New To Investing Thread

[steve dave]

I work for an independant financial advisor and we charge 1% for our fee-based accts

welp, sounds like a ripoff daddy

[EllRobersonisInnocent]

Since we're on the subject, Edward Jones is a piece of crap company and no one should ever use them

[steve dave]

what if we real life match maker'd daddy claxton and ell into an investor relationship? 

[michigancat]

#temo 

still not on board with market timing.

It's not market timing!    ( )

it is absolutely market timing.

(I think people were dismissing this system not just because he isn't likeable, but also because he didn't seem to know what he was talking about.)

[ben ji]

Since we're on the subject, Edward Jones is a piece of crap company and no one should ever use them

Apparently Edward Jones is making new reps go door to door again....really ups the prestige of your company.

I was talking with one of my buddies the other day about investing and he was super proud to say he uses edward jones. I asked him what he had with them(IRA, Brokerage, etc) and he had no idea, he just gives them a check every month because his dad told him to use them. 

[Daddy Claxton]

Doubt he'd beat the market by 3% but would probably beat what I'd do on my own by more than 3%. I have too much of my employer's stock (unavoidable) and I am horrible at getting out of it properly and timely.

Thanks for the info ERiI. I have something to negotiate with. If not, i'll get your card

[steve dave]

Doubt he'd beat the market by 3% but would probably beat what I'd do on my own by more than 3%.

Matching the market is easy. That's essentially what the best tips in this thread have pointed to imo.

[EllRobersonisInnocent]

I started out w/ EJ after college, went door to door a little here in mhk for practice then did their training program at the home office in St Louis. They've made some drastic changes recently and have really gone down hill. They push their advisors to put everything in "advisory solution" (fee-based) and just do nothing. When SteveDave says financial advisors don't do what's in your best interest, he's talking about Edward Jones

[steve dave]

I started out w/ EJ after college, went door to door a little here in mhk for practice then did their training program at the home office in St Louis. They've made some drastic changes recently and have really gone down hill. They push their advisors to put everything in "advisory solution" (fee-based) and just do nothing. When SteveDave says financial advisors don't do what's in your best interest, he's talking about Edward Jones

I'm talking about all of the large brokerages (and probably small as well though I don't have 1st hand knowledge). I know there are good people in the industry (you and Rams I'm sure are great) but you have to admit that the majority of advisors out there are trying to sell either garbage product or garbage service.

[EllRobersonisInnocent]

I started out w/ EJ after college, went door to door a little here in mhk for practice then did their training program at the home office in St Louis. They've made some drastic changes recently and have really gone down hill. They push their advisors to put everything in "advisory solution" (fee-based) and just do nothing. When SteveDave says financial advisors don't do what's in your best interest, he's talking about Edward Jones

I'm talking about all of the large brokerages (and probably small as well though I don't have 1st hand knowledge). I know there are good people in the industry (you and Rams I'm sure are great) but you have to admit that the majority of advisors out there are trying to sell either garbage product or garbage service.

I agree. Case in point, we just transfered a client's portfolio over and her previous advisor must have caught wind the client was going to transfer so she bought 18 different mutual funds with the cash that was sitting in the account 2 days before the transfer

[steve dave]

I started out w/ EJ after college, went door to door a little here in mhk for practice then did their training program at the home office in St Louis. They've made some drastic changes recently and have really gone down hill. They push their advisors to put everything in "advisory solution" (fee-based) and just do nothing. When SteveDave says financial advisors don't do what's in your best interest, he's talking about Edward Jones

I'm talking about all of the large brokerages (and probably small as well though I don't have 1st hand knowledge). I know there are good people in the industry (you and Rams I'm sure are great) but you have to admit that the majority of advisors out there are trying to sell either garbage product or garbage service.

I agree. Case in point, we just transfered a client's portfolio over and her previous advisor must have caught wind the client was going to transfer so she bought 18 different mutual funds with the cash that was sitting in the account 2 days before the transfer

 

[GCJayhawker]

I don't know anything about the work he does, but my friend works for EJ in Wichita and he makes an absurd amount of money for his age.  I tend to think he does good work, but I'm a bit biased obviously since he is a good friend.

[Emo EMAW]

#temo 

still not on board with market timing.

It's not market timing!    ( )

it is absolutely market timing.

(I think people were dismissing this system not just because he isn't likeable, but also because he didn't seem to know what he was talking about.)

I absolutely know what I'm talking about.  I went all OCD on this a while ago.  I'm having trouble explaining it and you guys understanding it because we don't have a common frame of reference and vocabulary.  Also the stimulus antibody response thing.  It's also text on a screen with no visual aids.  I'll add some VA, or just start a new thread on TA to prevent further mucking up this one.

