KSUFans Archives
Fan Life => The Endzone Dive => Topic started by: steve dave on May 22, 2009, 03:43:16 PM
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I have some spare cash laying around. I consider myself pretty knowledgeable re. my investments as I work in the industry. However, I would be open to some sort of insider'y type investment advice that borders on the very fringes of legality if you have any. Prefer the kind with huge upside and little if any risk. Please post ideas below. tia.
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I have some spare cash laying around. I consider myself pretty knowledgeable re. my investments as I work in the industry. However, I would be open to some sort of insider'y type investment advice that borders on the very fringes of legality if you have any. Prefer the kind with huge upside and little if any risk. Please post ideas below. tia.
pfftttt :lol:
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Arrow to clarify where to post ideas:
(https://www.cs.tcd.ie/~creant/webquest/Images/arrow_blue_outline_down.png)
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1. Dig a hole in the ground. Preferably outside and not too deep (don't want the Chinese to find it).
2. Put your money in the hole
3. Cover your money with delicious dirt.
4. Wait for 5 minutes - 6 years
5. Enjoy your money tree!
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1. Dig a hole in the ground. Preferably outside and not too deep (don't want the Chinese to find it).
2. Put your money in the hole
3. Cover your money with delicious dirt.
4. Wait for 5 minutes - 6 years
5. Enjoy your money tree!
Dude... Contrary to popular belief, the Chinese are not directly opposite us. You'd best be worried more about the Indians, or worse yet, the fighting Sri Lankans from getting it.
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1. Dig a hole in the ground. Preferably outside and not too deep (don't want the Chinese to find it).
2. Put your money in the hole
3. Cover your money with delicious dirt.
4. Wait for 5 minutes - 6 years
5. Enjoy your money tree!
Dude... Contrary to popular belief, the Chinese are not directly opposite us. You'd best be worried more about the Indians, or worse yet, the fighting Sri Lankans from getting it.
False. We already killed all of the Indians with disease-infested blankets (seriously, how dumb were those guys!) and starting a word with the letters "S" and "r" is completely preposterous so I'm going to assume that you made that word up.
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(http://www.advicenter.com/AgentUploads/2124608532/DOWN%20ARROW.jpg)
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Coffee can.
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I'm hearing fantastic things about this up and coming company called In Pursuit of Perfection, LLC. I guess it's been killing it lately. I'd look into it if I were you.
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You could start registering Limited Liability Corporations with ridiculously ironic names and hope that some kind of secret deal emerges where your corporation would be the recipient of a large payout.
You're welcome!!! :thumbsup: :thumbsup:
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2 IPP LLC jokes within a minute of each other. Interesting.
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2 IPP LLC jokes within a minute of each other. Interesting.
It's the IT thing.
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1. Dig a hole in the ground. Preferably outside and not too deep (don't want the Chinese to find it).
2. Put your money in the hole
3. Cover your money with delicious dirt.
4. Wait for 5 minutes - 6 years
5. Enjoy your money tree!
Dude... Contrary to popular belief, the Chinese are not directly opposite us. You'd best be worried more about the Indians, or worse yet, the fighting Sri Lankans from getting it.
False. We already killed all of the Indians with disease-infested blankets (seriously, how dumb were those guys!) and starting a word with the letters "S" and "r" is completely preposterous so I'm going to assume that you made that word up.
Wrong kind of indians
(http://upload.wikimedia.org/wikipedia/en/2/24/707_image_14.jpg)
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you should consider a broth IRA
(http://www.jeffreysharp.org/fun/MeatwadPointing.jpg)
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Company A will drop X amount of points tomorrow after another stupid decision by management. Sell today.
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you should consider a broth IRA
(http://www.jeffreysharp.org/fun/MeatwadPointing.jpg)
Wasn't that guy in the TMNT cartoons?
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you should consider a broth IRA
(http://www.jeffreysharp.org/fun/MeatwadPointing.jpg)
Wasn't that guy in the TMNT cartoons?
No he's in ATHF :love:
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you should consider a broth IRA
(http://www.jeffreysharp.org/fun/MeatwadPointing.jpg)
Wasn't that guy in the TMNT cartoons?
