Mutual Funds

Pogi.G

Pogi.G

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I am looking into moving some long term investment funds into a couple of Mutual Funds. I know there are some higher risk funds out there that have seen a 15% return over the last 5 years. I may take the risk and park some money in one of those and use the rest in some more conservative "safer" funds. My question is, the markets has been nuts post covid, and while I understand that trying to time the market is generally a bad idea, I really don't want to pump 30-40k into mutual funds at these highs and the bottom falls out. Torn between waiting for Biden to fuck the investment world into the ground or going in now because it's on a roll and may weather whatever that moron throws at it.

Thoughts?
 
Furry

Furry

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Pogi.G said:
I am looking into moving some long term investment funds into a couple of Mutual Funds. I know there are some higher risk funds out there that have seen a 15% return over the last 5 years. I may take the risk and park some money in one of those and use the rest in some more conservative "safer" funds. My question is, the markets has been nuts post covid, and while I understand that trying to time the market is generally a bad idea, I really don't want to pump 30-40k into mutual funds at these highs and the bottom falls out. Torn between waiting for Biden to fuck the investment world into the ground or going in now because it's on a roll and may weather whatever that moron throws at it.

Thoughts?
Click to expand...
No. Nonononononono.

No.
 
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LachiusTZ

LachiusTZ

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Have you thought about putting your life savings into procedurally generated 2d monkeys?

They are just like land
 
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Fogel

Fogel

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Pogi.G said:
I am looking into moving some long term investment funds into a couple of Mutual Funds. I know there are some higher risk funds out there that have seen a 15% return over the last 5 years. I may take the risk and park some money in one of those and use the rest in some more conservative "safer" funds. My question is, the markets has been nuts post covid, and while I understand that trying to time the market is generally a bad idea, I really don't want to pump 30-40k into mutual funds at these highs and the bottom falls out. Torn between waiting for Biden to fuck the investment world into the ground or going in now because it's on a roll and may weather whatever that moron throws at it.

Thoughts?
Click to expand...

High risk and 15% return over 5 years? Does not compute. Even if that was 15% every year I wouldn't call that high risk. The S&P in a decent bull run can equal or beat that and most people don't think of that as high risk.

As far as being afraid to dump it all in at the top, consider dollar cost averaging in. So instead of dumping all 40k in tomorrow, do a certain amount each month like 2-5k. Either way, hop over to the investing thread and read up on index funds like SPY, QQQ, FTEC, etc
 
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Furry

Furry

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Fogel said:
High risk and 15% return over 5 years? Does not compute. Even if that was 15% every year I wouldn't call that high risk. The S&P in a decent bull run can equal or beat that and most people don't think of that as high risk.

As far as being afraid to dump it all in at the top, consider dollar cost averaging in. So instead of dumping all 40k in tomorrow, do a certain amount each month like 2-5k. Either way, hop over to the investing thread and read up on index funds like SPY, QQQ, FTEC, etc
Click to expand...
Run for the fucking hills is the only thing that should be said about that investment. Mutual funds generally are worse than a comparable index. This subject gets covered all the time in the investing thread. If you don't know what your doing or are intimidated with the idea of managing your investments there's a standard solution.

Open up your account with the investment bank that you choose, Then invest everything into their S&P500 tracking ETF. If you feel like some mutual fund looks cool, don't. Buy the ETF that tracks it instead. The only reason to go for mutual funds is if you are a mutual fund manager looking to skim some pork fat.
 
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Ramar

Ramar

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Mutual funds can be fine. Vanguard has a patent where some of their ETFs/mutual funds are essentially the same thing in regards to realized gains and taxes. There are a few other potential benefits like fractional shares and automatic investing that can be good for the average investor.

Vanguard S&P 500 ETF (.03 expense ratio):

VOO-Vanguard S&P 500 ETF | Vanguard

investor.vanguard.com investor.vanguard.com

Vanguard S&P 500 mutual fund (.04 expense ratio; $3k minimum):

VFIAX-Vanguard 500 Index Fund Admiral Shares | Vanguard

investor.vanguard.com investor.vanguard.com
 
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elonm00sk

elonm00sk

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Target date retirement funds, or S&P 500 funds are probably fine for the "I have no idea what I'm doing" crowd. Gateway drug.
 
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