Jump to content

Investing


Recommended Posts

Just opened a robinhood account and loaded some money ahead of airbnb's ipo.  

I know next to nothing.  Almost 40, am happy with my work retirement and investment stuff but want to learn more and be more aware.  

Who do you watch/listen to or read?  

Anyone else buying door dash or airbnb this week?  Seems like a no brainier with exponential potential.

Link to comment
Share on other sites

14 minutes ago, mrflynn03 said:

Bogleheads guide to investing.

Take what market gives you. 

Bogleheads book.

Index funds is where it's at for us simpletons.

I unfortunately just got fired but I have enough money to live a couple years because of John Bogles advice.  

This fella has it right.  Pick some individual stocks if you enjoy it and think you've got a good read on the market, but I would encourage the vast majority of any investment into index funds.  

  • Like 4
Link to comment
Share on other sites

18 hours ago, HoosierFaithful said:

This fella has it right.  Pick some individual stocks if you enjoy it and think you've got a good read on the market, but I would encourage the vast majority of any investment into index funds.  

Absolutely. 

Most non active investors have so many more options now.  Target funds that reallocate their distributions and things I have probably forgotten because my retirement plan is on autopilot.  

Index funds all the way for the average investor. 

Edited by mrflynn03
Link to comment
Share on other sites

I have about 95% of my money in index funds. The other 5% is money that I had laying around that wasn't that big of a deal if I lost it. That money I use to mess around in stocks.

It's nice with places offering free transactions. You can by a couple shares of different stocks just to see how you'd do. Then there isn't much risk.

Link to comment
Share on other sites

All of our big retirement accounts are in index fund stuff at the moment.  

This is my first solo stock purchase.  

My grandparents were in on ground floor of att or whatever it was before it became att.  Have no idea if there is any money left or if they sold and used it.  

My other grandpa was able to buy shares from his work in the 80s at johnson controls.  Just found out this past weekend my dad is still sitting on it.  I read up on it and it's recommended as a hold right now.  I can't get a peep out of my dad about money.  Drives me nuts because it's probably only going to get worse the older he gets.  Makes no sense.  I tell him everything about our investments and we have been out earning them for years.  I mentioned to him if he doesn't plan on needing it or using it in retirement, cool but if so it probably needs moved into something safer. Also that it may be able to grow more if traded for index funds. He says he has a financial guy.  Mom says he's been saying for 5 years he's going to go talk to him.  

Link to comment
Share on other sites

Call it a stroke of luck or genius but since corona I know 2 guys that have nailed it.  

One has huge balls and took 200k on his heloc and bought, I think it was carnival, he was up 400k before cashing back out up 220k.  

Another guy simply reallocated to fixed funds at 26,000 and got back into his indexes at 18500.  He recently jumped back out to fixed at 28,000.  He's a few years from retirement.  Said maybe he should have waited now that dow is above 30k but with potential shutdowns and historical drops around presidential changes, he's going safe for at least a few months to see what happens with all that and vaccine success and stimulus.  

Link to comment
Share on other sites

I read somewhere once that 80% of an individual stock's performance is based on how the stock's sector performed. I'm sure it's not always true, but I've found it helpful to keep that in mind.

One of the guys I used to listen to (retired now) suggested that gov't policy has a direct effect on the market. So if there is a change in gov't policy, the market will react accordingly over the long term.

Link to comment
Share on other sites

1 hour ago, NotIThatLives said:

Call it a stroke of luck or genius but since corona I know 2 guys that have nailed it.  

One has huge balls and took 200k on his heloc and bought, I think it was carnival, he was up 400k before cashing back out up 220k.  

Another guy simply reallocated to fixed funds at 26,000 and got back into his indexes at 18500.  He recently jumped back out to fixed at 28,000.  He's a few years from retirement.  Said maybe he should have waited now that dow is above 30k but with potential shutdowns and historical drops around presidential changes, he's going safe for at least a few months to see what happens with all that and vaccine success and stimulus.  

Won't get into specifics but this past March was the single greatest buying opportunity of a lifetime. More so than financial crisis 08/09, tech bubble burst in March of 2000, black friday in 1987....all are kids play compared to what we just were given. We bought Penn National, Mercadolibre, Beyond Meat, and of course more Apple when the overselling based on fear took place. 

If there's one positive to Covid....the amount of $ that's been made in the markets over the last 8-9 months.

Link to comment
Share on other sites

1 minute ago, Seeking6 said:

Won't get into specifics but this past March was the single greatest buying opportunity of a lifetime. More so than financial crisis 08/09, tech bubble burst in March of 2000, black friday in 1987....all are kids play compared to what we just were given. We bought Penn National, Mercadolibre, Beyond Meat, and of course more Apple when the overselling based on fear took place. 

