Investment question

Grisha

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Sep 22, 2021
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72
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California
Assuming a broad market position you are probably (meaning probabilistically) better off holding, esp if you can stay in for 5-10 years. The only thing I can add to what others have noted: in the long run diversification is your friend for risk-return optimization.

The US has engineered its policies on Russia to undermine the European economy and maximize the benefits for us. So it may look like we are mismanaging our macroeconomic policies domestically but our economy is still the least bad investment globally from a probable risk-return perspective.
 

txjustin

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Dec 22, 2019
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170
Stocks?

That sucks. I’d have given you guaranteed 10% backed by real estate


Sent from my iPhone using Tapatalk
 

eamyrick

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Apr 24, 2018
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Central Texas
I set up at 529 college fund for my boys with a load of cash in December and took a major hit. Like anything time (or insider trading) is how you win. My work Def comp account is down 10% for the year but almost 5% for 5 years. I expect it will be just fine by the time I start drawing at 55.
 

Green Bullet

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Oct 1, 2022
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I’m surprised a competent advisor would fully invest given the obvious signs the economy was going down. At a minimum they should have dollar cost averaged you in over a 3 to 6 month period.

In Q1 23 the unemployment numbers are going to explode. 2023 is going to be another down year in stocks and real estate. I anticipate at least another 20% correction.
 

JVS

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May 30, 2021
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Always a risk when you invest a lump sum of money.
I would open up an etrade acct and do it yourself! No one will manage your money like you will with a little self educating.
A down market can be really discouraging. Take a look at JEPI and JEPQ etf's. They pay an awesome monthly dividend. I have switched a large portion of my portfolio to these. I take the dividends and buy growth etf VUG while we can get it at a discount.
PS If this is in a taxable acct you can always right some loss off on your taxes if. Sell some shares one thing and buy something else.
 

kybuck1

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Jan 31, 2021
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I've always thought that investment advisors have the best and easiest job around. So smart to use your money in different mutual funds with varying aggressiveness based on age of retirement. They always have an excuse to "ride it out" and "history has shown." Hard to argue with them too as there is overall growth in the market as long as you don't retire on that big dip stage it should work out. My question to my guy was if this was a market history moment. Like a new benchmark of a terrible tragedy and how long it'll take to recover? Never a solid answer though as in reality it's a regulated form of gambling. We can play the odds a bit, but always a risk of losing in the end. I run mine with my business so all the paperwork and such to stay legal I let an advisor manage all that. Otherwise you could probably plug and play in one of the generic mutual funds if you have some time before retirement. Otherwise land and real estate are the other retirement options I'd consider but you can get burnt there as well if you're not careful.
 

JVS

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May 30, 2021
Messages
101
I've always thought that investment advisors have the best and easiest job around. So smart to use your money in different mutual funds with varying aggressiveness based on age of retirement. They always have an excuse to "ride it out" and "history has shown." Hard to argue with them too as there is overall growth in the market as long as you don't retire on that big dip stage it should work out. My question to my guy was if this was a market history moment. Like a new benchmark of a terrible tragedy and how long it'll take to recover? Never a solid answer though as in reality it's a regulated form of gambling. We can play the odds a bit, but always a risk of losing in the end. I run mine with my business so all the paperwork and such to stay legal I let an advisor manage all that. Otherwise you could probably plug and play in one of the generic mutual funds if you have some time before retirement. Otherwise land and real estate are the other retirement options I'd consider but you can get burnt there as well if you're not careful.
Land has been my best return on investments by a long shot. On my third farm now but these inflated prices and interest rates have me sitting tight. Would suck to be way upside down on a huge investment
 

matthewbwinter

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Mar 30, 2022
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Last year I sold my house and made a rather large profit and asked a family member who is wealthy who they invested with. I went with their recommendations and I'm currently down 20%.
I know it's not been a great economic year but just out of curiosity is this normaly for this year?
If not how do you switch? Do you switch companies?
Totally normal. It happened to all of us. Things are starting to pick back up. Now is the time to buy more cheap stock, and soon will be the time to buy cheap real estate. Have faith, if you like your money guy, don’t change
 

ghostmoney

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Apr 11, 2018
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I would advise you to look into managing your money yourself. Most financial advisors just stick you in some diversified funds and never change it again. I was averaging 2-4% returns in my retirement account that I wasn't managing. In 2020 I started investing myself in a small account and had a 200% return for 8 months.

I spoke with my financial advisor and informed him that I wasn't happy with my returns compared to what I was doing myself. I wanted my money moved into some oil stocks as I saw it as the best option and he stated I had been lucky and its better to stay where we were because eventually stocks will go up and return will be higher. Instead I took over and in the last 6 months of 2021 I had a 48% return (the first 6 months of 21 they had given me a 1.4% return) and this year I am currently at 42%.

If nothing else, you should know what stocks they have you invested in.
 
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fwafwow

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can you recommend some good sites? After my 23% loss for the year, I figure it's time to educate myself.
Whatever you research, I would not believe a source that says a return is guaranteed.
 

AZ_Hunter_2000

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Oct 8, 2019
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can you recommend some good sites? After my 23% loss for the year, I figure it's time to educate myself.
No investment is guaranteed.

Take everything you see with some gain(s) of salt. Not recommending any specific product but these can get you going. From there use Google and search for "how to invest" and start reading.

Personal Finance

Investing
 

Beendare

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I’m surprised a competent advisor would fully invest given the obvious signs the economy was going down. At a minimum they should have dollar cost averaged you in over a 3 to 6 month period.
Yeah, I would agree. Its worth noting that many of these investment guys just plug your money in the market and draw a % off of it- whether it goes up or down.

You can do that yourself with broad ETFs only paying less than 1/4 of one percent in fees.

I don’t think we are in a 1970’s lost decade for stocks…but I don’t see it bouncing back in one year either.

Two premises I have used for a long time and its made me a lot of money;

#1) I invest in sectors that I think will outperform for the next 1-5 yr timeline…thus I have a lot in energy now

#2) I study charts. Im a big reversion to the mean guy. I take some off the table on big runups…I never buy on those huge runs……and I like to buy industries that are out of favor…assuming #1 premise looks good

An example of mean reversion; Semiconductors are now the #1 traded commodity above oil. TSM produces 90% of the high end chips. Its at a 14 PE with a 2% yield for a company that is numero uno. There is some country risk which is why its cheap. ….and these semis can drop another 10% or so.

I think a guy that DCA’s into TSM or the semi ETF will be a happy man in 5 years.
 
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