Ghost of Igloi wrote:
https://www.bloomberg.com/view/articles/2017-05-03/why-i-lost-my-bet-with-warren-buffett
So now you're against actively managed investments?
This article supports everything your antagonists here have been saying about excessive fees weighing down gains. You just shout yourself in the foot.
"Should I open up anything else? I have a teacher's retirement fund through the state and something else that I haven't really paid attention to at all since it was opened. I haven't matched anything that was put in to either of those accounts. Should I start matching if I can? Is there anything else like a Roth IRA that would be good for me to open?"
You should contribute to what is most likely a 403B, functions similar to 401k. The amount of your contribution will reduce your taxable income by the amount of the contribution. At this point in time your income is such that you can continue with your Roth contribution.
Good luck.
Igy
You obviously shot yourself in the eye. Read the last two paragraphs wise one.
But you don't want that answer. Keep in mind the last 17 years of stock market performance is below a Treasury Bond issued the same year.
17 years? How long did you have to search to come up with that obscure number?
Market top to market top, or is that too much math for you? Oh, that's right you want to use 130 years' worth of data. Plan on living long?
IChoseD2 wrote:
I'm amazed at how this thread took off.
Okay, so,
1. Invest monthly and make sure I hit my max contribution as many years as I can.
2. Don't worry and stay in the market, it will rebound...and if it doesn't I'm assuming there's much larger/more serious problems and I wouldn't be able to retire anyway.
3. Don't worry about timing the market. But what if there is a day where there is a dip down? That little extra bit won't matter at all in the long run?
4. Should I open up anything else? I have a teacher's retirement fund through the state and something else that I haven't really paid attention to at all since it was opened. I haven't matched anything that was put in to either of those accounts. Should I start matching if I can? Is there anything else like a Roth IRA that would be good for me to open?
5. Read Gone Fishin'.
2. That's one reason why people don't advocate putting all your money in stocks.
3. You still can't time that. Maybe there will be dips down, maybe there will be rises up. It's impossible to predict.
4. Depends on your financial situation. If your company offers a 401(k) (or the equivalent) with matching then you should try to max it out (at least to the matching) or else you're literally throwing away money. But unless we know the details of your life and the values you attach to things (saving for what possible purposes?) it will be hard for anyone to tell you how to save and spend your money.
Ghost of Igloi wrote:
You obviously shot yourself in the eye. Read the last two paragraphs wise one.
But you don't want that answer. Keep in mind the last 17 years of stock market performance is below a Treasury Bond issued the same year.
I read them and they don't shine any light on anything. We all know there is risk involved and passive investing may not be a sure thing. But that's just a hypothetical. No one is making any guarantees.
Did you read the rest of the story? For example, why Buffett won the bet? Over their 10 year bet, passive beat active. That's not a hypothetical, that's recent history.
Ghost of Igloi wrote:
Market top to market top, or is that too much math for you? Oh, that's right you want to use 130 years' worth of data. Plan on living long?
So those numbers only matter to the tiny tiny fraction of people who bought in 17 years ago and sold today. Could you be any more disingenuous?
Hey it is not about the last 10 years, the market and index investing has done great. It is all about what you should do over the next 10 years. Hey if you think indexing is the answer, then do it. I have no argument against the concept, just agree with the author that active will outperform over the next 10 years. I think the thought process that buying an index fund is a passive investment is more of a play on words. One is actively buying an investment, that has actual ongoing turnover. Most of the people posting here are following a fad, and assuming the next ten years will be like the last. I think that is narrow minded. That's all.
Okay. I'll do that with my employer's plans.
Now,
What should I do with the 281 dollars as a cash balance? I plan on listening to you all and then bringing this up to my USAA advisor as well for their thoughts.
The rest of my positions are in mutual funds that are very moderate and rated very average.
Ghost of Igloi wrote:
I have no argument against the concept, just agree with the author that active will outperform over the next 10 years.
The author didn't say that. He said it "might". Of course, he thought the same thing 10 years ago and was wrong then. Maybe this time he'll be right, but history suggest not so much.
Better go back to your CFA books, after periods of passive outperformance, highly likely active outperformance follows.
Better read this before you are gainfully employed Ms. CFA:
https://www.hartfordfunds.com/dam/en/docs/pub/whitepapers/WP287.pdf
What a shock! An investment firm touting active management. Who would have thought?
Get back to me when you have an unbiased source for your fantasies.
Wouldn't you know it, Ms. CFA still doesn't realize that the same firms that create active funds also package passive funds.
IChoseD2 wrote:
4. Should I open up anything else? I have a teacher's retirement fund through the state and something else that I haven't really paid attention to at all since it was opened.
If it's a pension plan, I would recommend funding a pension as the lowest priority. Between the inevitable budget crises that discount/decrease the annuity, and the fact most are not fiscally healthy 40 years later, it's a bad bet. In the best case, it's a heavily discounted cash flow.
That doesn't mean "don't fund a pension." That means pay yourself first and second with a mix of personal retirement funds and plain old cash savings used to invest in the stock market, and then fund the pension.
He is a teacher, so it is unlikely he is funding his own pension. Typically schools use 403b plans as investment vehicles. Similar to 401k plans, but for non-profit organizations and government entities. Some difference in rules but very similar. In the past 403b programs largely used annuities, more have transitioned to mutual fund platforms in recent years.
Ghost of Igloi wrote:
Wouldn't you know it, Ms. CFA still doesn't realize that the same firms that create active funds also package passive funds.
The fact that you feel it is necessary to tell lies illustrates the difficulty you have defending your position. It's an age old strategy for the desperate: try to discredit your opponent personally when you cannot discredit their argument.