theJ Posted October 29, 2018 Share Posted October 29, 2018 On 10/27/2018 at 9:01 PM, Dome said: I’m good at saving money... 100% unsure on wtf this thread is about. I know my money isn’t being put to its best use Investing seems like the next step to being an adult with my finances, rather than just stashing it away. What’s everyones favorite resources for beginners? I opened up a Robinhood account for the free stocks and referral stocks, but not locked in obviously as I have no idea what I’m doing. That and the M1 both seems like solid place for beginners to get a feel for things. Any advice here? Been reading a bunch of finance news and taking a closer look at a lot of the stocks some of those places mention. Getting my feet wet. Any sites I should be paying more attention to for news and learning? Any good YouTubers who’s info can be trusted as far as learning fundamentals and smart practices? What else can I be doing other than immersing myself in the finance sections of sites and newspapers? Honestly most older wealthy people you'll find have just done one or two things their entire life, over and over again. You can try to get fancy pants like some of the people in this thread, but you'll save yourself a whole lot of time and effort by keeping your investments simple. And you won't end up far behind (if you're even behind at all). I'd recommend reading up on ETF's. There are plenty of them out there that have different focuses. If you're dealing with less than 500-1000K, then you probably don't need more than 4-6 of them to get a good market spread and keep your money diversified. 1 Quote Link to comment Share on other sites More sharing options...
theJ Posted October 29, 2018 Share Posted October 29, 2018 On 10/27/2018 at 1:01 AM, mission27 said: I’d rather get out 400 points before the top than 1000 points after tbh On 10/27/2018 at 6:57 PM, mission27 said: I liquidated everything last December, feeling pretty good about it. Just hold cash or treasuries and wait it out. Will be safe to get back in in 6-12 months when the world has burned down. If you truly feel there's a top, you should be shorting the market, buying guns and bullets, and learning how to farm. Because what comes after a true top of the market forever is not good haha. I assume you're just predicting a short crash, in which case us simpletons will just wait it out. Worst case for someone like me who won't jump out is someone makes fun of me for my investments losing half their value. But i won't lose anything for real because i'm not selling. Worst case for someone like you is that you're wrong about the timing and you miss on 10-20% of gains. And actually, that's not really the worst case. That's the best of the worst case scenarios. Worst case is that you're wrong on the timing, decide to get back in when things don't go down, and time that poorly with another crash. Then you've missed on 10-20% gains and got it at the top. What you're doing may pan out, but it's certainly not a strategy without a lot of risk. You absolutely cannot be wrong about the timing, or you risk coming out way behind. Quote Link to comment Share on other sites More sharing options...
theJ Posted October 29, 2018 Share Posted October 29, 2018 On 10/27/2018 at 6:53 PM, Shockey1979 said: If Apple reports a bleak 4th quarter guidance on Thursday the S&P is going to plummet and the nextr area of support isn't pretty. Add in the possibility of the dems taking over the house threatening the tax cuts rd 1 and 2, plus rolling back the deregulation that has inflated so many equities, brexit, fed rates, tariffs... just so many reasons for the market to keep selling off right now. I wouldn't be long much other then solid div paying equities. Sell calls on what you own and use the proceeds to average down on your holdings and ride out the storm... or go cash or reverse ETF's. Cause IMHO it's more likely to get more ugly. I'm sure you know this, but that's a lot of correlations that aren't necessarily causations. The market is too complex to tie to one company, or a few different indicators controlled by the gov. Again, i'll be riding out the storm by not changing my strategy. I'll continue to be the tortoise, investing month after month, year after year. The only way to lose with this strategy is if everyone loses and The Terminator becomes a reality. 1 Quote Link to comment Share on other sites More sharing options...
