Home Mail MemberMap Chat (0) Wallpapers
Go Back   ChiefsPlanet > The Royal Lounge > D.C.

View Poll Results: What best describes your investment strategy?
My investment strategy is primarily my 401k, IRA, or other retirement savings 16 80.00%
I invest in index funds and mutual funds purchased from a firm 5 25.00%
I invest mainly with online brokerages like E*Trade 2 10.00%
I invest mainly in bonds and CDs 2 10.00%
I have a savings account but I don't invest 0 0%
I don't have the finances to invest/manage wealth much 3 15.00%
Multiple Choice Poll. Voters: 20. You may not vote on this poll

Reply
 
Thread Tools Display Modes
Old 01-25-2013, 08:29 AM  
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 
Join Date: Nov 2011
Casino cash: $5000
Investments & Personal Finance

I was wondering what some of the more popular basic investment plans practiced in here are.

I don't know much about wealth management, so hopefully this leads to a fruitful discussion. I do know that it's best to start early so 'the miracle of compound interest' can take its course.

Other than that, my understanding is investing in index funds are the safe (and typically smartest) route to go for stock investments, and then treasury bonds and company bonds are a low-risk stable investment.

My understanding of a mutual fund is its a basket of selected investments that a company packages together and sells to you.

If you want to make your own basket of selected investments, you do things like E*Trade and ScottTrade, and it's not advisable to do this as your main investment vehicle (though fun to do on the side if you don't mind the trading fees).

If you invest into an index fund, which one do you use? Where did you go to set it up? If you do online brokerages, which company do you use?

Last edited by La literatura; 01-25-2013 at 08:41 AM..
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 01-25-2013, 09:44 AM   #46
Amnorix Amnorix is offline
In BB I trust
 
Amnorix's Avatar
 

Join Date: May 2003
Location: Boston, Mass.
Casino cash: $8775
Quote:
Originally Posted by FD View Post
Holding a broad based stock fund is itself a hedge against inflation. I know that saying this will bring out the crazies, but gold isn't a hedge against inflation so much as a hedge against instability. This is fine for short run thinking but if you are investing for the long run its not something you need to worry about. The S&P has outperformed gold over every 30 year period ever.

Excellent point, and one that I failed to make. Stock investments in and of themselves are an inflation hedge.
__________________
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 33,541
Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.
  Reply With Quote
Old 01-25-2013, 09:45 AM   #47
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 

Join Date: Nov 2011
Casino cash: $5000
Quote:
Originally Posted by FD View Post
Holding a broad based stock fund is itself a hedge against inflation. I know that saying this will bring out the crazies, but gold isn't a hedge against inflation so much as a hedge against instability. This is fine for short run thinking but if you are investing for the long run its not something you need to worry about. The S&P has outperformed gold over every 30 year period ever.
It seems the difference of opinion here is your reasonable faith in the market vs the gold peddlers who have a strong belief in a collapse of the system/severe instability.

If so, I share that faith in the market. Thanks for the comment.
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 01-25-2013, 09:52 AM   #48
ChiTown ChiTown is offline
Stroking to Andy's Man Boobs
 
ChiTown's Avatar
 

Join Date: Aug 2000
Location: Flatlands of Kansas
Casino cash: $18904
Quote:
Originally Posted by La literatura View Post
You are more risky than I am, but I suppose that is the nature of an entrepreneur.

Do actively manage your partnership businesses, or are you more a [edit: limited partner]?
I am actively involved in all Partnerships (of which I have 4)
__________________


FRESHMAN DEBATE SQUAD - 2nd ALTERNATE
Posts: 18,936
ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.
  Reply With Quote
Old 01-25-2013, 09:57 AM   #49
Swanman Swanman is online now
It's a league game, Dude
 
Swanman's Avatar
 

Join Date: Jun 2003
Location: Itasca, IL
Casino cash: $7200
Quote:
Originally Posted by La literatura View Post
Thanks. The index funds is something I understand in theory, but not really in practice. I was initially planning on one total market index, but your advice is that several 500 or 3000 or 5000 indices is better? (presumably, for the diversification principle)
Here are a few indexes to look at:

S&P 500 - broad based large cap US index
Russell 3000 - index of small cap US stocks, bit more risky than S&P
MSCI-EAFE - international index covering developed countries outside of the US
MSCI Emerging Markets - index covering the emerging markets outside of the US (Brazil, Russia, India, China, etc)

There are also several different fixed income index funds you can look into.
Posts: 3,460
Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.
  Reply With Quote
Old 01-25-2013, 10:01 AM   #50
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 

Join Date: Nov 2011
Casino cash: $5000
Quote:
Originally Posted by Amnorix View Post
Read Malkiel, but all else being equal, I might do something like a total market index, a REIT index, an international index, and a bond index. Say 10% on the REIT and 30% on the rest.