NO!
(http://i22.photobucket.com/albums/b329/MasterShake5009/ATC_MasterShake_1024.jpg)
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But to answer the original question....
Put 5K in a Roth IRA. That's the max for the year. All earnings grow tax free. It's a great deal unless the USA wises up and dumps the IRS for the Fair Tax.
Put the rest in http://survivalseedbank.com/
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But to answer the original question....
Put 5K in a Roth IRA. That's the max for the year. All earnings grow tax free. It's a great deal unless the USA wises up and dumps the IRS for the Fair Tax.
Put the rest in http://survivalseedbank.com/
Yeah, already max out that. Thanks though.
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(http://i155.photobucket.com/albums/s313/jbleinweber/DOWNARROW-1.jpg)
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(http://i155.photobucket.com/albums/s313/jbleinweber/DOWNARROW-1.jpg)
:flush:
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(http://i155.photobucket.com/albums/s313/jbleinweber/DOWNARROW-3.jpg)
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you should consider a broth IRA
(http://www.jeffreysharp.org/fun/MeatwadPointing.jpg)
Wasn't that guy in the TMNT cartoons?
NO!
(http://i22.photobucket.com/albums/b329/MasterShake5009/ATC_MasterShake_1024.jpg)
Total rip-off
http://kudohejime.bravepages.com/Krang.gif (http://kudohejime.bravepages.com/Krang.gif)
The guy who created that character got the idea while watching old tapes of TMNT on the chronics.
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Here is a money maker that skirts the gray area. I had a friend in college who would sign up for the BMG/Columbia house CD clubs. He was from south Africa and would get tall the CD's he could for a penny. Then sign up with different names like we all did I'm sure. Then he would mail them to South Africa to friends who would sell them for like $20 each. Made some good money in college with that little scam. Could work with DVD's too.
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Here is a money maker that skirts the gray area. I had a friend in college who would sign up for the BMG/Columbia house CD clubs. He was from south Africa and would get tall the CD's he could for a penny. Then sign up with different names like we all did I'm sure. Then he would mail them to South Africa to friends who would sell them for like $20 each. Made some good money in college with that little scam. Could work with DVD's too.
Or maybe just rob a bank :dunno:
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Make bigger/extra mortgage payments?
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I would recommend betting some money on some ponies that are sure wins. jmo.
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Make bigger/extra mortgage payments?
This is solid advice. Since returns on investments are low right now, throwing extra money at the mortgage is a guaranteed return of whatever your interest rate is (plus some).
I've also got this mutual fund that I've got some money in. It's the USAA Precious Metals and Minerals fund. It doesn't have gold, etc in it, but rather moreso the companies that deal in it. It's got a solid long term track record. I'm actually up 7% on the year.
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Here is a money maker that skirts the gray area. I had a friend in college who would sign up for the BMG/Columbia house CD clubs. He was from south Africa and would get tall the CD's he could for a penny. Then sign up with different names like we all did I'm sure. Then he would mail them to South Africa to friends who would sell them for like $20 each. Made some good money in college with that little scam. Could work with DVD's too.
Or maybe just rob a bank :dunno:
Sounds :ohno: Mailing stuff not so much. Maybe becoming a drug mule out of South America. You could just be an investor and recruit the mules to swallow you product to get it into the U.S. If it fails you could then get them on locked up abroad.
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I hear you can also sell medical marijuana in Garnett. Any legality involved in this goes without question, since most of the law enforcement participates in said activity.
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Garnett, Kansas?
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Alot of advisors as saying stay away from stocks but Now is a great time to buy low if you can afford it, but that is the problem.
If you're in the industry then your financial advisor can show you a list of stocks that are ALMOST guaranteed to rebound when the economy stabilizes...and if it doesn't, you aren't losing your ass on bad bets.
There will be a whole new crop of millionaires when the DOW volume returns to 10,000+ but I think that is about two or three years away. Depends on a lot of factors.
http://www.usatoday.com/money/default.htm
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advice that borders on the very fringes of legality if you have any.
rarely is this going to give you a bigger reward for less risk. After all, that is what the investment game is all about.
