BodyRecomposition Support Forums  

Go Back   BodyRecomposition Support Forums > Miscellaneous > Miscellaneous Discussion
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

Reply
Thread Tools Display Modes
  #11  
Unread 02-21-2010, 12:00 PM
Elf Elf is offline
Banned
 
Join Date: Jan 2010
Posts: 161
Default

Mutual funds...haha.

How many people have to lose their retirement money before all the "financial experts" catch up?
Reply With Quote
  #12  
Unread 02-21-2010, 09:21 PM
jp471's Avatar
jp471 jp471 is offline
Senior Member
 
Join Date: Jul 2008
Posts: 241
Default

Quote:
Originally Posted by digink View Post
Sorry I didn't provide what options I have as far as investment, here is a screen shot.

sorry its kinda small but these are my options:


'
JMO I'll def. look into that site and Dave Ramesy, thanks. And thanks for all the replies.

Here's what I'd do off the top of my head...

Bond (treasuries) 10%
Large Cap Val. 10%
Large Cap Blend 10%
International Equity 10%
Mid Cap Growth 15%
Small Cap Value 10%
Small Cap Growth 15%
Emerging Market Equity 20%


There you have 10% in fixed income. Every five years or so move a few percent more into that or preferably other types of fixed income. With the rest your 20% in stable equities, 25% in stuff thats still stable but has some upside, and 45% in stuff that has a lot of upside.

Show that to somebody and tell them thats what you were thinking to get another opinion. I can't really say a lot because there's not a lot of info there. "emerging market equity" could mean a few different things, so could "large cap blend" etc....and its not saying who's managing any of this or what the fund families are. But the split I gave you is what I would do. They're also not giving you an option to invest in any individual sectors. It'd be nice to know you're getting decent exposure to say, tech, or....defense...but maybe wait until you have some cash to give to a good advisor. As well, like I said I'm pretty conservative, and this is my opinion but given the info, thats what I'd do.


Guys that are endorsing the S&P 500....you can invest in the SPY (etf that tracks the S&P) with the portion of dough you want in large cap, but don't put everything in there. S&P500 is just a large cap index....so whatever amount of your portfolio you want in large caps, you can put it there. But for a guy his age, that should be 20% tops, really.

If you wanna do everything w/ an index rather than managers, there are ETF's that track every index....from S&P 500 large cap to S&P 400 mid cap to QQQQ's which track the Nasdaq index ....Russel 2000 small cap etc....don't pick one index and close your eyes cause the motley fool says it beats most managers. And keep in mind there are A LOT of funds that last only a few years that go out of business so obviously that's gonna skew the "beats most managers" adage. Its generally not a terrible idea to, say, pick a decent large cap fund for your large cap exposure rather than the index. But like I said you can do it....just remember if you're investing in the S&P 500 do it w/ what's allocated for large caps, not your whole wad.
Reply With Quote
  #13  
Unread 02-21-2010, 09:47 PM
jp471's Avatar
jp471 jp471 is offline
Senior Member
 
Join Date: Jul 2008
Posts: 241
Default

Quote:
Originally Posted by Elf View Post
Mutual funds...haha.

How many people have to lose their retirement money before all the "financial experts" catch up?
Thats funny. So what are you in? Everything stuffed under your mattress? Or in a money market making a 0.5%....i.e. losing money when you factor in inflation.

I can see what your saying though....we're coming off one of the worst 10 years ever for stocks...so a lot of people right now are once bitten twice shy...or if you were in the market in the early 2000's....twice bitten. So I can relate to your point of view.

But I'll tell you this. If you're not retiring within 10 years, or even less perhaps....you really, really should have exposure to equities, US and international right now. Barring game changing news or catastrophes*...the 2009 low in the stock market is probably a generational bottom. If employment recovers, this bull market could really, really get legs over the next few years. Not saying there couldn't be bumps in the road but you just have to be in the stock market right now if you're young....have to!

There's a saying among traders...."don't fight the fed"....and what we saw last year was not just the fed, but every major Central Bank in the world saying "we'll do whatever we have to in order to prevent economic meltdown"....so the new saying could be "don't fight a globally coordinated Fed".

The recent (past few weeks) pull back in the stock market has nothing to do w/ the US economy or the value of US stocks....its all about the dollar. And the past few days the stock market has still found a bid even with the Dollar moving up. Thats best case scenerio. Even a serious pullback...unless its from serious game changing news....is just a buying opportunity. The Fed raised the discount rate last week....and stocks rallied!!! Employment...and mayyyyybe commercial real estate (but prob only for certain banks) is the risk...but trust me when I say as employment finds stability stocks will go up. Be cautious if stocks move up w/o employment improving....that could lead to a pullback.


Think of it like this....since, as I mentioned, the Fed has made it clear they'll do whatever it takes to support the economy...which in a roundabout way also means the stock market....in what scenerio do you not want to be a buyer of the stock market on pullbacks?

Never bet on the end of the world, cause it only happens once and you won't be there to collect.....meaning...we were really at the edge of the abyss in Sept. 08 and the system didn't fail. So if stocks aren't a buy...and something even worse happens....don't even worry about your 401k cause we'll all have bigger problems.

*if the european credit situation really falls out of bed you could see the dollar move up causing stocks to move down. But still, if your looking long term you can't worry about stuff like that. And hopefully the EU will get its act together. Or maybe we'll see a shake up and the Euro will fail. I mean really, where else are you gonna put your money? R.E. ? maybe, if you really know your stuff, but not for amatures. Bonds? have fun making 4% before taxes and inflation...if you're lucky. Gold? you, or anybody not in the business, does not have the savvy to swim with the sharks in that market (but I would recommend some exposure if your portfolio is big enough). You just have to be in stocks. They are by far the best risk/reward out there right now.

