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View Poll Results: What best describes your investment strategy? | |||
My investment strategy is primarily my 401k, IRA, or other retirement savings |
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16 | 80.00% |
I invest in index funds and mutual funds purchased from a firm |
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5 | 25.00% |
I invest mainly with online brokerages like E*Trade |
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2 | 10.00% |
I invest mainly in bonds and CDs |
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2 | 10.00% |
I have a savings account but I don't invest |
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0 | 0% |
I don't have the finances to invest/manage wealth much |
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3 | 15.00% |
Multiple Choice Poll. Voters: 20. You may not vote on this poll |
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#31 | |
MVP
Join Date: Nov 2011
Casino cash: $5000
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Quote:
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Posts: 7,611
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#32 |
MVP
Join Date: Nov 2011
Casino cash: $5000
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I also need a second job to pay for a wedding fund bucket, about $7K. I figure I could work a second job for about a year.
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Posts: 7,611
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#33 | |
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
Casino cash: $29908
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Quote:
Saving for a house downpayment makes sense. Remember that you want to try go get to 20% of the value of the home to avoid paying PMI. If you DO pay PMI because you can't get to the 20%, remember that you can always either refinance to add more cash, or get the house re-appraised after a while to establish that the THEN-existing balance on the loan is <20% of the value of the house, at which time you tell your mortgage company and PMI should be able to stop. The critical piece here is that you must TELL your mortgage company. They won't figure it out for you. There's no nice note that says "oh, you don't need PMI anymore" that they will send. You need to manage that on your own.
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#34 | |
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
Casino cash: $29908
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Quote:
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#35 |
MVP
Join Date: Nov 2011
Casino cash: $5000
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I absolutely believe in the 80/20 rule mortgage rule and have a near moral objection to not using it as a bare minimum. I'd really like to go 70/30.
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#36 | |
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
Casino cash: $29908
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Quote:
Nope. No fees. The new brokerage wants to business. And no tax impact -- nobody has to buy/sell any of those securities. It's just a paper transaction and the holdings move from Old Brokerage to New Brokerage.
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#37 |
Stroking to Andy's Man Boobs
Join Date: Aug 2000
Location: Flatlands of Kansas
Casino cash: $43962
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My investment strategy is 3 fold:
1. Largest portion of my money is tied up in businesses that I either own or am a partner in. 2. Mutual Funds, Insurance and some Stocks 3. 401K Type Fund/Savings
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#38 | |
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
Casino cash: $29908
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Quote:
Your hopes may be dashed against the rocks of reality when you find out what houses cost. Also, at current interest rates, you're well-advised to buy earlier rather than later. I've been saying this for years, and been wrong for years, but how the hell can rates get any lower? I'm not going to pull out a calculator to prove it, but I'd bet that 80/20 at 3.25% interest over 30 is better than 70/30 at 6% over 30. And 6% is low by historical standards. I paid points back in 2000 or so to get my loan DOWN to 7%. That seems absurd now, but back then 7% was very low, historically speaking. Keep in mind also the tax benefit of deducting the interest. That makes the effective rate even lower. The factor in that the housing market seems to be recovering. Bottom line -- consider whether it makes more sense to keep waiting/saving to buy a house, or whether you'd be better off buying now before the rates get higher and the prices get higher. You'd need to be saving at a pretty fast clip to stay ahead. *obviously, many factors here and my crystal ball is no clearer than yours.
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#39 |
MVP
Join Date: Nov 2011
Casino cash: $5000
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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)
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#40 | |
MVP
Join Date: Nov 2011
Casino cash: $5000
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Quote:
But I do understand your insistence on the interest rate being a huge factor, and it will be for me. |
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#41 |
Masochist/Chiefs Fan
Join Date: Dec 2009
Casino cash: $5025
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Posts: 723
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#42 | |
MVP
Join Date: Nov 2011
Casino cash: $5000
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Do actively manage your partnership businesses, or are you more a [edit: limited partner]? Last edited by La literatura; 01-25-2013 at 10:39 AM.. |
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#43 | |
Veteran
Join Date: Dec 2006
Location: Los Angeles
Casino cash: $12913
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Quote:
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#44 |
Veteran
Join Date: Dec 2006
Location: Los Angeles
Casino cash: $12913
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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.
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Homer: [looking at watch] Two hours? Why'd they build this ghost town so far away? Lisa: Because they discovered gold over there! Homer: It's because they're stupid, that's why. That's why everybody does everything. |
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#45 | |
In BB I trust
Join Date: May 2003
Location: Boston, Mass.
Casino cash: $29908
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Quote:
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.
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"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 |
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