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[DJTJ]

Always index the sp 500.

Such a great bet long term. You're basically betting on the market to improve, and statistically over time, has been around 6-8% a year. It's a solid improvement, and the long term reward is totally worth it. I suggest against the IRA idea simply because you seem younger? Grow that shit out and use it for something other than retirement.

 

[Lee]

Always index the sp 500.

Such a great bet long term. You're basically betting on the market to improve, and statistically over time, has been around 6-8% a year. It's a solid improvement, and the long term reward is totally worth it. I suggest against the IRA idea simply because you seem younger? Grow that shit out and use it for something other than retirement.

Roth is nice because you only have to put it in 5 years, then can pull out penalty free if you need. So i recommend the roth too.

The market is 10-12% a year average.

And a S&P 500 index fund is boring, get a bti more aggressive when you with a mutual fund or 2 with a good history. No need to put it into the boring old man fund of S&P, lol.

 

[DJTJ]

Roth is nice because you only have to put it in 5 years, then can pull out penalty free if you need. So i recommend the roth too.

The market is 10-12% a year average.

And a S&P 500 index fund is boring, get a bti more aggressive when you with a mutual fund or 2 with a good history. No need to put it into the boring old man fund of S&P, lol.

So, an even higher ROI.

Why does it matter if it's boring? It's a stable investment. Why risk a long term loss when you have a sure thing? I've worked with a dads friend late last year on a long term investment calculator and the planning just blows away most investment plans.

Just don't see the people in caring about boring or fun if a goal is to increase the amount in the pot.

 

[Lee]

So, an even higher ROI.

Why does it matter if it's boring? It's a stable investment. Why risk a long term loss when you have a sure thing? I've worked with a dads friend late last year on a long term investment calculator and the planning just blows away most investment plans.

Just don't see the people in caring about boring or fun if a goal is to increase the amount in the pot.

Its boring, unimaginative and not as good of a long term return as a good mutual fund with a solid track record, which is really the key.

S&P is what you start moving your portfolio too when you are in your 50's along with A rated Bonds to help against the risk. Older people are risk adverse as they dont have much time to ride the peaks and valleys. Some one out of college shouldnt be looking for a medium risk type investment like S&P Index funds, better pick a fund manager with a solid history and gets you almost double the return over the long haul.

 

[DJTJ]

Its boring, unimaginative and not as good of a long term return as a good mutual fund with a solid track record, which is really the key.

S&P is what you start moving your portfolio too when you are in your 50's along with A rated Bonds to help against the risk. Older people are risk adverse as they dont have much time to ride the peaks and valleys. Some one out of college shouldnt be looking for a medium risk type investment like S&P Index funds, better pick a fund manager with a solid history and gets you almost double the return over the long haul.

But risk adversity isn't based on age. It's based on the willing risk of an individual.

You will not find a single mutual fund with 10-12% annualized return over a 10+ year window without taking on an incredible amount of risk. That won't happen.

Is it boring? Yes. Can you make an insane amount of money using it as a glorified savings account? Yeah.

The amount of risk necessary to take on isn't worth the 2-3 percent return.

 

[Pick6]

Lean towards Ob1's suggestion. If you are going to invest it put it in a Roth IRA for the tax advantage. You might want to consider just putting it in a savings account for an emergency fund to cover job loss, unexpected big expenses, etc. if you don't have one saved up. I use Ally (1.05% interest) for my long term savings. You won't find any better besides a few credit unions.

 

[Lee]

But risk adversity isn't based on age. It's based on the willing risk of an individual.

You will not find a single mutual fund with 10-12% annualized return over a 10+ year window without taking on an incredible amount of risk. That won't happen.

Is it boring? Yes. Can you make an insane amount of money using it as a glorified savings account? Yeah.

The amount of risk necessary to take on isn't worth the 2-3 percent return.

Risk adverse is based on when you need of the money short term vs long term, thus the age thing as the concept is putting money away for retirement.

This is just classic investment strategy taught in college. I am not coming up with anything new here.

 

[DJTJ]

Risk adverse is based on when you need of the money short term vs long term, thus the age thing as the concept is putting money away for retirement.

This is just classic investment strategy taught in college. I am not coming up with anything new here.

incorrect assumption of risk adversity.

Risk adversity is a derivative of numerous things, not just age. I'm 23. I refuse to take on additional risk for marginal return.

http://www.investopedia.com/terms/r/riskaverse.asp

By definition, despite my age, makes me risk adverse. It's why I would prefer an index over a mutual fund. That has nothing to do with age.

 

[Lee]

incorrect assumption of risk adversity.

Risk adversity is a derivative of numerous things, not just age. I'm 23. I refuse to take on additional risk for marginal return.

http://www.investopedia.com/terms/r/riskaverse.asp

By definition, despite my age, makes me risk adverse. It's why I would prefer an index over a mutual fund. That has nothing to do with age.

