Money Advice

[Guest]

1 hour ago, dentjusay said:

Thanks for your input everyone! I definitely need to increase my financial literacy as this feels like a whole new world I'm learning about. 👍🏼

The principles are pretty simple. You probably don't need an advisor. This is a book I once gave to my former fiance, the lyin' Paraguayan, and I read it through. It really tells you just about all you need to know. Just remember, the #1 rule is to diversify (a mutual fund or ETF tied to the S&P 500 is one way to do that). The #2 rule is your time horizon will tell you where to invest (if the time horizon is over 10 years, it's primarily the stock markets, US and foreign). The #3 rule is watch those fees, especially if you use a financial advisor. I must confess that I have bought individual stocks, and made a killing quite a few times (Starbucks, Amazon, Apple come to mind). But don't do that until most of your money is more broadly invested. 

Oh, and do not ever sell because you get spooked by a bear market. Leave your money in if your time horizon is over 10 years. The market will eventually bounce back. If your time horizon was short, you shouldn't have had the money in the stock market in the first place. Move your money around only because your goals change, you're approaching retirement, etc., never because of how the stock market's doing or what you think will be happening. I considered going from stocks to bonds when Trump was first elected, and the economy tends to do worse under GOP administrations. I'm glad I didn't. Don't try to sell when you think the market's high. That being said, after a major crash, not a bad idea to buy more if you have extra cash that's been lying around. Trying to time the market is generally a bad idea. 

Edited May 27, 2021 by Unicorn

[Luv2play]

2 hours ago, Unicorn said:

The principles are pretty simple. You probably don't need an advisor. This is a book I once gave to my former fiance, the lyin' Paraguayan, and I read it through. It really tells you just about all you need to know. Just remember, the #1 rule is to diversify (a mutual fund or ETF tied to the S&P 500 is one way to do that). The #2 rule is your time horizon will tell you where to invest (if the time horizon is over 10 years, it's primarily the stock markets, US and foreign). The #3 rule is watch those fees, especially if you use a financial advisor. I must confess that I have bought individual stocks, and made a killing quite a few times (Starbucks, Amazon, Apple come to mind). But don't do that until most of your money is more broadly invested. 

Oh, and do not ever sell because you get spooked by a bear market. Leave your money in if your time horizon is over 10 years. The market will eventually bounce back. If your time horizon was short, you shouldn't have had the money in the stock market in the first place. Move your money around only because your goals change, you're approaching retirement, etc., never because of how the stock market's doing or what you think will be happening. I considered going from stocks to bonds when Trump was first elected, and the economy tends to do worse under GOP administrations. I'm glad I didn't. Don't try to sell when you think the market's high. That being said, after a major crash, not a bad idea to buy more if you have extra cash that's been lying around. Trying to time the market is generally a bad idea. 

What about Bernie Cornfeld's IOS mutual fund, which collapsed in 1970, leaving thousands of investors with huge losses. Technically, it collapsed shortly after Robert Vesco took over from Bernie, after irregularities were discovered in the accounting department, 

[Guest]

4 minutes ago, Luv2play said:

What about Bernie Cornfeld's IOS mutual fund, which collapsed in 1970, leaving thousands of investors with huge losses. Technically, it collapsed shortly after Robert Vesco took over from Bernie, after irregularities were discovered in the accounting department, 

As I've said, the simplest thing to do is to start with a mutual fund pegged to the S&P 500. Avoid advisors or managed funds which suggest they can do better. They can't. Start with your money in a reputable organization such as E-trade. After funding with this fund (or ETF), invest in an international fund or small-cap/growth fund. Have that account somewhere else. Diversify as broadly as possible. A small amount in commodities can diversify further.

[vasilievnaaaa]

I find it difficult to give you good advice in this area since I started having big money problems lately. my work ceased to bring me income and I did not know where to get the money. a friend advised me to take out a loan online https://compacom.com/personal-loans/california as a way to quickly solve my financial problems and I realized that I had no other choice. I hope I can find a way to make big money again. maybe you can advise me something specific? how to make money during quarantine and repay loans?

Edited November 8, 2021 by vasilievnaaaa

[gallahadesquire]

On 5/12/2021 at 5:46 AM, JEC said:

Consider hiring a financial planner. It might feel contradictory to spend money on someone when you don't have a lot of money, but any good financial planner should earn you many times more than they cost. We hired one last year for the first time. Had we had done that 30 years ago...I might be retired now

My financial guy said, in 1984:

” You don’t have a lot of money now, but you will, and it’s my job to make sure that happens.” I retired in 2012 (on disability for five years) and even living somewhat fancied, I can’t run out of money. 
 

