The Rokslide Stock Traders Thread

[CorbLand]

I smoked you Maverick.....the Vanguard Tech ETF- VGT it averaged about 19% per year for the last decade. Thats doubling your money every 4 years....run the numbers.

The young guys Dollar cost averaging into that as part of their investment strategy for the next 20 years will thank me.

What is the one sector that is more and more of your life? Technology...and its only going to continue.

VOO has about equal return rates and a .03 expense ratio. Do you think that VGT is a better investment than VOO?

 

[RMM]

I'm pretty new to stocks, index's, ETF's etc.. Say a guy had an extra 10k laying around. (Current locked into a 5% CD until January). What would be a fairly safe investment with optimal returns? I'm looking for something that I can continue to dump money into and compound interest..

 

[CorbLand]

I'm pretty new to stocks, index's, ETF's etc.. Say a guy had an extra 10k laying around. (Current locked into a 5% CD until January). What would be a fairly safe investment with optimal returns? I'm looking for something that I can continue to dump money into and compound interest..

Stocks dont really pay interest. Some pay a dividend that you can set to auto reinvest.

Easiest and low risk options would be any of the SP500 tracking funds. VOO is the one that I put most of mine into.

What is your time line for needing the money?

 

[RMM]

Stocks dont really pay interest. Some pay a dividend that you can set to auto reinvest.

Easiest and low risk options would be any of the SP500 tracking funds. VOO is the one that I put most of mine into.

What is your time line for needing the money?

After doing some reading, VOO seems to be almost exactly what I'm looking for. Can you invest the money on your own? Say, through robinhood?

 

[Spoonbill]

After doing some reading, VOO seems to be almost exactly what I'm looking for. Can you invest the money on your own? Say, through robinhood?

Yes, it and similar etfs trade just like a single stock

 

[BBob]

After doing some reading, VOO seems to be almost exactly what I'm looking for. Can you invest the money on your own? Say, through robinhood?

You could but...Do you have a Roth IRA started? If not and you are investing for the long term I'd start there. Most brokerages wants or wanted $3K to start up an IRA. Can't say I'm current on that though. If you don't have $3K save/invest until you do and then take that money and start your Roth. Fully fund that Roth every year first before you invest excess moneys elsewhere.

 

[CorbLand]

After doing some reading, VOO seems to be almost exactly what I'm looking for. Can you invest the money on your own? Say, through robinhood?

Yep. Trades just like a stock so really simple.

I am not sure if Robinhood limits what you can and cannot purchase. Haven't used it in years. I use Fidelity but that is because my 401A is with them so its easier to keep everything in one place.

If your income level allows, I would look at opening a Roth IRA, also not sure if you can do that through Robinhood. You wont pay taxes on any gains in a Roth if you wait until retirement age to take them out.

Roth IRAs | Internal Revenue Service

Find out about Roth IRAs and which tax rules apply to these retirement plans.

www.irs.gov

 

[RMM]

You could but...Do you have a Roth IRA started? If not and you are investing for the long term I'd start there. Most brokerages wants or wanted $3K to start up an IRA. Can't say I'm current on that though. If you don't have $3K save/invest until you do and then take that money and start your Roth. Fully fund that Roth every year first before you invest excess moneys elsewhere.

Yep. Trades just like a stock so really simple.

I am not sure if Robinhood limits what you can and cannot purchase. Haven't used it in years. I use Fideltiy but that is because my 401K is with them so its easier to keep everything in one place.

If your income level allows, I would look at opening a Roth IRA, also not sure if you can do that through Robinhood. You wont pay taxes on any gains in a Roth if you wait until retirement age to take them out.

Roth IRAs | Internal Revenue Service

Find out about Roth IRAs and which tax rules apply to these retirement plans.

www.irs.gov

I'm a federal employee with a TSP retirement account that is a Roth IRA so all of my retirement deductions go into that. I really appreciate the insight fellas

 

[CorbLand]

I'm a federal employee with a TSP retirement account that is a Roth IRA so all of my retirement deductions go into that. I really appreciate the insight fellas

Does the Fed offer a Health Savings Account? Those are triple tax protected and some offer the ability to invest.

I am a State employee. We get 14.2% given to us in a 401A and I put an additional 500 a month into my HSA and 50 into my IRA. I keep 5000 in my HSA not invested (half my yearly max out of pocket) and invest the rest. Reduces my taxable income for the year and I dont pay any taxes on it or the gains if I dont pull it until retirement age.

 

[RMM]

Does the Fed offer a Health Savings Account? Those are triple tax protected and some offer the ability to invest.

