Investing General Discussion

LachiusTZ · Apr 20, 2020

Sanrith Descartes said:
Foler go back and read this thread for the last couple of months. It won't take long as this isn't the politics thread. There is a lot of helpful advice on some basic investing thoughts.

Foler

Reason I didn't get specific etc, is because all the specific recs are time sensitive.

What was good 2 weeks ago isn't now etc

But there are some well informed guys in this thread that will answer stupid questions.

I know because I've asked a lot of stupid questions here.

Blazin · Apr 20, 2020

LachiusTZ said:
I had more econ in college than everyone save for econ majors

And I don't know much about half the shit you guys talk about. Lol

Like many fields a degree in economics and finance is nothing other than the foundational tools to START the actual education process. Learning the terminology etc.

Sanrith Descartes · Apr 20, 2020

LachiusTZ said:
I had more econ in college than everyone save for econ majors

And I don't know much about half the shit you guys talk about. Lol

To be honest alot of the stuff tossed about here isn't really Econ, its Finance. Ready a basic college Finance 1 textbook would be a real benefit to most folks dabbling in the market. Its not really complex, its really just explains how to examine companies from a metric perspective.

LachiusTZ · Apr 20, 2020

Sanrith Descartes said:
To be honest alot of the stuff tossed about here isn't really Econ, its Finance. Ready a basic college Finance 1 textbook would be a real benefit to most folks dabbling in the market. Its not really complex, its really just explains how to examine companies from a metric perspective.

I'm like 6 hours from a finance degree too... Lol

If I took the time to look up all the parts of charts / terms / etc and made a study of it it wouldn't be too bad.

But at face, it's not easily digestible to a layman

Sanrith Descartes · Apr 20, 2020

LachiusTZ said:
I'm like 6 hours from a finance degree too... Lol

If I took the time to look up all the parts of charts / terms / etc and made a study of it it wouldn't be too bad.

But at face, it's not easily digestible to a layman

Indeed. Which is financial advisors charge you 1% to put your money in an ETF with net cost of 0.03%

Foler · Apr 20, 2020

Jysin said:
The advice that you need 2m to invest in individual stocks is dubious at best.. Grossly unprofessional and ignorant at worse.

Can you elaborate why you view it as unprofessional? I think it was his opinion on diversification vs risk that aligned with his/firms what most would probably view as more conservative strategy.

Pops said:
What do they charge you for this privilege? They got you in ETF's? How active are they? Just parking your ass in ETF's any one can do whether you have 100 bucks or a billion.

Yep. In ETF's, IEMG, PPTY, VGK, VIDI, etc.. Level of involvement is little. They park it in Fidelity and I'm honestly not 100% sure how that relationship works. I'm a little different. With my net worth I'm really not a typical client of theirs... In that they usually only take people with more $. I kind of got grandfathered in per say. My advisor mainly manages professional athletes finances. Firm's clientele is primarily business owners. They offer a suite of services to cater to higher net worth clients. I think the lack of involvement for me is most likely because I'm not their typical client.

Sanrith Descartes said:
How do you know a financial advisor is lying to you? His lips are moving.

He's not lying. I do trust him. I know trust and financial advisor to mix in the same sentence but our relationship, his reputation and the firm's reputation exists for a reason. Now that doesn't change the fact that he may not be able to give financial investment advice that doesn't align with his firm's services which may result in inadvertently not seeing the big picture.

Pops · Apr 20, 2020

UAL deal.

The assistance will include $3.5B in the form of a direct grant and approximately $1.5B in the form of a low interest 10-year senior unsecured promissory note, with an interest rate of 1.00% in years 1 through 5 and the Secured Overnight Financing Rate plus 2.00% in years 6 through 10. UAL will issues warrants to the Treasury Department for up to 4.6M shares.”

Foler · Apr 20, 2020

Sanrith Descartes said:
Foler go back and read this thread for the last couple of months. It won't take long as this isn't the politics thread. There is a lot of helpful advice on some basic investing thoughts.

Can you recommend any textbooks? I'm a bit of a textbook nerd as well. Would be some good nightly reading. Thanks!

Foler · Apr 20, 2020

Blazin said:
A balanced index like Vanguard Balanced Index Fund (VBIAX) is only down a few percent on the year and has an expense ratio of 0.07% if you are paying extra for under performance might want to reconsider your choices.

Just to clarify. You think I should go through my portfolio, evaluate the expense ratios on every asset then weigh it against how much my firm is charging me?

Thanks

Foler · Apr 20, 2020

Lots of great talk here. Thanks everyone.

LachiusTZ · Apr 20, 2020

Pops said:
UAL deal.