If there's one positive to Covid....the amount of $ that's been made in the markets over the last 8-9 months.

My buddy, a Kelly grad but now firefighter, said take everything you got and put back in around 18500.  Well we had a neighbor willing to sell a waterfront fixer with closing in April and our house sold and closed beginning of July.  I had zero cash available nor could I get ballzy and do something with my heloc.  It was so predictable though.  Now wish I would have simple moved my accounts to fixed when the writing was on the wall.  Now I'm sitting on a decent chunk of cash, waiting to see if the thing will tank again.  If not I'm waiting on neighbors to sell and see if I can't google one up.  7 of my 13 neighbors are retirees.  Can't maintain the boat and waterfront property forever.  

 

  • Like 1
Link to comment
Share on other sites

Just now, NotIThatLives said:

My buddy, a Kelly grad but now firefighter, said take everything you got and put back in around 18500.  Well we had a neighbor willing to sell a waterfront fixer with closing in April and our house sold and closed beginning of July.  I had zero cash available nor could I get ballzy and do something with my heloc.  It was so predictable though.  Now wish I would have simple moved my accounts to fixed when the writing was on the wall.  Now I'm sitting on a decent chunk of cash, waiting to see if the thing will tank again.  If not I'm waiting on neighbors to sell and see if I can't google one up.  7 of my 13 neighbors are retirees.  Can't maintain the boat and waterfront property forever.  

 

Cash is king and always will be so however you choose to invest. Make sure you always have put back so you can take advantage of those dips. We'll have another one this spring once people realize the damage we did to ourselves.  Good luck with things!

  • Like 1
Link to comment
Share on other sites

3 hours ago, Seeking6 said:

Won't get into specifics but this past March was the single greatest buying opportunity of a lifetime. More so than financial crisis 08/09, tech bubble burst in March of 2000, black friday in 1987....all are kids play compared to what we just were given. We bought Penn National, Mercadolibre, Beyond Meat, and of course more Apple when the overselling based on fear took place. 

If there's one positive to Covid....the amount of $ that's been made in the markets over the last 8-9 months.

I kick myself for not investing the $20-30k I had sitting around in March.

I did, however, build a beautiful pool.  An investment into seeing my fiance in a swimsuit is still an investment.

  • Like 6
  • Haha 1
Link to comment
Share on other sites

2 hours ago, HoosierFaithful said:

I kick myself for not investing the $20-30k I had sitting around in March.

I did, however, build a beautiful pool.  An investment into seeing my fiance in a swimsuit is still an investment.

Have to live life too! Fine balance between numbers on your phone/computer,etc...vs enjoying things each day. 

Link to comment
Share on other sites

3 hours ago, HoosierFaithful said:

I kick myself for not investing the $20-30k I had sitting around in March.

I did, however, build a beautiful pool.  An investment into seeing my fiance in a swimsuit is still an investment.

I heard a comedian say that the definition of success is being able to install a swimming pool by the time your daughter's friends all turn 16.

  • Like 2
Link to comment
Share on other sites

7 hours ago, Seeking6 said:

Won't get into specifics but this past March was the single greatest buying opportunity of a lifetime. More so than financial crisis 08/09, tech bubble burst in March of 2000, black friday in 1987....all are kids play compared to what we just were given. We bought Penn National, Mercadolibre, Beyond Meat, and of course more Apple when the overselling based on fear took place. 

If there's one positive to Covid....the amount of $ that's been made in the markets over the last 8-9 months.

Not meaning to directly contradict this but any timing of market approach always results in lower returns than steady dollar cost averaging. Investing steadily and continuously — if you’re at least 10 years from retirement— over time will beat any big market upticks and downturns 

Link to comment
Share on other sites

18 hours ago, NotIThatLives said:

Just opened a robinhood account and loaded some money ahead of airbnb's ipo.  

I know next to nothing.  Almost 40, am happy with my work retirement and investment stuff but want to learn more and be more aware.  

Who do you watch/listen to or read?  

Anyone else buying door dash or airbnb this week?  Seems like a no brainier with exponential potential.

I'm about 20 years older than you, so here's me talking to my 40 year old self, based on experience.

At age 40 put all of your tax-deferred retirement accounts (401k, 403b, IRAs) in an indexed target date fund (hopefully your employer offers those at a very low fee). Look at the balance once a year and leave it alone. Max out your annual contributions or put in as much as you can and increase it 1% annually until you hit the max.

