Do you manage your own investments?

[jlh42581]

I like the fidelity platform the best its the easiest to navigate.

We have stuff in Fidelity, Vanguard, TRowe, Etrade, Robinhood, Coinbase and even Paypal

 

[Beendare]

I invest my own accounts.

I think its important to have an investment thesis, not just the reason for buying but also what is the catalyst....and what is your exit strategy. My kids are buying stuff becuase its hot....with no plan, drives me nuts but they will have to ride some of these high fliers right back down to learn.

Its important to have your money working as if you dont....you are losing money. Most years my investments make more than my one day job.

I dont set and forget...and I actively trade my IRA accounts....not a lot but I do rotate in and out of the riskier assets to balance risk.

ETFs and mutual funds are a great way for avg folks to be in the market...just be sure to know whats in your chosen one. Some are widely diversified, some concentrated.

I mostly invest in sectors. If you took my recommendations on the other forum (early summer, TRTN is up big and still pays a 4.5% dividend)...and then recently on playing the stocks/ sectors that got Biden elected and his agenda...those are already up 15% in a month. even the stodgy Industrials and Materials sectors are up pretty good in the last month.


Experience helps....Markets extend way past what are reasonable valuations...until they don’t. Stocks always go down faster than they go up. Hogs get fat....pigs get slaughtered. we are in one of those extended markets on the upside...valuations are out the window.

Its important to understand why this is; Internationally and in the US they are pumping money into the system at a HUGE rate. There is a good explanation ( and good advice) on the Dan Niles website.

 

[Ross]

I’ve managed ours for 30 yrs, personallyi i like knowing if there is a loss blame the one in the mirror the mrs and I have monthly check ins on budget targets and investment mixes.....been a fun run to watch the growth toward retirement

 

[pirogue]

I manage my own.
I started with nothing and I still have most of it left.

 

[Kobuk]

I work with Edward Jones and I am very happy with my adviser. I realize that anyone can learn to do any job if we are willing and want to put in the time. I'm kind of one of those guys that like to learn to do things myself. I was a mechanic, small business owner, built a small house and repair all I can. With investing, I think that I only know enough to be dangerous and there was too much money involved than I would be comfortable. I believe it can be done and I even started out doing it myself. I say that if you want to learn it, it will save you some money. It wasn't for me and I tried using a couple of guys before I found one I liked. I have learned a lot, especially on tax advantages when I ran my business so I could keep more of my money in my pocket. Good luck to you and the main thing is to squirl away as much as you so you'll be able to retire! Hopefully early too!

 

[Kimber7man]

Another Vanguard fan here. I just opened a brokerage account with them last March, and opened minor accounts for my boys. Picked stocks for the long run especially theirs.
I‘ll start with index fund like VTI this year as automatic savings for them.

 

[Hoodie]

Vanguard VTSAX. Set it and forget it.

Simple Path to Wealth by J Collins is a good read with some strong arguments against paying financial advisors. It's really easy to cherry pick a good year and say you "beat the market." Much tougher to show that sort of performance over the long term. Then there's the fees to consider.

 

[JFK]

I have a 457b through Nationwide and my employer. I manage it and the fees are very low. Also have a Roth IRA and small brokerage account through Vangaurd. IRA is 100% SP 500 index with very low fees. Check out Vanguard as they are known for low fees.

 

[jfs82]

I manage my own, though I also am qualified for a pension so if I screw up everything I can just work longer than I planned. With how easy it is to get ETFs to cover any broad exposure you want, I see no reason to use a manager for just index and mutuals.

 

[Farmingdale's Finest]

I invest my own accounts.

I think its important to have an investment thesis, not just the reason for buying but also what is the catalyst....and what is your exit strategy. My kids are buying stuff becuase its hot....with no plan, drives me nuts but they will have to ride some of these high fliers right back down to learn.

Its important to have your money working as if you dont....you are losing money. Most years my investments make more than my one day job.

I dont set and forget...and I actively trade my IRA accounts....not a lot but I do rotate in and out of the riskier assets to balance risk.

ETFs and mutual funds are a great way for avg folks to be in the market...just be sure to know whats in your chosen one. Some are widely diversified, some concentrated.

I mostly invest in sectors. If you took my recommendations on the other forum (early summer, TRTN is up big and still pays a 4.5% dividend)...and then recently on playing the stocks/ sectors that got Biden elected and his agenda...those are already up 15% in a month. even the stodgy Industrials and Materials sectors are up pretty good in the last month.


Experience helps....Markets extend way past what are reasonable valuations...until they don’t. Stocks always go down faster than they go up. Hogs get fat....pigs get slaughtered. we are in one of those extended markets on the upside...valuations are out the window.

Its important to understand why this is; Internationally and in the US they are pumping money into the system at a HUGE rate. There is a good explanation ( and good advice) on the Dan Niles website.

