These are some of my big things. I feel like I just got placed similar to my dad's funds. I am in his 2nd to most aggressive fund, but I feel like there are funds out there I could just put it and leave it for a while. Don't even have any plans for it, was mainly from college savings and severance from first company, through it into an account until I needed it. Have built up a nice little sum and thinking just let it ride until kid gets to college age or if needed before hand.
Drop your money into a Vanguard index fund IMO. I don't have enough spare cash or interest to really dig deep enough to feel comfortable playing the market, so I stick with low cost index funds. You sound very similar to me.
I dont think you are getting ripped off. People have unrealistic expectations with the market run up since the crash in 2008. You will be fine with either of your choices (advisor or index) but you aren't getting ripped off.
I'm confident this won't happen, but allegedly the trump admin is considering eliminating some tax advantages on 401Ks. Apparently on the table are: Eliminating up front tax deduction and treating 401Ks like roths. Tax up front but grows interest free. Worse than that, they're considering taxing all gains at 15% on an annual basis, as opposed to be deferred until withdrawal. Both of those would uproot the system but that 2nd one is full retard.
Most don't contribute enough to retirement as is... so let's remove some of the incentives to do so, that should help.
I agree there's virtually no chance of that actually being implemented, but supposedly it's congress that's looking at it. The article is up on Fool right now.
No fucking chance that goes anywhere. Retirement saving needs to be made easier/more advantageous for the general public, not less.
Agreed. That seems like an obvious point, which is why I don't understand why this would even be mentioned as a stretch possibility.
The fact that people give advice to someone without knowing anything about them is laughable. 20% cash can absolutely be right for many people that age.
he didnt list his age, and again, it IS impossible to say that 20% of your portfolio should be making .05 in a money market account is a good idea UNLESS he is 58+
Only if its actively managed to buy dips or value and have that much cash OCCASSIONALLY from time to time. Or youre about to buy a fucking house etc but this guy said his advisor sits on 20% year round But tell me how paying a financial advisor a lot more money than whatever a money market is giving for a young guy to sit on 20% cash is a good idea.. at all. Fuck put it in some t bonds or a CD!!
Lets say sake of argument hes lost 25k from unrealized gains last 5 years because of the 20% sitting on the sideline. Annualize that 25k for 30 years and tell me how a fucking money market is a good idea. Thanks.
I'm not going to debate hypotheticals when we know nothing about the person you are giving advice. I will say that declaring having 20% cash as always terrible is stupid. Don't most advisors not charge on cash? Of my liquid assets, ~40% is cash. 0% of my retirement money is in cash. Not everyone has the same amount of cash as you, or job security, or expenses, or risk tolerance. Also, my PA was 50% cash last year and still beat the Russell 2000.
I always keep 10-20% cash in case i see an investment i want to make. Always good to have some powder dry. Its been hard to see why over the past 8 years as its been a solid bull market. I assure you people had some allocation to cash back in 2008-2009. My man Warren Buffet, if i recall correctly, suggests about 10% cash.
He said its a retirement acct with 20% cash layin around and yeah 10% to pull the trigger always makes sense but not just keeping 20% to have 20% (solely retirement not all liquid assets)
He never said it was a retirement account. In fact, it sounds expressly like it is not a retirement account.
I agree people shouldn't make broad recommendations without knowing someone's whole picture. But the original inquiry was "why am I not beating the s&p or dow?" When you have 20% in cash and the market has performed the way it has in the last 8 years, you shouldn't be using the Dow and s&p as benchmarks. That was my main point.
yes, this is pure side fund, growing wealth for I don't even know what right now. Pretty lucky scenario to be honest, not of my doing, my first company after college closed our branch and I took the severance and started with another company right after, so I was able to take severance and sell my stock, and move it to this investment account. didn't mean to turn you all against each other in here haha. to give more info, it is actively managed, and he has said he is waiting for a market correction to take place before using some of it. It apparently is some historical length of time since we have had a 10+% market correction that he targets for investing more, so it seems like I may have just been a bit unlucky on start date, and would be performing better in many other situations.
If he didn't put your money to work in February 2016 when there actually was a 10% correction over 3 months, you should ask him to put defined rules in place to invest your money. Most people that save up money for a "correction" don't have the balls to invest on the way down and never reinvest on the way up.
A couple of things held me back... First they had declining earnings each quarter over the last year and yet the stock was still going up. Perhaps this was an inefficiency in the market but it was glaring. Estimates were much lower ($.89/share) than where they'd been so the bar of achievement for Q1 was already set very low. The FTC is not making them change their sales practices until May 15th so Q1 earnings wouldn't reflect that change. Traditionally people buy more weight loss crap around Jan. 1 as part of their New Years resolutions so that could boost Q1 earnings. I still may buy puts moving forward but there is no urgency at the moment.
Damn you're a math wiz. I'm not quite as autistic as some of you in here and like to minimize the money I gamble.