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The Investment Thread

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Offline  Re: The Investment Thread
Posted: June 21, 2018, 1:49 PM Post
Posts: 701
I work in Financial Services and am generally distrustful of your average financial advisor. Most are glorified salespeople. However, I’d strongly entourage you to visit with a few bank trust officers - highly qualified individuals who are lawyers, accountants, or both. There is virtually no downside risk involved, besides your time. They’ll give you their best efforts pitch for your dollars and you can simply walk away if you’re uncomfortable. I don’t pay for investment advice, but I do pay for legal and tax advice.


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Offline  Re: The Investment Thread
Posted: June 24, 2018, 8:16 PM Post
Posts: 173
I did get a chance to talk to a friend who was a FA and still works in the industry. I wanted to pass on a couple things mentioned that weren't mentioned here in case anyone were interested.

It can be a good idea to have both active and passive funds in a portfolio. An actively managed fund may have better returns in down times or different types of market conditions where adjusting the fund will outperform a passive fund.

With large sums it can be a good idea to invest in increments so you are not exposed to as much risk as investing it all at once. The swings of the market will be averaged out than if you were to invest it all at once.

It doesn't seem like taxes are an issue at this time. Going to make some adjustments on what we had originally planned, so generally:

5% mining
10% intermediate bond
5% high yield bond
15% broad international
5% small cap international
25% large cap 500 index
20% mid cap
15% small cap

And try to cover all the boxes between growth/value. Might eliminate the mining and increase large cap. May put some of the stock funds in active managed, maybe 10-15% of large and mid cap.


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Offline  Re: The Investment Thread
Posted: June 25, 2018, 7:54 AM Post
Posts: 701
I think that’s a decent allocation. Personally, I love precious metals as a recession hedge. Maybe that’s why your FA friend is suggesting mining?

My knowledge of the law and trusts is minimal, but what happens if your GF gets cleaned out in a civil suit? Is the $500K safe? That’s something I might want to run by a trust officer. I’m overly cautious about that sort of thing and will probably explore some options once my assets hit a critical mass.


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Offline  Re: The Investment Thread
Posted: June 25, 2018, 8:38 AM Post
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I have a question for anyone who might understand taxes better than I do.

I will have to buy a home/condo or rent when I retire, which will be before 62 years old (maybe 56?), which means I can't pull from an IRA to pay for it. What would be the best way to save for this while paying the fewest taxes? All I can think is regular savings, but yearly capital gains would really cut into the total savings.


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Offline  Re: The Investment Thread
Posted: June 25, 2018, 8:53 AM Post
Posts: 173
The FA friend actually wasn't very enthusiastic on the mining, that was nate82's suggestion. I will suggest she talk to a trust officer. I told her to but she is stubborn and didn't think there was a need to get tax and law advice now. I will give her your scenario and hopefully she will see the benefit.


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Offline  Re: The Investment Thread
Posted: June 25, 2018, 5:45 PM Post
Posts: 173
GAME05 said:
I have a question for anyone who might understand taxes better than I do.

I will have to buy a home/condo or rent when I retire, which will be before 62 years old (maybe 56?), which means I can't pull from an IRA to pay for it. What would be the best way to save for this while paying the fewest taxes? All I can think is regular savings, but yearly capital gains would really cut into the total savings.


You can withdraw from your IRA at 59 1/2, so you won't have too much time before then. The only thing I can think of is open a brokerage account and invest in stocks and bonds, converting to bonds the closer you get. That way you would get a better return than a CD. This would only be a decent plan if you have some time before you plan on doing this, like 15 years. I'm pretty new at this though, so others may have better advice.


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Offline  Re: The Investment Thread
Posted: June 26, 2018, 7:13 AM Post
Posts: 701
GAME05 said:
I have a question for anyone who might understand taxes better than I do.

I will have to buy a home/condo or rent when I retire, which will be before 62 years old (maybe 56?), which means I can't pull from an IRA to pay for it. What would be the best way to save for this while paying the fewest taxes? All I can think is regular savings, but yearly capital gains would really cut into the total savings.

That’s a pretty open-ended question. What’s your risk tolerance? Do you currently use any tax-advantaged savings vehicles?


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Offline  Re: The Investment Thread
Posted: June 26, 2018, 7:59 AM Post
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You can pull from a Roth IRA for a first time home purchase I think.

"Dustin Pedroia doesn't have the strength or bat speed to hit major-league pitching consistently, and he has no power......He probably has a future as a backup infielder if he can stop rolling over to third base and shortstop." Keith Law, 2006


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Offline  Re: The Investment Thread
Posted: June 26, 2018, 9:58 AM Post
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I'd heard you can pull the principal out of a Roth for a home purchase. So maybe the best bet is to do that, accept whatever debt it takes to pay for the remainder of the purchase, and then buy the rest in full once I'm 59.5.

