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I'm a fan of buying on the peaks and selling on lows all the way to the top.
Put all your eggs in one basket with investing?
- Thread starter The motor guy
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That and A Random Walk Down Wall Street.
Maybe for some but I think that is too broad a brush to paint. I have known and still know people with a passion for their work, some can be simple tradespeople to the owners of a company who have now gone international on a rather large scale. Many or almost everyone in here would know one of their products. Heck, many mostly likely have had their product in their hands from one source or another.Many retirees are headed back to a job with the excuse they got bored at home.
In reality they didn’t have enough saved and were broke.
I don’t want to be collecting shopping carts at Walmart or a Chipotle burrito maker when I’m 70 years old.
Now living in the coastal Carolinas, like you in Florida, Im sure there is a healthy mix of retired people who like the extra income to those who like getting out of the house that we see working in Home Depot or Publix. I dont look down on them, Im kind of from the school of if you sit around and do nothing when you retire, your health and your mind will deteriorate. One must remember that many of these older people lost a spouse too and it's a way to socialize.
I doubt I will ever go back to work, but sometimes I think to myself of possibly volunteering or in some way dealing with or helping people. But I figure between my list of things I want to do and the list of things my wife wants me to do I may not have enough years left to do it all *LOL*
Darn it the years are flying by ... but at least I got this far.
I've had some investments with Fidelity and am growing tired of their expense ratio's.. I'm planning on taking money from my home sale and parking it in a high interest savings account, waiting for the market to tank over something then throwing it in Vanguard index fund, and let it ride for 20 years..
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That is still market timing... study after study has shown it is better to invest a lump sum windfall immediately and all at once, rather than waiting to buy on a "correction"... how do you know where the bottom is?
Why a lump-sum strategy makes sense for most investors
Our research finds favorable potential outcomes in immediately investing a lump sum versus cost averaging or holding on to cash.
Honestly, an index fund is an index fund... Fidelity has some good ones, in fact they have a Total Market Index Fund with no transaction cost and a ZERO percent expense ratio... that's right... ZERO percent...
FZROX - Fidelity ZERO ® Total Market Index Fund | Fidelity Investments
Analyze the Fund Fidelity ZERO ® Total Market Index Fund having Symbol FZROX for type mutual-funds and perform research on other mutual funds. Learn more about mutual funds at fidelity.com.
fundresearch.fidelity.com
Living HUGE takes real dough.
Zee09
$200 Site Donor 2023
Only you would know
Expense ratio depends on the fund. Comparing the two brokerage firms S&P 500 Index funds, FXAIX's expense ratio is 0.015 whereas VOO is 0.030, or twice as much. Winner Fidelity for this one.
Where Fidelity seems to be less competitive is with idle funds. I was briefly in a no tax government bond fund there that for years earnings were eaten up by the expense ratio. After being in it for a very short time, I decided I'd rather make no interest than have them make more than me on my money.
Last but not least, before you completely cast off mutual funds since 90% underperform the market, what's wrong with picking one of the 10% that outperforms? Even with the 0.4-0.8 expense ratio, my Fidelity Contra has outperformed the S&P 500 since before I bought it some 23 years ago. I say I keep funds there for diversity, but I really like the higher return. In this case I don't begrudge Fidelity making money on me since they are making it for me.
Where Fidelity seems to be less competitive is with idle funds. I was briefly in a no tax government bond fund there that for years earnings were eaten up by the expense ratio. After being in it for a very short time, I decided I'd rather make no interest than have them make more than me on my money.
Last but not least, before you completely cast off mutual funds since 90% underperform the market, what's wrong with picking one of the 10% that outperforms? Even with the 0.4-0.8 expense ratio, my Fidelity Contra has outperformed the S&P 500 since before I bought it some 23 years ago. I say I keep funds there for diversity, but I really like the higher return. In this case I don't begrudge Fidelity making money on me since they are making it for me.
Well we were a middle middle class family. The kind the rich kids look down on. We were not dirt poor, we ate healthy, lived in a modest home, new clothes - but wrong side of the tracks. I felt it a little in high school, I really felt it when I started college. I was for sure the poorest kid in my dorm. I was partial scholarship. No loan!! (hahaha) Parents paid most, B of A scholarship and a school scholarship. Surrounded by post Vietnam party kids, I nearly went astray.Only you would know
Yeah I know.
But I was going to succeed. I had no doubts. None.
I carried a briefcase for books. I studied taking up whole tables (no PC's in 1976). I had jobs, but I was not the best saver then. I graduated with a job because I was interning. Some guy I was working with was selling insurance on the side, kind of a hustle, but we went to these saving and investment seminars that preached "pay yourself first" savings methods. The 401K had started a few years before that (1978), but they had all these cool graphs with starting early, saving a ton, etc
It worked!!
Yeah I do know, and I'm not going back.
- Joined
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The problem with that is, how do you know which funds will outperform in advance so as to invest in them?
There are certainly funds that beat the index... the hard part is picking them ahead of time... Contra fund has done very well... but which fund will outperform for the next 20 years? No one knows...
In the 80's, the Magellan Fund was the darling of Wall Street, and yes, it outperformed the SP500... but where is it now? Same story with Vanguard Health Care in the 90's...
When we look backward at these funds, we have the same problem as we have with Nvidia today... survivorship bias... of course with hindsight I would have done things differently, but we are taking about investing for the future, not the past.
One of the issues I have with Dave Ramsey is that he says (confidently) "Just invest in a growth stock mutual fund that will return 12%"... well no kidding, just tell me which one that will be, and I will buy it... so far he has not been forthcoming with the name of that fund or funds...
No one has a crystal ball, and I am not as confident in my ability as @ArrestMeRedZ to pick a fund that will beat the SP500 over the next 20 years... so I will take my "mediocre" indexed returns...
