Quote:
Originally Posted by Blueblaze
My Fidelity adviser sold me on a "guaranteed" 3% return on a managed portfolio of high-quality bonds, to avoid the market risk of owning bond mutual's. Literally the month after I agreed to it, the covid panic hit and I lost 30% of my investment IN LESS THAN A WEEK. Yes, it came back and I was able to get out in about six months for a mere $3000 loss. But it sure as hell wasn't what I signed up for, so I'm back in cash.
Despite the government's "7%" lie, any Walmart shopper can tell you that inflation is currently running more like 30% on anything you care about, and 100% on staples like gas, meat, and cornflakes. You can't fight the FED, and this time the FED has declared all-out war ON US. A 3% CD right now is about as helpful as a pea shooter in a tank battle.
The solution isn't a brokerage account, it's for government to get out of the counterfeiting business.
Maybe we'll get a say on that next November.
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The problem in the 1st paragraph involves the word "advisor" and the "managed" part of managed portfolio. These so-called "advisors" are mainly interested in sales commissions and will put you into the financial instrument that gives THEM the greatest commission. Your needs are secondary. The thread starter mentioned ETFs, which are basically UNMANAGED funds set up to avoid individual stock risks and "managed" funds. ETFs are a large basket of stocks that work to decrease risk. They work well for older investors and risk-averse young investors.
.......As far as the "hate government" and the FED aspects......there is always going to be a government of some kind as long as there are modern humans alive. No or little government would mean anarchy, which would only be desired by less than 1% of the people - and even then it could not last for very long. The French Revolution eventually stopped and a government took over. November will not make us all financial geniuses.