But if you want to go completely illegal there are all sorts of things you can do with your "spare cash" . But you aren't specific about how much you have.
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Go damn it bookcat
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Make bigger/extra mortgage payments?
This is solid advice.
Unless interest rates go up at which time you'll have spent your investment capital paying down what should be low-rate debt and will have bypassed high(er) rate returns in the future.
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If you want a solid investment that hedges against inflation, real estate is it. It is on sale in many parts of the country. If inflation kicks in, the value of houses generally follows. Imagine getting 10-15% on your investments. That would be housing.
Your best bet is to put as much down as possible, if not pay for it outright. Even if you finance, the interest rates are low for now. Even still, finance it at as short of a term as possible, be it 10, 15 or at most 20 years. If interest rates jump, as they likely could, getting in now is a great bet.
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Make bigger/extra mortgage payments?
This is solid advice.
Unless interest rates go up at which time you'll have spent your investment capital paying down what should be low-rate debt and will have bypassed high(er) rate returns in the future.
Being out of debt in a bad economy (or any economy) is the best hedge against Murphy's Law there is.
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Make bigger/extra mortgage payments?
This is solid advice.
Unless interest rates go up at which time you'll have spent your investment capital paying down what should be low-rate debt and will have bypassed high(er) rate returns in the future.
Being out of debt in a bad economy (or any economy) is the best hedge against Murphy's Law there is.
Yeah, I am locked in at 4.5% and pay an extra chunk each month already. Real estate is interesting but we could move across the country at any moment so I don't want to be stuck with a bunch of Omaha area property and having to pay a management company to handle it for me. Good advice though
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Real estate is interesting.
do you have enough money to buy a ranch in mexico? i will find a good one for you.
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Real estate is interesting.
do you have enough money to buy a ranch in mexico? i will find a good one for you.
Prolly, what would I raise on it? Jalapenos?
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open a strip club in manhattan (out by airport). hire some horndog but honest horndog to manage it for you/disinfect money before giving it to you. retirement probable within five years.
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SD, since I like you so much I thought I would pass this opportunity on to you. It is a chance to become a multi-millionaire with no risk just for helping this gentleman out. :fatty:
My name is DOUGLAS KAukE a native of Cape Town south Africa. I have a proposal to make that might be interesting to you.
I am in possession of a large sum of money in cash totaling US$40.000,000 Million US Dollars realized from the sale of Gold Dust and precious stones. The money is lodged at security company in south Africa.
I want to move the money abroad to invest it in profitable ventures...
Firstly to assist me to export this money to any suitable country abroad...
And upon your request I want the money to be paid directly to any bank of your choice and for your assistance you receive 30% of total sum with peace also with no risk involved.
Is you to give us very strong guarantee that our share will be well secured and also bear us interest on the fund's, also not take advantage of our position since the money will be paid directly to a bank account that you nominate.
Be assured that there is absolutely nothing to worry about in the view of the claim, it is perfectly safe and good enough. ... You should keep this transaction very confidential, because we are still active public service in south Africa.
And upon your request I will furnish you with the certificate of Deposit
issued by the security company at the time of making the deposit...
You can reach me with this E-mail [email protected]
Stay blessed and GOD bless America.
DOUGLAS KAukE cell phone number +31 611425641 Amsterdam, the Netherlands
Douglas S. Kauke No. 203 Nelson Mandela Way Johannesburg, South Africa
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Real estate is interesting.
do you have enough money to buy a ranch in mexico? i will find a good one for you.
Prolly, what would I raise on it? Jalapenos?
cattle and snakes, if i'm managing it for you. you could grow marijuana for a higher return, but i have to warn you, i don't currently know how/where to market that crop.
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Real estate is interesting.
do you have enough money to buy a ranch in mexico? i will find a good one for you.
Prolly, what would I raise on it? Jalapenos?
cattle and snakes, if i'm managing it for you. you could grow marijuana for a higher return, but i have to warn you, i don't currently know how/where to market that crop.
Lawrence.
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Real estate is interesting.
do you have enough money to buy a ranch in mexico? i will find a good one for you.
