Author Topic: New To Investing Thread  (Read 327406 times)

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Offline Kat Kid

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Re: New To Investing Thread
« Reply #300 on: April 18, 2013, 07:07:13 AM »
When looking at index funds what is a good range for the expense ratio?

Vanguard should be the benchmark. They're at like 0.17%. I don't think anyone beats that and don't know why you would go anywhere else unless you had absolutely no choice.

schwab etf's are lower in cost that vanguard funds.  etf's in general are lower than mutual funds.  prolly doesn't matter if you're 401k investing.  i know my 401k has crap for selection, i assume that's standard.

Again ETF's, because they can be actively traded, require a brokerage account and have additional fees associated with them.  For first time/small investors it can be pretty close to eating away at the entire point of having a "lower cost."

Offline Kat Kid

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Re: New To Investing Thread
« Reply #301 on: April 18, 2013, 07:08:50 AM »
it's pretty funny that people that think they're smart are attacking emo for daring to introduce the concept of outperforming the mean.  you people sound brainwashed.

the concepts he is talking about are 1) more risky than he is selling them as 2) not really compatible with what 90% of the people seeking advice in this thread have for their situation.  I mean I would guess that a decent percent are not to $10,000 in their retirement accounts yet.  The fees for a brokerage account and each trade will quickly eat in to the profits that they may or may not realize through emo's strategy.  Sure we are being a little simplistic, but read the thread title, know the intended audience and provide advice accordingly.  I mean there are probably lots of more profitable investments than index funds, but I don't really think there are better options for someone that does not have a ton of capital, does not have a ton of expertise and does not have a ton of time.

4 rough ridin' trades from 2004 to today.  4.

Look, I mean just explain the system you are referring to at this point so people can judge it on its own merits.

Online chum1

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Re: New To Investing Thread
« Reply #302 on: April 18, 2013, 07:33:15 AM »
DEATHLY SERIOUS FINANCE INDOCTRINATION THREAD

Offline GCJayhawker

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Re: New To Investing Thread
« Reply #303 on: April 18, 2013, 08:37:23 AM »
I didn't really know which thread to post this in since he posts in so many, but I'm pretty Emo is the type of person a lot of people would want to punch in the face.  I'm not saying the information he posts is wrong. I have no idea on that, but he strikes me as the type of person who would always have to add his two cents in a conversation to try and prove he is the smartest man in the room.

Offline CNS

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Re: New To Investing Thread
« Reply #304 on: April 18, 2013, 08:45:38 AM »
I like Emo.   :dunno:

Not a comment on his investing strategy, but def wouldn't want to punch him in the face.   

Offline GCJayhawker

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Re: New To Investing Thread
« Reply #305 on: April 18, 2013, 08:49:08 AM »
I like Emo.   :dunno:

Not a comment on his investing strategy, but def wouldn't want to punch him in the face.

I'm not saying I would want to punch him in the face either. Just saying he strikes me as the type that could rub people the wrong way.

Offline Johnny Wichita

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Re: New To Investing Thread
« Reply #306 on: April 18, 2013, 08:51:09 AM »
#teamEMO.  Or #temo (#teamo?), if you will. 

Offline Emo EMAW

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Re: New To Investing Thread
« Reply #307 on: April 18, 2013, 08:52:17 AM »
I didn't really know which thread to post this in since he posts in so many, but I'm pretty Emo is the type of person a lot of people would want to punch in the face.  I'm not saying the information he posts is wrong. I have no idea on that, but he strikes me as the type of person who would always have to add his two cents in a conversation to try and prove he is the smartest man in the room.

Hey, more than one way to skin a cat.  Just trying to offer a different perspective.  I think we can agree that there is no ONE way to do most anything.  This board has a crap ton of groupthink and a really strong antibody response to different perspectives.  I think generally speaking people here are helpful, and I try to be as well.  But our experiences are diverse and there will be differing opinions.  Also, I'm pretty good at taking a punch to the face.

Offline Rams

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Re: New To Investing Thread
« Reply #308 on: April 18, 2013, 08:55:37 AM »
#temo  :emawkid:

still not on board with market timing.
"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."

Offline puniraptor

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Re: New To Investing Thread
« Reply #309 on: April 18, 2013, 09:01:58 AM »
I have a traditional ira left over from a 401k rollover from an old job. can I squeeze this into my pending new roth somehow? do I just have to pay taxes on it like I would have?

Offline slobber

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Re: New To Investing Thread
« Reply #310 on: April 18, 2013, 09:02:27 AM »
I didn't really know which thread to post this in since he posts in so many, but I'm pretty Emo is the type of person a lot of people would want to punch in the face.  I'm not saying the information he posts is wrong. I have no idea on that, but he strikes me as the type of person who would always have to add his two cents in a conversation to try and prove he is the smartest man in the room.

Hey, more than one way to skin a cat.  Just trying to offer a different perspective.  I think we can agree that there is no ONE way to do most anything.  This board has a crap ton of groupthink and a really strong antibody response to different perspectives.  I think generally speaking people here are helpful, and I try to be as well.  But our experiences are diverse and there will be differing opinions.  Also, I'm pretty good at taking a punch to the face.
You just had to throw in  your $0.02. Makes me so want to punch you in the face.

