Official Investing Thread

Discussion in 'The Mainboard' started by Joe Louis, Jul 12, 2010.

  1. tmbrules

    tmbrules Make America Great Again!
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    Clemson TigersChicago CubsCincinnati RedsChicago Bears

    Yeah, I don't think the index fund is going anywhere anytime soon. I think its an excellent vehicle for someone like yourself who doesn't have the time or desire to do a little research and actively trade. What i am saying is that these robo adivsors will outperform in a bull market. When a bear market comes around, and it will at some point, the actively managed funds will come back in style.

    Also, the move to index funds provides a lot of opportunity for active managers. For indexing to work, you need half or more than half of people to not index. The more people that move to indexing, the easier it is to beat the index. So i guess what i am trying to say is that people are quick to dismiss active management right now, but i think people will see the value in it when the bull market stops.

    Also, i comment on these things as an investor. I know my day job is to trade, but i invest with a totally different philosophy than what i trade with.
     
    #8251 tmbrules, Aug 15, 2017
    Last edited: Aug 15, 2017
  2. tmbrules

    tmbrules Make America Great Again!
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    Im not sure you can open one without children. I had to provide their SSN when opening accounts.

    edit: I guess you can open one in your own name, but im not sure if you can transfer to your children. I know you can transfer from one kid to another but not sure about parent to kid.
     
  3. Name P. Redacted

    Name P. Redacted I have no money and I'm also gay
    Donor
    Kansas State WildcatsSeattle Kraken

    That is something that the Freakonomics episode spoke about: how having too much money in index funds could be bad for the market. It was interesting to hear.
     
    dahldennsull likes this.
  4. Rabid

    Rabid Fan of: DQ Treats
    Donor TMB OG
    Minnesota Golden Gophers

    If it was me, I would do myself and change the beneficiary when I had a kid.
     
    Lipp likes this.
  5. chopcity

    chopcity Well-Known Member
    Donor

    I think you can choose any child like your friend's kids and then change it at any time to your offspring when you fail to pull out
     
    brolift likes this.
  6. Wicket

    Wicket Fan: ND, PSV, Pool FC, Cricket, Urquel, Dog Crew
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    Notre Dame Fighting IrishSan Francisco GiantsNew Orleans SaintsChicago Cubs

    there are famous examples in spades, if like 80% of a stock is in indices thats almost a short squeeze waiting to happen (in the right conditions)
     
  7. dahldennsull

    dahldennsull Living in the best state
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    Oklahoma City ThunderCleveland BrownsOklahoma SoonersHouston Oilers

    This is what he used to sell me on opening with him, and why my dad uses him. He states often that he won't beat the market when it's good, but where he makes his clients money is in bear markets. Problem is, I have luckily never been through one with him, so I don't feel that loyalty others do. He also states he doesn't predict one coming soon. If that is the case, guys like Jack Bogle talk often about the difference in cost from an Index fund (<0.5%) compared to an active investor 1-2%, and how if you merely take that difference invested over time.

    that's my biggest hold up. I'm currently paying 1.25% to an active investor to be outperformed by my Betterment account. Even if/when we go through a bear market or correction, he would have to do substantially better than Betterment/Wealthfront, because each year I will be netting 1.25% over him that will keep compounding right?

    I feel like I'm debating myself in circles, it's making my head spin.
     
  8. Name P. Redacted

    Name P. Redacted I have no money and I'm also gay
    Donor
    Kansas State WildcatsSeattle Kraken

    You've talked about it numerous times in here to seemingly convince yourself to drop him, seems like you need to shit or get off the pot.
     
  9. Joystick Izzy

    Joystick Izzy Well-Known Member
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    Georgia BulldogsAtlanta BravesTennessee TitansNashville Predators

    Early on, sure. B
    Take a couple hours out of your life and read Bogleheads Guide to Investing. Then stop fucking around with a 1.25% fee for "active mangement."
     
    chopcity, Trop, Arkadin and 2 others like this.
  10. tmbrules

    tmbrules Make America Great Again!
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    Clemson TigersChicago CubsCincinnati RedsChicago Bears

    Are you worried about hurting the ad visors feelings or your dads feelings? If that is part of your answer, don't let it be. Its your money, and screw other peoples feelings.

