Retirement Accounts

Zaino

Zaino

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Aug 5, 2011
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Some of you here are better with money then anyone I know, weird right?

Anyhow, Im thinking of upping (doubling) my monthly deposits in my retirement account and have a feeling that something is going to happen and vaporize everyones shit before Im dead and gone. I might have 25 years or 30 if I can get my blood pressure down.

I suppose if that happens then even money in a piggy bank is not worth much, owning a bunch of property no one will have money to buy doesnt seem like the way to go. Rentals with tenants with no income, ect.

So , retirement accounts, is it a sure thing or a crap shoot/?
 


Its all about diversity.

Buy some stocks that pay dividends (that you can put back into buying more of that stock) like Duke Power
Buy some real estate
buy shares in oil wells
invest in some emerging markets
etc

If you get a good financial advisor they can help you get these different investments.

I have a friend who's father left him a bunch of money. He got with a good financial advisor who had his money well diversified. When the market tanked in 08 his stock portfolio took a hit, but he owned shares in oil wells, and the price of oil started climbing then, as did his real estate investments (mostly in rental properties)

Honestly, it's all about diversity.
 
If this account is for retirement and not day trading... the follow these steps:

1. Vanguard

2. Read this book: The Bogleheads Guide To Investing [ame="http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365/"]The Bogleheads Guide To Investing[/ame]


3. Put all the $ & deposts in these 3 index funds - VTSAX, VTIAX, VBTLX

4. Balance the asset mix according to what risk you want to take, ie: conservative (70% bonds/30% stocks) or aggressive (30% bonds / 70% stocks)

5. Set & forget

6. Set up a deposit schedule and make each deposit equal your asset target mix, ie: (30% bonds / 70% stocks)

7. Rebalance your account every 12-18 months back to your set asset mix, ie: (30% bonds / 70% stocks)
 
TStarnes said:
Its all about diversity.

Buy some stocks that pay dividends (that you can put back into buying more of that stock) like Duke Power
Buy some real estate
buy shares in oil wells
invest in some emerging markets
etc

If you get a good financial advisor they can help you get these different investments.

I have a friend who's father left him a bunch of money. He got with a good financial advisor who had his money well diversified. When the market tanked in 08 his stock portfolio took a hit, but he owned shares in oil wells, and the price of oil started climbing then, as did his real estate investments (mostly in rental properties)

Honestly, it's all about diversity.
Click to expand...
Agree 100% diversify as much as possible.
 
Sounds like you should use gold as insurance in the event that the stock market and value of the dollar totally collapses.

Some people have a normal portfolio and then 5 to 10 percent in gold to protect against this.
 
If you don't have 30+ hours/week to spend on market research, then either just go with a firm like Edward Jones, or dump your money into Vanguard 500.

PS. You do realize that asking this on WF is the blind leading the blind, right? You might as well just go to Starbucks, and ask the barrister where you should invest your money.
 
I would highly suggest reading this book [ame=http://www.amazon.com/Antifragile-Things-That-Gain-Disorder/dp/0812979680]Antifragile: Things That Gain from Disorder: Nassim Nicholas Taleb: 9780812979688: Amazon.com: Books[/ame]

Instead of betting your retirement on things getting better, consider betting on specific things crashing, you can make a killing with the absolute minimum of risk. Takes some thought to figure out what to invest in, but worth it if you enjoy thinking "outside the box"..sorry hate that term, but you know what I mean.

Nassim Nicholas Taleb, the bestselling author of The Black Swan and one of the foremost thinkers of our time, reveals how to thrive in an uncertain world.

Just as human bones get stronger when subjected to stress and tension, and rumors or riots intensify when someone tries to repress them, many things in life benefit from stress, disorder, volatility, and turmoil. What Taleb has identified and calls “antifragile” is that category of things that not only gain from chaos but need it in order to survive and flourish.

In The Black Swan, Taleb showed us that highly improbable and unpredictable events underlie almost everything about our world. In Antifragile, Taleb stands uncertainty on its head, making it desirable, even necessary, and proposes that things be built in an antifragile manner. The antifragile is beyond the resilient or robust. The resilient resists shocks and stays the same; the antifragile gets better and better.

Furthermore, the antifragile is immune to prediction errors and protected from adverse events. Why is the city-state better than the nation-state, why is debt bad for you, and why is what we call “efficient” not efficient at all? Why do government responses and social policies protect the strong and hurt the weak? Why should you write your resignation letter before even starting on the job? How did the sinking of the Titanic save lives? The book spans innovation by trial and error, life decisions, politics, urban planning, war, personal finance, economic systems, and medicine. And throughout, in addition to the street wisdom of Fat Tony of Brooklyn, the voices and recipes of ancient wisdom, from Roman, Greek, Semitic, and medieval sources, are loud and clear.
 
Zaino said:
Some of you here are better with money then anyone I know, weird right?

Anyhow, Im thinking of upping (doubling) my monthly deposits in my retirement account and have a feeling that something is going to happen and vaporize everyones shit before Im dead and gone. I might have 25 years or 30 if I can get my blood pressure down.

I suppose if that happens then even money in a piggy bank is not worth much, owning a bunch of property no one will have money to buy doesnt seem like the way to go. Rentals with tenants with no income, ect.

