Where to invest $

[CrankShaftspin]

I've used Fidelity through jobs and rollovers for a long time. Most all of the IRA "Trustees" (Like Morgan Stanley, Charles Schwabb, Vanguard) provide the ability to invest in most funds (Mutual, Index, Bond, Etc.).

Per my research (I've read a bunch on John Bogel, the founder) Vanguard takes the lowest cut of your cash, but, if you invest in Mutual Funds through them, you'll still have costs.

Trader1's first post/reply was one of the best here, for the general saver(investor). Index Funds. Lowest cost, least risk, and since ~1930, the market (which the Index Funds match) have, over time, without "playing the market", generally provided the most return, better than all the "best" Mutual Funds.

It was alluded to, but do your own research. Just Google "long term investing options", "how to invest for retirement", "investing 101", things like that, and you'll get good, high-level and deep information on anything you'd like.

 

[h50]

FWIW I've used Fidelty and have no complaints whatsoever but for that matter many of them will work.

The more larger problem in which firm to go with once you're with one of the top ones is that many folks take the Ron Popeil approach to their investments "Set it and Forget it!". Don't do that people. Don't panic either. It's not a bank.

 

[gold69]

Anyone in here involved or have any rental property like houses? Hows that business? And not specifically talking now but for the near future.

 

[NINE-LIVES]

Anyone in here involved or have any rental property like houses? Hows that business? And not specifically talking now but for the near future.

For me it’s awful. Almost None of my tenants are paying rent. I expected it and told them all to try and pay me 50% of the rent these next few months and ALL is forgiven moving forward. That way I cover my ass if we end up in eviction court months from now. I don’t look like an asshole.

I have mortgages and taxes to cover, they need to put food on their tables. If I can get half to pay me that 50% rent then it goes a long way for me.

ANYONE notice the spike in oil prices? Almost 4 dollars a barrel last few days. Hint hint for anyone still looking to invest now.

 

[trader1]

For me it’s awful. Almost None of my tenants are paying rent. I expected it and told them all to try and pay me 50% of the rent these next few months and ALL is forgiven moving forward. That way I cover my ass if we end up in eviction court months from now. I don’t look like an asshole.

I have mortgages and taxes to cover, they need to put food on their tables. If I can get half to pay me that 50% rent then it goes a long way for me.

ANYONE notice the spike in oil prices? Almost 4 dollars a barrel last few days. Hint hint for anyone still looking to invest now.

Sorry to hear about your rent woes.. Generous of you to offer a reduction like that and all is forgiven... eviction court will most likely be tied up for years and the merciless press will have a field day with all the ‘good’ landlords who are trying to evict their poor tenants...

As for oil, yes. I agree.. For the novice investor, again, do your research —- Select energy related funds, ETF or companies who have strong balance sheets. Very strong....

There can be plenty of opportunity out there — depends on tolerance, cash flow etc

 

[OSMonger]

I've used Fidelity through jobs and rollovers for a long time. Most all of the IRA "Trustees" (Like Morgan Stanley, Charles Schwabb, Vanguard) provide the ability to invest in most funds (Mutual, Index, Bond, Etc.).

Per my research (I've read a bunch on John Bogel, the founder) Vanguard takes the lowest cut of your cash, but, if you invest in Mutual Funds through them, you'll still have costs.

Trader1's first post/reply was one of the best here, for the general saver(investor). Index Funds. Lowest cost, least risk, and since ~1930, the market (which the Index Funds match) have, over time, without "playing the market", generally provided the most return, better than all the "best" Mutual Funds.

It was alluded to, but do your own research. Just Google "long term investing options", "how to invest for retirement", "investing 101", things like that, and you'll get good, high-level and deep information on anything you'd like.

Funny but there’s a little known study that was put out by Vanguard showing investors who use a Financial Advisor, return 3-4% on average more a year than those that don’t. It’s funny that the general public think they can do something they’ve never studied or learned. Over the last 20 years, the average no-load investor returned half of the S&P 500. Emotions are far too difficult to manage while investing.