Prolly, what would I raise on it? Jalapenos?
Blue agave. They've been running short on the stuff for years and now that some crazy Mexican scientist (mj can fill you in) has discovered a way to produce diamond films from tequila they're likely to just run completely out. :'(
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some crazy Mexican scientist (mj can fill you in) has discovered a way to produce diamond films from tequila.
hilarious.
http://news.bbc.co.uk/2/hi/americas/7725815.stm
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Have kids and use money to raise them, so to speak. If you are as good looking as I hear, you will have redic good looking kids (<---science). Probably not the investment you thought you'd see in this thread, I know right, but so if life pal. Make some babies. :dancin: :eek:
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Make bigger/extra mortgage payments?
that's solidly bad advice.
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Make bigger/extra mortgage payments?
that's solidly bad advice.
No debt = good debt
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Make bigger/extra mortgage payments?
that's solidly bad advice.
Can save a ton of money by paying more money on your mortgage each month. Ton.
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Make bigger/extra mortgage payments?
that's solidly bad advice.
Can save a ton of money by paying more money on your mortgage each month. Ton.
no chit? never heard that before. :users:
he asked for investment advice. throwing money at a house in this market isn't that.
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Make bigger/extra mortgage payments?
that's solidly bad advice.
Can save a ton of money by paying more money on your mortgage each month. Ton.
no chit? never heard that before. :users:
he asked for investment advice. throwing money at a house in this market isn't that.
Isn't saving a ton of money on interest payments not an investment of sorts? :dunno:
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I hear you can also sell medical marijuana in Garnett. Any legality involved in this goes without question, since most of the law enforcement participates in said activity.
Really? Give me a name, please.
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But to answer the original question....
Put 5K in a Roth IRA. That's the max for the year. All earnings grow tax free. It's a great deal unless the USA wises up and dumps the IRS for the Fair Tax.
Put the rest in http://survivalseedbank.com/
Yeah, already max out that. Thanks though.
jfc, moneybags. go take a trip to fiji or something.
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I hear you can also sell medical marijuana in Garnett. Any legality involved in this goes without question, since most of the law enforcement participates in said activity.
Really? Give me a name, please.
Since you don't want me to screw your chiefdom up, I won't do that.
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Make bigger/extra mortgage payments?
that's solidly bad advice.
Can save a ton of money by paying more money on your mortgage each month. Ton.
no chit? never heard that before. :users:
he asked for investment advice. throwing money at a house in this market isn't that.
Isn't saving a ton of money on interest payments not an investment of sorts? :dunno:
Depends. Suppose you lock in a fixed 5% mortgage (no idea how low you can get these days but it seems like sub-5s are pretty available). Right now chipping a few extra bucks might seem like a good idea but suppose you could stroll down to the bank and put that money in a short to mid term CD at 6%, would it still be a good idea to put that extra money towards your house payment knowing that you'd be taking a net 1% less than you could have gotten? Depending on whether or not you're self-employed & whether or not your mortgage interest deduction is knocking down your self-employment tax that 1% advantage could be magnified.
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Make bigger/extra mortgage payments?
that's solidly bad advice.
Can save a ton of money by paying more money on your mortgage each month. Ton.
no chit? never heard that before. :users:
he asked for investment advice. throwing money at a house in this market isn't that.
Isn't saving a ton of money on interest payments not an investment of sorts? :dunno:
Depends. Suppose you lock in a fixed 5% mortgage (no idea how low you can get these days but it seems like sub-5s are pretty available). Right now chipping a few extra bucks might seem like a good idea but suppose you could stroll down to the bank and put that money in a short to mid term CD at 6%, would it still be a good idea to put that extra money towards your house payment knowing that you'd be taking a net 1% less than you could have gotten? Depending on whether or not you're self-employed & whether or not your mortgage interest deduction is knocking down your self-employment tax that 1% advantage could be magnified.
But having that debt can be a handcuff should something happen and if you are not prepared. Too many people have relegated themselves to debtors prison. Call me old fashioned. Call me weird. I'd much prefer to use my mortgage payment in other ways.
