Author Topic: New To Investing Thread (Read 335618 times)

Kat Kid · « **Reply #2200 on:** October 07, 2019, 05:41:31 PM »

Alright, my wife’s 401k is at 16% return on the year. We all know a recession is coming? Should I try to time it and try to find a money market on the fund list or something?

sys · « **Reply #2201 on:** October 07, 2019, 05:45:26 PM »

Kat Kid · « **Reply #2202 on:** October 07, 2019, 05:48:45 PM »

Come on!

wetwillie · « **Reply #2203 on:** October 07, 2019, 06:47:13 PM »

Did not know KK was 65 years old

Kat Kid · « **Reply #2204 on:** October 07, 2019, 09:12:48 PM »

Quote from: wetwillie on October 07, 2019, 06:47:13 PM

Did not know KK was 65 years old

some of you big shots don't care about potentially saving 6 figures if I do this right?

IPA4Me · « **Reply #2205 on:** October 07, 2019, 09:24:36 PM »

Are you retiring next year?

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Kat Kid · « **Reply #2206 on:** October 07, 2019, 09:26:44 PM »

some of you just don't have the vision needed for this caper.

steve dave · « **Reply #2207 on:** October 07, 2019, 09:45:08 PM »

KK, yes

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Katpappy · « **Reply #2208 on:** October 07, 2019, 10:07:55 PM »

Hey guys, serious question(s): Retired and putting my investment in the hands of a Wealth/Financial Adviser Group. Is this a good play or fumble. Would appreciate advice from anyone with experience. TIA

ben ji · « **Reply #2209 on:** October 07, 2019, 10:24:16 PM »

Quote from: Katdaddy on October 07, 2019, 10:07:55 PM

Hey guys, serious question(s): Retired and putting my investment in the hands of a Wealth/Financial Adviser Group. Is this a good play or fumble. Would appreciate advice from anyone with experience. TIA

Maybe, maybe they are a fly by night company and will take your money and invest it in a ponzi scheme.

1. Did they guarantee you any rate of return more than 2 or 3%? If so run.

2. Do you know how they are paid? % of assets? Expense ratios on funds, Load fee's etc?

3. What kind of funds will they invest your money in and how does this correlate with your plans/goals?

Even if you decide to go with a adviser you should make sure you are educated enough about the process to understand in a general sense that their plans are aligning with your goals.

steve dave · « **Reply #2210 on:** October 07, 2019, 10:48:38 PM »

Quote from: Katdaddy on October 07, 2019, 10:07:55 PM

Hey guys, serious question(s): Retired and putting my investment in the hands of a Wealth/Financial Adviser Group. Is this a good play or fumble. Would appreciate advice from anyone with experience. TIA

Katdaddy, no

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Spracne · « **Reply #2211 on:** October 07, 2019, 10:52:07 PM »

Quote from: Katdaddy on October 07, 2019, 10:07:55 PM

Hey guys, serious question(s): Retired and putting my investment in the hands of a Wealth/Financial Adviser Group. Is this a good play or fumble. Would appreciate advice from anyone with experience. TIA

Katdaddy, I would like to add you to my professional network on LinkedIn.com

catastrophe · « **Reply #2212 on:** October 08, 2019, 05:17:49 PM »

Quote from: Kat Kid on October 07, 2019, 09:26:44 PM

some of you just don't have the vision needed for this caper.

Can you explain it? If the market dips and you’re able to avoid touching the money until it comes back up then you come out ahead by leaving it in stocks.

catastrophe · « **Reply #2213 on:** October 08, 2019, 05:20:32 PM »

Quote from: steve dave on October 07, 2019, 10:48:38 PM

Quote from: Katdaddy on October 07, 2019, 10:07:55 PM
Hey guys, serious question(s): Retired and putting my investment in the hands of a Wealth/Financial Adviser Group. Is this a good play or fumble. Would appreciate advice from anyone with experience. TIA

Katdaddy, no

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They would need to be well vetted, have a big presence (so less likely to go belly up) and a fiduciary for me to consider this route. That said, I think a robo advisor like Betterment, Wealthfront, or others is a much better play if you want advice on asset allocation and retirement withdrawals based on your goals.

Kat Kid · « **Reply #2214 on:** October 08, 2019, 05:20:53 PM »

Quote from: catastrophe on October 08, 2019, 05:17:49 PM

Quote from: Kat Kid on October 07, 2019, 09:26:44 PM
some of you just don't have the vision needed for this caper.

Can you explain it? If the market dips and you’re able to avoid touching the money until it comes back up then you come out ahead by leaving it in stocks.