    1.5% is too high. I would talk to him and just be frank. Ask him if he could do it for .75% and if he says no just move your money. Its not really that big of a deal and i think you would have a better peace of mind with your money at Wealthfront.

    Agree with Name P. Redacted, i think you want to move your money but for some reason are hesitant.
     
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  11. dahldennsull

    dahldennsull Living in the best state
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    Oklahoma City ThunderCleveland BrownsOklahoma SoonersHouston Oilers

  12. Name P. Redacted

    Name P. Redacted I have no money and I'm also gay
    Donor
    Kansas State WildcatsSeattle Kraken

    Don't agree with me, I'm trying to get to the top of Bill the Butcher's libtard power rankings. Your endorsement probably hurts.
     
    brolift and tmbrules like this.
  13. Lip

    Lip Well-Known Member
    Donor
    Michigan State SpartansDetroit LionsGeorge Washington Colonials

    You can change the beneficiary to a different family member. I don't think it can be just anybody.
     
  14. Baseballman86

    Baseballman86 Well-Known Member
    Alabama Crimson TideAtlanta BravesAtlanta Falcons

    Fundrise... anybody mess with this before? Is it much different than just buying REITs?
     
  15. Bo Pelinis

    Donor TMB OG
    Nebraska CornhuskersKansas City RoyalsKansas City ChiefsBig 8 Conference

    And if you have a generous parent/uncle/grandparent they can also get the card and tie their rewards to your kids (mine did). It'll be worth tens of thousands once the kids are ready to go to school.
     
    lechnerd likes this.
  16. Frankie Carbone

    Frankie Carbone eh che se dice
    Florida State SeminolesNew York YankeesNew York KnicksOrlando CityLazioUnited States Men's National Soccer Team

    I believe the credit card can be attributed to any of fidelties accounts so it's a very good thing to look into
     
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  17. Gallant Knight

    Donor
    Arkansas RazorbacksHouston AstrosRice OwlsAston Villa

    the lending club note i bought on the exchange that was in the grace period has made two late payments but is now current. if the whole thing is paid off i will make approximately 85%
     
  18. Bo Pelinis

    Donor TMB OG
    Nebraska CornhuskersKansas City RoyalsKansas City ChiefsBig 8 Conference

    Yeah it can go to a brokerage or retirement account, also. 2% cash back on everything with no limit or annual fee is a pretty sweet deal.
     
    Ty Webb and lechnerd like this.
  19. triceratops

    triceratops Tribe Of Dan
    Staff Donor TMB OG
    Clemson TigersCarolina Panthers

    Looking into a investment called GPB Automotive Portfolio. They own 68 legacy car dealerships with a push to own over 100. My grandfather owned a legacy car dealership and their is solid money in it. They target 8% annual return, but it can push towards 15%.
     
  20. beist

    beist Hyperbolist
    Donor

    I'd be interested in hearing more about this. I consult for the auto manufacturers and suppliers and for compliance reasons I'm not really able to invest, but I haven't really looked into investing at the dealer level before.
     
  21. Baseballman86

    Baseballman86 Well-Known Member
    Alabama Crimson TideAtlanta BravesAtlanta Falcons

    Can't remember if I mentioned this in here before, but have you guys seen this new online bank account called Beam? Hasn't launched yet and information is limited but supposedly it's FDIC insured, online banking, no fees and it's guaranteeing 2-4% APY. I'm on the waitlist but it seems like there is a catch somewhere
     
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  22. Name P. Redacted

    Name P. Redacted I have no money and I'm also gay
    Donor
    Kansas State WildcatsSeattle Kraken

    Just signed up
     
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  23. Baseballman86

    Baseballman86 Well-Known Member
    Alabama Crimson TideAtlanta BravesAtlanta Falcons

    Same, #6,623. Allegedly they're only taking 20K in their initial launch so I figured what's the harm
     
  24. pennstate2012

    pennstate2012 Well-Known Whore
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    Pittsburgh SteelersPenn State Nittany LionsPittsburgh Penguins

    If they are claiming to be paying 4% on a FDIC account, I have some beachfront property in Iowa to sell you.
     
