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re: OT - You've got $15-18,000 sitting. What would you do with it?
Posted on 1/22/18 at 8:59 pm to Cheese Grits
Posted on 1/22/18 at 8:59 pm to Cheese Grits
What you refer to is called the Consumer Price Index (CPI). CPI is a better indication of cost of living for the average American. CPI has average below 3% year over year for the last decade. Oil prices have had an enormous impact on CPI as Americans have saved a bundle at the pump overall. Whether you're talking inflation or CPI, 3% is a good estimate of what to expect.
Secondly, while you're in charge of your own money and are free to offer any advice you see fit to offer, telling someone you don't know to avoid mutual funds and ETFs in lieu of individual equities is REALLY poor advice. You say you don't like mutual funds because of their costs (which is misleading as some funds have very affordable maintenance fees), but then blast the ETF alternative which is basically a form of mutual fund with extraordinarily low maintenance fees.
Unless you have the time, knowledge, and connections to put your entire brokerage account/retirement into individual equities, it is certainly NOT the best choice for a LARGE majority of investors. If you want to "play" with 5-10% of your money playing individual stocks, have at it..but as an overall investment strategy, it's a bad move for most folks.
Secondly, while you're in charge of your own money and are free to offer any advice you see fit to offer, telling someone you don't know to avoid mutual funds and ETFs in lieu of individual equities is REALLY poor advice. You say you don't like mutual funds because of their costs (which is misleading as some funds have very affordable maintenance fees), but then blast the ETF alternative which is basically a form of mutual fund with extraordinarily low maintenance fees.
Unless you have the time, knowledge, and connections to put your entire brokerage account/retirement into individual equities, it is certainly NOT the best choice for a LARGE majority of investors. If you want to "play" with 5-10% of your money playing individual stocks, have at it..but as an overall investment strategy, it's a bad move for most folks.
This post was edited on 1/22/18 at 9:02 pm
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Posted on 1/23/18 at 1:04 pm to HinesvilleThrill
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I ask your occupation
Retired
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experience with the market?
Started trading in college
While many would say I am a contrarian I would view myself more as a value investor.
For those who maintain folks should hold only a few stocks I disagree strongly and believe if you to not have the patience for real estate (and getting your hands dirty) then I feel 80% to 90% in stocks is the best way, especially with a view for the long term. I do not believe in margin, short selling (except in once in a generation opportunities), or day trading.
My problem with mutual funds and ETF's is what I view as deworsifiaction. While over time you should not have all your eggs in one basket, most mutual funds are so diversified they are not rewarded for picking better investment opportunities. Investing has yielded the best results for me when I have maintained discipline and focused on long term over short term results. In short better to focus early on on things you can investigate on your own.
While many on Wall Street are lemming like and focused too much on what everybody else is doing they often do not have a clue what companies actually do and do not seem to take visits to better understand what they are investing it. I do not follow the crowd and have been know to call companies and actually visit them when on visits for sports or family.
Take OP's situation:
15K to 18K
Buying say a 10 dollar per share stock and buying round lots (100 share lots)
10 x 100 = 1,000 per investment
That means you can pick up 15 to 18 different stocks which is pretty good diversification. As discount brokers can do this for maybe 3 cents a share it is not like the old days where brokerage fees were a much bigger percentage of the historic cost. the bigger thing is as it is your money you should be the most motivated to do due diligence but so many people let other folks scare them from taking charge of their own financial health.
I am not one to watch the market everyday but buying what my research is undervalued and checking in say weelkly is not a difficult task. Some stocks I still have from college (though many more shares from splits) while others had stories that changed or became over valued so I took profits. Generally I am not sold on markets with trading issues or poor financial transparency. While boring to most I am pretty conservative when it comes to creating and holding wealth.
If memory serves you are out in The Landings and I spoke there a few years ago to some folks who had started investment clubs. I find them refreshing as you can get varied methods in a single group but you can also get some get rich quick types which seems to be a high chance to lose it all. I have had close friends in mutual funds and trust babies who got wiped out by not asking more questions from those in charge of their money.
In the end, always best to look at what skin of their own they have in the game.
Posted on 1/23/18 at 1:25 pm to deeprig9
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A different of $428,291.20 or 20.4% of what your value would have been without the fee.
What deeprig is pointing out is the long term compounding of money. he is most correct about fleecing individuals (especially as the Comptroller of the Currency is actually censuring money managers for suggesting stock over mutual funds) and the dumbing down of individuals so the managers of funds (or their counterparts in trust officers) are really just creating annuities for their employers.
I had a dear friend with a sizable trust who put their trust in their trust officers (taking their 1% to 2% of ASSETS) year after year but doing little to grow the value of the actual trust. For years I begged them to ask questions and be more involved in their own money they refused as long as the quarterly checks came in. Then 2008 hit and they were wiped out but the trust company had assumed no liability for the losses. Just because something is easy does not always mean it is in your best interest. Now they are past their working years and have need for the income the trust was supposed to provide for things like medical.
