done on this?
But the point of me posting this is that suzz shouldn’t be scared of holding AMC because they might go bankrupt. He should embrace it! And buy a bunch of other distressed stocks to create a diversified high risk portfolio.
From my perspective, it will cost you a little more to pay your own way if you get a favorable result and your dad lives out his expectation. Meanwhile, if something happens and he dies early it will have cost you a lot more had you purchased the annuity.
Apple casually up $100B in market cap in a day
Sounds like a soild plan if I can run my lifetime 1000 times.
We don’t get too many Troy (the movie) references these days.
AMC still pluckily hovering above my stop loss price. It’s going to be annoying when it dips below for a second, then is up 20% tomorrow on buyout rumors.
That’s life in the fast lane I guess. I should probably start doing coke again to keep up this master of the universe lifestyle. I need to get some suspenders and a striped shirt with a white collar.
As others have said, it probably makes the most sense to just continue giving him the money directly each month. I assume you can set your account so that he gets his money via auto-pay, so you don’t have to think about it.
Likely not in the near term. While the simple answer to when travel companies devalue is “always”, the reason there’s been such an acceleration the last decade is because demand has gone up and up and up for 10 straight years. They held all the leverage.
Airlines and hotels will be pretty desperate for demand the next few years. I’d be surprised at major customer unfriendly changes.
Unfortunately no - even though we both have BofA there’s no way to do a monthly transfer that I can find (but I haven’t looked in the last year or so). I used to have one for a kid’s allowance I paid. But that got set up when we set up her account, and the guy at the bank made it out like he was doing us a favor he shouldn’t be doing.
Also my Dad is terrified of online banking. So I have to tell him every time I do the deposit. If we get close to the 15th he gets nervous, and I have forgotten a couple of times. But it keeps us communicating so I figure it’s worth the hassle.