Keep three years of living expenses in cash or near cash investments.

Open a taxable brokerage account (Vanguard, Fidelity Schwab). Allocate to stocks based on 110 minus your age (110-40 = 70) or 100 minus your age if more conservative. Put most in high dividend  and dividend growth ETFs (with low fees, Vanguard, Fidelity, Schwab) and have the dividends automatically reinvest in the ETFs.

Put about 1/4 to 1/3 of the stock allocation into individual blue chip dividend paying stocks. Limit to the number you can follow (20 is probably a good number). Invest in companies that have paid dividends for a very long time and have a history of increases. Try to avoid highly cyclical companies that cut dividends in a recession. Favor health care and consumer staples. You can mix in a few other well managed dividend payers (JP Morgan, Apple, etc.). Sometimes these companies just get caught in a sell off and you can buy them when their dividend yield is relatively high. By doing so, your total dividend return will be higher than just buying the basket ETFs.

Put 5-10% in high growth ETFs such as biotech and tech. If you want to play, you can set aside up to 5% to invest in individual potential high flyers but be prepared to lose it all.

Put the rest in bond ETFs, including muni bond ETFs if you are in a higher tax bracket.

The goal is to build a sustainable income stream that will support you in retirement without having to sell and take capital gains.

I have no direct experience with robinhood, but their platform has crashed on high volume days. Not good.

https://www.fastcompany.com/90545646/robinhood-crashed-again-just-as-demand-for-newly-split-apple-and-tesla-stock-was-heating-up

Good Luck.

 

Edited by 13th&Jackson
  • Like 3
Link to comment
Share on other sites

17 hours ago, mrflynn03 said:

Bogleheads guide to investing.

Take what market gives you. 

Bogleheads book.

Index funds is where it's at for us simpletons.

I unfortunately just got fired but I have enough money to live a couple years because of John Bogles advice.  

Very sorry to hear about your job.  Their loss.  2020 has been brutal.  I’m glad you’ve been sound with your money and will be fine.  

  • Thanks 1
Link to comment
Share on other sites

11 hours ago, Leathernecks said:

I have about 95% of my money in index funds. The other 5% is money that I had laying around that wasn't that big of a deal if I lost it. That money I use to mess around in stocks.

It's nice with places offering free transactions. You can by a couple shares of different stocks just to see how you'd do. Then there isn't much risk.

This is pretty much what I do.

I've got about 5-10% in some more aggressive funds, but I do keep a fairly close eye on them. 

And I keep a little around basically for fun or those "Hey, check this out.." tips.

  • Like 1
Link to comment
Share on other sites

1 hour ago, Zlinedavid said:

This is pretty much what I do.

I've got about 5-10% in some more aggressive funds, but I do keep a fairly close eye on them. 

And I keep a little around basically for fun or those "Hey, check this out.." tips.

Most of my retirement funds are pedal to the metal. I figure I have around 25 years until retirement, so for the next 10-15, I'm going to really try to push things. Late 40s I'll probably start looking at where the market is to try my best to somewhat time things for moving to more conservative.

Link to comment
Share on other sites

18 hours ago, 13th&Jackson said:

I'm about 20 years older than you, so here's me talking to my 40 year old self, based on experience.

At age 40 put all of your tax-deferred retirement accounts (401k, 403b, IRAs) in an indexed target date fund (hopefully your employer offers those at a very low fee). Look at the balance once a year and leave it alone. Max out your annual contributions or put in as much as you can and increase it 1% annually until you hit the max.

Keep three years of living expenses in cash or near cash investments.

Open a taxable brokerage account (Vanguard, Fidelity Schwab). Allocate to stocks based on 110 minus your age (110-40 = 70) or 100 minus your age if more conservative. Put most in high dividend  and dividend growth ETFs (with low fees, Vanguard, Fidelity, Schwab) and have the dividends automatically reinvest in the ETFs.

Put about 1/4 to 1/3 of the stock allocation into individual blue chip dividend paying stocks. Limit to the number you can follow (20 is probably a good number). Invest in companies that have paid dividends for a very long time and have a history of increases. Try to avoid highly cyclical companies that cut dividends in a recession. Favor health care and consumer staples. You can mix in a few other well managed dividend payers (JP Morgan, Apple, etc.). Sometimes these companies just get caught in a sell off and you can buy them when their dividend yield is relatively high. By doing so, your total dividend return will be higher than just buying the basket ETFs.

Put 5-10% in high growth ETFs such as biotech and tech. If you want to play, you can set aside up to 5% to invest in individual potential high flyers but be prepared to lose it all.