ramssuperbowl99 Posted October 29, 2018 Share Posted October 29, 2018 On 10/27/2018 at 8:01 PM, Dome said: I’m good at saving money... 100% unsure on wtf this thread is about. I know my money isn’t being put to its best use Investing seems like the next step to being an adult with my finances, rather than just stashing it away. What’s everyones favorite resources for beginners? I opened up a Robinhood account for the free stocks and referral stocks, but not locked in obviously as I have no idea what I’m doing. That and the M1 both seems like solid place for beginners to get a feel for things. Any advice here? Been reading a bunch of finance news and taking a closer look at a lot of the stocks some of those places mention. Getting my feet wet. Any sites I should be paying more attention to for news and learning? Any good YouTubers who’s info can be trusted as far as learning fundamentals and smart practices? What else can I be doing other than immersing myself in the finance sections of sites and newspapers? Since you're not an expert on the market, it's highly unlikely that individual stocks you pick would do better than the market average. That same principle holds true for most market experts, including financial advisers, and every single person who has posted in this thread. The people who do better than the market picking individual stocks on average are managing assets in the hundreds of millions or more on Wall Street and making a ton of money doing it. So, you want to invest in passive or indexed funds. A good place to start with index funds is the 3-fund portfolio (domestic stock, international stock, bonds). Here's a boggleheads link: https://www.bogleheads.org/wiki/Three-fund_portfolio And here's my allocation: 75% Vanguard Total Stock Market Index Fund (VTSMX) 20% Vanguard Total International Stock Index Fund (VGTSX) 5% Vanguard Total Bond Market Fund (VBMFX) This is very aggressive. A more conservative approach would be to invest less in mutual funds and more in bonds. How aggressive you want to be depends on your personal risk tolerance, how far away you are from retirement, etc. etc. 2 Quote Link to comment Share on other sites More sharing options...
ramssuperbowl99 Posted October 29, 2018 Share Posted October 29, 2018 45 minutes ago, theJ said: I'm sure you know this, but that's a lot of correlations that aren't necessarily causations. The market is too complex to tie to one company, or a few different indicators controlled by the gov. Again, i'll be riding out the storm by not changing my strategy. I'll continue to be the tortoise, investing month after month, year after year. The only way to lose with this strategy is if everyone loses and The Terminator becomes a reality. Yep. The biggest thing you can do during a market correction is stay employed, and change nothing about your investing habits. I joke about not checking my account balances, but the real answer is that I don't really care if it's up or down 10% either way. 1 Quote Link to comment Share on other sites More sharing options...
MWil23 Posted October 29, 2018 Share Posted October 29, 2018 I'm currently investing 99.9% in mutual funds (45.4% U.S. and 47.9% non-U.S.) with a 6.6% cash equivalence. I have .1% in U.S. bonds. Quote Link to comment Share on other sites More sharing options...
Shockwave Posted October 30, 2018 Share Posted October 30, 2018 11 hours ago, theJ said: I'm sure you know this, but that's a lot of correlations that aren't necessarily causations. The market is too complex to tie to one company, or a few different indicators controlled by the gov. Again, i'll be riding out the storm by not changing my strategy. I'll continue to be the tortoise, investing month after month, year after year. The only way to lose with this strategy is if everyone loses and The Terminator becomes a reality. Well I was referencing the S&P not the entire market. As far as the equity market goes Apple is the largest holding in the SPY and has the closest beta. It almost moves stride for stride with the SPY if you watch them both intraday. My long holdings are in the my 401K and my ROTH that's where all my buy and hold happens. What I have in my brokerage accounts is play money for daytrading. I daytrade SPY and APPLE options everyday and watch them both like a hawk. So trust me when I say.. if Apple reports a bleak outlook on Thurs the S&P is going to plummet. A long term investor like you.. don't even worry about it. Buy some Amazon at $1500 and Apple at $190 and ride it out. The market is upward bias and will always go higher. But in the short term.. like the 4th quarter of this year and possibly the first half of next year really will ride on 4th quarter earnings forecast, yield curve flattening, fed rate raises, the election, tariffs, China, and brexit. In the short term these are clear causations that are directly affecting the market today and the foreseeable future. 1 Quote Link to comment Share on other sites More sharing options...
mission27 Posted October 30, 2018 Share Posted October 30, 2018 12 hours ago, theJ said: What you're doing may pan out, but it's certainly not a strategy without a lot of risk. You absolutely cannot be wrong about the timing, or you risk coming out way behind. Not really. If the market ends the year up and I missed out on +5-10% or whatever, not a big deal. I'd rather have maximum capital to deploy when the Armageddon comes. Quote Link to comment Share on other sites More sharing options...
