Author Topic: New To Investing Thread  (Read 327185 times)

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Offline CNS

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Re: New To Investing Thread
« Reply #200 on: April 17, 2013, 08:56:29 AM »
my 401 is in a vanguard target fund, vfifx. it's done really well for me, especially over the last year (13.44%).

Everything has done really well over the last yr.

Offline kostakio

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Re: New To Investing Thread
« Reply #201 on: April 17, 2013, 09:03:50 AM »
A simplified rule of thumb is you want to be in bonds when interest rates are higher and in stocks when they are lower.

i get that, but i think it is overly simplified.  some guys seem to make money (in bonds) in all markets.

yeah that goes back to knowing the credit risks.  Bond ratings are very public and easy to obtain the guys that consistently outperform are the guys that have better information then the ratings bureaus.  It can be done but not easily, so it's something I would stay away from worrying about. 

Offline kostakio

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Re: New To Investing Thread
« Reply #202 on: April 17, 2013, 09:10:31 AM »
For finance based calculations, what do you guys figure for rate of appreciation for residential real-estate in a upper middle class Johnson County neighborhood?

somewhere around 0%

good answer it's nice if your home goes up in value but I don't think you ever want to be in a situation where you are expecting/counting on it. 

Online yoga-like_abana

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Re: New To Investing Thread
« Reply #203 on: April 17, 2013, 09:13:00 AM »
sys the market is inefficient. theories are just that.

Offline Rage Against the McKee

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Re: New To Investing Thread
« Reply #204 on: April 17, 2013, 09:14:34 AM »
For finance based calculations, what do you guys figure for rate of appreciation for residential real-estate in a upper middle class Johnson County neighborhood?

somewhere around 0%

good answer it's nice if your home goes up in value but I don't think you ever want to be in a situation where you are expecting/counting on it.

The biggest flaw with counting on home value increasing as an investment is that you need a place to live.

Offline CNS

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Re: New To Investing Thread
« Reply #205 on: April 17, 2013, 09:22:08 AM »
Any finance guys deal with American Funds?  My guy is trying to get me in them now. 

Offline steve dave

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Re: New To Investing Thread
« Reply #206 on: April 17, 2013, 09:23:03 AM »
Any finance guys deal with American Funds?  My guy is trying to get me in them now.

because they pay him well. a good pro-tip is not to have "a guy".

Offline CNS

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Re: New To Investing Thread
« Reply #207 on: April 17, 2013, 09:23:46 AM »
Any finance guys deal with American Funds?  My guy is trying to get me in them now.

because they pay him well

Yeah, they seem to have a pretty high expense ratio.  Like, really high. 

Offline steve dave

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Re: New To Investing Thread
« Reply #208 on: April 17, 2013, 09:25:57 AM »
Any finance guys deal with American Funds?  My guy is trying to get me in them now.

because they pay him well

Yeah, they seem to have a pretty high expense ratio.  Like, really high.

I edited my post above but in almost every situation it's best not to have "a guy" because of this.

Offline ben ji

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Re: New To Investing Thread
« Reply #209 on: April 17, 2013, 09:26:53 AM »
Any finance guys deal with American Funds?  My guy is trying to get me in them now.

because they pay him well

Yeah, they seem to have a pretty high expense ratio.  Like, really high.

My 401k is through american funds and the expense ratio's are all very high. I would assume "Having a guy" would make that even higher.

Offline steve dave

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Re: New To Investing Thread
« Reply #210 on: April 17, 2013, 09:27:02 AM »
never buy whole life

Offline steve dave

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Re: New To Investing Thread
« Reply #211 on: April 17, 2013, 09:28:33 AM »
Any finance guys deal with American Funds?  My guy is trying to get me in them now.

because they pay him well

Yeah, they seem to have a pretty high expense ratio.  Like, really high.

My 401k is through american funds and the expense ratio's are all very high. I would assume "Having a guy" would make that even higher.

no, it would be the same...unless you're paying him for some reason. in almost all instances the guy just gets a kickback for selling whatever product.

Offline steve dave

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Re: New To Investing Thread
« Reply #212 on: April 17, 2013, 09:30:42 AM »
that's why "the guy" is a stupid waste of time and detrimental to your investments in almost every situation. he has a clear conflict of interest because he gets a larger kickback from some products than others. because of this he will want you to purchase those products.

Offline EllRobersonisInnocent

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Re: New To Investing Thread
« Reply #213 on: April 17, 2013, 09:32:29 AM »
that's why "the guy" is a stupid waste of time and detrimental to your investments in almost every situation. he has a clear conflict of interest because he gets a larger kickback from some products than others. because of this he will want you to purchase those products.

So people shouldn't use financial advisors?

