Bank Investment -Different for Noobs | Tutorials & Guides | TO…

Bank Investment -Different for Noobs

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    • Hawk [2080065]
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    Thread created on 18:17:33 - 29/03/18 (8 years ago)
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    Last replied 17:07:09 - 07/07/26 (3 months ago)

    Just a little misconception I have found. Hope to help some noobs like me...


    Update: This post was created before the APR update in 2019. However, the main idea remains the same: if you have 2b cash, choose the best APR. If you don't have 2b cash yet, choose a short investment period so you can put your "new" money to work as soon as possible. This will help you grow your total bank investment the quickest.

    Here is the original post:

    I have been playing Torn for less than a year, but have accumulated enough money that I care about investing for some passive income. Upon investigating the best way to put my money to work for me, I believe I've found a misconception about investing in the Torn bank.

    Many great guides and well-meaning friends say to invest your money in the bank and always choose the 2-month investment length because that has the best return, even when considering that your investment will be compounded more frequently in shorter term investments.

    However, most of those posts are for people with a lot more money. They are maxing out their investments to squeeze every penny out of them. After all, might as well optimize your investment...

    For noobs who are still growing their bank investment, I think there's a better option than the 2-month investment.

     

    Here's why...


    When I calculated out all the returns for one year on each investment, I got pretty much the same as everyone else. 2-months at a time is the most return. But if you are adding additional funds each time you re-invest, those additional funds change your long-term profit significantly. For example, if you choose to add 3% of your current investment each time when using the 2-week method, you would have to add 14.4% each time with the 2-month method to get the same results. Granted, you'd have more time to save up for that, but you would simply have to sit on your money until your next opportunity to re-invest.

    Here's the math in my spreadsheet. Let me know if I messed anything up:

    https://docs.google.com/spreadsheets/d/1RoaUnKCuDL_jbrjUwU7OAVO93mqdIXLrweP_DDeXtgo/edit?usp=sharing


    The advantage of 2-week investments


    For us investment builders, a better strategy may be to take the 2-week investment route. It's the next best profit after 2-months, but a much shorter time period. Why does that matter? Because you can continue adding your extra money to your investment more often. Don't wait 2 months to put your money to work for you. Actively grow your investment as often as you can. If you add even 1% every two weeks (a great goal!), you would be getting a compounding return on that money for an extra 4 weeks on average (times 25 investment periods).


    2-Week Addt'l Investment 2-Month Addt'l Investment
    0.36%
    1.00%
    0.50%
    1.72%
    0.75%
    2.95%
    1.00%
    4.18%
    2.00%
    9.21%
    3.00%
    14.40%
    5.00%
    25.29%
    10.00%
    55.61%
    20.00%
    131.19%










    Here is that same table in dollars. For example, if you have an investment of $500m, then your first additional investment for each type of investment to be equal would be the following (This is only your *first additional investment. Each time it would grow.)

    2-Week Addt'l Investement
    2-Month Addt'l Investment
    1,800,000
    5,000,000
    2,500,000
    8,600,000
    3,750,000
    14,750,000
    5,000,000
    20,900,000
    10,000,000
    46,050,000
    15,000,000
    72,000,000
    25,000,000
    126,450,000
    50,000,000
    278,050,000
    100,000,000
    655,950,000








    So, if I'm going to invest an additional 5,000,000 on my 2-week investment, I'd have to invest 20,900,000 on my 2-month investment to end up about the same. At this point, it basically comes down to your money management style. I'm guessing for most growing noobs, it's better for us to put that money in the bank sooner rather than later.



    ***Again, this doesn't apply to players who have maxed out their investments because they can't add more. They are better off leveraging the extra profit from the 2-month investments since they have to take that money out each time anyway.



    Anyway, just something I noticed. If we're squeezing the most out of our investments, this should help us builders grow a bit faster.




    Hope this helps,

    Hawk

    Last edited by Hawk on 17:22:31 - 12/06/24 (2 years ago)

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    • Evil-Duck [1182047]
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    Posted on 18:24:45 - 29/03/18 (8 years ago)
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    Good thread with good Intentions but belongs in tutorials & guides

    Peace
    • Hawk [2080065]
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    Posted on 18:28:49 - 29/03/18 (8 years ago)
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    Ah, should I move it?