Last edited by jp471 : 02-21-2010 at 09:54 PM.
Reply With Quote
  #14  
Unread 02-22-2010, 11:06 AM
Elf Elf is offline
Banned
 
Join Date: Jan 2010
Posts: 161
Default

I said this about retirement money invested in mutual funds. Not stock market in general. With mutual funds you have zero control, suppose now the market will recover and in 20-30 years there is another crash? Goodbye retirement? If you look at the past, saying we have another 30-40 years until a next crash is pretty optimistic. And putting money in a "safe" plan will usually lead to money made even when inflation is factored in because of tax and (well in my country) the employer will match whatever you put in.

Investing in the stock market short term is a good thing, long term it's a disaster waiting to happen.
Reply With Quote
  #15  
Unread 02-22-2010, 02:51 PM
Myles.Buckley Myles.Buckley is offline
Senior Member
 
Join Date: Apr 2008
Location: GPS: 50.916752 N, 114.050961 W
Posts: 1,460
Default

Quote:
Originally Posted by Elf View Post
Mutual funds...haha.

How many people have to lose their retirement money before all the "financial experts" catch up?
I didn't lose any retirement money - it only went into hiding for 18 months

Example: five years ago I put a small amount into some high-risk mutual fund investments with periodic contributions.

four years ago: +9% return (whole year averaged) I contributed a moderate amount.

three years ago +23% return (whole year avearged) I scaled back my contributions when the market was so hot and when.

two years ago -15% average return and I went in WHOLE HOG when the markets first tanked into the toilet.

last year I averaged better than +38% return for the whole year and I've returned to my 'moderate amount' contributions.

I didn't 'lose' anything when the markets tanked because I left my investments IN the market, When the markets are low I put more money into my investments because I know I will always get it back - usually in spades.

Note: I am many years away from retirement so I can accept consecutive years of 'negative returns'
__________________
1. Ketosis doesn't matter.
2. Strength training+Protein+DHA/EPA+veggies+vitamins&minerals DOES.
3. Search BEFORE you ask questions.
4. Use google as well - Add "site:lylemcdonald.com". Google can find those short strings of letters.
5. You are not a rodent so follow up with pubmed (http://pubmed.org) use "+human" "-rat" "-mouse" modifiers
6. Check the STICKY threads.
7. use google to find all my posts.
8. Supplement evidence
9. Private message are cheerfully ignored.
Reply With Quote
  #16  
Unread 02-22-2010, 03:02 PM
JMo87's Avatar
JMo87 JMo87 is offline
Senior Member
 
Join Date: Jul 2008
Posts: 437
Default

Quote:
Originally Posted by Elf View Post
I said this about retirement money invested in mutual funds. Not stock market in general. With mutual funds you have zero control, suppose now the market will recover and in 20-30 years there is another crash? Goodbye retirement? If you look at the past, saying we have another 30-40 years until a next crash is pretty optimistic. And putting money in a "safe" plan will usually lead to money made even when inflation is factored in because of tax and (well in my country) the employer will match whatever you put in.
Err..and you have control over individual stocks?

Quote:
Investing in the stock market short term is a good thing, long term it's a disaster waiting to happen.
Here's the funny part: the exact opposite is true.
__________________
"No stain, no gain" - Alan Aragon
Reply With Quote
  #17  
Unread 02-22-2010, 03:04 PM
Elf Elf is offline
Banned
 
Join Date: Jan 2010
Posts: 161
Default

It only really becomes a problem as you are nearing your retirement, the problem is you are stuck with the funds. If you could get out 10 years before retiring it would not be a problem.
Reply With Quote
  #18  
Unread 02-22-2010, 03:04 PM
JMo87's Avatar
JMo87 JMo87 is offline
Senior Member
 
Join Date: Jul 2008
Posts: 437
Default

Quote:
Originally Posted by Myles.Buckley View Post
I didn't 'lose' anything when the markets tanked because I left my investments IN the market, When the markets are low I put more money into my investments because I know I will always get it back - usually in spades.
and why not? Stocks are on sale baby, buy up!
__________________
"No stain, no gain" - Alan Aragon
Reply With Quote
  #19  
Unread 02-22-2010, 03:05 PM
JMo87's Avatar
JMo87 JMo87 is offline
Senior Member
 
Join Date: Jul 2008
Posts: 437
Default

Quote:
Originally Posted by Elf View Post
It only really becomes a problem as you are nearing your retirement, the problem is you are stuck with the funds. If you could get out 10 years before retiring it would not be a problem.
Here's the thing you seem not to get: if you're nearing retirement age you shouldn't have a lot of money in risky assets (stocks)
__________________
"No stain, no gain" - Alan Aragon
Reply With Quote
  #20  
Unread 02-22-2010, 03:10 PM
Myles.Buckley Myles.Buckley is offline
Senior Member
 
Join Date: Apr 2008
Location: GPS: 50.916752 N, 114.050961 W
Posts: 1,460
Default

Quote:
Originally Posted by JMo87 View Post
and why not? Stocks are on sale baby, buy up!
Toyota stocks were on sale two weeks ago.... and GM last year.... and Chrysler.... and so on.
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

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -6. The time now is 07:15 PM.


Powered by vBulletin® Version 3.6.8
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.