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if something were to happen as you suggest, it'd be better to have that money in a more liquid state and not tied up in a 30 yr note and in a home that's only worth what someone else will pay for it.
the cd/money market is really the way to go.
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Considering the massive stimulus package, bailouts, etc., the dollar is extremely vulnerable to inflation in the next couple of years. Thus having more debt now and being invested in gold, commodities, real estate, etc. is a hedge against that potential inflation. Also borrowing at low rates now is a good thing because the rates will likely go up in the future in order to battle the inflation. Not saying you should borrow more than you can handle, but if you have extra funds available I would certainly keep that in mind.
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if something were to happen as you suggest, it'd be better to have that money in a more liquid state and not tied up in a 30 yr note and in a home that's only worth what someone else will pay for it.
the cd/money market is really the way to go.
Yep. I couldn't agree more with Jeffy about the virtues of a debt-free lifestyle but the first order of business along those lines should be funding an adequate emergency account.
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if something were to happen as you suggest, it'd be better to have that money in a more liquid state and not tied up in a 30 yr note and in a home that's only worth what someone else will pay for it.
the cd/money market is really the way to go.
Yep. I couldn't agree more with Jeffy about the virtues of a debt-free lifestyle but the first order of business along those lines should be funding an adequate emergency account.
I kinda hoped that went without saying. Most on here should know that I've been a Dave Ramseyite for 3 years now. By that, it implies that your 6 month emergency fund is in place before extra is ever thrown to the mortgage. Emergency funds should be in place no matter what - whether you pay extra on the mortgage or whether you rent. It's got to be the single most important part of any financial plan.
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if something were to happen as you suggest, it'd be better to have that money in a more liquid state and not tied up in a 30 yr note and in a home that's only worth what someone else will pay for it.
the cd/money market is really the way to go.
As AzCat mentioned, having an emergency fund precludes any extra payment on mortgage. I'd stick with a money market. CDs are hardly liquid, unless they have already matured. Even then, they can't be cashed out unless the bank is open. Money market accounts are available whenever the emergency arises.
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pay the minimum on your mortgage and take the extra you would have put towards your mortage and invest it in ETF's. They'll give you market returns without the risk of indivisual stocks and without the high fees of mutual funds. Also you won't pay taxes on the growth of ETF's (unless you sell) while you get to deduct the mortgage interest. Paying your mortgage early is only the best option if your other choice with the money is to waste it or bury it in your back yard.
I know Ramsey preaches to do it but he is preaching to people that are bad with their money so it probably is the best option for them. Me I'd rather be liquid then having all my money tied up in my home. Don't mean to brag but I have enough money to pay off my mortgage now but there is no good reason to do it as long as I have the income to make the minimum payments each month. Especially with the type of inflation I expect to see I'd rather wait and pay it off with deflated dollars. Debtors win with inflation.
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pay the minimum on your mortgage and take the extra you would have put towards your mortage and invest it in ETF's.
I hope you're not suggesting that anyone put their rainy day fund into equity ETFs.
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if something were to happen as you suggest, it'd be better to have that money in a more liquid state and not tied up in a 30 yr note and in a home that's only worth what someone else will pay for it.
the cd/money market is really the way to go.
Yep. I couldn't agree more with Jeffy about the virtues of a debt-free lifestyle but the first order of business along those lines should be funding an adequate emergency account.
I kinda hoped that went without saying. Most on here should know that I've been a Dave Ramseyite for 3 years now. By that, it implies that your 6 month emergency fund is in place before extra is ever thrown to the mortgage. Emergency funds should be in place no matter what - whether you pay extra on the mortgage or whether you rent. It's got to be the single most important part of any financial plan.
anti-semite.
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if something were to happen as you suggest, it'd be better to have that money in a more liquid state and not tied up in a 30 yr note and in a home that's only worth what someone else will pay for it.
the cd/money market is really the way to go.
Yep. I couldn't agree more with Jeffy about the virtues of a debt-free lifestyle but the first order of business along those lines should be funding an adequate emergency account.