Offline slobber

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Re: New To Investing Thread
« Reply #311 on: April 18, 2013, 09:03:18 AM »
I have a traditional ira left over from a 401k rollover from an old job. can I squeeze this into my pending new roth somehow? do I just have to pay taxes on it like I would have?
yes

Offline Rams

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Re: New To Investing Thread
« Reply #312 on: April 18, 2013, 09:07:45 AM »
I have a traditional ira left over from a 401k rollover from an old job. can I squeeze this into my pending new roth somehow? do I just have to pay taxes on it like I would have?
yes
I'm not sure what dobber was saying yes to, and I'm not really sure what your question is, but you can't merge traditional and roth ira's.  you can convert the ira into a roth ira, but you still don't want to merge them into the same account because there are separate rules with regard to roth conversions and roth contributions. 
"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."

Offline slobber

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Re: New To Investing Thread
« Reply #313 on: April 18, 2013, 09:15:16 AM »
I have a traditional ira left over from a 401k rollover from an old job. can I squeeze this into my pending new roth somehow? do I just have to pay taxes on it like I would have?
yes
I'm not sure what dobber was saying yes to, and I'm not really sure what your question is, but you can't merge traditional and roth ira's.  you can convert the ira into a roth ira, but you still don't want to merge them into the same account because there are separate rules with regard to roth conversions and roth contributions.
I guess I misunderstood the "pending new roth." I at first thought that he meant he wanted to move it and start a new Roth IRA. Rams is correct. If you have already started a Roth IRA, you will want to roll your traditional IRA into a new-different- IRA. You can have more than one. If the tax hit is too large, at one time you were able to convert it over a three year period. I am not certain if that is still an option. Could probably google it and see if that is an option.

Also, if you are wondering, the annual contribution limit is based on total contributions to Roth IRA's, so having multiple IRA's does not allow you to contribute more. However, the conversion from traditional to Roth does not count as an IRA contribution.

Offline Emo EMAW

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Re: New To Investing Thread
« Reply #314 on: April 18, 2013, 09:21:58 AM »
#temo  :emawkid:

still not on board with market timing.

It's not market timing!  :shakesfist:  ( :D)

Offline puniraptor

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Re: New To Investing Thread
« Reply #315 on: April 18, 2013, 09:23:12 AM »
Also, if you are wondering, the annual contribution limit is based on total contributions to Roth IRA's, so having multiple IRA's does not allow you to contribute more.

I was wondering this, thanks!

Offline Daddy Claxton

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Re: New To Investing Thread
« Reply #316 on: April 18, 2013, 09:24:40 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.

SD, thinking about using "a guy" and he says he is fee only and never receives third party commissions. I thought I liked/trusted him. Is he lying about not taking the commissions?

Offline EllRobersonisInnocent

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Re: New To Investing Thread
« Reply #317 on: April 18, 2013, 09:30:12 AM »
jfc, believe it or not some financial advisors actually do things that are in your best interest

Offline Mrs. Gooch

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Re: New To Investing Thread
« Reply #318 on: April 18, 2013, 09:30:39 AM »
Also, if you are wondering, the annual contribution limit is based on total contributions to all Traditional and Roth IRA's, so having multiple IRA's does not allow you to contribute more.

Offline steve dave

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Re: New To Investing Thread
« Reply #319 on: April 18, 2013, 09:30:47 AM »
jfc, believe it or not some financial advisors actually do things that are in your best interest

believe it or not most don't

Offline Daddy Claxton

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Re: New To Investing Thread
« Reply #320 on: April 18, 2013, 09:34:10 AM »
Hmm. Maybe i don't understand the comissions. If he's not getting comissions like he says, and is paid a percentage of my portfolio, isn't his incentive to push me into garbage eliminated, because he's losing too. Of course only a portion of what I'm losing.

Offline steve dave

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Re: New To Investing Thread
« Reply #321 on: April 18, 2013, 09:36:52 AM »
Hmm. Maybe i don't understand the comissions. If he's not getting comissions like he says, and is paid a percentage of my portfolio, isn't his incentive to push me into garbage eliminated, because he's losing too. Of course only a portion of what I'm losing.

no, I misread what you posted originally. what does he charge? who processes the transactions?

Offline Daddy Claxton

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Re: New To Investing Thread
« Reply #322 on: April 18, 2013, 09:40:34 AM »
Up to 3%. Is that reasonable?

Offline steve dave

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Re: New To Investing Thread
« Reply #323 on: April 18, 2013, 09:42:30 AM »
Up to 3%. Is that reasonable?

well, it is if he can beat the market by over 3% long term. it's not if he can't. I don't know much about fee only financial advisors. it removes a lot of the conflict of interest though.

Offline EllRobersonisInnocent

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Re: New To Investing Thread
« Reply #324 on: April 18, 2013, 09:44:47 AM »
I work for an independant financial advisor and we charge 1% for our fee-based accts