While I may not be wealthy I am able to fund my expenses without worrying if the government or a fund manager will be providing the money necessary to actually live on. Freedom is about creating your own nest where you take responsibility for what it becomes. I know this seems alien in an era where we want social media to tell us what to do, but it is worth it for the peace of mind.
I think money management needs to get away from fixed asset fees and needs to move to fees based on what they do to increase the wealth of the individual OVER what the actual averages are. I do not pay a broker 1% every year I live in my house. Perhaps fess based on additive change or based on income only would be a better way to reward folks in this trade.
As for your rattlesnake ranch, how far is it from some snake handling churches?
Location
Location
Location
Posted on 1/23/18 at 1:28 pm to Cheese Grits
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As for your rattlesnake ranch, how far is it from some snake handling churches?
I plan on selling the meat to Asians overseas.
Posted on 1/23/18 at 1:49 pm to mmmmmbeeer
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Unless you have the time
Maybe an hour or two a week
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knowledge
I use mostly 3rd grade math which most people have. The second thing I use is reading at probably the high school level. The third thing is curiosity which most people should have. The final thing is the ability to engage people and ask them to discuss what they do. This is actually the easiest part as most people will love to tell you what they do or think.
quote:
connections
My friends and family?
Most of what I bought was based on observing what those around me bought or did. Anybody can do this and requires no "connections" in fact the idiot trust fund kids I grew up with who discussed stocks at the country club are now mostly broke and a kid from the wrong side of the tracks like myself did not listen to what they or their advisors touted. The problems with lemmings is they are all sure they are right even as they are going off the cliff.
If you watch The Big Short which I strongly recommend the scene with the guy buying his stock in the meeting as the price is bottoming out is wisdom to all.
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it is certainly NOT the best choice for a LARGE majority of investors.
Says you. I know lots of folks who bought stock in the companies they worked for and were well rewarded in retirement living off the dividends and capital gains. The problem is we have a generation of marketers telling us we are not smart and don't know what we are doing when they can't beat us head to head.
The following is a true story....
Woman I know worked for AT&T as a secretary (not exactly a high paying job) and invested a bit every opportunity in AT&T stock. Now I am not sure I would ever advocate owning a single stock, at least I admire her discipline in buying with such consistency - This is possible today using DRIP's and dollar cost averaging - that she did it for decades. I was at an investment seminar they invite old folks like us to hoping to invest for us "old foggies" as we are not supposed to know what we are doing. Aside from the 4% or so she is getting as dividends every year (Now more that what she actually paid for the stock) that 1% - 2% not spent on "wealth managers" is quite close to the numbers deeprig posted in his example. That whole night not one "advisor" in the place could come near to her annual returns. Pretty priceless to watch them stumble about how she had done it all wrong.
Posted on 1/23/18 at 1:50 pm to deeprig9
quote:
I plan on selling the meat to Asians overseas
I may even sell shares of the business to some of you fine people, if you want in on the ground floor.
How does 9% dividend sound? If we struggle a little in the beginning, I'll just pay you the dividend out of other people's investments. You deserve to get your dividend with your preferred shares, getting in on the ground floor and all.
I'll even whip up some statements in MS Publisher to look all official-like so you can all calm your family and friends down when they urge caution.
Posted on 1/23/18 at 1:52 pm to deeprig9
quote:
I plan on selling the meat to Asians overseas.
Sell it to the snake handlers first and profit the first time
Buy it back at 5 cents on the dollar when they are done with them
Sell it again to the asians
You could probably charge more if the asians thought the meat they were eating had decreased the religious crazies in the USA. China might even give you grant money for your efforts.
Posted on 1/23/18 at 1:54 pm to Cheese Grits
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The Big Short
I watched this two weeks ago. I found it over-hollywoodized and un-enjoyable. There were also some misstatements of fact.
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AT&T
I start buying into T about eight years ago, in my own IRA (no money manager fees) and at this point my dividends have just about paid for what I paid for the stock.
Same with Ford (F).
Posted on 1/23/18 at 2:19 pm to deeprig9
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I found it over-hollywoodized and un-enjoyable.
I liked that it tried to simplify enough for the general public to understand some basics. Not saying it was perfect but it was better than glamorizing the robbers who do it in a suit and don't have to go to jail afterwards.
quote:
There were also some misstatements of fact.
You have to expect this from anything Hollywood touches. Not as bad as some movies where they act like it is all true and the reality is more like only 10% is true but it becomes true because they made the movie.
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I start buying into T about eight years ago, in my own IRA (no money manager fees) and at this point my dividends have just about paid for what I paid for the stock.
Same with Ford (F).