I kinda hoped that went without saying. Most on here should know that I've been a Dave Ramseyite for 3 years now. By that, it implies that your 6 month emergency fund is in place before extra is ever thrown to the mortgage. Emergency funds should be in place no matter what - whether you pay extra on the mortgage or whether you rent. It's got to be the single most important part of any financial plan.
anti-semite.
anti-dentite.
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pay the minimum on your mortgage and take the extra you would have put towards your mortage and invest it in ETF's.
I hope you're not suggesting that anyone put their rainy day fund into equity ETFs.
no just like the poster above I'm assuming you already have your rainy day fund established before you worry about what to do with any excess money. I agree that everyone's first priority should be building up approx 6 months living expenses in some type of FDIC insured cash account. Until you get that built up you shouldn't invest or pay down your mortgage either one.
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meh, 6 month rainy day fund is hilariously overrated.
As long as you are young with no kids and decent earning potential much better to max the IRAs and shove money in the market now.
Legore what is the major difference between ETFs and Vanguard Index funds. If I don't want active management, have under $10,000 (excluding IRA/rainy day) in investments and want the lowest fees possible until I can actually get a serious portfolio that can be more diversified, aren't I better just keeping the 500 Index?
Let me know.
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Make bigger/extra mortgage payments?
that's solidly bad advice.
Can save a ton of money by paying more money on your mortgage each month. Ton.
no chit? never heard that before. :users:
he asked for investment advice. throwing money at a house in this market isn't that.
Isn't saving a ton of money on interest payments not an investment of sorts? :dunno:
Depends. Suppose you lock in a fixed 5% mortgage (no idea how low you can get these days but it seems like sub-5s are pretty available). Right now chipping a few extra bucks might seem like a good idea but suppose you could stroll down to the bank and put that money in a short to mid term CD at 6%, would it still be a good idea to put that extra money towards your house payment knowing that you'd be taking a net 1% less than you could have gotten? Depending on whether or not you're self-employed & whether or not your mortgage interest deduction is knocking down your self-employment tax that 1% advantage could be magnified.
Are you an idiot that has no idea what the CD/Bond market is right now or am I an idiot that has no idea what the CD/Bond market is right now?
I am open to any and all information that would help clarify either way.
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Make bigger/extra mortgage payments?
that's solidly bad advice.
Can save a ton of money by paying more money on your mortgage each month. Ton.
no chit? never heard that before. :users:
he asked for investment advice. throwing money at a house in this market isn't that.
Isn't saving a ton of money on interest payments not an investment of sorts? :dunno:
Depends. Suppose you lock in a fixed 5% mortgage (no idea how low you can get these days but it seems like sub-5s are pretty available). Right now chipping a few extra bucks might seem like a good idea but suppose you could stroll down to the bank and put that money in a short to mid term CD at 6%, would it still be a good idea to put that extra money towards your house payment knowing that you'd be taking a net 1% less than you could have gotten? Depending on whether or not you're self-employed & whether or not your mortgage interest deduction is knocking down your self-employment tax that 1% advantage could be magnified.
Are you an idiot that has no idea what the CD/Bond market is right now or am I an idiot that has no idea what the CD/Bond market is right now?
I am open to any and all information that would help clarify either way.
azcat appears to be way off.
http://www.bankrate.com/cd.aspx
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Make bigger/extra mortgage payments?
that's solidly bad advice.
Can save a ton of money by paying more money on your mortgage each month. Ton.
no chit? never heard that before. :users:
he asked for investment advice. throwing money at a house in this market isn't that.
Isn't saving a ton of money on interest payments not an investment of sorts? :dunno:
Depends. Suppose you lock in a fixed 5% mortgage (no idea how low you can get these days but it seems like sub-5s are pretty available). Right now chipping a few extra bucks might seem like a good idea but suppose you could stroll down to the bank and put that money in a short to mid term CD at 6%, would it still be a good idea to put that extra money towards your house payment knowing that you'd be taking a net 1% less than you could have gotten? Depending on whether or not you're self-employed & whether or not your mortgage interest deduction is knocking down your self-employment tax that 1% advantage could be magnified.
Are you an idiot that has no idea what the CD/Bond market is right now or am I an idiot that has no idea what the CD/Bond market is right now?
