Author Topic: New To Investing Thread  (Read 83025 times)

0 Members and 2 Guests are viewing this topic.

Offline chum1

  • Pak'r √Člitaire
  • ****
  • Posts: 15397
  • Gucci Mane Book Reader
    • View Profile
Re: New To Investing Thread
« Reply #2175 on: May 05, 2019, 06:38:55 AM »
Around five years ago, I picked five different types of mutual funds for one of my retirement accounts. It's impossible not to notice that one of them is really, REALLY lagging behind the other four. It's meant to be a long term investment, of course, but should I go ahead and dump it anyway because it seems like such a loser "lately?"

Since 2002 +8%
10 year +8%
5 year -1%
1 year -10%

Is it an international fund?

Yep

Offline DaBigTrain

  • Katpak'r
  • ***
  • Posts: 2821
  • stuxnet, meltdown, spectre, btc, ltc, ffChamp
    • View Profile
Re: New To Investing Thread
« Reply #2176 on: May 13, 2019, 05:36:41 PM »
New to investing here...is this good?


Offline chum1

  • Pak'r √Člitaire
  • ****
  • Posts: 15397
  • Gucci Mane Book Reader
    • View Profile
Re: New To Investing Thread
« Reply #2177 on: May 13, 2019, 06:02:26 PM »
Looks like I've picked another winner.  :gocho:


Offline DaBigTrain

  • Katpak'r
  • ***
  • Posts: 2821
  • stuxnet, meltdown, spectre, btc, ltc, ffChamp
    • View Profile
Re: New To Investing Thread
« Reply #2178 on: May 13, 2019, 06:23:55 PM »
You are v good at this thread

Offline Dlew12

  • PCKK7DC Survivor
  • Pak'r √Člitaire
  • *******
  • Posts: 18847
  • #TeamChestHair
    • View Profile
Re: New To Investing Thread
« Reply #2179 on: May 14, 2019, 08:32:38 AM »
spoke to a financial planner this morning.  had some decent, basic advice for my position (buying a house in the next year or so).  i'm sure he's smarter than i am in this field, but my main issue was whether his benefit outweighed his cost.

says he makes his money by splitting the investment fees with the various companies offering the investments so there's very little out of pocket outside of an annual fee (~$50).  so that seems relatively low risk, but I can't help but notice an inherent conflict of interest through that compensation structure (i.e. he's incentivized to choose investment vehicles with higher fees).

probably going to go with him anyway.


"You want to stand next to someone and not be able to hear them, walk your ass into Manhattan, Kansas." - [REDACTED]

Offline Kat Kid

  • Global Moderator
  • Pak'r √Člitaire
  • *****
  • Posts: 16153
    • View Profile
Re: New To Investing Thread
« Reply #2180 on: May 14, 2019, 09:32:43 AM »
spoke to a financial planner this morning.  had some decent, basic advice for my position (buying a house in the next year or so).  i'm sure he's smarter than i am in this field, but my main issue was whether his benefit outweighed his cost.

says he makes his money by splitting the investment fees with the various companies offering the investments so there's very little out of pocket outside of an annual fee (~$50).  so that seems relatively low risk, but I can't help but notice an inherent conflict of interest through that compensation structure (i.e. he's incentivized to choose investment vehicles with higher fees).

probably going to go with him anyway.

If you need financial planning, get a fee based adviser with fiduciary duty to you.
@bentren

Online steve dave

  • Global Moderator
  • Pak'r √Člitaire
  • *****
  • Posts: 66926
  • SP? all of that--->
    • View Profile
Re: New To Investing Thread
« Reply #2181 on: May 14, 2019, 09:56:27 AM »
spoke to a financial planner this morning.  had some decent, basic advice for my position (buying a house in the next year or so).  i'm sure he's smarter than i am in this field, but my main issue was whether his benefit outweighed his cost.

says he makes his money by splitting the investment fees with the various companies offering the investments so there's very little out of pocket outside of an annual fee (~$50).  so that seems relatively low risk, but I can't help but notice an inherent conflict of interest through that compensation structure (i.e. he's incentivized to choose investment vehicles with higher fees).

probably going to go with him anyway.

Mods, please change dlew to annuitycat


Sent from my iPhone using Tapatalk

Offline catastrophe

  • Pak'r √Člitaire
  • ****
  • Posts: 8087
    • View Profile
New To Investing Thread
« Reply #2182 on: May 14, 2019, 09:58:15 AM »
Yeah I’d definitely go the fiduciary route if I was gonna have someone handling my money.

What kind of advice did they give? I’ve honestly never understood the upside to financial planners other than retirement planning because that math still seems super complex to me.

Offline ben ji

  • Senior Moderator
  • PCKK7DC Survivor
  • Pak'r √Člitaire
  • *******
  • Posts: 7223
  • Alot of people dont hit on an 18
    • View Profile
Re: New To Investing Thread
« Reply #2183 on: May 14, 2019, 11:28:14 AM »
spoke to a financial planner this morning.  had some decent, basic advice for my position (buying a house in the next year or so).  i'm sure he's smarter than i am in this field, but my main issue was whether his benefit outweighed his cost.

says he makes his money by splitting the investment fees with the various companies offering the investments so there's very little out of pocket outside of an annual fee (~$50).  so that seems relatively low risk, but I can't help but notice an inherent conflict of interest through that compensation structure (i.e. he's incentivized to choose investment vehicles with higher fees).

probably going to go with him anyway.