I am a State employee. We get 14.2% given to us in a 401A and I put an additional 500 a month into my HSA and 50 into my IRA. I keep 5000 in my HSA not invested (half my yearly max out of pocket) and invest the rest. Reduces my taxable income for the year and I dont pay any taxes on it or the gains if I dont pull it until retirement age.

We are offered an HSA. I currently don't participate because I don't know all of the ins and outs. Sounds like I need to look into it more

 

[CorbLand]

We are offered an HSA. I currently don't participate because I don't know all of the ins and outs. Sounds like I need to look into it more

I would look into it. A lot of people dont understand them and some offer some great incentives to utilize.

 

[Maverick1]

I smoked you Maverick.....the Vanguard Tech ETF- VGT it averaged about 19% per year for the last decade. Thats doubling your money every 4 years....run the numbers.

The young guys Dollar cost averaging into that as part of their investment strategy for the next 20 years will thank me.

What is the one sector that is more and more of your life? Technology...and its only going to continue.

@Beendare - you either have to reply to the post or use the @ symbol, otherwise people don’t see your replies! Good to hear about your positive results!

 

[MountainTracker]

I'm a federal employee with a TSP retirement account that is a Roth IRA so all of my retirement deductions go into that. I really appreciate the insight fellas

The mutual funds list available through TSP is better than going the funds of g,c,s, or i. You are limited to either a minimum of $10k or 25% of your total holdings.


Sent from my iPhone using Tapatalk

 

[cfounta1]

We are offered an HSA. I currently don't participate because I don't know all of the ins and outs. Sounds like I need to look into it more

Yes you do. Great investment tool

 

[Clarktar]

The mutual funds list available through TSP is better than going the funds of g,c,s, or i. You are limited to either a minimum of $10k or 25% of your total holdings.


Sent from my iPhone using Tapatalk

Which funds listed do you like?

 

[MountainTracker]

Which funds listed do you like?

Currently I’m in BTCFX, but i got in at a low price. Ive been looking for a fund that holds mostly Tesla to rotate into. I don’t think there is a fund that holds Tesla and MSTR. If someone knows of one or even if i had to split to two, let me know.


Sent from my iPhone using Tapatalk

 

[Beendare]

VOO has about equal return rates and a .03 expense ratio. Do you think that VGT is a better investment than VOO?

VOO 10 year return is not even Close to the Tech sector ETF's.

Look S&P index stuff is good and I think it should be a part of an investment portfolio. The advantage you have in the S&P index stuff is the powers that be are constantly adjusting it- dumping the losers and adding winners...which is what you want. The S&P is a big part tech already.

Young guy advice;
Investing is all about return AND managing risk. buying individual stocks- like the penny stocks discussed here is SUPER high risk thats why for every one guy making money 25 have lost. Thats a one step forward, 2 steps back strategy- AND you have to pay tax when you sell- beentheredonethat.

You don't have to buy bonds to manage risk. You can manage risk by 1) Dollar cost averaging and 2) having a long time frame [like 20yrs] and 3) spread the money out in a few ETF's.
I don't like putting money in low return stuff to "Manage risk" unless you are near retirement and need the money soon.

I tell my kids and guys that work for me with a long term time horizon; Split it up into 3-5 ETFs but put a chunk in Tech ETFs. VGT, XLK, FTEC are all 5 star rated by Morningstar. Keep in mind VGT is a bit concentrated with 30% or more in the top 10 companies....I would recommend splitting it up, some in that...and some in a tech ETF that is less concentrated [look up their holdings, pick one concentrated and one with the top holdings no more than 5%]
Then do the same with S&P etf's- concentrated and non concentrated. Plug money in there quarterly and forget it.

Run the numbers; at 19% return you double your money every 4 years. $10,000 in 20 years is over $160,000. ...then in 30 years-BAM. When broad market Tech ETF's are doing that....why mess with individual stocks? Plus ETF's are good tax wise building tax deferred.

The Tech ETF's weren't available when I was younger.....

Of course there is never a guarantee....but you invest in what will work in the future. My bet is tech will be more and more of our lives as time goes by....a pretty good bet.

 

[lak2004]

VOO 10 year return is not even Close to the Tech sector ETF's.

Look S&P index stuff is good and I think it should be a part of an investment portfolio. The advantage you have in the S&P index stuff is the powers that be are constantly adjusting it- dumping the losers and adding winners...which is what you want. The S&P is a big part tech already.

Young guy advice;
Investing is all about return AND managing risk. buying individual stocks- like the penny stocks discussed here is SUPER high risk thats why for every one guy making money 25 have lost. Thats a one step forward, 2 steps back strategy- AND you have to pay tax when you sell- beentheredonethat.