I am open to any and all information that would help clarify either way.
azcat appears to be way off.
http://www.bankrate.com/cd.aspx
Emphasis added to assist the reading-comprehension impaired. :users:
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LOL
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meh, 6 month rainy day fund is hilariously overrated.
As long as you are young with no kids and decent earning potential much better to max the IRAs and shove money in the market now.
Legore what is the major difference between ETFs and Vanguard Index funds. If I don't want active management, have under $10,000 (excluding IRA/rainy day) in investments and want the lowest fees possible until I can actually get a serious portfolio that can be more diversified, aren't I better just keeping the 500 Index?
Let me know.
An ETF is pretty similar to your Vanguard fund. A mutual fund is a actively managed basket of stocks that you pay somebody a fee to manage. An index mutual fund isn't really actively managed (they just mirror the index rather then making stock picks) so the fees are going to be lower on those then actively managed funds.
An ETF is a predetermined group of stocks that are packaged together. The right to own this group of stocks is then bought and sold on an exchange similar to a stock.
Things I like about ETF's over mutual funds-
1. lower fees expecially the Vanguard ETF's who have very low fees. That said your choice of mutual funds Vanguard Index is a good low fee choice as well.
2. You can buy or sell intraday. When you buy or sell a mutual fund you get the price at the close of market. With an ETF you get the current market price and you can use limit orders, stop losses and those kinds of things.
3. In a mutual fund the fund manager buys and sells stocks and you will get hit with capital gains on these trades. You don't really have control over your capital gains. With an ETF's you only pay taxes when you sell the fund or receive a dividend. The exception to this is when they change the stocks contained in the ETF but that doesn't happen often.
I've never been a big mutual fund guy because of the fees and because most managers can't beat the index anyway. But I think you're fine with your choice of funds and probably wouldn't see much difference between a large cap ETF (I'm in the Vanguard large cap ETF symbol VV) and your Vangurd Index Fund. Mainly what I like to do is buy EFT's that mirror sectors. Say I think Oil and Gas stocks are going to go up rather then taking the risk of picking the wrong oil and gas stock I'll buy an oil and gas sector ETF.
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meh, 6 month rainy day fund is hilariously overrated.
As long as you are young with no kids and decent earning potential much better to max the IRAs and shove money in the market now.
Legore what is the major difference between ETFs and Vanguard Index funds. If I don't want active management, have under $10,000 (excluding IRA/rainy day) in investments and want the lowest fees possible until I can actually get a serious portfolio that can be more diversified, aren't I better just keeping the 500 Index?
Let me know.
An ETF is pretty similar to your Vanguard fund. A mutual fund is a actively managed basket of stocks that you pay somebody a fee to manage. An index mutual fund isn't really actively managed (they just mirror the index rather then making stock picks) so the fees are going to be lower on those then actively managed funds.
An ETF is a predetermined group of stocks that are packaged together. The right to own this group of stocks is then bought and sold on an exchange similar to a stock.
Things I like about ETF's over mutual funds-
1. lower fees expecially the Vanguard ETF's who have very low fees. That said your choice of mutual funds Vanguard Index is a good low fee choice as well.
2. You can buy or sell intraday. When you buy or sell a mutual fund you get the price at the close of market. With an ETF you get the current market price and you can use limit orders, stop losses and those kinds of things.
3. In a mutual fund the fund manager buys and sells stocks and you will get hit with capital gains on these trades. You don't really have control over your capital gains. With an ETF's you only pay taxes when you sell the fund or receive a dividend. The exception to this is when they change the stocks contained in the ETF but that doesn't happen often.
I've never been a big mutual fund guy because of the fees and because most managers can't beat the index anyway. But I think you're fine with your choice of funds and probably wouldn't see much difference between a large cap ETF (I'm in the Vanguard large cap ETF symbol VV) and your Vangurd Index Fund. Mainly what I like to do is buy EFT's that mirror sectors. Say I think Oil and Gas stocks are going to go up rather then taking the risk of picking the wrong oil and gas stock I'll buy an oil and gas sector ETF.
Excellent summary.
My guess was that at my level the trade fees and brokerage fees will be a bigger hit than the lower mgt. fees.