That gives you quite a bit of diversity. You'd be somewhat less in domestic stocks than I would like for a person just starting out, however, but that's better, I think, than just doing 100% in a total market index.
Thanks for the measures. I have to look up what an REIT index is. My understanding is that bond indices should start out low for the young investor and gradually reach up to 50% as I near retirement.

That is just my initial plan for a portfolio balance, but I hadn't really given it much thought yet.
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 01-25-2013, 10:03 AM   #51
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 

Join Date: Nov 2011
Casino cash: $5000
Quote:
Originally Posted by ChiTown View Post
I am actively involved in all Partnerships (of which I have 4)
Do you have them all in the same industry, or do you spread it out?

I would like to become a partner of a business sometime in the future (other than my own), but I'm not sure what industry. And I wouldn't want to actively manage it.
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 01-25-2013, 10:06 AM   #52
Swanman Swanman is online now
It's a league game, Dude
 
Swanman's Avatar
 

Join Date: Jun 2003
Location: Itasca, IL
Casino cash: $7200
Quote:
Originally Posted by Amnorix View Post
Read Malkiel, but all else being equal, I might do something like a total market index, a REIT index, an international index, and a bond index. Say 10% on the REIT and 30% on the rest.

That gives you quite a bit of diversity. You'd be somewhat less in domestic stocks than I would like for a person just starting out, however, but that's better, I think, than just doing 100% in a total market index.
I would break up the US index funds into large cap/small cap (as mentioned in my other post). You can break the international equities into developed and emerging markets. REITs are good because they give you exposure to real estate. I would add in something in a commodities fund.

My investment portfolio looked something like this:

20% S&P
20% Russell
20% US Bond Index
10% Emerging Markets Bond Index
20% MSCI-EAFE stock index
10% Commodities Index

I avoided real estate as that was during the free-fall of 2009.
Posts: 3,460
Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.
  Reply With Quote
Old 01-25-2013, 10:06 AM   #53
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 

Join Date: Nov 2011
Casino cash: $5000
Quote:
Originally Posted by Swanman View Post
Here are a few indexes to look at:

S&P 500 - broad based large cap US index
Russell 3000 - index of small cap US stocks, bit more risky than S&P
MSCI-EAFE - international index covering developed countries outside of the US
MSCI Emerging Markets - index covering the emerging markets outside of the US (Brazil, Russia, India, China, etc)

There are also several different fixed income index funds you can look into.
So, practically speaking, how does this work? I take my $10K to a financial adviser, and say, "I want to put 1/3 in S&P 500, 1/5 in emerging markets, a 1/3 in Russell 3000, and the rest in a bond index." And then they know what to do?
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Old 01-25-2013, 10:07 AM   #54
Amnorix Amnorix is offline
In BB I trust
 
Amnorix's Avatar
 

Join Date: May 2003
Location: Boston, Mass.
Casino cash: $8775
Quote:
Originally Posted by La literatura View Post
Thanks for the measures. I have to look up what an REIT index is. My understanding is that bond indices should start out low for the young investor and gradually reach up to 50% as I near retirement.

That is just my initial plan for a portfolio balance, but I hadn't really given it much thought yet.

A REIT is a real estate investment trust. It basically is about the only simple way for a casual investor to be invested broadly in real estate.
__________________
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 33,541
Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.
  Reply With Quote
Old 01-25-2013, 10:09 AM   #55
Amnorix Amnorix is offline
In BB I trust
 
Amnorix's Avatar
 

Join Date: May 2003
Location: Boston, Mass.
Casino cash: $8775
Quote:
Originally Posted by La literatura View Post
So, practically speaking, how does this work? I take my $10K to a financial adviser, and say, "I want to put 1/3 in S&P 500, 1/5 in emerging markets, a 1/3 in Russell 3000, and the rest in a bond index." And then they know what to do?