Its not marginal, I had my investments in a few different well picked mutual funds and earned over 20% last year.

You can do what you want, not saying you shouldnt, but by the text book you are much better off in mutual funds.

Not looking to get in a pissing match over this, just going text, as I do have an accounting and finance degree, and while been in mortgages for 15 years, nto directly related, I was a financial planner previous and held a series 7 and 63 license

No big deal, stay with your index funds, but they are a false sense of safety, as they will decrease when the market decreases. Really if you adverse to risk you should go for some high rated Bonds, but that is even lower returns.

 

[DJTJ]

Its not marginal, I had my investments in a few different well picked mutual funds and earned over 20% last year.

You can do what you want, not saying you shouldnt, but by the text book you are much better off in mutual funds.

Not looking to get in a pissing match over this, just going text, as I do have an accounting and finance degree, and while been in mortgages for 15 years, nto directly related, I was a financial planner previous and held a series 7 and 63 license

No big deal, stay with your index funds, but they are a false sense of safety, as they will decrease when the market decreases. Really if you adverse to risk you should go for some high rated Bonds, but that is even lower returns.

But over a long term, how well were your picks? The investment strategy for index isn't what you're trying to paint it as. Risky mutual funds aiming for large returns are also entirely derivative of market risk, too, along with any other risk that they pick up individually (for example, small cap funds, or intl small caps). I worked for a single advisor firm with over 80 mil in capital where we dealt most of our business from mutual funds.

You can pick and choose an investment strategy all you want and that's literally what I did for my job; there's going to be years like 2015 (not 16 where even I made 14% using large cap, balanced, small cap in my shitty work 401k) where any major fund management company are going to have funds lose ass and you end up with a 4% return on investment unless you became an insane guru overnight.

He's got under a minimum for almost any advisor that he doesn't know personally to take. Might as well do things simply.

Also, rolling 12, 17.3 percent for an sp index fund. 2.7 percent on 6200 is marginal. On your egg? Probably not.

 

[TopGun]

Its not marginal, I had my investments in a few different well picked mutual funds and earned over 20% last year.

You can do what you want, not saying you shouldnt, but by the text book you are much better off in mutual funds.

Not looking to get in a pissing match over this, just going text, as I do have an accounting and finance degree, and while been in mortgages for 15 years, nto directly related, I was a financial planner previous and held a series 7 and 63 license

No big deal, stay with your index funds, but they are a false sense of safety, as they will decrease when the market decreases. Really if you adverse to risk you should go for some high rated Bonds, but that is even lower returns.

I don't know what textbook you're reading that says actively managed mutual funds are better than index funds, but it's wrong. There are good mutual funds, but on average, risk-adjusted returns of index funds outperform the vast majority of mutual funds.

 

[Lee]

I don't know what textbook you're reading that says actively managed mutual funds are better than index funds, but it's wrong. There are good mutual funds, but on average, risk-adjusted returns of index funds outperform the vast majority of mutual funds.

A good mutual fund is the way to go, but the key word is good.

Index funds have zero protection against negative market moves.

My strategy is I change my investments every quarter depending on where I think the market will go. So if i think its a down turn, i go heavy into bond funds for example. I have out performed the market for about 10 years straight, but not killing it like 50% returns or anything.

This is why I called it boring, its fine if you want to take an inactive role in your money, but if you are active, you can beat the S&P with just a little bit of knowledge and management.

 

[bigfoot5415]

My rate of return YTD is 9%, is that good? My Rate of return as of Apr 2016 is 21%. Seems high as hell.

Either I am underperforming this year, or I way over performed last year. I hand picks a few funds and whatnot for my Roth.

 

[The Process God]

Hey guys, I just recently started saving for retirement. I'm 27. I have a roth 401k that is going 100% into the JMVSX fund. I selected it because it seemed to be the highest rated mutual fund I was allowed to select. Is this a good mutual fund? I'm new to stocks, but it was 5 stars on Morningstar. I will try to remember to post my other mutual fund/target date fund options later today.

 

[TopGun]

Hey guys, I just recently started saving for retirement. I'm 27. I have a roth 401k that is going 100% into the JMVSX fund. I selected it because it seemed to be the highest rated mutual fund I was allowed to select. Is this a good mutual fund? I'm new to stocks, but it was 5 stars on Morningstar. I will try to remember to post my other mutual fund/target date fund options later today.

Do you have access to any Vanguard funds? They typically track indexes well and offer much lower fees than most other funds. It looks like you are paying around 1% in fees for JMVSX, not including any fees that may be imposed by your 401K administrator. Vanguard is typically significantly less than that.