I invest the minimum in the work 401k, which amounts to 12% plus a 5% work-throw-on. But I plan to do the rest myself, though that won't happen for another year because of a car purchase.


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Offline  Re: The Investment Thread
Posted: August 02, 2018, 7:01 AM Post
Posts: 701
Apologies if this has been discussed (I know I’m late to the party), but is anyone using Robinhood, the brokerage platform?


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Offline  Re: The Investment Thread
Posted: August 02, 2018, 12:28 PM Post
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nodakfan17 said:
Apologies if this has been discussed (I know I’m late to the party), but is anyone using Robinhood, the brokerage platform?


"use" is a strong word. I have an account and a few stocks but I don't trade regularly. It's my fun money to invest in small and micro caps.

"Dustin Pedroia doesn't have the strength or bat speed to hit major-league pitching consistently, and he has no power......He probably has a future as a backup infielder if he can stop rolling over to third base and shortstop." Keith Law, 2006


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Offline  Re: The Investment Thread
Posted: August 02, 2018, 3:39 PM Post
Posts: 701
homer said:
nodakfan17 said:
Apologies if this has been discussed (I know I’m late to the party), but is anyone using Robinhood, the brokerage platform?


"use" is a strong word. I have an account and a few stocks but I don't trade regularly. It's my fun money to invest in small and micro caps.

How do you like it? Seems like no one can beat them on price.


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Offline  Re: The Investment Thread
Posted: August 02, 2018, 3:47 PM Post
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Yeah it's dirt cheap. They don't trade all stocks though. A bunch of companies I've wanted to buy weren't available.

"Dustin Pedroia doesn't have the strength or bat speed to hit major-league pitching consistently, and he has no power......He probably has a future as a backup infielder if he can stop rolling over to third base and shortstop." Keith Law, 2006


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Offline  Re: The Investment Thread
Posted: August 02, 2018, 3:58 PM Post
Posts: 701
3 months? Yikes. I just submitted an account application earlier today. Maybe a short wait will help stem some impulse buys. The application process was unbelievably easy. I’ve had to answer many probing questions for self-directed brokerage accounts I’ve held in the past (like providing an itemized net worth).


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Offline  Re: The Investment Thread
Posted: August 03, 2018, 8:15 AM Post
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nodakfan17 said:
3 months? Yikes. I just submitted an account application earlier today. Maybe a short wait will help stem some impulse buys. The application process was unbelievably easy. I’ve had to answer many probing questions for self-directed brokerage accounts I’ve held in the past (like providing an itemized net worth).


Oops, I deleted my post accidentally.

Yeah I applied then heard literally nothing for a month so I sent them an email. They replied saying something like their third party something something had rejected my application. Sorry, go trade somewhere else. So I forgot about them and then a few months later they sent me a welcome email. Really bizarre.

"Dustin Pedroia doesn't have the strength or bat speed to hit major-league pitching consistently, and he has no power......He probably has a future as a backup infielder if he can stop rolling over to third base and shortstop." Keith Law, 2006


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Offline  Re: The Investment Thread
Posted: August 03, 2018, 10:36 AM Post
Posts: 701
I just had my application approved in a little over a day. I also received a free share of Sprint by using a referral code. Hopefully your experience was atypical.


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Offline  Re: The Investment Thread
Posted: August 03, 2018, 10:40 AM Post
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nodakfan17 said:
I just had my application approved in a little over a day. I also received a free share of Sprint by using a referral code. Hopefully your experience was atypical.


I know it happened to others around the same time that I applied. I think they were just inundated with new users during the bitcoin craze and didn't have server capacity to handle it.

"Dustin Pedroia doesn't have the strength or bat speed to hit major-league pitching consistently, and he has no power......He probably has a future as a backup infielder if he can stop rolling over to third base and shortstop." Keith Law, 2006


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Online  Re: The Investment Thread
Posted: August 24, 2018, 9:30 PM Post
Posts: 9625
We are officially in the longest bull market in American history.


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Online  Re: The Investment Thread
Posted: September 24, 2018, 12:28 PM Post
Posts: 3029
What’s the safest stock (oxymoron I know) you can buy? I’m thinking dividend aristocrat stuff like JNJ, XOM, BP type stocks. Any ideas for what will surely be a correction at some point.


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Offline  Re: The Investment Thread
Posted: September 24, 2018, 12:44 PM Post
Posts: 701
Boomer5 said:
What’s the safest stock (oxymoron I know) you can buy? I’m thinking dividend aristocrat stuff like JNJ, XOM, BP type stocks. Any ideas for what will surely be a correction at some point.

This is obviously a loaded question, but I’ll bite and say check out PFF - the iShares US Preferred Stock ETF. Minimal upside, but low volatility and a 5% dividend yield.


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