Zee09
$200 Site Donor 2023
You are "the man" to meWell we were a middle middle class family. The kind the rich kids look down on. We were not dirt poor, we ate healthy, lived in a modest home, new clothes - but wrong side of the tracks. I felt it a little in high school, I really felt it when I started college. I was for sure the poorest kid in my dorm. I was partial scholarship. No loan!! (hahaha) Parents paid most, B of A scholarship and a school scholarship. Surrounded by post Vietnam party kids, I nearly went astray.
Yeah I know.
But I was going to succeed. I had no doubts. None.
I carried a briefcase for books. I studied taking up whole tables (no PC's in 1976). I had jobs, but I was not the best saver then. I graduated with a job because I was interning. Some guy I was working with was selling insurance on the side, kind of a hustle, but we went to these saving and investment seminars that preached "pay yourself first" savings methods. The 401K had started a few years before that (1978), but they had all these cool graphs with starting early, saving a ton, etc
It worked!!
Yeah I do know, and I'm not going back.
Small investors should consider exchange traded funds. An exchange traded fund is a diversified investment vehicle, so that you are investing in a basket of companies instead of just one. For example, ETF invests you in the energy industry. Probably one of the most diverse exchange traded funds is VOO, which is indexed to the Standard and Poor 500
It seems to me to be about how much risk you can afford to take. When you are young, you have time to recover from a BP Deepwater Horizon. The company’s share price lost 54 percent on the NYSE between April 20, 2010, and June 25, 2010. That affected me personally and from then on, I diversified mainly because I was close to retirement. (Now retired) But seeing Super Micro Computer’s shares have increased more than 12-fold in the past 12months makes me wish I'd bought 1000 shares a year ago. https://ir.supermicro.com/stock-information/stock-details/default.aspx
Zee09
$200 Site Donor 2023
You should never forget where you came from.Well we were a middle middle class family. The kind the rich kids look down on. We were not dirt poor, we ate healthy, lived in a modest home, new clothes - but wrong side of the tracks. I felt it a little in high school, I really felt it when I started college. I was for sure the poorest kid in my dorm. I was partial scholarship. No loan!! (hahaha) Parents paid most, B of A scholarship and a school scholarship. Surrounded by post Vietnam party kids, I nearly went astray.
Yeah I know.
But I was going to succeed. I had no doubts. None.
I carried a briefcase for books. I studied taking up whole tables (no PC's in 1976). I had jobs, but I was not the best saver then. I graduated with a job because I was interning. Some guy I was working with was selling insurance on the side, kind of a hustle, but we went to these saving and investment seminars that preached "pay yourself first" savings methods. The 401K had started a few years before that (1978), but they had all these cool graphs with starting early, saving a ton, etc
It worked!!
Yeah I do know, and I'm not going back.
I once was low rent backwoods rift raft myself. That's why I empathize with @AutoMechanic
Sam_Julier
$50 Site Donor 2024
I have kept our savings in Vanguard Index funds plus a few stocks since we were married 43 years ago.
I am a huge devotee of John Bogle, David Swensen and Warren Buffet.
They convinced me that I am not capable of timing the market. I accept this.
Hence we have invested every month during the past 43 years. aka: dollar cost averaging.
We withdrew money to pay tuitions. Deerfield Academy and Carniegie Mellon University are significant tuitions.
My biggest opportunity was the 2008 market collapse coinciding with my largest commission year in 2007/2008. This allowed me to invest in the Total Stock Index every week during the downturn.
I remember buying the Total Stock Index at $18. Yesterday it closed at $124.08.
We are now both retired, own our home and have the money we need to do what we want.
I attribute our current situation to living within our means, saving, investing monthly in the Total Stock Index and never betting against this amazing country.
I am a huge devotee of John Bogle, David Swensen and Warren Buffet.
They convinced me that I am not capable of timing the market. I accept this.
Hence we have invested every month during the past 43 years. aka: dollar cost averaging.
We withdrew money to pay tuitions. Deerfield Academy and Carniegie Mellon University are significant tuitions.
My biggest opportunity was the 2008 market collapse coinciding with my largest commission year in 2007/2008. This allowed me to invest in the Total Stock Index every week during the downturn.
I remember buying the Total Stock Index at $18. Yesterday it closed at $124.08.
We are now both retired, own our home and have the money we need to do what we want.
I attribute our current situation to living within our means, saving, investing monthly in the Total Stock Index and never betting against this amazing country.
Not sure what it will take with him.
Maybe something very major. He doesn't seem on a success path, one that actually may include success.
Burton Malkiel’s book was one of the first ones I read on the subject. A classic.
I practice what I preach.
Over 40% of the portfolio is in index funds. The individual stocks are about 40% of portfolio, not one of them is over 5% of the portfolio.
We have two current pensions (USN officer) and are soon to have a third (GS). Applying the 4% rule to the monthly/annual from them would value those three at about half as much as the entire portfolio.
I consider them to be the fixed income portion of our asset allocation.
The portfolio, not including pensions, is over ten times what I make. With the pensions included, again, applying the 4% rule, the total value would be 15 times what I make.
I started investing in 1991. I have made many mistakes. I have had many successes.
But when I tell you that time in the market matters, or index funds are your best bet, or that you should add at least 10%, or dollar cost average, and most importantly, that you should not put all your eggs in one basket, it is because those principles have yeilded the above position.
All your eggs in one basket is one of many get-rich-quick schemes.
And they all lead to failure.
A slow, but certain, path to financial independence is best. Get rich slowly.
All eggs in one basket? A fool and his money are soon parted.
The higher the top, the greater the drop.
I have some cash on the sidelines for a correction.
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