  25. Baseballman86

    Baseballman86 Well-Known Member
    Alabama Crimson TideAtlanta BravesAtlanta Falcons

    I'm also skeptical, but that's what they're claiming.

    https://meetbeam.com/?r=CASH-S1zntUUEub
    RenderedContent-1FC07ADA-2BEB-4D97-9313-85EB6B922F78.JPG RenderedContent-3D2A018A-6EA7-4665-AA7C-89CD72526E23.JPG
     
  26. Jimmy the Saint

    Jimmy the Saint The future is a benevolent black hole
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    Penn State Nittany LionsGreen Bay PackersChelseaHartford WhalersPhoenix Rising

    I'm skeptical hippo about this, and especially 4%, but is 2% really unrealistic? I use Ally to park my emergency fund and it's at 1.15% now.
     
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  27. Vinegar Strokes

    Vinegar Strokes Fire Izzo
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    Michigan State SpartansDetroit PistonsDetroit LionsDetroit Red WingsDetroit Tigers

    Same. I use Ally too. Not switching over.
     
  28. Name P. Redacted

    Name P. Redacted I have no money and I'm also gay
    Donor
    Kansas State WildcatsSeattle Kraken

    I don't see why it seems crazy. Fed rates are slowly slipping up, in theory the FDIC savings rates should start bumping up too.
     
  29. pennstate2012

    pennstate2012 Well-Known Whore
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    Pittsburgh SteelersPenn State Nittany LionsPittsburgh Penguins

    2% would be the higher end of promo rate, but 4% is on par with a 30 year mortgage rate. It's crazy to give it as a deposit. Sounds like Indy Bank in 2007
     
  30. Baseballman86

    Baseballman86 Well-Known Member
    Alabama Crimson TideAtlanta BravesAtlanta Falcons

    If it truly becomes FDIC insured, is there any risk?
     
  31. WillySaliba

    WillySaliba Well-Known Member
    Donor
    Philadelphia 76'ersArsenal

    Just my guess because I never heard of it until tonight and didn't read the link. I'd imagine they will have several types of accounts. If it's truly savings then no risk. Anything else then yeah, of course.
     
  32. Cheshire Bridge

    Cheshire Bridge 2017 & 2019 National Champions - Clemson Tigers
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    Clemson TigersAtlanta BravesTiger WoodsCollege Football Playoff

    Not feasible. They borrow at 3 percent and give you 4?
     
  33. dahldennsull

    dahldennsull Living in the best state
    Donor
    Oklahoma City ThunderCleveland BrownsOklahoma SoonersHouston Oilers

    Where is my cash invested? Is my money safe? And how secure is my information?


    Your cash at Beam, like your deposit at your primary bank, is not “invested” (a term used more often in the securities industry), but “loaned” in the form of mortgage, commercial real estate loans, etc. Beam or its partnering bank does not take inappropriate risks on loans at the expense of financial safety and soundness. And remember, your cash at Beam is always FDIC-insured.

    Your money stays in an FDIC-insured deposit account provided by Beam's bank sponsor; FDIC insures up to $250,000 per depositor. Beam takes the safety of your money seriously.

    Your Beam mobile app observes strict bank-level security standard and all your data is appropriately encrypted to protect against unwanted cybersecurity risks.
     
  34. tmbrules

    tmbrules Make America Great Again!
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    Clemson TigersChicago CubsCincinnati RedsChicago Bears

    Is there alimit to the amount of money you can deposit and earn 4% on?

