Any investment fund experts here?

Discussion in 'Bad Dog Cafe' started by Robbied_216, May 6, 2015.

  1. Robbied_216

    Robbied_216 Tele-Afflicted

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    Hi,

    I'm by no means a money expert, hence why I turn here to some advice of my wiser Tele pickin brethren.

    Lately i've been researching the idea of parking my long term savings accounts with an ETF company like Betterment. My wife and I have no debt, so want to be a bit more aggressive than just putting money in a pillow case. I have about $50k sitting in mutual funds in Australia that I cannot access until I retire, but I'd like to focus on setting up some savings plans here for the rainy days, and also to give my kids a head start.

    Keen to hear anything I should consider from anyone here that may have crossed this bridge before!

    -Rob
     
  2. KevinB

    KevinB Doctor of Teleocity

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    Kudos to you for starting to save seriously before you're 30. I wish I had.

    But everybody's situation is a little different so my advice is to find a financial adviser who you can trust. I'm very glad I did.
     
  3. VWAmTele

    VWAmTele Friend of Leo's

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    Absolutely. When I look at all the different companies across the spectrum of industries that my managed account is funding - it's mind boggling. I could never do it on my own. I don't know how things work down under, but at 30 years old you should be around 70% stock, 30% bonds (very general terms). But definitely get with a financial planner from a firm you trust.
     
  4. VWAmTele

    VWAmTele Friend of Leo's

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    ##wrong forum :) deleted
     
  5. Matt G

    Matt G Tele-Afflicted

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    I've crossed this bridge before.

    Depending on your residency / citizenship and long-run intentions, your affairs could be considerably complicated by falling under competing US and Aus tax law. Similarly, your investment decisions are likely to have implications for your national retirement pension outcomes (Social Security vs. super vs. aged pension). Plus, there will inevitably be exchange rate variations and the prospect of outrageous foreign exchange transaction fees, unless you spend the funds in the jurisdiction where you have them invested.

    All of that comes on top of the usual portfolio management questions.

    If you're likely to make any money at all in life, or if your family has other assets (e.g. real estate), you'd be wise to find an investment advisor who specialises in US-Aus affairs. Not someone who could find the answers -- someone who deals with it every day.

    There will be an Aus-US business association or club somewhere within your reach; you could start by asking them who they know of.

    Good luck with your adventures!
     
  6. Post Toastie

    Post Toastie Poster Extraordinaire

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    Invest in an Index fund not an ETF. You need to get some advice from a Pro but any Pro that says invest in an ETF is a Bozo.The only thing an ETF allows you to do is sell it like a stock in seconds instead of at the days close, but you pay higher fees and and have a manager that may use hedges or derivatives in the portfolio instead of actual individual stocks. Buyer beware. Look into having your investments managed through Vanguard, they are investor friendy and the low cost fund family.
     
  7. Nick JD

    Nick JD Doctor of Teleocity Ad Free Member

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    Put it all on red. Or black. You decide!

    Or, run an exponential moving average convergence/divergence algorithm over the security's price and check to see where the short average crosses the long average to find your entry and exit positions. Easy peasy! :D
     

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  8. soulman969

    soulman969 Telefied Ad Free Member

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    Best advice you're likely to find and this is coming from someone whose been one for over 30 years. The internet or a guitar forum isn't the place to get the help and advice you need.

    Any advice you get should address your specific needs, risk thresholds, time horizons, and investment capabilities. In order to get to that an advisor needs to get to know you and your family personally. We can't do that here.
     
  9. Nick JD

    Nick JD Doctor of Teleocity Ad Free Member

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    Read this book in preparation for the real actual recession that's horribly overdue:

    [​IMG]
     
  10. Bartholomew3

    Bartholomew3 Friend of Leo's

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    Some funds have really high commissions to the broker or investment manager/financial planner.

    And you won't break even for the first 7 or 8 years due to this.

    It's called a "front-end load" and is something to always watch out for...probably exists there as it does in Canada.
     
  11. sax4blues

    sax4blues Friend of Leo's

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    Would you walk into a random financial office and ask the general population what Telecaster to buy?

    If yes, then this forum is a good place for you to seek advice to secure your families financial security.
     
  12. jvin248

    jvin248 Poster Extraordinaire

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    Start early and save often: A guy that invests X each year from 25yr to 35yr and stops will have more savings at retirement than the guy that waits until 35yr and invests X each year until they are 65yr. Ten years for the first guy and Thirty years for the second guy. This is why 'the average baby boomer has less than $50k in retirement savings'.

    Nearly all fund managers are 'closet indexers' because they get graded against the index so you might as well use the index funds too. Seek out low cost index funds. If you find a great 10% investment do you want 3% getting sucked away in fees?

    The old pie charts of what to buy at each age assume you're living to 65 not 95yrs. You'll need a larger portion of your investments at higher risk (equities) at each age or risk running out of cash in those later years.

    Don't take loans against your investments or cash out IRA/401k/etc.

    (you're already here but for others) Keep your expenses low. Buy used houses and used cars. Buy less house than you want but that covers your needs. This helps keep savings plans in place.

    Never put more than 10% of your investments into any "Honey, I have a can't lose idea!". Maybe that rule is 5%...

    Don't hold on to an investment thinking it will come back. A stock that is down 50% will take 100% appreciation, or it must double, just to get you back to parity. You find a stock that can double in price and you're a super star investor because it's so rare. So don't follow yourself down a hole to find out.