Put the rest in bond ETFs, including muni bond ETFs if you are in a higher tax bracket.

The goal is to build a sustainable income stream that will support you in retirement without having to sell and take capital gains.

I have no direct experience with robinhood, but their platform has crashed on high volume days. Not good.

https://www.fastcompany.com/90545646/robinhood-crashed-again-just-as-demand-for-newly-split-apple-and-tesla-stock-was-heating-up

Good Luck.

 

Good advice and breakdown.

One simple rule I follow outside of my 401K, for individual investments - invest in companies you know, like, and think will do well long-term. Don’t buy the “hot” company stock, market timing especially on companies you don’t know I s a waste. 
 

Examp - I invested, long-term in Apple in the late 90s, along with a few others I know, buy from / use and think highly of. They’ve done extremely well over the long term. 

  • Like 1
Link to comment
Share on other sites

7 hours ago, Hoosierhoopster said:

Good advice and breakdown.

One simple rule I follow outside of my 401K, for individual investments - invest in companies you know, like, and think will do well long-term. Don’t buy the “hot” company stock, market timing especially on companies you don’t know I s a waste. 
 

Examp - I invested, long-term in Apple in the late 90s, along with a few others I know, buy from / use and think highly of. They’ve done extremely well over the long term. 

Which is why I hesitated in even participating in this thread because it ultimately leads to sides/points,etc...

Now I know nothing about the gaming industry and Penn National specifically but when a stock or others are oversold on fear/emotions because of the pandemic...and it was trading at $38/share and goes to less than $5 inside of a month? Why not buy? $5k investment is now worth $78k 9 months later. Now I dumped at $35 and $50 to lock in profits but there is money to be made on technical side of trading without lumping them into the hot stock category.

Historically I agree in the Peter Lynch way of investing you describe but different times now. For example. Doordash IPO at $102. I say no way. It's an overpriced product that in next 6-24 months will post low revenues because more and more people will be going out for food instead of deliver. Will I be wrong? Maybe but when I see stocks like I've mentioned in this thread before get hit as hard as last March hit some stocks.....it wouldn't be prudent not to investigate and invest.  Of course just my 2 cents. 

 

  • Like 1
Link to comment
Share on other sites

3 hours ago, Seeking6 said:

Which is why I hesitated in even participating in this thread because it ultimately leads to sides/points,etc...

Now I know nothing about the gaming industry and Penn National specifically but when a stock or others are oversold on fear/emotions because of the pandemic...and it was trading at $38/share and goes to less than $5 inside of a month? Why not buy? $5k investment is now worth $78k 9 months later. Now I dumped at $35 and $50 to lock in profits but there is money to be made on technical side of trading without lumping them into the hot stock category.

Historically I agree in the Peter Lynch way of investing you describe but different times now. For example. Doordash IPO at $102. I say no way. It's an overpriced product that in next 6-24 months will post low revenues because more and more people will be going out for food instead of deliver. Will I be wrong? Maybe but when I see stocks like I've mentioned in this thread before get hit as hard as last March hit some stocks.....it wouldn't be prudent not to investigate and invest.  Of course just my 2 cents. 

 

Nothing wrong with looking for bargains and buying low to sell high. I was just saying earlier dollar cost averaging, proven over multiple decades with many major market swings, has always out-performed market timing. And generally you’re better off - imo - buying stocks in companies you know and understand, and believe in, than going for that stock you really don’t understand. Exceptions? Absolutely. As an investment strategy though, well, risky approach 

  • Like 1
Link to comment
Share on other sites

I think it was Albert Einstein who said compound interest was the 8th wonder of the world. 

The followers of John Bogle have done alot of arithmetic, and have determined you have below %30 return on investment tryinf to time the market.

By all means if you have the time and money go for it. It's just alot of work and risk. 

Link to comment
Share on other sites

On 12/8/2020 at 10:32 PM, Hoosierhoopster said:

Nothing wrong with looking for bargains and buying low to sell high. I was just saying earlier dollar cost averaging, proven over multiple decades with many major market swings, has always out-performed market timing. And generally you’re better off - imo - buying stocks in companies you know and understand, and believe in, than going for that stock you really don’t understand. Exceptions? Absolutely. As an investment strategy though, well, risky approach 

I think it's a combination of both timing and belief in the company. During the recession about 10 years ago, I know a couple of people that loaded up on Ford at $2. It was just one of those situations where it might not be much more, but you knew the company was worth more than that. One sold when it hit about $6, and one sold half when it hit $10, and as far as I know, still has some of it since it's a reliable enough dividend. 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...