Jump to content
LCVG
Sign in to follow this  
Dimness

The Investing Thread

Recommended Posts

Skip the next paragraph or two/sob story to get to the point.

 

Fellers, I'm getting old.  Long story short, after I got laid off several years back, I was in pretty bad shape.  I was working at a pretty famous Lexington, KY restaurant (Windy Corner Market), and I thought I was on my way to developing a career in food service.  Then I got let go.  In combination with getting kicked out of medical school, I was not in a very good place.  Did I contemplate suicide?  No, but if death was coming for me I knew I wasn't going to fight back.  I finally got a job and got back on my feet, but I was very unhappy with my lot in life.  It was then that I decided to go back to school.  I had two thoughts: it was going to be accounting or marketing.  As of right now, I think I backed the right horse.  I have taken all four of the sections of the CPA exam, and I have passed the hardest 3 on my first try, and I'm awaiting the result of the 4th this coming September 11th.  I'm doing pretty good now I think (working out now so listen to my progress on the losing weight thread... when it happens).

 

I'm in an occupation with very excellent long-term growth prospects.  I am working in a public accounting firm, and I am tracking audit at the moment.  Tax was a great learning experience, but the lifestyle was too spiky for the time period.  I now earn a very good income (beats the shit out of $10 an hour).  If (and that's a big if) I pass my last CPA exam, I will get a pretty nice bonus (although to be honest, it'll cover the cost of my study materials).

 

I am looking at investing.  After some cursory research online, I am looking at this investment strategy.  I am looking at utilizing two investment vehicles.

 

Betterment

This is going to be my Ronco Rotisserie Chicken cooker method.  I'm going to set it and forget it.  I'm going for a conservative to moderate model (leaning moderate), and this is going to be extremely-long term method.  I'm thinking a $50 a month at this point.

 

Robinhood

This is going to be my grilling method.  I'm going for long-term here, and I'm looking at 80/20 stock/bond ratio.  I'm very sold on Vanguard 500 Index ETF (VOO) for my stock pick and something very boring like Coca-Cola.  My bond I'm thinking long-term (VBLTX).

 

Do you guys invest?  If so, what are you guys doing?  I've heard to avoid r/wallstreetbets like the plague.

  • Like 1

Share this post


Link to post
Share on other sites

I don’t invest in the stock market. But I do have a nice chunk in Roth IRA’s and one or two vanilla IRA’s. One of my accounts is with Vanguard. They are definitely reputable. I’m pretty boring with investing because I like my money and I don’t trust stocks. 

  • Like 1

Share this post


Link to post
Share on other sites
58 minutes ago, Eldorado said:

I don’t invest in the stock market. But I do have a nice chunk in Roth IRA’s and one or two vanilla IRA’s. One of my accounts is with Vanguard.

 

Vanguard indexed represent!

  • Like 2

Share this post


Link to post
Share on other sites

 

Big Oil 401k match, which gives me free 10% of my salary on top of what I contribute.   401k was with Vanguard but we moved to Fidelity last year.  Pay the extra to let the pros move it around for you,

if that's an option for you.  

 

Plus I'll have a Big Oil pension (as of now, 28 years of service) when I retire or get laid off.

 

Carlos. 

 

  

  • Like 1

Share this post


Link to post
Share on other sites
14 hours ago, Eldorado said:

I don’t invest in the stock market. But I do have a nice chunk in Roth IRA’s and one or two vanilla IRA’s. One of my accounts is with Vanguard. They are definitely reputable. I’m pretty boring with investing because I like my money and I don’t trust stocks. 

 

Confused, you say you don't invite in stocks, so you have the IRAs but only leave the money in cash or bonds?  Or you just don't invest in individual stocks (I don't either)?

 

I have been all about index funds through Vanguard the last ten years, and my wife and I still have older 401ks through Fidelity and TIAA-CREF that are all devoted to their low-cost target index funds.  We've never taken any money out, as you shouldn't if you are nowhere close to retirement age, the people who did around the 2008 crash were complete idiots and cost themselves so much.  So we've done quite well riding the gradual upward wave over the years.  

 

I wouldn't bother with individual stocks at all unless you have some relationship with the company, never as a common investor.  

  • Like 1

Share this post


Link to post
Share on other sites
16 minutes ago, secretvampire said:

 

Confused, you say you don't invite in stocks, so you have the IRAs but only leave the money in cash or bonds?  Or you just don't invest in individual stocks (I don't either)?

 

I have been all about index funds through Vanguard the last ten years, and my wife and I still have older 401ks through Fidelity and TIAA-CREF that are all devoted to their low-cost target index funds.  We've never taken any money out, as you shouldn't if you are nowhere close to retirement age, the people who did around the 2008 crash were complete idiots and cost themselves so much.  So we've done quite well riding the gradual upward wave over the years.  

 

I wouldn't bother with individual stocks at all unless you have some relationship with the company, never as a common investor.  

They are in mutual funds. Individual stocks are a bit too close to gambling for my taste. So, yes, technically they are in stocks it’s a much safer bet. 

  • Like 1

Share this post


Link to post
Share on other sites

I have a 401k with Fidelity and another (larger) one with Empower. The Empower one is left over from a previous job where the agency I was working for went out of business, both companies I worked for match 6% of my salary, which helps boost my overall contribution. I've left them separate partly because the older one seemed to be growing nicely on its own, but also because they make rolling over kind of a pain. For a long time I was nervous about having them in separate accounts, but a friend reassured me that this can be another level of diversification. So for now I'm leaving them separate...and I think the Empower one has slightly outperformed the Fidelity one anyway. In both accounts, I'm in plans targeted at retirement in roughly 15 years (the funds have years, like 2035), so I'm trusting them to adjust the mix of investments based on my age. I've heard good things about this approach, that they automatically reduce your risk as you get closer to 65.

