Yeah that %0.2 fee is killer....Quote:
Originally Posted by Benny Profane
So basically you answer is that they should have appropriately predicted the stock market crash and pulled all of there money out just before?
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Yeah that %0.2 fee is killer....Quote:
Originally Posted by Benny Profane
So basically you answer is that they should have appropriately predicted the stock market crash and pulled all of there money out just before?
Target rate funds are the biggest crock of shit in the investing business. Or at least in the discussion. Target Rate 2010 had like 40% in stocks at the time of the crash.Quote:
Originally Posted by Benny Profane
If I were to invest a Mill (after paying off school loans, I didnt need a house, had money on the side in case things got tough, took a nice vacation, etc) you generally want to know how risky of a mind you have, how old you are, or when youre going to need the money, and how well off you intend to live.
From there you can build a well-diverisified portfolio that should give you a better shot over the long haul than putting it all in one or two things. Unless youre retiring next year...then get a CD.
OK, my bad. There are restrictions on that particular service. However, 2.4% is available on balances up to 9m. Given the current climate, im sure if you went in branch you could negotiate a better deal.:cool:Quote:
Originally Posted by Benny Profane
The .2 adds up, you know. Ferraris don't grow on trees.Quote:
Originally Posted by Dromond
Basically my answer is that YOU should have been and should be paying attention at all times to what's going on in the markets, don't get greedy, and jump into safety if it looks like he shit will hit. Don't trust a soul, especially these managers, because, what have they got to lose? They get theirs either way. And, in the case of Vanguard, they'll just direct you to another of their myriad of investment choices that they recommend when you get on the phone to bitch and whine. "I'm sorry, Mr. Dromond, but, if it's safety you're interested in, why not try one of our many bond funds? I'll just transfer you [click][bad, bad music.....................................]"
You know, you can do this yourself these days with this internet thing. You aren't locked into the fund forever. It may cost you a few bucks to switch funds, but it's better than losing 40%.
So let's mix things up a bit.
What would be your strategy if you were trying to get the highest possible returns in 3 months?
FWIW, those vanguard Target funds are made up of index stock and bond funds so there aren't any managers in the traditional sense. Thus why the expense ratio is closer to %0.2 instead of %2.0 like some managed funds.Quote:
Originally Posted by Benny Profane
Personally, I think that your suggestion that the individual investor should have their finger on the pulse of the stock market and can successfully, repeatedly, predict the performance of the market is huey. I'll take the hands-off, low cost approach.
Small Cap Index....in US DollarsQuote:
Originally Posted by givebackbloom
Everyone cant have their finger on the pulse of the market. And if they did, a lot of people would also be wrong and miss the up days because they have their money hidden under the mattress. Timing the market is nice in a fantasyland kind of way but it doesnt work.Quote:
Originally Posted by Dromond
Quote:
Originally Posted by Brock Landers
Thank you for phrasing that better than I could.
Plus moving into and out of the market is expensive too, much more expensive then 20bps a year for an index.Quote:
Originally Posted by Dromond
If you can't stand the heat............
You win. So manly!Quote:
Originally Posted by Benny Profane
Wait till the market crashes again this fall-winter and invest 66% stocks, 33% real estate!
So for now I think I'm going to go with about 40%-50% in indexes (divided between the small cap fund and an s&p 500 index fund), 30% in individual stocks, with the rest coming in bonds. Going to try to stay out of the futures and commodity markets for now.
how much is in indexes? 40-50 and 30?
30%. I should really start proofreading.
sounds pretty good if you have a read on the stocks you are playing in
Brock- what would you suggest as an alternative to target funds?
Buying indexes and bonds on your own so that you can control your own destiny so to speak in terms of what percentage is in stocks, bonds, etc and have the ability to shift it around in changing market conditions?
I just don't see that it is a good idea to "diversify" by buying a few stocks in banking, a few tech, a few real estate, etc. For me, indexing seems to be the way to go if I'm going to be in stocks at all.
Feel free to talk me out of .02% fees if you have a better alternative.
Semi relevant to this thread, but the other day I walked up to an ATM in Aspen to get some cash, and here this guy and his wife having a little debate about whether or not she really needed more money. He was wondering how she could spend 30K a month! She just kept answering "30 things that cost a grand each".
Jesus, if I was MAKING 30k a month I'd feel like I had it made. She was old and fat too, and I bet she didn't even cook.
Quote:
Originally Posted by leroy jenkins
100k +20K +80K= 200K
I ain't taking any financial advice from anybody that cant do arithmetic.
