The death of 1%+ management fees!

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  #16  
Old 07-12-2017, 03:35 PM
manaboutown manaboutown is offline
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Originally Posted by l2ridehd View Post


Most people with 100% stocks would have bailed during any big market down turn. So they would have bought high and sold low. A disaster.
A couple of days ago I met a well educated, intelligent, worldly, successful 70 year old local real estate developer and Realtor. During the course of our conversation she mentioned she had sold all the stock she had owned during the last market downturn and had put nothing back into the market since. She is only the latest among many who over the past 40 or so years have made this comment to me after one of the downturns since the mid 1970's.
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Old 07-12-2017, 04:06 PM
autumnspring autumnspring is offline
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Originally Posted by manaboutown View Post
A couple of days ago I met a well educated, intelligent, worldly, successful 70 year old local real estate developer and Realtor. During the course of our conversation she mentioned she had sold all the stock she had owned during the last market downturn and had put nothing back into the market since. She is only the latest among many who over the past 40 or so years have made this comment to me after one of the downturns since the mid 1970's.
When, it comes to money people rarely tell you the truth.

It is perhaps like fishing. I recall reading somewhere we do not allow any cameras on our boat because it prevents growth after they have been caught.

You do not say how you know this lady. Was she trying to SELL you on the idea of buying, investing in real estate.

In 2007 when the stock market dived so did real estate. If, I recall from my reading the only thing that did not go down was gold.
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Old 07-12-2017, 06:47 PM
manaboutown manaboutown is offline
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Originally Posted by suesiegel View Post
When, it comes to money people rarely tell you the truth.

It is perhaps like fishing. I recall reading somewhere we do not allow any cameras on our boat because it prevents growth after they have been caught.

You do not say how you know this lady. Was she trying to SELL you on the idea of buying, investing in real estate.

In 2007 when the stock market dived so did real estate. If, I recall from my reading the only thing that did not go down was gold.
She was not trying to sell me real estate. I am a real estate broker and developer myself. She was seeking my advice on a commercial development she was considering. Her comment was purely an aside when we started discussing retirement. She simply shared what she had done with her stock market investments. No more. No less.
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Old 07-12-2017, 06:59 PM
xNYer xNYer is offline
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Originally Posted by dewilson58 View Post
Last 30 years, the S&P is up 9.99%.
What does that mean...9.9%? Annually?


Jan1, 1988. 250.5
Today. 2443.25
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Old 07-12-2017, 09:19 PM
autumnspring autumnspring is offline
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What does that mean...9.9%? Annually?


Jan1, 1988. 250.5
Today. 2443.25
Rule of 72-You take the rate of return divide it into 72 and it will give you the years for money to double. 72 div 9.9%=7.27
So 2017-1987=30 years div 7.27=4.12x to double

250.5x2=501 501x2=1002 1002x2=2004 2004x2=4008
There is nothing so powerful as the magic of compounding.

Life is a limiting factor and the slow bleed sometimes called taxes. In such things as college funds, they live forever and compound forever. Oh and they are free of taxes.

Inflation also compounds. The fed says they want 2% inflation. What they are saying is that in 36 years assuming we are still alive you will need twice as many dollars to buy what it does today. NO GOVERNMENT IN HISTORY HAS BEEN ABLE TO CONTROL INFLATION TO THE LEVEL THE FED IS FEEDING US. The best shell game re: inflation was reagan. He controlled inflation by removing the two items suffering the most inflation at the time from the number-fuel and housing.
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Old 07-19-2017, 09:31 AM
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Slightly off topic, but I thought I would plug this question in here for those who have an interest in talking about stocks.....

Any thoughts on T now?
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Old 07-19-2017, 11:00 AM
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I have been buying AT&T every time it dips below the price that makes the dividend over 5%. Right now at 36 it's a 5.39% dividend. I started buying it when it was 32, sold half when it hit 41 and have been buying more on every pull back. Solid company, great dividend, and will continue to buy.
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Old 07-19-2017, 11:03 AM
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Originally Posted by l2ridehd View Post
I have been buying AT&T every time it dips below the price that makes the dividend over 5%. Right now at 36 it's a 5.39% dividend. I started buying it when it was 32, sold half when it hit 41 and have been buying more on every pull back. Solid company, great dividend, and will continue to buy.
Have done the same purchasing, but not the same selling. Just purchased and enjoyed.

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Old 07-19-2017, 03:33 PM
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Originally Posted by Villager Joyce View Post
When we interviewed financial advisors, we always asked what is in it for them. Why would I not ask a stranger who is using a pen name?

There is more to it than the amount of fees. If my person changes 1%, but I get 8% gain after all fees and costs and you have no fees but only get 4%, then who wins?


If you are getting 8% return, and someone else is getting 4%, in the long run, you are almost assuredly taking more risk. Balanced index funds are the way to go unless you are the one in a million investor that is smarter than the overall market. This year's winning stock picker is next year's forgotten under performer.
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Old 07-19-2017, 09:15 PM
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I know I did a bit of a segue, but thank you to those who commented on T. The fact that T is getting beat up a little right now has my attention. I think it visited its 52-week low today.
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Old 07-19-2017, 09:32 PM
manaboutown manaboutown is offline
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T is a great longtime hold for dividend income.
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Old 07-20-2017, 05:07 AM
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I had a buy order for 1000 hares at $35.50 but it only got down to $35.82. Dividend at 5.63% at that price. Maybe it will dip again today. Not many places you can get that return with an upside potential on the stock. PE at 17.6 makes it a great buy in this market. S&P PE is around 22 to 23 right now.
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Old 07-20-2017, 08:10 AM
tcxr750 tcxr750 is offline
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It would be nice to get a steady 9.9% a year ad infinitum. Those 8% a year performance charts that advisors showed me 15 years ago didn't take into account the "tech bubble", Fed raising rates, Fed lowering rates, "the Great Recession". If you average the ups and downs over a 15 year period and never take a withdrawal 6% annualized return seems to be more realistic.
Don't forget that your IRA rules will force you into RMDs at 70.5 wether you want or need the withdrawals.
  #29  
Old 07-20-2017, 02:14 PM
manaboutown manaboutown is offline
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Originally Posted by l2ridehd View Post
I had a buy order for 1000 hares at $35.50 but it only got down to $35.82. Dividend at 5.63% at that price. Maybe it will dip again today. Not many places you can get that return with an upside potential on the stock. PE at 17.6 makes it a great buy in this market. S&P PE is around 22 to 23 right now.
The dividends from 1,000 shares of T would cover one's amenity fees (before taxes, if any).
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