I am a Financial Advisor who works with my clients on a planning basis and this is the best advice so far in this thread.

I work with my clients primarily through a fee based relationship instead of commissions because it puts me on the same side of the table as the client. Meaning the better you do the better I do and the client never has to look at me suggesting to make a change in the portfolio and wondering if I need the commissions on the trade to make my mortgage that month. I look at the clients current situation and based upon the time frame they need their money, the ultimate goal for their money and their risk tolerance I formulate a plan to help them attain those short and long term goals. Depending on the clients needs it could be simple asset allocation up to and including setting up trusts for estate or special needs. We meet or do a conference call at least every quarter to review their current situation and address any life changes, like a marriage, divorce, birth, death, job change etc. and the markets,

The biggest area we can help is keeping clients invested or doing things that will cause irreparable financial harm to themselves. For instance I had a client call me 2 weeks before the bottom of the credit crisis and ask how he was doing. He was down less than 50% of what the market was while being fully invested. He said I want to know the actual dollar figure. When I told him he said sell everything. I tried to explain that the market was closer to the bottom than the top and we should turn around soon. He insisted on selling everything and not listening to me. The market turned around two weeks later and if he had left his portfolio alone he would have been whole by January. Instead he wouldn't return my call until after January more than 9 months later which tied my hands and when we finally spoke he asked what we should do. I put it bluntly that his stated risk aversion and his actual risk aversion were two very different things and we missed the easy money. I said in your case even though I don't feel they are right for most clients would be an annuity with a guaranteed income benefit. His Response was Suzie Orman said they are bad and too expensive and he wouldn't do it and insisted we just go back to doing what we did before he missed the rally that would have recouped his loss. If he had listened to me it would have offset more than the next 10 years fees. He stayed the course since.

I have a Publisher's Clearing House winner that was referred to me by his brother who is my second biggest client and retired from a large insurance company. The referring brother lives well below his means and why today he is worth significantly more than he was when he retired. When I met with the brother referred to me in my fact finding about his current situation I found he was taking his SS since he was 62 and they were about to get the final payout on their winnings in a lump sum of $3 million. They had just sold their house and moved from NJ about 8 months before to Florida to avoid the taxes NJ would have charged them for the payment. I said the first thing we do is pay back the SS and wait until after he turns 70 to get the maximum income from the government. He said he couldn't because he owed the IRS 100k in back taxes and had another 70k in credit card debt. It also turned out they had only made about $50,000 on the house they sold for over $600k because they kept taking equity out.

Once we found out exactly what they would be getting he and his wife committed that they wouldn't take more than 60k per year which was stretching the income that his portfolio could produce. After 2 years they had spent more than 20% of what the account value was even with growth which meant they would be bankrupt in a few years if the market was flat or down. In their case I suggested an annuity that has a death benefit of the current market value or the ORIGINAL investment whichever is the higher value at his death if there is $1.00 left in principal at his death and would guarantee a lifetime income even if the balance is zero. I told them this is all I can do because they are spending too much and I need to protect the wife who is more than 10 years younger. This guaranteed a minimum $50,000 a year income that could go up if the market was kind. We set up a monthly distribution and they have kept to the $60,000 a year where we re taking the difference from money that is not in the annuity for liquidity reasons and I am writing covered calls to generate additional income on a portion. Since scaring them straight they have more money today than they did 3 years ago even with the withdrawals.

Another client just two weeks ago turned 50 and is scheduled to retire from a Union job and wanted to sell out of his entire 401k to pay for a home in Colorado and then move out there after he retired. When he told me what he planned to do I had to show him the math that his $300k 401k would be worth approximately $126k after ordinary income, NJ state taxes and then paying the 10% early withdrawal penalty for being under 59 1/2. He had already sent in the paperwork to have the lump sum sent but we were able to get that canceled.

The CEO of a public company wanted to set up margin on his joint account to take a bridge loan for the purchase of a house. I suggested instead taking the money out of his IRA and told them they have 60 days to get it back in the IRA to avoid taxes then if it looked like the closing on their current home was going to be delayed then use the margin in the joint account. This was at the beginning of the lockdowns with the virus and if he had done the margin he would have had a margin call because 1/2 of his joint account value was in his company stock which is more volatile than the overall market. By doing this strategy he had no taxable event or any losses and didn't jeopardize his company stock which he could only sell at certain windows during the year. It also by shear luck locked in gains in his IRA that when the money came in a month later we were able to reinvest at much lower prices and increase his overall return for the year.

These are just some examples what we as advisors do that keep people financially healthy that most people have no idea what our value add is. If you notice none of these big life choices were recommending a stock.

 

[Beendare]

Worth telling the story of how I came to manage my own stuff:

My partner and I were using his dads select advisor for a few years back in the early 80’s. Highly rated in the financial circles- that I know- and amazing returns...for a couple years anyway. i didnt know much about it so I trusted them without researching their portfolio.