Or I could put it in cash and buy the dip.

catastrophe · « **Reply #2215 on:** October 08, 2019, 05:28:32 PM »

Put it in cash? You’re selling the stocks at a high point so that’s all tax deferred gains unless it’s a Roth 401k. You can still buy the dip by switching from one stock to another similar stock. I’m pretty sure you’re just as liquid. Plus you still miss out on dividends during the drop.

Kat Kid · « **Reply #2216 on:** October 08, 2019, 07:26:23 PM »

Quote from: catastrophe on October 08, 2019, 05:28:32 PM

Put it in cash? You’re selling the stocks at a high point so that’s all tax deferred gains unless it’s a Roth 401k. You can still buy the dip by switching from one stock to another similar stock. I’m pretty sure you’re just as liquid. Plus you still miss out on dividends during the drop.

I am not going to cash it out, I am going to buy like a money market fund.

ben ji · « **Reply #2217 on:** October 08, 2019, 07:37:45 PM »

Quote from: Kat Kid on October 08, 2019, 07:26:23 PM

I am not going to cash it out, I am going to buy like a money market fund.

The problem with trying to time the Market is you have to be right twice, you have to correctly identify the high and then also correctly identify the low.

catastrophe · « **Reply #2218 on:** October 08, 2019, 11:34:52 PM »

Quote from: Kat Kid on October 08, 2019, 07:26:23 PM

Quote from: catastrophe on October 08, 2019, 05:28:32 PM
Put it in cash? You’re selling the stocks at a high point so that’s all tax deferred gains unless it’s a Roth 401k. You can still buy the dip by switching from one stock to another similar stock. I’m pretty sure you’re just as liquid. Plus you still miss out on dividends during the drop.

I am not going to cash it out, I am going to buy like a money market fund.

I STILL DONT UNDERSTAND

sys · « **Reply #2219 on:** October 09, 2019, 12:17:38 AM »

he wants to sell his wife's stocks now because he thinks they will go down in price in the near future and he can then use the money to buy more shares of the same stocks than she has now because the stocks will be cheaper.

money doesn't leave the 401k.

TheProdigiousTalent · « **Reply #2220 on:** October 09, 2019, 02:46:34 AM »

It's time IN the market, not timING the market, KatKid. Forget not about dividends, wise one. Having said that, I regularly fantasize about doing some brilliant market timing in my 401k myself.

I tried it once when I was convinced the market couldn't rise further and ended up losing out on enough gains (over months) to buy a really nice car. Got back in, but those losses are still compounding, amigo. I'll take it to my grave (urn, actually; fortunately, this seems to be the one mistake my wife has forgotten).

WWJBD (what would John Bogle do)? Set it and forget it, methinks.

Edit: Keep in mind that your 401k provider surely has frequent trading limitations, though it doesn't sound like you're gonna go wild with this thing.

TheProdigiousTalent · « **Reply #2221 on:** October 09, 2019, 03:11:42 AM »

OTOH, human emotion is pretty illogical (loss aversion is real), and I can't see this effing market going up much more (only the 2nd time I've had this feeling!), so you could sell, man. Election year, etc. If you time this thing, it could become your favorite story and eliminate any yearnings you might have to do other cool stuff in life (whether that's good or bad is up to you, amigo). Food for thought.

steve dave · « **Reply #2222 on:** October 09, 2019, 06:04:33 AM »

Move it from the fund(s) that are getting ready to tank and into ones that are getting ready to go up imo.

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KITNfury · « **Reply #2223 on:** October 09, 2019, 07:30:05 AM »

Quote from: TheProdigiousTalent on October 09, 2019, 03:11:42 AM

OTOH, human emotion is pretty illogical (loss aversion is real), and I can't see this effing market going up much more (only the 2nd time I've had this feeling!), so you could sell, man. Election year, etc. If you time this thing, it could become your favorite story and eliminate any yearnings you might have to do other cool stuff in life (whether that's good or bad is up to you, amigo). Food for thought.

From what I've read, studies have proven humans are more scared of losing that motivated by gaining. Primary reason most people work until they're 65 +. Some people legitimately love their job, as in they would do it even if they didn't need the money, but most people work because they have to.

catastrophe · « **Reply #2224 on:** October 09, 2019, 08:25:21 AM »

Quote from: sys on October 09, 2019, 12:17:38 AM

he wants to sell his wife's stocks now because he thinks they will go down in price in the near future and he can then use the money to buy more shares of the same stocks than she has now because the stocks will be cheaper.

money doesn't leave the 401k.

Ah, ok. Yeah, it could work if you time it right, although I guess that’s always the rub for stocks.