[gallahadesquire]

DO NOT USE MUTUAL FUNDS

Why would you think the fund manager can out perform the market. And the fees are ridiculous. 
 

Stick with ETF. 

[Kevin Slater]

1 hour ago, Pd1_jap said:

Your best investment will probably be a target date retirement ETF. 

Beware fees on target-date ETFs.  They can often be excessive.

Kevin Slater

[Guest]

4 hours ago, gallahadesquire said:

DO NOT USE MUTUAL FUNDS

Why would you think the fund manager can out perform the market. And the fees are ridiculous. 
 

Stick with ETF. 

There are unmanaged mutual funds which just match the S&P 500, with very low fees, so similar to ETF. 

https://www.thebalance.com/the-cheapest-sandp-500-index-funds-2466451

Fidelity 500 Index Fund
investing_index funds_chart
Fidelity Spartan 500 Index. Getty Images
Symbol: FXAIX

Net Expense Ratio: 0.015%

Minimum Initial Investment: $01

Schwab S&P 500 Index Fund
investing_index funds_screen
Schwab S&P 500 Index. Getty Images
Symbol: SWPPX

Net Expense Ratio: 0.02%

Minimum Initial Investment: $0

Edited October 26, 2021 by Unicorn

[Kevin Slater]

7 hours ago, Unicorn said:

There are unmanaged mutual funds which just match the S&P 500, with very low fees, so similar to ETF. 

https://www.thebalance.com/the-cheapest-sandp-500-index-funds-2466451

Fidelity 500 Index Fund
investing_index funds_chart
Fidelity Spartan 500 Index. Getty Images
Symbol: FXAIX

Net Expense Ratio: 0.015%

Minimum Initial Investment: $01

Schwab S&P 500 Index Fund
investing_index funds_screen
Schwab S&P 500 Index. Getty Images
Symbol: SWPPX

Net Expense Ratio: 0.02%

Minimum Initial Investment: $0

Better still:  Fidelity® ZERO Large Cap Index Fund (FNILX), literally zero fee.  (Doesn't call itself S&P500 cuz it doesn't pay to license the name.)

Kevin Slater

[+ WilliamM]

On 10/26/2021 at 7:59 AM, vasilievnaaaa said:

find a good job to start with

A good job with pension benefits

[+ FrankR]

17 minutes ago, WilliamM said:

A good job with pension benefits

Increasingly hard to find, sadly. 😐

[Guest]

3 hours ago, FrankR said:

Increasingly hard to find, sadly. 😐

If you can't find a job with a pension, at least try to find a job which will match your 401(k) or other retirement account contributions. Defined contributions can be easier to find that defined benefits. Those $$ can really add up if you start young. Even without matching, I had a fat sum upon my retirement. My employer did match my pension contributions, and that was even nicer. 

[+ WilliamM]

19 hours ago, Unicorn said:

If you can't find a job with a pension, at least try to find a job which will match your 401(k) or other retirement account contributions. Defined contributions can be easier to find that defined benefits. Those $$ can really add up if you start young. Even without matching, I had a fat sum upon my retirement. My employer did match my pension contributions, and that was even nicer. 

I  was lucky to have a pension and other benefits by working in local government. And I also have Veteran Administration benefits. Perhaps you should have joined the military, @Unicorn

[+ Vegas_Millennial]

32 minutes ago, WilliamM said:

I  was lucky to have a pension and other benefits by working in local government. And I also have Veteran Administration benefits. Perhaps you should have joined the military, @Unicorn

Pensions are like golden handcuffs.  I, too, work for local government and have a well funded pension. They are great at rewarding those who stay at the same company, cutting down on recruitment and training costs.  Unfortunately, most employees don't stay at a company long enough to get the full value of their pension.

About 4 years ago I really wanted to move to New York or Chicago just to try something new and exciting, but I basically would have been walking away from $2million (the estimated value of my pension if it was in a 401k instead of a defined benefit plan).

If you have the discipline to save 20% of your gross income and invest in diversified assets, you'll be just as set as if you had a pension, with the freedom to switch careers multiple times which may help increase future earnings.