mission27 Posted October 30, 2018 Share Posted October 30, 2018 12 hours ago, ramssuperbowl99 said: Since you're not an expert on the market, it's highly unlikely that individual stocks you pick would do better than the market average. See people say this but I say you've got about a 50/50 chance tbh... Quote Link to comment Share on other sites More sharing options...
ramssuperbowl99 Posted November 1, 2018 Share Posted November 1, 2018 (edited) https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000 Quote The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000. The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000. https://www.irs.gov/pub/irs-drop/rp-18-30.pdf?mkt_tok=eyJpIjoiTnpFek1ERTBNemN6WWpVMSIsInQiOiJoQzNaVzZMYW5GSTdGVlQreHlTc1wvUGRXMmNBb2J1V1BxY2RMOHphSkZyekp2dXZ6SnNcL0QzU2lcL1I2eVBNb0lTcWtvMWJzcU1scllWXC9TalAyY1pqZDFWMEhIQWhkS3lwRlhqN1BaTENNSkkrSjFcL3pLaUQ4MEttMGdVNVp4MHpqIn0%3D Quote Annual contribution limitation. For calendar year 2019, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,500. For calendar year 2019, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $7,000. Edited November 1, 2018 by ramssuperbowl99 1 Quote Link to comment Share on other sites More sharing options...
Mox Posted November 2, 2018 Share Posted November 2, 2018 23 hours ago, ramssuperbowl99 said: https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000 https://www.irs.gov/pub/irs-drop/rp-18-30.pdf?mkt_tok=eyJpIjoiTnpFek1ERTBNemN6WWpVMSIsInQiOiJoQzNaVzZMYW5GSTdGVlQreHlTc1wvUGRXMmNBb2J1V1BxY2RMOHphSkZyekp2dXZ6SnNcL0QzU2lcL1I2eVBNb0lTcWtvMWJzcU1scllWXC9TalAyY1pqZDFWMEhIQWhkS3lwRlhqN1BaTENNSkkrSjFcL3pLaUQ4MEttMGdVNVp4MHpqIn0%3D Hell yes. Was waiting for IRA's to go up. Quote Link to comment Share on other sites More sharing options...
incognito_man Posted November 4, 2018 Share Posted November 4, 2018 On 10/29/2018 at 8:55 AM, ramssuperbowl99 said: Since you're not an expert on the market, it's highly unlikely that individual stocks you pick would do better than the market average. That same principle holds true for most market experts, including financial advisers, and every single person who has posted in this thread. The people who do better than the market picking individual stocks on average are managing assets in the hundreds of millions or more on Wall Street and making a ton of money doing it. So, you want to invest in passive or indexed funds. A good place to start with index funds is the 3-fund portfolio (domestic stock, international stock, bonds). Here's a boggleheads link: https://www.bogleheads.org/wiki/Three-fund_portfolio And here's my allocation: 75% Vanguard Total Stock Market Index Fund (VTSMX) 20% Vanguard Total International Stock Index Fund (VGTSX) 5% Vanguard Total Bond Market Fund (VBMFX) This is very aggressive. A more conservative approach would be to invest less in mutual funds and more in bonds. How aggressive you want to be depends on your personal risk tolerance, how far away you are from retirement, etc. etc. I'd have to check, but pretty sure I'm the equivalent of 60% total US and 40% total international. But the fidelity equivalents. My wife is in the state pension fund which I view as a huge bond. So I will stick to 100% stocks for awhile in my 401k and IRA Quote Link to comment Share on other sites More sharing options...
mission27 Posted November 7, 2018 Share Posted November 7, 2018 Had lunch with one of the BIG activists the other day. They are getting out of everything rn. ARMAGEDDON IS COMING Quote Link to comment Share on other sites More sharing options...
Shockwave Posted November 8, 2018 Share Posted November 8, 2018 Nah historically the 6 months after midterms are market rally time. The market is happy with the balance in COngress. Calls across the board for me from here on out. Made a ton on Apple, SPY, and AMD calls today Quote Link to comment Share on other sites More sharing options...
Mox Posted November 8, 2018 Share Posted November 8, 2018 Market timing doesn't work. Time in the market overcomes all. 1 Quote Link to comment Share on other sites More sharing options...
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