Offline Emo EMAW

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Re: New To Investing Thread
« Reply #214 on: April 17, 2013, 09:38:32 AM »
never buy whole life

Oh man.  Had a old friend hounding me on this stuff for months.  Had to be blunt.

Offline slobber

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Re: New To Investing Thread
« Reply #215 on: April 17, 2013, 09:38:35 AM »
Any finance guys deal with American Funds?  My guy is trying to get me in them now.

because they pay him well. a good pro-tip is not to have "a guy".
Agree. Disagree.

If you have an idiot guy, then I'd agree. I'd just make certain I knew why my guy was wanting me to do what he wants me to do. Always make certain you know how much money your guys is making. If you are paying him, you need to know how much you are paying him. How do you find out? Ask him. See how that compares to what it costs to invest on your own. If your guy doesn't bring anything more to the table than, "Hey, I think you should invest in American Funds," then you need a different guy.

Now, for several of you on here, I will agree that it is fine to go it alone, but you still need to make certain you know what your long term goals are and you have to stick to your plan.

Further advice, when crap looks the worst, invest more and if your plan is good and if your cheese has not moved drastically, invest in the same crap. Lots of dumbasses in my office moved their money to safety in Jan-Mar 2009. Some of them just moved it back into growth investments over the last year. They lost a lot of opportunity.

Offline steve dave

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Re: New To Investing Thread
« Reply #216 on: April 17, 2013, 09:39:24 AM »
that's why "the guy" is a stupid waste of time and detrimental to your investments in almost every situation. he has a clear conflict of interest because he gets a larger kickback from some products than others. because of this he will want you to purchase those products.

So people shouldn't use financial advisors?

sometimes they should. there are definitely good ones out there. the problem is that no matter how good they are their profession has built in conflicts of interest. plus, 98% of the population would do better just contributing to their 401(k), starting an IRA and investing in broad index funds with anything they have left over.

Offline steve dave

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Re: New To Investing Thread
« Reply #217 on: April 17, 2013, 09:40:14 AM »
never buy whole life

Oh man.  Had a old friend hounding me on this stuff for months.  Had to be blunt.

because it pays him well. it's one of the worst "investments" you can make.

Offline Emo EMAW

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Re: New To Investing Thread
« Reply #218 on: April 17, 2013, 09:43:33 AM »
never buy whole life

Oh man.  Had a old friend hounding me on this stuff for months.  Had to be blunt.

because it pays him well. it's one of the worst "investments" you can make.

He was new to it (taking over for an old guy), trying to build his own base.  I doubt he's doing that well with it.

Offline Rams

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Re: New To Investing Thread
« Reply #219 on: April 17, 2013, 09:44:54 AM »
re: american funds

garbage.  stay away.  they used to be great (a long time ago) but they're sort of a victim of their own success because they're just so big. also their managers are crap now. double whammy.  sd is right though, lots of shitty "advisors" still push them because they give lots of perks and kickbacks

re: having an advisor

never pay a commission (A share or B share mutual funds)...ever.  if you don't have enough money to meet the minimum for a wrap fee account, do it yourself and buy a couple of basic index etfs in a fidelity/etrade/schwab account.  if you really don't feel comfortable doing it yourself, demand C share mutual funds and never pay over 1% in a wrap fee account.  ask lots of questions and make sure you understand exactly why you own each and every investment.

re: whole life

yes. in most situations whole life is a waste of money (and pays the guy selling it to you a huge commission).  it's a pretty good tool for estate planning and very high income earners, but in most cases you should just buy term.
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Offline steve dave

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Re: New To Investing Thread
« Reply #220 on: April 17, 2013, 09:47:00 AM »
pro-tip: home business tax shelter. everyone should have one.

Offline Emo EMAW

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Re: New To Investing Thread
« Reply #221 on: April 17, 2013, 09:47:27 AM »
FYI, E*Trade is EMAW. 

Offline steve dave

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Re: New To Investing Thread
« Reply #222 on: April 17, 2013, 09:48:21 AM »
FYI, E*Trade is EMAW.

ameritrade owns the cubs

Offline Dr Rick Daris

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Re: New To Investing Thread
« Reply #223 on: April 17, 2013, 09:52:39 AM »
pro-tip: home business tax shelter. everyone should have one.

like self proprietor or llc? what would my benefits be? should i make one? why?

Offline Rams

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Re: New To Investing Thread
« Reply #224 on: April 17, 2013, 09:53:24 AM »
pro-tip: home business tax shelter. everyone should have one.
that's pretty aggressive.  just make sure it's at least mostly legit.  you're begging for an audit.
"Son. This is why we are wildcats. Hard work, pride, the heart of this country. And if that's not enough for you, you can just move to California with your punk friends."