The assistance will include $3.5B in the form of a direct grant and approximately $1.5B in the form of a low interest 10-year senior unsecured promissory note, with an interest rate of 1.00% in years 1 through 5 and the Secured Overnight Financing Rate plus 2.00% in years 6 through 10. UAL will issues warrants to the Treasury Department for up to 4.6M shares.”

What's the warranted price?

Curious on the odds this makes money

Pops · Apr 20, 2020

Foler said:
Can you elaborate why you view it as unprofessional? I think it was his opinion on diversification vs risk that aligned with his/firms what most would probably view as more conservative strategy.

Yep. In ETF's, IEMG, PPTY, VGK, VIDI, etc.. Level of involvement is little. They park it in Fidelity and I'm honestly not 100% sure how that relationship works. I'm a little different. With my net worth I'm really not a typical client of theirs... In that they usually only take people with more $. I kind of got grandfathered in per say. My advisor mainly manages professional athletes finances. Firm's clientele is primarily business owners. They offer a suite of services to cater to higher net worth clients. I think the lack of involvement for me is most likely because I'm not their typical client.

He's not lying. I do trust him. I know trust and financial advisor to mix in the same sentence but our relationship, his reputation and the firm's reputation exists for a reason. Now that doesn't change the fact that he may not be able to give financial investment advice that doesn't align with his firm's services which may result in inadvertently not seeing the big picture.

If you are paying 1% to sit in ETF's already charging a fee and use no ancillary service. I'd close it out.

Foler · Apr 20, 2020

LachiusTZ said:
Foler

Reason I didn't get specific etc, is because all the specific recs are time sensitive.

What was good 2 weeks ago isn't now etc

But there are some well informed guys in this thread that will answer stupid questions.

I know because I've asked a lot of stupid questions here.

No worries. Not looking to jump in right now. Looking to learn a bit first. I think grabbing a textbook and reading the backlog of this thread will be a good learning experience.

Blazin · Apr 20, 2020

Foler said:
Just to clarify. You think I should go through my portfolio, evaluate the expense ratios on every asset then weigh it against how much my firm is charging me?

Thanks

Full service brokers are not worth the expense. You may like the guy, they may make you feel special for the privilege of being their client, but it is almost guaranteed you will end up worse off overtime than just putting your money with Vanguard or Fidelity in a ultra low cost index funds. If you don't want to worry about how you are diversified then you can either buy a balanced fund like the one I noted or you can go with a target retirement that will adjust automatically as you age.

Pops · Apr 20, 2020

Oil almost single digit spot and I'm flat? Oh thank you god.

wormie · Apr 20, 2020

Foler said:
Can you recommend any textbooks? I'm a bit of a textbook nerd as well. Would be some good nightly reading. Thanks!

You didn’t ask me but:

Pops · Apr 20, 2020

Foler said:
Just to clarify. You think I should go through my portfolio, evaluate the expense ratios on every asset then weigh it against how much my firm is charging me?

Thanks

No if you are happy just stay. Your firm is charging you to just hold your stuff and not actually doing much besides sending you glossies, I meaning me, would leave.

I had an old 401K just parked in one of the manager's money market during the GFC. I never bothered opening my statements, I wasn't worried. But snooze you lose. Their management fee was more than I was earning. Calling them on it, they got all pissy.

I closed it.

Foler · Apr 20, 2020

Pops said:
If you are paying 1% to sit in ETF's already charging a fee and use no ancillary service. I'd close it out.

The ancillary services are the biggest benefit of the firm which I don't use since I'm not their typically client (2 mill++++ invested, business owner, pro athlete, etc). You make a good point. The relationship has proved invaluable in the networking area and has opened many interesting opportunities.

Foler · Apr 20, 2020

Pops said:
No if you are happy just stay. Your firm is charging you to just hold your stuff and not actually doing much besides sending you glossies, I meaning me, would leave.

I had an old 401K just parked in one of the manager's money market during the GFC. I never bothered opening my statements, I wasn't worried. But snooze you lose. Their management fee was more than I was earning. Calling them on it, they got all pissy.

I closed it.

I think my tldr big takeaway from this conversation is to reevaluate the relationship which I think is a good idea.

Furry · Apr 20, 2020

Foler said:
The ancillary services are the biggest benefit of the firm which I don't use since I'm not their typically client (2 mill++++ invested, business owner, pro athlete, etc). You make a good point. The relationship has proved invaluable in the networking area and has opened many interesting opportunities.

Open a brokerage with vanguard or some other large firm with low expenses. Start with an S&P 500 ETF. It's an incredibly easy and solid investment that will make you money long term. From there as you learn, section off money to invest in the ways you want if you want to get involved. If you don't, nothing wrong with going the braindead route.

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