I like folks who run companies that actually return it to their shareholders.
I also like companies held by lots of people who keep jobs here not folks who claim to be advocate investors that just want a quick profit by breaking a company up and selling the jobs overseas. One day folks should sue what these guys just did to GE. Granted, Welch was looking for the quick returns moving from 20% in finance to 50% but they survived 08' and still had some core competency. Selling those jobs for quick profit is not in the best long term interests of the USA.
Posted on 1/24/18 at 12:53 am to NCDawg52
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It's a great side hustle for him and he is having a blast as a retired guy with lots of money and no F's to give. But I would say it may not be smooth sailing if you don't have encyclopedic knowledge of the industry and a massive network of contacts around the state, both of which he has.
I grew up at Bishop Brothers and Marietta Auto Auction and Red Bud.....most are dealer only auctions......you can pay dealers to but for you but they aren't going to put you in business unless you are paying them a bunch. Worth it for a personal vehicle though.
Any auction that allows the public to bid is going to chockablock full of dudes with pockets of cash, probably gained illicitly, looking to clean it up a little. They aren't interested in value only legitimate money. They will beat you to death bidding everything up.
So the market is in beaters.......which means you better be a good mechanic or have one around who will work for alcohol. Almost anyone can get $1500 together to buy a beater. You can buy them at auction for $500-$1000........but....when it slings a rod on the way home it takes a couple of successful rolls of the dice to get back even. Keep in mind that you will be a wallet full of cash in a pond full of sharks......there are thousands of ways to make a $300 recycle center special look like a $1000 beater.....and auctions that allow the public to bid are comprised of way more of the former than the latter.
All actions are the same....there is money to be made but you'd better know what you are doing because estates, equipment, jewelry etc are ALL full of folks who can turn $5 into $10 in seconds while you are counting out the $5.
Ve got a friend in Athens who buys jewelry and cashes checks and makes payday loans. Dude can make money out of thin air....he is unscrupulous and actually enjoys parting people from their money.....seriously it is a game to him.....and folks love ne up around the corner to basically hand him their money. Folks like him are always looking for financiers......but you better know them well and understand the terms.
Posted on 1/24/18 at 8:17 am to germandawg
Friend of mine from church is a 30-year GA Power lineman and suggested I look at buying a truck of theirs when they get ready to retire them. Says when they retire the fleet vehicles, it's at a good price and of course they are well-maintained because they have to be. Just basic, white work trucks with pretty low miles. Seems like at the right price, there'd be a good market for those, especially with the current building boom taking place.
Posted on 1/29/18 at 1:42 pm to S1C EM
So what have you decided on?
Posted on 1/29/18 at 2:59 pm to Cheese Grits
If he bought bitcoin back when this thread started the next one will be:
"You've got $10-12,000 sitting. What would you do with it"
"You've got $10-12,000 sitting. What would you do with it"
Posted on 1/30/18 at 9:14 am to Cheese Grits
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So what have you decided on?
Haven't really. House closing was pushed back and looking like Tuesday of next week now. I do intend to find out how much the Georgia Power trucks would cost me. Could be worthwhile, but maybe not.
I did put a grand into ETH and then bought an alt coin with most of it. As of now, I'm in the green by a couple hundred bucks, so we'll see where that goes.
Posted on 1/30/18 at 9:16 am to SquatchDawg
quote:
If he bought bitcoin back when this thread started the next one will be:
"You've got $10-12,000 sitting. What would you do with it"
Bitcoin is too expensive. Plus, I don't see it having a lot of ceiling left. But I can tell there is definitely some opportunity to turn a short-term profit in that stuff. I wouldn't hang a bunch of money up in it long-term.
Posted on 1/31/18 at 2:46 pm to S1C EM
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House closing was pushed back and looking like Tuesday of next week now.
Where were you closing?
Sold a place in Savannah last year and it was not well done at all.
Posted on 1/31/18 at 2:59 pm to Cheese Grits
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Where were you closing?
Sold a place in Savannah last year and it was not well done at all.
Attorney's office is in Monroe, but it's not their fault. the buyer's lender is a little "off task". Found out a few hours ago that we're going to get pushed back even further because, based on their new income, they are about $4,000 over USDA mortgage income limits. Lender should have caught that two weeks ago. Fortunately, they have another option for them; however, for about an hour, they thought they were sunk. Really sucks.
Posted on 1/31/18 at 3:56 pm to S1C EM
You selling a farm or something? Extremely rural property?
Posted on 1/31/18 at 9:32 pm to Cheese Grits
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Sold a place in Savannah last year and it was not well done at all.
Who did the closing?
Posted on 2/2/18 at 10:14 pm to deeprig9
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You selling a farm or something? Extremely rural property?
No, in a downtown district, actually. Anything outside of Athens-Clarke County qualifies for USDA nowadays.
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