Pensions do help reduce anxiety for people who don't like to invest themselves.  If I didn't have a pension coming, I would look into an annuity for part of my retirement income

Edited October 29, 2021 by Vegas_nw1982

[Guest]

1 hour ago, WilliamM said:

... Perhaps you should have joined the military, @Unicorn

No, I couldn't have joined the military. When I was starting my career, gays were not allowed, and everyone was specifically asked that question prior to being commissioned. I definitely have my faults, but dishonesty is not one of them. The only time I ever lie is when the only reason is to spare someone's feelings. At a medical conference 2 years ago, I did ask a recruiter if I could join the reserves, but I now have an injury which would preclude my being commissioned. Strangely, I did have a dream a few nights ago about joining the Navy. I'm not sure if I would rank a commander or a captain given my years of experience. 

 

 

Edited October 29, 2021 by Unicorn

[+ WilliamM]

16 hours ago, Unicorn said:

No, I couldn't have joined the military. When I was starting my career, gays were not allowed, and everyone was specifically asked that question prior to being commissioned. I definitely have my faults, but dishonesty is not one of them. The only time I ever lie is when the only reason is to spare someone's feelings. At a medical conference 2 years ago, I did ask a recruiter if I could join the reserves, but I now have an injury which would preclude my being commissioned. Strangely, I did have a dream a few nights ago about joining the Navy. I'm not sure if I would rank a commander or a captain given my years of experience. 

 

 

People were not asked that question during the draft  in the 1960s and 1970s.  My dad served in the Second World War - even though he was no longer alive I respected his military service and very glad I did

And fifty plus years later, I still see some of the friends I met in the Army. 

Edited October 30, 2021 by WilliamM

[Guest]

2 hours ago, WilliamM said:

People were not asked that question during the draft  in the 1960s and 1970s.  My dad served in the Second World War - even though he was no longer alive I respected his military service and very glad I did

And fifty plus years later, I still see some of the friends I met in the Army. 

I was not an adult during the 60s and 70s. I have two friends who retired as Captains in the US Navy. I haven't specifically asked one of them, but I know in the case of the other that he didn't realize he was gay until well after he was originally commissioned as an officer. For both of them, they retired the year before they would have been promoted to Rear Admiral (lower half) (Commodore to our British and Aussie friends). Each year around this time, I make a donation in honor of their service to commemorate Veterans' Day to a veterans' charity designated 4* by Charity Navigator. This year it was Homes for Heroes® and the Navy SEAL Foundation. 

I remember a straight friend of mine during high school asking me if I could vouch for him that he was gay if he ever got drafted. They were asking gay questions at least in the late 70s, to my recollection. I can't vouch for the very early 70s. Of course, as it turned out, there was never a draft in the 80s. As for me, since I was specifically rejected as a full member of society during my early adulthood, I consider myself to have done my service for my country by honoring those who did. 

Edited October 30, 2021 by Unicorn

[gallahadesquire]

Just a comment about pensions, at least governmental pensions:

Massachusetts eschews double-dipping, so they reduce your state pension dollar-for-dollar if you also receive Social Security. 
 

Through a state-supported loophole involving a merger of a public hospital and a private one, I was able to take my money and run. So no state pension, and I’m sure I’m making more on it now than I would if I took the pension. 

[Guest]

43 minutes ago, gallahadesquire said:

Just a comment about pensions, at least governmental pensions:

Massachusetts eschews double-dipping, so they reduce your state pension dollar-for-dollar if you also receive Social Security. ..

I had money pulled out of my paycheck for BOTH my governmental pension and for social security, so I'm entitled to both. If someone contributed to only one or the other, he should only be able to collect from the one he contributed to. My understanding is that in the military, they don't contribute to social security, so they only get the military pension. My Navy veteran friends retired from the Navy in their mid to late 50s, so made sure they worked at least 40 quarters in civilian jobs so that they could also collect social security. 

[+ Vegas_Millennial]

6 minutes ago, Unicorn said:

I had money pulled out of my paycheck for BOTH my governmental pension and for social security, so I'm entitled to both. If someone contributed to only one or the other, he should only be able to collect from the one he contributed to. My understanding is that in the military, they don't contribute to social security, so they only get the military pension. My Navy veteran friends retired from the Navy in their mid to late 50s, so made sure they worked at least 40 quarters in civilian jobs so that they could also collect social security. 