He would have had it made if he had invested in hookers and blow instead of that ball and chain! Thats an investment with diminishing returns if I ever heard one!Quote:
Originally Posted by leroy jenkins
Go with more of a risk-based allocation fund. Generally you can pick the one you want depending on your risk aversion and time horizon (period until you need the money). If youre 25 years from retirement, go more aggressive, 0 -15% in bonds. And of those bonds, some high yield/bank loans/etc. You can get funds that do all of it.Quote:
Originally Posted by Kevo
And if you want to do the investing on your own...indexes are fine. If you dont really know the details about a company or stock...Id stay away. Get into an index, not even necessarily sector-specific (like a financials index, tech index,etc). Russell 1000 index may be a good large cap index to use. Youd want some mid cap and small cap as well, also exposure to foreign stocks (especially emerging markets...especially now). Bonds would bein there too. The allocations to each depend on your risk level and age though.
If youre 30 years old, stick 5% in a core bond fund, 5% in high yield. 45% large cap index. 20% Mid Cap index. 15%small cap. 12% international stock (MSCI EAFE Index) and 8% in emerging markets. Somethinglike that. Itll be cheap too-relatively.
You obviously weren't paying attention to your TV because no one gives that advice. Your age in bonds/cash (or 100-age in stocks), yes. Your age in stocks, no. The latter doesn't make sense.Quote:
Originally Posted by Benny Profane
I don't think there's anything fundamentally wrong with the concept, just the current embodiment of it. Most (all?) target date funds were (are?) more heavily allocated to stocks than I think most people would anticipate. That's the problem, not the approach of automatically allocating among asset classes with a progressively more conservative allocation over time.Quote:
Originally Posted by Brock Landers
Probably doesn't put out either.Quote:
Originally Posted by leroy jenkins
See- my issue is with picking stocks in general. The conventional wisdom is that knowing a company/industry well allows one to perform valuations and find companies that are undervalued in the market. This is no longer relevant in the time of hedge funds/institutional investors. With enough money, a group of people can seriously manipulate the market to their own desires. Stocks that should be stable can be run into the ground in a relatively short period of time.
I don't understand why someone would think that they can successfully pick stocks again and again.
take 110-your age; that is how much should be in stocks--the rest in bonds--i would recommend a diversified portfolio with an emphasis on high dividend paying stocks. would have been ideal to get in march
Go to Mendocino County and start buying large quantities of, umm, "stuff." It's harvest time up in dem der hills!Quote:
Originally Posted by givebackbloom
http://imgs.sfgate.com/c/pictures/20...0250_part2.jpg
If i had a million dollars, i'd............................................... ...be rich..............
No, 80+20=100.Quote:
Originally Posted by Scotsman50
You can spend money thats in a savinging sacount. A savings acount is a better place to keep money that you'll only us ein emergencies than a checking acounts.
I paid nine dollars for a grey goose and oj tonight. :nonono2: Thats how not to invest your mones.
Yeah, you're right, I reversed it. It should be age in cash/bonds.Quote:
Originally Posted by woodstocksez
are you saying you wouldn't?Quote:
Originally Posted by focus
If I only had 3 months? I'd play the horses. If I had longer, I'd buy up some real nice high-end classic cars that people are trying to dump to pay their mortgage and sit on them. Do a little mait and fix the things that need fixing, then sell them next summer when the market recovers. If it doesn't recover, I'd have cars I could fix myself for transportation away from the Mad Max characters that will be roaming the streets.
http://upload.wikimedia.org/wikipedi...y_Business.jpg
Apparently none of you are paying attention to your TV.
Hookers n blow - check
great returns - check
Totally true. Its different in different areas though. Large cap has everyone looking at it, securities are pretty fairly priced. I think its tough to find stocks to buy. The analysts looking at the details have varying opinions, but in general large cap is a bit more condusive to passive management in general. Areas like emergingmarkets and small cap have areas that arent as well covered and there are opportunities to exploit price disparities. Of course its a little more expensive to buy a quality EMmanager.Quote:
Originally Posted by Kevo
Tough to manipulate markets like that with little to no borrowing now...silver lining???
......get out of the kitchen and make this delivery!! (??)Quote:
Originally Posted by Benny Profane
I recommend you should study lazy portfolios.
http://www.marketwatch.com/story/laz...nds-2009-09-07
Personally, I use the Aronson Family Taxable portfolio. (broad market exposure and low expenses).
Also, for tax efficiency, I use ETFs instead of mutual funds
http://www.etftopics.com/aronson-family-etf-portfolio/