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    • Evil-Duck [1182047]
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    Posted on 18:29:56 - 29/03/18 (8 years ago)
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    Just let it stay here for maximum PR until staff decide to move (if they do at all)

    R+ for efforts

    Peace
    Last edited by Evil-Duck on 18:31:52 - 29/03/18 (8 years ago)
    • Flak [2091491]
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    Posted on 18:44:16 - 29/03/18 (8 years ago)
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    I think your math is sound. Nicely done, And though i agree with ED. I also think it should stay here. It is refreshing to see something useful and discussable in GD.
    • Hawk [2080065]
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    Posted on 18:47:35 - 29/03/18 (8 years ago)
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    I appreciate that Rick! It helps to have another set of eyes on the math. I made some assumptions, etc.

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    • Prophet_Jonas [1995840]
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    Posted on 19:17:28 - 29/03/18 (8 years ago)
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    yes, this is a common misconception...

    While you are growing towards $2B, it is best to invest 1-2weeks at a time, assuming you are growing your money through other means...

    What I used to do was keep about $15m on hand stored in a bookie bet for my expenses, flower/plushie running, item market trades, general cash... This can whatever money you use to make more money... Whatever money I wouldn't have an immediate use for, I'd store in the bank one or two weeks at a time to gain interest... When the investment came due, I'd reevaluate my cash flow and reinvest more into the ban... I'd have made more money in the two weeks so I could store more in the bank... Just keep growing and growing until you hit the 2B max...

    When I got to 2B max, thats when I started the 2-month investments...
    • KingLouisCLXXII [2070312]
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    Posted on 19:20:56 - 29/03/18 (8 years ago)
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    Waaaaht??? The world must be ending!!! What is this madness??? A proper, useful, and non shit post in general discussion????? This is CRAZY!!!



    Nice guide though

    • Hawk [2080065]
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    Posted on 19:24:17 - 29/03/18 (8 years ago)
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    @The_Prophet_Jo - I did the exact same with the bookie bets!

    Accidentally made millions once - forgot to take the money out before the game started. Accidentally lost a couple times too...
    Last edited by Hawk on 19:25:03 - 29/03/18 (8 years ago)

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    • MikePence [2029670]
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    Posted on 19:25:04 - 29/03/18 (8 years ago)
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    actually finding a common misconception

    i love it R+

    • FIN [527880]
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    Posted on 19:25:28 - 29/03/18 (8 years ago)
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    Moving this to tutorials and guides.

    Altho i might add this to my subscriptions to paste to new people who contacts me. so i can give it as a part of the battery of guides i have.

     

    • Hawk [2080065]
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    Posted on 19:52:46 - 29/03/18 (8 years ago)
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    Thanks for the move, Fin. Sorry for the mis-categorization.

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    • GypsyJyn [2076725]
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    Posted on 20:00:58 - 29/03/18 (8 years ago)
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    Good job Scotty! Definitely something even a fresh out the Torn womb would like knowing. Wish I'd have known it when I started.
    • Hawk [2080065]
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    Posted on 20:12:27 - 29/03/18 (8 years ago)
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    @Gyn - Thumbs up for "Torn womb"!!!!

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    • Hopslam [795412]
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    Posted on 01:34:56 - 30/03/18 (8 years ago)
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    won't likely affect much, but might be helpful to note...

    Patch list #5 : 18/07/2017

    https://www.torn.com/forums.php#!p=threads&f=65&t=16012939&b=0&a=0&start=0&to=17904262

    - Changed one month bank investment base duration from 31 days to 30 days
    - Changed two month bank investment base duration from 61 days to 60 days
    - Changed three month bank investment base duration from 91 days to 90 days

    73933a77-3d40-40b9-92b5-cf33a19404a9-795412.png

    • Hawk [2080065]
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    Posted on 02:16:54 - 30/03/18 (8 years ago)
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    Thanks Hopslam! I'll update the spreadsheet.

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    • Claire [1971751]
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    Posted on 06:31:12 - 30/03/18 (8 years ago)
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    Nice guide! R+. Added your guide link in my guide.
    Last edited by Claire on 06:37:16 - 30/03/18 (8 years ago)

     

    • Hawk [2080065]
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    Posted on 12:03:53 - 30/03/18 (8 years ago)
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    Thanks Claire!
    I linked yours in too.

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    • Scuba [512975]
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    Posted on 13:43:40 - 04/04/18 (8 years ago)
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    This definitely depends on how well you can make cash, but you're spot on. The 2-month rule is for those who have capped their bank. If you make cash rapidly, a lower term investment will make the most sense as you can more easily top up your investment until you hit cap - if you take longer to make money perhaps a 1-month duration would be most appropriate.



    Depends on play-style but I definitely see this mentioned often.

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    • Hawk [2080065]
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    Posted on 13:59:42 - 04/04/18 (8 years ago)
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    Thanks Scuba! I am almost ready to post an update. I think I've about got it figured out when it pays more, depending on how much you're going to add each time. Like you said, it's going to depend on style.

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