A few state pensions are exempt from social security.  My paycheck deduction is only for state pension, and no social security.  If I ever work a second job and pay into social security, or am someday eligible for a social security spousal benefit, my social security will be reduced by about two thirds of my pension.  That is referred to as the public pension windfall provision in social security.  That is the price to pay for being able to work a job social security exempt.  

[+ WilliamM]

2 hours ago, Unicorn said:

I was not an adult during the 60s and 70s. I have two friends who retired as Captains in the US Navy. I haven't specifically asked one of them, but I know in the case of the other that he didn't realize he was gay until well after he was originally commissioned as an officer. For both of them, they retired the year before they would have been promoted to Rear Admiral (lower half) (Commodore to our British and Aussie friends). Each year around this time, I make a donation in honor of their service to commemorate Veterans' Day to a veterans' charity designated 4* by Charity Navigator. This year it was Homes for Heroes® and the Navy SEAL Foundation. 

I remember a straight friend of mine during high school asking me if I could vouch for him that he was gay if he ever got drafted. They were asking gay questions at least in the late 70s, to my recollection. I can't vouch for the very early 70s. Of course, as it turned out, there was never a draft in the 80s. As for me, since I was specifically rejected as a full member of society during my early adulthood, I consider myself to have done my service for my country by honoring those who did. 

I was drafted in 1967, and nobody asked if  I was gay. A friend pretended to be gay during the induction process in 1970 and was deferred (of course). I look forward to your friendly visit to the Vietnam Veterans Memorial in Washington on an upcoming Veterans Day. 

Lucky that friend who pretended to be gay didn't blame me for serving.

Or so he says

[Guest]

1 hour ago, WilliamM said:

I was drafted in 1967, and nobody asked if  I was gay. A friend pretended to be gay during the induction process in 1970 and was deferred (of course). I look forward to your friendly visit to the Vietnam Veterans Memorial in Washington on an upcoming Veterans Day. 

Lucky that friend who pretended to be gay didn't blame me for serving.

Or so he says

I have no idea why you thought I'd be in DC in 2 weeks. I live in LA (though I'm on my way to Chicago for a medical conference next week). As I previously indicated, I show respect on Veterans' Day by donating to charities which help veterans. Prejudice hurts both the person with the prejudice and the victim. For most of the Vietnam War, the last time there was a draft in the US, being gay was shameful enough, and institutionalized prejudice was rampant enough that even people who were gay pretended to be straight. That's no longer the case, and the military would be fucked if they had a draft and continued discriminating against gays and lesbians. 

[+ WilliamM]

19 hours ago, Unicorn said:

I have no idea why you thought I'd be in DC in 2 weeks. I live in LA (though I'm on my way to Chicago for a medical conference next week). As I previously indicated, I show respect on Veterans' Day by donating to charities which help veterans. Prejudice hurts both the person with the prejudice and the victim. For most of the Vietnam War, the last time there was a draft in the US, being gay was shameful enough, and institutionalized prejudice was rampant enough that even people who were gay pretended to be straight. That's no longer the case, and the military would be fucked if they had a draft and continued discriminating against gays and lesbians. 

@Unicorn

 

So frustrating. There is still prejudice among enlisted men and women and officers in the American military against our communities.

And I didn't say Veterans Day 2021, read my message again

Edited October 31, 2021 by WilliamM

[+ WilliamM]

On 10/26/2021 at 7:59 AM, vasilievnaaaa said:

find a good job to start with

And a job you really enjoy. Money isn't everything if you dislike the work

[+ WilliamM]

On 10/30/2021 at 4:44 PM, Unicorn said:

I have no idea why you thought I'd be in DC in 2 weeks. I live in LA (though I'm on my way to Chicago for a medical conference next week). As I previously indicated, I show respect on Veterans' Day by donating to charities which help veterans. Prejudice hurts both the person with the prejudice and the victim. For most of the Vietnam War, the last time there was a draft in the US, being gay was shameful enough, and institutionalized prejudice was rampant enough that even people who were gay pretended to be straight. That's no longer the case, and the military would be fucked if they had a draft and continued discriminating against gays and lesbians. 

Really?. Many of the folks who join the military now are from the South and poor States like West Virginia, you know.  "That's no longer the case" - maybe in Beverly Hills or Bel Aire where you live, Unicorn. Quite a distance from  the blue collar folks in Alabama and West Virginia