So , retirement accounts, is it a sure thing or a crap shoot/?
Click to expand...


Same issue with property (meaning real estate), IMO. At the end of the day, in a societal breakdown situation, you really only own whatever you can defend, or pay others to defend.

I like gold as a hedge against that. Common caliber ammo is probably even better. A horrible situation will make that instantly valuable.
 
I_like_cock said:
If this account is for retirement and not day trading... the follow these steps:

1. Vanguard

2. Read this book: The Bogleheads Guide To Investing The Bogleheads Guide To Investing


3. Put all the $ & deposts in these 3 index funds - VTSAX, VTIAX, VBTLX

4. Balance the asset mix according to what risk you want to take, ie: conservative (70% bonds/30% stocks) or aggressive (30% bonds / 70% stocks)

5. Set & forget

6. Set up a deposit schedule and make each deposit equal your asset target mix, ie: (30% bonds / 70% stocks)

7. Rebalance your account every 12-18 months back to your set asset mix, ie: (30% bonds / 70% stocks)
Click to expand...

This. Also if you don't have $10k to start, go with the Wellington and Wellesley funds ($3k min): VWELX and VWINX
 
Zaino said:
So, retirement accounts, is it a sure thing or a crap shoot/?
Click to expand...

short answer? crap shoot. but if you do decide to go that route, follow the advice of the guys on here who recommended index funds & don't waste 2-3% annually on a financial advisor.
 
My trick for valuing a retirement account is to look at the tax differential that you'll be 'earning' by putting the money into the retirement account, rather than a savings account. This means that they are only worth your time if you are in a high tax bracket now, and will be in a low tax bracket when you retire.

Take your current tax rate, and subtract the minimum tax bracket (15-20%) in your jurisdiction. Divide that number by the number of years until your retirement. This is the annual benefit of the retirement account. If its <3%, its not worth it, go buy a bond and keep access to the funds outside the retirement account. If its >3%, its starting to become worthwhile.
 
qibrandmgmt said:
I would highly suggest reading this book Antifragile: Things That Gain from Disorder: Nassim Nicholas Taleb: 9780812979688: Amazon.com: Books

Instead of betting your retirement on things getting better, consider betting on specific things crashing, you can make a killing with the absolute minimum of risk. Takes some thought to figure out what to invest in, but worth it if you enjoy thinking "outside the box"..sorry hate that term, but you know what I mean.

Nassim Nicholas Taleb, the bestselling author of The Black Swan and one of the foremost thinkers of our time, reveals how to thrive in an uncertain world.

Just as human bones get stronger when subjected to stress and tension, and rumors or riots intensify when someone tries to repress them, many things in life benefit from stress, disorder, volatility, and turmoil. What Taleb has identified and calls “antifragile” is that category of things that not only gain from chaos but need it in order to survive and flourish.

In The Black Swan, Taleb showed us that highly improbable and unpredictable events underlie almost everything about our world. In Antifragile, Taleb stands uncertainty on its head, making it desirable, even necessary, and proposes that things be built in an antifragile manner. The antifragile is beyond the resilient or robust. The resilient resists shocks and stays the same; the antifragile gets better and better.

Furthermore, the antifragile is immune to prediction errors and protected from adverse events. Why is the city-state better than the nation-state, why is debt bad for you, and why is what we call “efficient” not efficient at all? Why do government responses and social policies protect the strong and hurt the weak? Why should you write your resignation letter before even starting on the job? How did the sinking of the Titanic save lives? The book spans innovation by trial and error, life decisions, politics, urban planning, war, personal finance, economic systems, and medicine. And throughout, in addition to the street wisdom of Fat Tony of Brooklyn, the voices and recipes of ancient wisdom, from Roman, Greek, Semitic, and medieval sources, are loud and clear.
Click to expand...

This book looks awesome. Do you recommend reading The Black Swan first?
 
I_like_cock said:
If this account is for retirement and not day trading... the follow these steps:

1. Vanguard

2. Read this book: The Bogleheads Guide To Investing The Bogleheads Guide To Investing


3. Put all the $ & deposts in these 3 index funds - VTSAX, VTIAX, VBTLX

4. Balance the asset mix according to what risk you want to take, ie: conservative (70% bonds/30% stocks) or aggressive (30% bonds / 70% stocks)

5. Set & forget

6. Set up a deposit schedule and make each deposit equal your asset target mix, ie: (30% bonds / 70% stocks)

7. Rebalance your account every 12-18 months back to your set asset mix, ie: (30% bonds / 70% stocks)
Click to expand...

this, period. i've often thought about hanging a shingle as a discount financial advisor charging 1% per annum just to do this (steps 3-7) for people too inept or lazy to do it for themselves. free money.
 
c4yrslf12 said:
Edward....Jones?

:ak:

Fees

Try again.
Click to expand...

What's so crazy about their fee schedule? Granted, it's not ING Direct or anything, but those are competitive rates. I've never used them, because it only makes sense if you have a good $1mil+ to invest, and well... I just don't have that much money. I know people who have used them though, and sounded like they were great. Very attentive, put together a custom portfolio for you, stay on top of the markets, have access to massive resources, are around for personal consultations whenever you desire, etc.
 
Andrew Scherer said:
BigWill, tell us moar pls
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