[Rams]

I started out w/ EJ after college, went door to door a little here in mhk for practice then did their training program at the home office in St Louis. They've made some drastic changes recently and have really gone down hill. They push their advisors to put everything in "advisory solution" (fee-based) and just do nothing. When SteveDave says financial advisors don't do what's in your best interest, he's talking about Edward Jones

I'm talking about all of the large brokerages (and probably small as well though I don't have 1st hand knowledge). I know there are good people in the industry (you and Rams I'm sure are great) but you have to admit that the majority of advisors out there are trying to sell either garbage product or garbage service.

yeah...and it's an overwhelmingly disgusting majority.  truth be told though, over half of those "advisors" are so stupid they actually think what they're doing is good for their client.

[puniraptor]

are there index funds for penny stock markets?

[steve dave]

are there index funds for penny stock markets?

haha, not yet

[sys]

Look, dumbass, there have been several people that made spurious claims "guaranteeing" an annual return.  I never did that bullshit and simply said that making trades in a brokerage account when you have less than $10,000 (which many "new" investors would be starting with) is idiotic.  I listed the reasons.  Look at the thread title.  Your situation seems to be significantly different, you also are a pretty smart guy, but don't resort to making arguments that dismiss points that several of the advocates for a strategy (for people that probably aren't you) didn't make.

emo stated in his original post that with his strategy, he'd made a very limited number of trades over a moderate time frame.  you ignored his actual, real world results and attacked some strawman argument in your head, so i ignored your post and addressed the more relevant people misguidedly attacking emo.

[Rage Against the McKee]

are there index funds for penny stock markets?

haha, not yet

The first guy who comes out with the pendex fund is going to be rich. I think that guy is going to be me. Does anybody have any suggestions on how I can get the ball rolling on this?

[steve dave]

are there index funds for penny stock markets?

haha, not yet

The first guy who comes out with the pendex fund is going to be rich. I think that guy is going to be me. Does anybody have any suggestions on how I can get the ball rolling on this?

the fund will have to cost about 2 cents a share because a big part of penny stock investors enjoyment is the fact that they are so cheap (not relative to market cap or any other metric, just cash). you can throw whatever else you want in it and you will be good to go.

[slobber]

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.

Isn't Gooch like one of the luckiest SOB's on the planet?
 

[Rage Against the McKee]

are there index funds for penny stock markets?

haha, not yet

The first guy who comes out with the pendex fund is going to be rich. I think that guy is going to be me. Does anybody have any suggestions on how I can get the ball rolling on this?

the fund will have to cost about 2 cents a share because a big part of penny stock investors enjoyment is the fact that they are so cheap (not relative to market cap or any other metric, just cash). you can throw whatever else you want in it and you will be good to go.

I will create the Pennies and Cents 500 and sell an index of that for $5 per share. Hopefully those penny investor guys can see the value of getting an index of 500 different stocks for $5. Just think of the growth potential.

[GoodForAnother]

so my 401(k) is all in VFIFX and it's at around $15k after like 2.75 years with the company

I also have around $1200 in a schwab investor fund invested in SWDSX

am I doing anything stupid, and if so, what can I do that's smarter?  move the $1200 with schwab into a vanguard roth?  do roths have minimum investments?  my main thing is that represents a decent chunk of my current savings and I would like to keep it easily accessible in case I have a big financial emergency, so if a roth means I can't pull it out easily, I don't want to do that.

[steve dave]

are there index funds for penny stock markets?

haha, not yet

The first guy who comes out with the pendex fund is going to be rich. I think that guy is going to be me. Does anybody have any suggestions on how I can get the ball rolling on this?

the fund will have to cost about 2 cents a share because a big part of penny stock investors enjoyment is the fact that they are so cheap (not relative to market cap or any other metric, just cash). you can throw whatever else you want in it and you will be good to go.

I will create the Pennies and Cents 500 and sell an index of that for $5 per share. Hopefully those penny investor guys can see the value of getting an index of 500 different stocks for $5. Just think of the growth potential.

it would have to go up to 10 to double their investment. won't work. if it's 2 cents it only has to go to 4 cents to double. think like a penny stock investor NK.

[Daddy Claxton]

Doubt he'd beat the market by 3% but would probably beat what I'd do on my own by more than 3%.

Matching the market is easy. That's essentially what the best tips in this thread have pointed to imo.

I could handle dumping all the cash into index funds. My problem is knowing when to sell the company stock for proper earnings and favorable tax treatment. Might be just my ignorance that scares me.

[Rams]

Up to 3%. Is that reasonable?

not only is it unreasonable, I'm pretty sure it's illegal.  you have to be misunderstanding him.  I don't think you can legally charge over 2.5% per year for aum (not 100% sure on that though).  most RIA's I've seen set maximums around 2%.  the highest I've ever seen actually charged is 1.75% and you should never pay more than 1%.  I guess some strictly fee-only advisors charge based on total estate assets (house, land, etc.) so that might be the case.  I don't have a lot of experience with fee-only advisors.

but to answer your question, if he's advertising himself as fee-only then he absolutely cannot make commissions on anything he does unless he wants to lose his licenses and pay massive fines.  there are some good regulations in this industry.  not nearly enough, but there are some.