 

My current employer (healthcare advertising company) recently offered a Roth in addition to the regular 401k so I've diverted (and increased) some of my contribution to that as well. I'm considering diverting even more to the Roth as it's a little bit of insurance against rising taxes in the unforeseen future.

 

I turn 50 at the end of this year, so the reality of retirement is looking closer and closer. Something about that half-century brings the latter 3rd (half?) of my life into focus more. I get a small raise each year, and I think from now on I will just divert it into the 401k/Roth. Right now, including matching, my total contributions are 20% of my salary.

 

I live in arguably the most expensive region of the country, the SF Bay Area, and while I don't have firm plans right now...I'm thinking I may move to the PNW (possibly outside Portland) at some point to help my money go further.

  • Like 1

Share this post


Link to post
Share on other sites
2 hours ago, Eldorado said:

They are in mutual funds. Individual stocks are a bit too close to gambling for my taste. So, yes, technically they are in stocks it’s a much safer bet. 

 

Cool, I 100% agree.  Just wanted to clarify in case you didn't have a sizable percentage of your IRA portfolio in mutual funds.  Anybody who is completely forgoing the stock market would be tremendously screwing themselves over the long haul.

  • Like 2

Share this post


Link to post
Share on other sites

I have a mix of VOO, FBIOX(fidelity biotech mutual fund), some FANG (Facebook, amazon, netflix, google), MU (micron), ALGN(Align Technology, the ones that make invisalign) and AMD spread over our Roth IRAs, a rollover IRA (401K rolled over from previous employment) and an regular investment account (which was bought by E-trade). On the 401K I only dothe  S&P500 index fund that they have available, all other choices suck and have high fees :)  I would NEVER pay a "pro" to move money around - your are throwing your money away - you do better just choosing the cheapest index funds your 401K plan has access to.

 

All long term, though I started investing significantly 1.5 years after the last recession. FANG has done EXTREMELY well - but I don't know if I would get into it today - I still hear constant talk about upcoming dips since we haven't had one in 9 years.

 

Extra cash goes to first maximize the contribution on the Roth IRAS, then the rest (if any) I split 90% investment/10% savings account or for purchasing other things :)

 

 

  • Like 1

Share this post


Link to post
Share on other sites

I currently have a 401(k) with my company (managed by Merrill Lynch), but it has a weird "employer" match.  We do a end-of-year profit share, which is supposedly more beneficial, but I've heard some consternation from the more experienced employees in the company.

 

I also have a dusty Roth IRA my dad opened for me which I've never put money in.  I'm thinking of throwing money in there, but I wonder if I can change the investment make up of it (I think it's all money market currently).

 

I've given some thought to FANG, but I might opt for the ANG  part instead considering I'm not too fond of Facebook's ecosystem in general.  I like that Amazon is essentially a part of "normal" every day life, Netflix will do fine post-Disney, and Google is, well, Google.

 

VOO, for those that don't know, is the Vanguard 500 Index Fund.  It tracks the S&P 500, and it is an ETF, which makes it a very attractive prospect for me.  I plan on buying a share of VOO every other month.

 

I've given some thought to "dividend" stock investing (I put that in quotes because technically any stock can pay dividends, but some are more consistent about it than others).  One aspect I'm debating is whether I want to do a DRIP (dividend reinvestment) or collect the cash as passive income.  As far as my research goes, the best dividend stocks are in "boring" companies that have been paying healthy dividends for a long time.  I'm looking at Microsoft, Coca-Cola, Proctor & Gamble, Johnson & Johnson, and possibly Wal-Mart.  May be Disney (I'm still iffy on this).

 

Thank you guys for some of the bits and pieces of information.  I'm still on the fence about Robinhood.  It's perfect for a beginner like myself, but I wonder what'll happen when I get better at this thing, or if I need customer service.

Share this post


Link to post
Share on other sites
17 hours ago, Dimness said:

I've given some thought to FANG, but I might opt for the ANG  part instead considering I'm not too fond of Facebook's ecosystem in general.

 

I sold all my facebook stock two months ago - probably hypocritical of me (because I still hold google and amazon and S&P500) but I had enough of their shenanigans. 

  • Like 2

Share this post


Link to post
Share on other sites

And I passed my final section.  I will be a CPA come this January.  I'll probably put that bonus to use by first paying off my Becker study materials.  Put away some in savings, and then I'll invest.

  • Like 4

Share this post


Link to post
Share on other sites

I bought a bunch of dividend stocks many years ago.  And I made a big mistake.  I invested in the wrong stock.  I meant to invest in Coca-Cola (KO) but accidentally invested in Coca-Cola Bottling Co (COKE).  Oops.  It was a good amount of money too.  The lucky accident was that the stock has done really really well.  One of my best stocks presently.

 

I also invested a lot in Google before they split.  And Amazon at the same time.  They've both been killing it.  Crazy increases by these two.

 

My grandfather owned a bunch of APPLE stock in the 80s.  Sold it all just in time, right before the iPod came out.

 

I'm too stupid to not pick technology stocks.  In addition to the others mentioned, I also have stock in NETFLIX and ADOBE.    All of these stocks do really well.

 

So when China hacks us into oblivion, I will lose all of my money.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×