The Russell 3000 is a broad market index that pretty much every brokerage will have to offer. Same for Vanguard 500 (or similar 500 fund). Emerging markets -- go with MSCI Index (again, every brokerage will offer). Bond fund -- there are different ones. I dont' think I'm familiar with a broad based bond fund. They're usually tied to geographic region, etc.
__________________
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 33,541
Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.
  Reply With Quote
Old 01-25-2013, 10:09 AM   #56
ChiTown ChiTown is offline
Stroking to Andy's Man Boobs
 
ChiTown's Avatar
 

Join Date: Aug 2000
Location: Flatlands of Kansas
Casino cash: $18904
Quote:
Originally Posted by La literatura View Post
Do you have them all in the same industry, or do you spread it out?

I would like to become a partner of a business sometime in the future (other than my own), but I'm not sure what industry. And I wouldn't want to actively manage it.
More or less, in and around the energy business. If you are not involved, you better have some serious cash.
__________________


FRESHMAN DEBATE SQUAD - 2nd ALTERNATE
Posts: 18,936
ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.ChiTown is obviously part of the inner Circle.
  Reply With Quote
Old 01-25-2013, 10:10 AM   #57
Amnorix Amnorix is offline
In BB I trust
 
Amnorix's Avatar
 

Join Date: May 2003
Location: Boston, Mass.
Casino cash: $8775
Quote:
Originally Posted by La literatura View Post
So, practically speaking, how does this work? I take my $10K to a financial adviser, and say, "I want to put 1/3 in S&P 500, 1/5 in emerging markets, a 1/3 in Russell 3000, and the rest in a bond index." And then they know what to do?

Oh, and phone works fine. You don't need to walk anywhere. 1-800-Fidelity or wherever you go, and they have all kinds of folks available by phone.
__________________
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 33,541
Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.
  Reply With Quote
Old 01-25-2013, 10:11 AM   #58
Amnorix Amnorix is offline
In BB I trust
 
Amnorix's Avatar
 

Join Date: May 2003
Location: Boston, Mass.
Casino cash: $8775
Quote:
Originally Posted by ChiTown View Post
More or less, in and around the energy business. If you are not involved, you better have some serious cash.

I remember working on prospectuses to sell limited partnerships in oil well drilling investments. Apparently it had a great tax advantage or something...? That was 15 or so years ago and tax laws may have changed.
__________________
"I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 33,541
Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.Amnorix has an IQ even higher than Frankie's.
  Reply With Quote
Old 01-25-2013, 10:12 AM   #59
Swanman Swanman is online now
It's a league game, Dude
 
Swanman's Avatar
 

Join Date: Jun 2003
Location: Itasca, IL
Casino cash: $7200
Quote:
Originally Posted by La literatura View Post
So, practically speaking, how does this work? I take my $10K to a financial adviser, and say, "I want to put 1/3 in S&P 500, 1/5 in emerging markets, a 1/3 in Russell 3000, and the rest in a bond index." And then they know what to do?
They should know as long as you tell them you want index-based funds. I did it the manual way through Etrade. I am hands on like that.
Posts: 3,460
Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.Swanman would the whole thing.
  Reply With Quote
Old 01-25-2013, 10:14 AM   #60
La literatura La literatura is offline
MVP
 
La literatura's Avatar
 

Join Date: Nov 2011
Casino cash: $5000
Quote:
Originally Posted by Amnorix View Post
I remember working on prospectuses to sell limited partnerships in oil well drilling investments. Apparently it had a great tax advantage or something...? That was 15 or so years ago and tax laws may have changed.
I've heard that dot-comers becoming limited partners in things like Houston real estate was fairly popular for the tax losses it would generate in the first few years.

Yeah, that would be ideal. "I need a company that will lose in order to offset my high gains."
Posts: 7,171
La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.La literatura is blessed with 50/50 Hindsight.
  Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump




All times are GMT -6. The time now is 08:50 PM.


This is a test for a client's site.
A new website that shows member-created construction site listings that need fill or have excess fill. Dirt Monkey @ https://DirtMonkey.net
Powered by vBulletin® Version 3.8.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.