Did you ask him what the Investment Fee's are on the funds he would invest you in? I'm guessing they are alot, would also ask about any load fees. Even if his "Fee" works out to only 1% it will turn into Hundreds of thousands of dollars over 30 years. If you have $0 invested right now and contribute $1000 a month over the next 30 years that 1% fee will turn into $195,000 less in your account over 30 years.


If you are not already maxing your tax advantaged space (401k/IRA) then do that first before you open any brokerage account with a financial advisor. If you are unsure on what funds to select in your 401k/IRA just post them here or put them in a SP500 Index fund or a target date retirement fund.

IMO the only time an adviser makes sense is after you have accumulated a lot of money and need advice on tax/estate planning strategies.
« Last Edit: May 14, 2019, 11:39:57 AM by ben ji »
"I think my grandpa killed some body once, he never liked to talk about Kent State though"

Online steve dave

  • Global Moderator
  • Pak'r √Člitaire
  • *****
  • Posts: 66926
  • SP? all of that--->
    • View Profile
New To Investing Thread
« Reply #2184 on: May 14, 2019, 11:40:02 AM »
99% of advisors won’t beat Vanguard S&P Admiral shares long term after accounting for costs/fees.

Source: I live in Omaha

Sent from my iPhone using Tapatalk

Offline Kat Kid

  • Global Moderator
  • Pak'r √Člitaire
  • *****
  • Posts: 16153
    • View Profile
Re: New To Investing Thread
« Reply #2185 on: May 14, 2019, 11:47:46 AM »
99% of advisors won’t beat Vanguard S&P Admiral shares long term after accounting for costs/fees.

Source: I live in Omaha

Sent from my iPhone using Tapatalk

Yeah I absolutely agree with this, but if he is looking for help with financial planning/budgeting that is different.
@bentren

Online steve dave

  • Global Moderator
  • Pak'r √Člitaire
  • *****
  • Posts: 66926
  • SP? all of that--->
    • View Profile
Re: New To Investing Thread
« Reply #2186 on: May 14, 2019, 11:48:52 AM »
99% of advisors won’t beat Vanguard S&P Admiral shares long term after accounting for costs/fees.

Source: I live in Omaha

Sent from my iPhone using Tapatalk

Yeah I absolutely agree with this, but if he is looking for help with financial planning/budgeting that is different.

for sure. in this scenario he should get that advice and then tell him to put all his coin in vanguard admiral shares.

Online steve dave

  • Global Moderator
  • Pak'r √Člitaire
  • *****
  • Posts: 66926
  • SP? all of that--->
    • View Profile
Re: New To Investing Thread
« Reply #2187 on: May 14, 2019, 11:51:49 AM »
sd bro is a compliance director at a broker-dealer and always tells me horror stories about the crap annuities and garbage investments their people push on chumps for the high fees. most (not all) of these people are not really looking out for your best interest.

Offline IPA4Me

  • Pak'r √Člitaire
  • ****
  • Posts: 4059
  • El Guapo
    • View Profile
    • Life Advice
Re: New To Investing Thread
« Reply #2188 on: May 14, 2019, 12:14:10 PM »
I've been very fortunate. Good friend is investment advisor and has layered my investments nicely in addition to picking my 401K funds. Performance has beat market regularly for a while. If you're in Louisville area, I'd be happy to share contact information in DM.

Sent from my Moto G (4) using Tapatalk


Offline Brock Landers

  • Pak'r √Člitaire
  • ****
  • Posts: 5286
    • View Profile
Re: New To Investing Thread
« Reply #2189 on: May 14, 2019, 12:26:59 PM »
That can't possibly be the case sd, annuity purchases go through a rigorous suitability review   :jerk:

Offline Dlew12

  • PCKK7DC Survivor
  • Pak'r √Člitaire
  • *******
  • Posts: 18847
  • #TeamChestHair
    • View Profile
Re: New To Investing Thread
« Reply #2190 on: May 14, 2019, 12:37:15 PM »
I'm not going to be giving him free reign to invest in whatever.  My portfolio isn't rocket science -- I just want to set up a roth and figure out if there's a better strategy as I save for a house down payment.  If my investment strategy doesn't work within his scheme, then we won't work together.  I appreciate the advice ITT that my concern re. conflict of interest may be well founded. 


"You want to stand next to someone and not be able to hear them, walk your ass into Manhattan, Kansas." - [REDACTED]

Offline catastrophe

  • Pak'r √Člitaire
  • ****
  • Posts: 8087
    • View Profile
Re: New To Investing Thread
« Reply #2191 on: May 14, 2019, 01:10:08 PM »
Yes I‚Äôve seen multiple cases of ‚Äúindependent contractors‚ÄĚ (who work under very recognizable company names) totally screwing people over. It‚Äôs obviously not the norm but that business model definitely seems to attract scumbags.

Offline sys

  • Contributor
  • Pak'r √Člitaire
  • *****
  • Posts: 32754
  • your reputation will never recover, nor should it.
    • View Profile
Re: New To Investing Thread
« Reply #2192 on: May 14, 2019, 01:21:11 PM »
help with financial planning/budgeting that is different.

a little free financial planning and budgeting advice - save as much money as you can.  when you have enough, stop working and start spending it.
we understand it better now that the american century is over and some of us sound more and more like serbs.