    The stock charts never go to the sky no matter how much the news reporters make you want it to. The chart will come down. Pay attention to the economy turns and adjust investments to match. There is a thing called Sector Rotation that some use to identify which industry to be in at any time.

    Read lynch, buffet, and ... taleb. Buffet has all his old annual reports available online. His writeups are the closest to his investment philosophy written in a book that you'll get.

    When you find a company you want to invest in, order some annual reports from their website and study the numbers in the back. Skip all the smiling pictures in the front.

    Good luck.
     
  13. Robbied_216

    Robbied_216 Tele-Afflicted

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    Thanks all. I understand why many of you suggest it's not a good idea to raise this question here, but I kinda stand in the exact opposite light. If I ask someone in the industry often they have a product to sell or an agenda to maintain. At least somewhere like this I'm actually reaching out to average individuals like myself that perhaps have experienced first hand as a customer / consumer their own journey. I'm on a real estate forum and 9 out 10 people there feel like used car salesman trying to sell some average strategy with "guaranteed returns and guaranteed growth". Hence the very reason why I like to pool information from as many sources as possible, especially when people don't have a financial incentive to provide certain advice.

    Thanks again for those that replied. At this stage I'm in a process of education. I never rush into anything without research research and then some research. :)

    -Rob
     
  14. Guitarteach

    Guitarteach Poster Extraordinaire

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    I get advice from an experienced and trusted CFO friend. If you are in a big, well ran business you could go ask the finance department heads for personal advice. I've found they are often delighted to share.

    I think and believe like you. 'Financial advisors' are almost invariably commission based front ends for financial corporations with 'products' to sell and are among the least likely to give you truly impartial advice. They will give you the advice that makes the most profit for them. It's how the game works. Many of the investment comparison websites you find online are owned by the same corporations. The average guy in the street is not a free agent in this game - they are an element of some others guys portfolio and so just a target for skimming a profit off.

    Some people get sucked in and believe the financial advisor BS and then repeat it!

    Do your research well before you go in a room with a shark. Nothing wrong with asking in a guitar forum as there is no profit to be made by me or others in the advice.

    Mine... Be as debt free as possible and invest in a low overhead environment or home situation you could survive in long term with as little as possible. Anything extra is luxury. Don't believe you will have enough from some future pile that actually lives in someone else's pocket.
     
  15. voodoo_idol

    voodoo_idol Friend of Leo's

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    I use Fidelity Investments. I think they are the best option for people with moderate amounts to invest because their web platform is very user-friendly and they offer a really wide array of funds to invest in (including their own low fee index funds of every asset class). Depending on how much you have to invest, a well rounded portfolio would include exposure to domestic large and small cap equities, foreign large and small cap equities, domestic debt and emerging market debt and maybe some REITs. Fidelity has staff that can help you decide on the asset allocation.

    Charles Schwab and TD Ameritrade have similar business models, but in my experience aren't nearly as good on the fund management side as Fidelity is.

    Someone above mentioned a 70/30 split at your age. That seems pretty conservative to me. If you don't need the money any time soon, 29 is the age to take on more risk.

    From family experience, I do not recommend Morgan Stanley, Merrill Lynch or any of the traditional broker/dealer stock brokerages. They will eat you alive with fees and push you towards their own funds and stocks they are trying to unload. My mom has a pretty big portfolio with one of them and their management has been a disaster. I'm switching her over to Fidelity this Summer.
     
  16. KevinB

    KevinB Doctor of Teleocity

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    Well of course financial advisers make money from their clients' investments. Would you want someone advising you who has no incentive whatsoever to give you sound advice?

    I'm an IT manager with a large, commercial Wall Street bank and as such I think I know a fair amount about investments and the markets, but when it comes to personal finances I'm not in the same league as my financial guy when it comes to strategy and planning. I suspect most CFOs - whose responsibilities after all are corporate and not personal finances - aren't either.

    I certainly don't begrudge the fact that my money is invested and managed by the planning company that my adviser represents and that he makes money off that as long as my portfolio continues to do well.
     
  17. bigbean

    bigbean Tele-Afflicted Silver Supporter

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    'zactly.

    This being a Tele forum.

    I think fishing lures, truck parts and a cocktail waitress is my ex-old lady experts have a much wider demographic exposure in this readership than financial planning.

    Although, I'm also sure that there are a smattering of MDs, PHDs, CFOs, CEOs and E i E i Os in the readers out there, as well.

    But in general, you're likely to find more quality advise about STDs or bail bondsmen than 401Ks.
     
    Last edited: May 7, 2015
  18. musicalmartin

    musicalmartin Poster Extraordinaire

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    No
    They are all on the PRS forum.
     
  19. rcole_sooner

    rcole_sooner Poster Extraordinaire Silver Supporter

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    There are a lot more savvy ways to invest than MFs, but they beat simple savings accounts. Really either of those are better than no saving/investing.

    Even a simple $50 a month can add up over the years.

    Just do it.
     
  20. xtrajerry

    xtrajerry Doctor of Teleocity

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    Having a financial manager takes emotions out of the equation. It also ensures that your accounts are being managed in case you're indisposed. Finding one you are comfortable with is another story. Many are little more than salesmen pimping their firms funds.
     
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