Author Topic: New To Investing Thread  (Read 327079 times)

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Offline chum1

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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

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Re: New To Investing Thread
« Reply #2176 on: May 13, 2019, 05:36:41 PM »
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks"

https://blockstream.info/block/000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f

Offline chum1

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Re: New To Investing Thread
« Reply #2177 on: May 13, 2019, 06:02:26 PM »
Looks like I've picked another winner.  :gocho:

https://twitter.com/CNBC/status/1127973862371725312

Offline DaBigTrain

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Re: New To Investing Thread
« Reply #2178 on: May 13, 2019, 06:23:55 PM »
You are v good at this thread
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks"

https://blockstream.info/block/000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f

Offline DQ12

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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.


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Offline Kat Kid

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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.

Offline steve dave

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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


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Offline catastrophe

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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

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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 »

Offline steve dave

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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

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Offline Kat Kid

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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

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

Offline steve dave

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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

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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.

Offline steve dave

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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

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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.

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Offline Brock Landers

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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 DQ12

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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. 


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Offline catastrophe

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Re: New To Investing Thread
« Reply #2191 on: May 14, 2019, 01:10:08 PM »
Yes I’ve seen multiple cases of “independent contractors” (who work under very recognizable company names) totally screwing people over. It’s obviously not the norm but that business model definitely seems to attract scumbags.

Offline sys

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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.
"experienced commanders will simply be smeared and will actually go to the meat."

Offline chum1

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Re: New To Investing Thread
« Reply #2193 on: May 28, 2019, 06:44:02 AM »
I really need to create an account 100% informed by Trump's corrupt appointees.

https://twitter.com/levinecarrie/status/1133323542722940934

Offline DaBigTrain

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Re: New To Investing Thread
« Reply #2194 on: July 07, 2019, 06:12:56 PM »
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks"

https://blockstream.info/block/000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f

Offline ben ji

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Re: New To Investing Thread
« Reply #2195 on: July 07, 2019, 08:07:28 PM »
I enjoyed how everything worked out positively for Forrest in that movie.

Offline catastrophe

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Re: New To Investing Thread
« Reply #2196 on: July 07, 2019, 09:51:31 PM »
If Zuckerberg could out maneuver that one co-creator of Facebook by diluting his shares, I’m positive that happened to Forrest as well.

Offline ben ji

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Re: New To Investing Thread
« Reply #2197 on: August 12, 2019, 11:07:45 AM »
Friendly real world reminder to all you youngish EMAW's that compounding interest is the 8th wonder of the world and you should invest as much as you can as early as you can.

Was playing around with some calculators and if I never contributed another $ to my retirement accounts I am projected to be a millionaire in 30 years. (Assumes 7% growth)

Offline KITNfury

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Re: New To Investing Thread
« Reply #2198 on: August 13, 2019, 08:10:28 AM »
Friendly real world reminder to all you youngish EMAW's that compounding interest is the 8th wonder of the world and you should invest as much as you can as early as you can.

Was playing around with some calculators and if I never contributed another $ to my retirement accounts I am projected to be a millionaire in 30 years. (Assumes 7% growth)
This is true. Buy what I tell all youngsters is the first thing they should do is save up to buy a duplex or fourplex as their first house. Most people spend 1/3-1/4 of their income on housing. If you do what I say the right way, you will basically keep most of that money in your pocket, which essentially you're giving yourself a 25-33% raise.

At that point, you can pocket a huge chunk of your income to reinvest. I would recommend reinvesting in real estate, but other investments would work too if you're more comfortable with it. But the numbers are paltry compared to what I've experienced in real estate. Granted, I'm not stock market savvy. Seems like even people that work in that space are hit or miss.

I expect double digits cash on cash return with real estate, hopefully closer to 15%. That excludes the principle pay down, appreciation, and tax benefits. You can't count on appreciation, but the rest of it you can if you run your numbers right.
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Offline DaBigTrain

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Re: New To Investing Thread
« Reply #2199 on: September 13, 2019, 07:12:20 PM »
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks"

https://blockstream.info/block/000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f