 

[trader1]

Funny but there’s a little known study that was put out by Vanguard showing investors who use a Financial Advisor, return 3-4% on average more a year than those that don’t. It’s funny that the general public think they can do something they’ve never studied or learned. Over the last 20 years, the average no-load investor returned half of the S&P 500. Emotions are far too difficult to manage while investing.

I agree- while I can certainly manage my own investments, leaving emotion and the day to day movements ( in both normal and exaggerated markets) to a fiduciary is prudent
The fees that are paid to a FA, although a straight debit to an account, are usually less then the management fees when investing in a standard mutual fund ( as opposed to an institutional one, which can only be bought by a broker)

A quick thought regarding buying index funds on your own-
Those are low cost to the investor, but one is buying an index(SPY, for example) and does not take advantage of certain sectors that may under or over perform. For the novice, leave it to the professional if you want to take your guesswork out of the equation

 

[h50]

ANYONE notice the spike in oil prices? Almost 4 dollars a barrel last few days. Hint hint for anyone still looking to invest now.

For me I have three investment thoughts the time to invest is always now rarely not so, have an exit strategy and don't be greedy, and if you're emotional get the fuck out and don't even get in.

 

[OSMonger]

I agree- while I can certainly manage my own investments, leaving emotion and the day to day movements ( in both normal and exaggerated markets) to a fiduciary is prudent
The fees that are paid to a FA, although a straight debit to an account, are usually less then the management fees when investing in a standard mutual fund ( as opposed to an institutional one, which can only be bought by a broker)

A quick thought regarding buying index funds on your own-
Those are low cost to the investor, but one is buying an index(SPY, for example) and does not take advantage of certain sectors that may under or over perform. For the novice, leave it to the professional if you want to take your guesswork out of the equation

So good point. In my business, we over/under weight sectors, using ETFs, to build risk weighted portfolios that match clients goals. Our Alpha (excess return over a benchmark) is based on how right we are.
A huge issue with ETFs that has become apparent in this pandemic is how easy it is for short sellers to push an entire index down using high velocity quant trading of ETFs. We need to bring back the uptick rule.
As for mutual fund fees, you can get almost zero cost index funds these days. But then you have to be in charge.

 

[trader1]

I’d like to know how many of you who have their portfolios professionally managed have seen their advisors make ( minor or significant) allocation changes to their taxable or retirement portfolios. This includes harvesting tax losses and replacing with a similar instrument.

 

[OSMonger]

I’d like to know how many of you who have their portfolios professionally managed have seen their advisors make ( minor or significant) allocation changes to their taxable or retirement portfolios. This includes harvesting tax losses and replacing with a similar instrument.

I’m an Advisor and there isn’t one client of mine that I haven’t made changes for. Especially now where the market is. It’s like being given a second chance to jump from a crashing plane. I’m the least negative person because I’m a long term financial planner, but with max 10% upside and 20-40% downside, you’re crazy not to reduce your equity exposure. Just have a plan as to when you’re going to move back to normalized long term allocations.

 

[trader1]

I’m an Advisor and there isn’t one client of mine that I haven’t made changes for. Especially now where the market is. It’s like being given a second chance to jump from a crashing plane. I’m the least negative person because I’m a long term financial planner, but with max 10% upside and 20-40% downside, you’re crazy not to reduce your equity exposure. Just have a plan as to when you’re going to move back to normalized long term allocations.

TY for the feedback
I saw very little action taken by the FA who is also a CFP, SVP in a large respected firm. I am happy with the mixture of large/mid/small cap and allocation of 58stx/33 bonds/9 cash-for long term —would have thought allocations would be shifted ( thinking along the same parameters as you suggested upside/downside risk

 

[pokler]

I’m an Advisor and there isn’t one client of mine that I haven’t made changes for. Especially now where the market is. It’s like being given a second chance to jump from a crashing plane. I’m the least negative person because I’m a long term financial planner, but with max 10% upside and 20-40% downside, you’re crazy not to reduce your equity exposure. Just have a plan as to when you’re going to move back to normalized long term allocations.