You don't have to buy bonds to manage risk. You can manage risk by 1) Dollar cost averaging and 2) having a long time frame [like 20yrs] and 3) spread the money out in a few ETF's.
I don't like putting money in low return stuff to "Manage risk" unless you are near retirement and need the money soon.

I tell my kids and guys that work for me with a long term time horizon; Split it up into 3-5 ETFs but put a chunk in Tech ETFs. VGT, XLK, FTEC are all 5 star rated by Morningstar. Keep in mind VGT is a bit concentrated with 30% or more in the top 10 companies....I would recommend splitting it up, some in that...and some in a tech ETF that is less concentrated [look up their holdings, pick one concentrated and one with the top holdings no more than 5%]
Then do the same with S&P etf's- concentrated and non concentrated. Plug money in there quarterly and forget it.

Run the numbers; at 19% return you double your money every 4 years. $10,000 in 20 years is over $160,000. ...then in 30 years-BAM. When broad market Tech ETF's are doing that....why mess with individual stocks? Plus ETF's are good tax wise building tax deferred.

The Tech ETF's weren't available when I was younger.....

Of course there is never a guarantee....but you invest in what will work in the future. My bet is tech will be more and more of our lives as time goes by....a pretty good bet.

I appreciate this, i had some money worth risking and lost about 57% so far playing the individual stock/day trader game. From now on, I'm sticking more into my current 401k and investing as you have mentioned. Thanks

 

[Beendare]

No problem.
FWIW, Return doesn't always tell the story. The stock or fund or ETF that had a good return last year....might not always be the best choice this year.

In regards to these ETF's I look at long term performance...or how they performed in a certain time period.

When I talk about concentration, here are a couple screen shots illustrating that point. You can easily search this info on your brokerage site. Schwab> Research> ETF's> Categories> Tech

VGT is concentrated, the top 10 holding are 58% of the entire fund [which has worked out well]

Another ETF QTEC- is less concentrated with 26% in the top 10 holdings. Notice that no one company is more than 4% of the total fund.


Now QTEC has slightly underperformed VGT but Personally I would sacrifice a couple percentage points for the added diversification. I think the best strategy is to split up your Tech allocation 50/50 between the two.

I would use the same strategy with S&P ETFs balancing Diversification with performance.

Again, this is your guys stuff with long time horizons...older guys like myself should still have a % in Tech for the performance factor...but more of a traditional balance of fixed and equities for the stability.

This investing is not rocket science, it's easy using a couple basic rules. many of the investment planners are salesmen, plugging your money into their companies investment model which are usually very conservative and take into account they don't want to get sued for any advice outside the old line advice.

Some of these programs might work well for some....but compare these ETF returns than decide if its for you.

 

[CorbLand]

VOO 10 year return is not even Close to the Tech sector ETF's.

Look S&P index stuff is good and I think it should be a part of an investment portfolio. The advantage you have in the S&P index stuff is the powers that be are constantly adjusting it- dumping the losers and adding winners...which is what you want. The S&P is a big part tech already.

Young guy advice;
Investing is all about return AND managing risk. buying individual stocks- like the penny stocks discussed here is SUPER high risk thats why for every one guy making money 25 have lost. Thats a one step forward, 2 steps back strategy- AND you have to pay tax when you sell- beentheredonethat.

You don't have to buy bonds to manage risk. You can manage risk by 1) Dollar cost averaging and 2) having a long time frame [like 20yrs] and 3) spread the money out in a few ETF's.
I don't like putting money in low return stuff to "Manage risk" unless you are near retirement and need the money soon.

I tell my kids and guys that work for me with a long term time horizon; Split it up into 3-5 ETFs but put a chunk in Tech ETFs. VGT, XLK, FTEC are all 5 star rated by Morningstar. Keep in mind VGT is a bit concentrated with 30% or more in the top 10 companies....I would recommend splitting it up, some in that...and some in a tech ETF that is less concentrated [look up their holdings, pick one concentrated and one with the top holdings no more than 5%]
Then do the same with S&P etf's- concentrated and non concentrated. Plug money in there quarterly and forget it.

Run the numbers; at 19% return you double your money every 4 years. $10,000 in 20 years is over $160,000. ...then in 30 years-BAM. When broad market Tech ETF's are doing that....why mess with individual stocks? Plus ETF's are good tax wise building tax deferred.

The Tech ETF's weren't available when I was younger.....

Of course there is never a guarantee....but you invest in what will work in the future. My bet is tech will be more and more of our lives as time goes by....a pretty good bet.

Thanks.
About 80% of my retirement is in SP500 trackers and blue chip stocks. Of that, the vast majority is in SP500 trackers and I have been looking for a way to spread that out a little. This gives me another one to look at.