Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#31
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I started investing back in the early nineties. Quite a learning curve but after a couple years it became very very obvious that mutual funds were one of the biggest (I don’t know what word to use rip-off, maybe even scam but at minimum a very poor way to invest). High fees, very poor performance and things like you have just pointed out. There are only a few good ones but most are not consistent.
Index funds and ETF are far better.individual stocks are the best way however. So my advice to anyone that asks, me for tips or advice on investments is: take the time to study and learn about investing. Pick your own sticks or ETFs. It’s actually fun and for us older folk great for the mind. It’s not very difficult to outperformed mutual funds by big margins. Last edited by roypw; 02-14-2023 at 09:33 AM. |
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#32
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Last edited by RPDaly; 02-23-2023 at 11:04 AM. |
#33
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I direct that all of my capital gains distributions and dividends be transferred into my money market account. No automatic reinvestment in additional shares. That way, I always have the same number of mutual fund shares. I can decide if or when I want to purchase additional shares. It may not be for everyone, but it works for me.
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#34
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Not true. If you had a $20k gain and a $20k loss in the same year, the loss wipes out the gain. if you had more losses than gains, you carry over the losses and can use $3k of those losses each following year until they are used up.
Some poster always posts that you should sell your funds and buy etf’s instead. Why? There aren’t any more etf’s than active/index funds and you won’t make anymore $$$ in etf’s than in the other funds. The main advantage of an etf is how/when you buy and sell them, etf’s are traded like stocks, instantly vs waiting for the close of the market. I got out of managed funds over a decade ago because of the expense costs and the turnover within the fund. Look at your active funds and you can see a huge turnover ratio (I’ve seen 400% before) and you pay for this turnover. I’m a boglehead, all index funds except for a couple stocks. I sold everything in my non-taxable accounts over a year ago because I saw the country is in such a mess. Now I get in a stock or index fund when I see a rally coming and sell when I see the future looks bleak. For example, bought apple 3 weeks ago, went up over $20 a share and sold it all last week before it started going down. I’ve done this off and on in a couple of index funds over the last year with big gains. You need to be more diligent in your investing these days. I’ve learned: Pigs get slaughtered in the market and leave your emotions out of investing |
#35
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UsuallyLurking to me made a lot of sense, but then again look at the way our economy is going. Pretty Sad!
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#36
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Loved it!
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#37
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I have found that during the up’s and downs of our financial life that it’s more fun when we are loaded $$$$$. Too much to manage at my advanced age of 65. I made a killing in the stock market in the beginning and then I turned to mush.
Fortunately a man has to know his limitations and my stock and day trading life is almost over. We have more than we need and feel blessed that I got outta dodge investing wise while the getting was good. We gave our three boys a nice hit before we came to The Villages 7 years ago. I’d rather see them do good while I’m still here than to leave it to them after we’re gone. Investing, phooey! I’m out of the game. No more loansharking anymore either! |
#38
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"I have noticed over the years (too many) that I have been on TOTV that when it comes to posting in the investment forum, I seem to be the only one who ever admits to having lost money in the market. I am a woman. None of the men who post about investing ever seem to lose money. (chuckle)" A couple of posters here, if one were to believe their unprovable/anonymous claims, are absolute geniuses and always seem to buy at the absolute lows - and sell at the absolute peaks. Hmmmm, yeah...OK. LOL |
#39
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To buy the s&p there are several ETFs that simply track the average. SPY is one. As far as Vanguard, they are traditionally the lowest fees and they claim, probably true, lower fees means higher net returns. I would call Vanguard and ask about Admiralty shares. You would think if you qualify you automatically get Admiralty shares, I'm not sure that is so. Admiralty shares to qualify, some funds it is 50,000 some are less. Again you can research this on the internet. It is the same fund but the management fee is roughly 30% lower. The MATH. Many people do not understand math. For me I have to do it on my calculator to see. If, you had 10,000 and lost the average 18.11% you now have 8189 to get whole you need to make 8189 plus 23%=10072.47. What to do? Beware of people offering advice. What is in it for them? I do not offer advice. Based on experience, if it works out well the person who did what you told them will brag how smart THEY are. If, they loose money, YOUR advice is poor and it is your fault they lost money. |
#40
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As stated in a previous post last year the S&P average of 500 stocks LOST 18.11%. I can HONESTLY state I lost less than that. It was also the first year in 15 that I lost money. I beat the S&P last year and I still lost more money than I will state. |
#41
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The CPI, consumer price index, hit 9.1% now it is 8.5%. You can buy 10 year treasuries as of today 2/13/23 they pay 3.717%. FAIR? Actually in Florida we have no state tax. While you are paid 3.717% and your money buys 8.5% less, the government, they owe 31 or is it 34 TRILLION has you pay full Federal Income tax on that 3.717 BUT they decide they will take their larger cut of the too low interest BUT you do not need to pay state or city tax-both of which need to live on a BALANCED budget. |
#42
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Mutual fund managers have to sell their stocks to make distributions when many shareholders head for the exits. They sell the high fliers first . Hence, you can have high capital gains in a year where your fund lost 10%.
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#43
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But why are Capital Gains even taxed?
I'll enter the question and hope for replies. As soon as I finish typing I'm going to research the tax history. Seems to me CG tax is a penalty for doing the right and responsible thing.
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#44
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It was the "right" thing to do since the goal is to make money and capital gains are money you made. Although how "right" it was to sell the stock really depends on timing and a larger financial picture. The taxes are not a "penalty" unless you mean all taxes are penalties. Not sure how "responsible" applies at all.
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Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works. Confirmation bias is real; I can find any number of articles that say so. Victor, NY Randallstown, MD Yakima, WA Stevensville, MD Village of Hillsborough |
#45
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Closed Thread |
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