Where are you seeing 10% upside ?
Your prediction ?

 

[OSMonger]

Where are you seeing 10% upside ?
Your prediction ?

We are roughly 12% from all time highs. At best you can argue we go back to our all time high. I doubt it. But we are 30% above our March low. So from my perspective, your downside risk is 3 to 1, approx.

 

[OSMonger]

TY for the feedback
I saw very little action taken by the FA who is also a CFP, SVP in a large respected firm. I am happy with the mixture of large/mid/small cap and allocation of 58stx/33 bonds/9 cash-for long term —would have thought allocations would be shifted ( thinking along the same parameters as you suggested upside/downside risk

Hey, there are hundreds of thousands of Advisors you can choose from. If your Advisor hasn’t made any move in the last 8 weeks, you MUST fire him/her and find someone that cares about you. I’ve been in financial services for over 25 years, this is my 3rd bear market. A huge percentage of Advisors aren’t worth the paper their Series 7 is printed on.

 

[trader1]

Hey, there are hundreds of thousands of Advisors you can choose from. If your Advisor hasn’t made any move in the last 8 weeks, you MUST fire him/her and find someone that cares about you. I’ve been in financial services for over 25 years, this is my 3rd bear market. A huge percentage of Advisors aren’t worth the paper their Series 7 is printed on.

I am debating doing that exactly..I ask prior to the meltdown to reduce risk a little so we cut back equities 5 percent and moved into more large blue chip dividend players.. I was reminded that I have a long term plan in place which I agreed to, but my bone of contention is should there have been more adjustment or reallocation from let’s say one sector to another- ?? ( I was clear from January that I did not want to increase equity exposure)

 

[pokler]

We are roughly 12% from all time highs. At best you can argue we go back to our all time high. I doubt it. But we are 30% above our March low. So from my perspective, your downside risk is 3 to 1, approx.

If you've been allocating for your clients for the pass 25 years based on that logic they are underperforming a naive buy and hold strategy by wide margins.Buy and hold the S&P that is.

 

[trader1]

If you've been allocating for your clients for the pass 25 years based on that logic they are underperforming a naive buy and hold strategy by wide margins.Buy and hold the S&P that is.

So you would suggest doing little or nothing to a portfolio that was properly allocated ( based on your beliefs, let’s say from early on the year)

 

[pokler]

So you would suggest doing little or nothing to a portfolio that was properly allocated ( based on your beliefs, let’s say from early on the year)

Basically yes. Many people asked me when things were getting scary in late FEB if they should sell out of stocks or greatly reduce. I just said hang in there. The only way to be 100% assured of being invested at the very bottom and participate fully in the rebound is to stay invested. The worse thing is to try and time it. You'll end up missing much of the recovery and just bury yourself. Of coarse tax loss harvesting in taxable accounts is a must. But do it so as to not disturb allocation. Stay in the race but on a different horse.

 

[OSMonger]

Basically yes. Many people asked me when things were getting scary in late FEB if they should sell out of stocks or greatly reduce. I just said hang in there. The only way to be 100% assured of being invested at the very bottom and participate fully in the rebound is to stay invested. The worse thing is to try and time it. You'll end up missing much of the recovery and just bury yourself. Of coarse tax loss harvesting in taxable accounts is a must. But do it so as to not disturb allocation. Stay in the race but on a different horse.

You’re basing this on the desire to beat “the market” which doesn’t take into account risk. It doesn’t take into account utility of ones money. So while I agree that if you have a pile of money that you don’t need for a specific amount of time and wish to match the return of one index, buy and hold and close your eyes. But that’s not reality. If it was, Warren Buffet wouldn’t be holding $130+billion in cash. Goals focused planning is founded in the basis that people invest to reach specific goals in life. Therefore, a risk adjusted approach is far more appropriate. He only index my clients need to beat is the one that determines if they can buy the second home, the classic car, pay for education, and retire with the lifestyle they desire. So through planning each client has their own index. And as I was institutional for many years, as a retail Advisor now, on a risk adjusted basis, my clients do very well.