Well they had us in 20 stocks: WorldCom, El Paso and many more I cannot remeber the names of that literally went belly up in a crash back then. the crazy thing is as it was dropping I called and asked why they didnt sell...they said it would come back...it didnt and we rode that almost all the way down Before selling.


Now i know this is a classic market mistake With individual high flyer stocks. There were clues beforehand....but this outfit was betting on the “ Big name quality management” instead of digging in and doing their homework.

Be careful out there With guys hyping great returns- higher returns equal higher risk.

This is pre GAAP, Since then the SEC has cracked down on earning announcements.


I now look more at sectors that will do well in the future...and less at past returns. I watch individual stocks with a plan for dips, hard runs etc....and (try) to treat it like a business vs an emotional decision.

EDIT; we must have been posting at the same time....Thanks for the kind words Farmingdale....

 

[180splitg3]

I appreciate the info so far from everyone! If I want to transfer my money from Edward Jones to let's say vanguard - will this cost anything? I currently have too many accounts (in my opinion). I have a traditional IRA, Roth IRA, SEP IRA, two Joint IRAs and my wife has her Roth, a 403b, and a traditional IRA. My accountant is telling me that I should open a solo 401k (I'm hoping I could roll the SEP into this) and I also want to start a 529 for my kids education. I recently sold some of my holdings and bought VTI but that cost me about $500 in fees from Edward Jones. That is what started me thinking about handling my own accounts. I also recently read the JL Collins book (the simple path to wealth) and that's when I started looking into the Vanguard index funds. So much I wish I would have known at a younger age!

 

[Farmingdale's Finest]

I appreciate the info so far from everyone! If I want to transfer my money from Edward Jones to let's say vanguard - will this cost anything? I currently have too many accounts (in my opinion). I have a traditional IRA, Roth IRA, SEP IRA, two Joint IRAs and my wife has her Roth, a 403b, and a traditional IRA. My accountant is telling me that I should open a solo 401k (I'm hoping I could roll the SEP into this) and I also want to start a 529 for my kids education. I recently sold some of my holdings and bought VTI but that cost me about $500 in fees from Edward Jones. That is what started me thinking about handling my own accounts. I also recently read the JL Collins book (the simple path to wealth) and that's when I started looking into the Vanguard index funds. So much I wish I would have known at a younger age!

Most firms will charge an account closing fee of anywhere from $25-$150 per account when the account transfer paperwork comes in. I don’t know what EJ charges.

Also not sure what you are referring to as a joint IRA because there is no such thing. IRA stands for individual retirement account and the IRS doesn’t allow it in joint name.

The SEP can be rolled into your Traditional IRA and then you would open up a solo k if you are self employed and fund it with income. A 401k can be transferred to another 401k or an IRA but not the other way around.

Sent from my iPhone using Tapatalk

 

[180splitg3]

Most firms will charge an account closing fee of anywhere from $25-$150 per account when the account transfer paperwork comes in. I don’t know what EJ charges.

Also not sure what you are referring to as a joint IRA because there is no such thing. IRA stands for individual retirement account and the IRS doesn’t allow it in joint name.

The SEP can be rolled into your Traditional IRA and then you would open up a solo k if you are self employed and fund it with income. A 401k can be transferred to another 401k or an IRA but not the other way around.

Sent from my iPhone using Tapatalk

Sorry - I meant joint investment accounts, not joint IRAs

 

[ETtikka]

I left Edward Jones as well , fees are insane unless your a billionaire.

90% of financial planners say,,,, buy the market (spy) great plan, until,,,

10% say balance with conservative stocks, bonds, fixed income, etc

i lean towards a little gold , silver, and TBT, because you can’t print money forever and rates can’t stay low forever.

 

[180splitg3]

Looks like Edward Jones charges $95 to close or transfer each account - that's going to add up quickly if I decide to move it

 

[Lou Sid]

I invest on my own. Put all your $ in 1-5 good stocks that you have researched and have 3 obvious reasons for buying each stock. Understand what each company does, and how they will grow in the future.

 

[DavePwns]

Get an adviser because they will help you NOT sell well your entire portfolio tanks 30%

 

[The Ri Guy]

Schwab Intelligent Portfolio, made me A LOT of money in the last few months.

 

[Gophs]

I use Vanguard, and they are very low cost. I don’t think you should be paying someone to plug your money in index funds and let it ride. You can do that yourself if you feel comfortable with your finances.

I worked for a large financial planning practice for several years, and I won’t be hiring an advisor for my personal finances until my situation gets more complicated than I can handle. That’s really where an advisor’s value comes into play. A typical advisor isn’t going to blow your returns out of the water. A good one will help guide you through decision making and goal planning better than you could do yourself. I would hire a CFP if you feel like you need an advisor.

I would move if you aren’t getting any other help from Edwards Jones outside of just putting you in index funds. Waste of money in my opinion.