    Seems like they might have a low limit? Just guessing
     
  35. dahldennsull

    dahldennsull Living in the best state
    Donor
    Oklahoma City ThunderCleveland BrownsOklahoma SoonersHouston Oilers

    doesn't say it on the FAQ page, just no minimum amount to open an account. They are limiting the number of people in the first wave, maybe that will limit it?
     
    tmbrules likes this.
  36. Nantucket

    Nantucket Northeastern Elitism+Alabama Downhome Sensibility
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    Alabama Crimson TideNew England Patriots

  37. Arkadin

    Arkadin inefficiently efficent and unclearly clear
    Donor

    Random and not really on topic, but I don't really even know what sports car means anymore. Seems like everything with two doors is the 'sport' model
     
  38. Frankie Carbone

    Frankie Carbone eh che se dice
    Florida State SeminolesNew York YankeesNew York KnicksOrlando CityLazioUnited States Men's National Soccer Team

    I could easily see a Honda Civic being considered a sports car in that chart making more sense
     
  39. Houndster

    Houndster Well-Known Member
    Donor TMB OG

    Shoutout to whomever recommended IMGN

    Up over 10% each of the last two days and almost 80% since June.
     
  40. beist

    beist Hyperbolist
    Donor

    Today I learned your employer automatically caps your 401k contribution so you don't go over the max. Good to know.
     
  41. allothersnsused

    allothersnsused Wow that’s crazy
    Donor
    Virginia CavaliersAtlanta BravesAtlanta HawksWashington Football TeamChelsea

    Humble brag
     
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  42. Arkadin

    Arkadin inefficiently efficent and unclearly clear
    Donor

    I'd do the math on that to maximize your match. Might not be an issue but it's possible depending on contributions
     
    Ralph likes this.
  43. beist

    beist Hyperbolist
    Donor

    Yep, I scaled back my contribution % so I'm contributing at least the minimum in every pay period throughout the year. My bonus came through today and they contributed to my 401k out of that, which they've never done before. All my careful planning was thrown off. Mo money mo problems.
    and, yes. :smug:
     
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  44. Arkadin

    Arkadin inefficiently efficent and unclearly clear
    Donor

    Anyone use fundrise?
     
  45. Baseballman86

    Baseballman86 Well-Known Member
    Alabama Crimson TideAtlanta BravesAtlanta Falcons

    Signed up but have yet to invest anything. Have you tried yet?
     
  46. Arkadin

    Arkadin inefficiently efficent and unclearly clear
    Donor

    I haven't. I kind of want to though
     
  47. Jimmy the Saint

    Jimmy the Saint The future is a benevolent black hole
    Donor
    Penn State Nittany LionsGreen Bay PackersChelseaHartford WhalersPhoenix Rising

    Cliffs on what Fundrise is?
     
  48. dahldennsull

    dahldennsull Living in the best state
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    Oklahoma City ThunderCleveland BrownsOklahoma SoonersHouston Oilers

    "Fundrise is an online real estate investment platform that is primarily marketed to non-accredited investors. Fundrise has been labeled as the first company to successfully crowdfund investment into the real estate market."
     
  49. tmbrules

    tmbrules Make America Great Again!
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    Clemson TigersChicago CubsCincinnati RedsChicago Bears

    Looking into fundrise and a couple of things that are not great imo.

    In order to get all of your principal back they have to actually sell the assets that you invest in. Basically you are looking at 5 years on average to get your money out. What happens if the market corrects in 5 years? Who decides when to sell? You are relying on their "experts" and it doesn't tell you much about who they are that i could find.

    One of the portfolios i checked out was heavily invested in the Los Angeles area with over 45% of the portfolio in 3 los angeles area properties. I wouldn't exactly consider that well diversified.

    I think its a good idea, but could use some polishing. Not for me yet.
     
    #8300 tmbrules, Sep 5, 2017
    Last edited: Sep 5, 2017