Investment Question

[Ameesh]

Originally posted by: Aztech

Originally posted by: Taggart
<davesimmons>

OMG PUT IT IN VFINX!!!!!!!!!!!

</davesimmons>
😉

I don't get it. I don't know what that is.

stupid, its vanguard 500 index fund

 

[Ameesh]

you guys and your double digit growths are chumps 😉

i invest in california real estate and make 500% or more every month!

 

[everman]

Talk to a real financial advisor, a CFP or CHFC. It's likely they can also help this person with retirement and estate planning (never too early for that). See if you can find a good independent person with a good history and track record.

 

[Jeff7181]

Originally posted by: everman
Talk to a real financial advisor, a CFP or CHFC. It's likely they can also help this person with retirement and estate planning (never too early for that). See if you can find a good independent person with a good history and track record.

Independant, yes. Good point. The independant ones who are good have about as much business as they can handle from word of mouth advertising and have no problem telling you to sell because they won't particularly mind if you take your money elsewhere, and are pretty confident that after dealing with them, you won't take your money elsewhere. Just don't feel obligated to stick with someone who sucks just because they're a friend of a friend or because you don't know who else to give your business to.

 

[BlueFlamme]

Descartes I'm wondering if you think VTSMX is a better play than the 500 fund? (it appears to be safer and has actually done better recently)


For Azntech, it really is critical to know what time frame they are looking at it being available. One of the reasons I invest in the Total Stock Market (over any particular sector) is that taken as a whole, the US Economy is still at the forefront and doing good.

 

[dr150]

Originally posted by: AlienCraft
Spyder funds

Can you name any suggestions?........

 

[alrocky]

Originally posted by: Jeff7181
Just as an example I own EUROX, TMRFX, and TREMX right now (they're all high risk mutual funds).

High risk and high expense ratios too although all three have had a nice run and 5 Stars from Morningstar. Nice YTD of 20+% for EUROX and TMRFX and 15+% for TREMX. Quick look shows that TMRFX includes a 5.75% front load and EUROX gets a Morningstar Analyst "Pan". That leaves TREMX as the most inviting at first glance.

 

[ajf3]

Ok... you guys seem to be up on this and I've been wondering about it for awhile. This is my current 401k fund mix and the rate of return so far this year (5% overall).

Life Cycle 2030 Fund (PDF file)35% 3.3%
Life Cycle 2040 Fund (PDF file) 35% 3.8%
Non US Developed Markets Fund (PDF file)10% 5.3%
US Small Cap Stock Fund (PDF file)10% 8.5%
Non US Emerging Markets Fund (PDF file)10% 10.7%

Is this a good mix and/or return, or should I think about investing it in different ways? With my 401k servicer, I have the following list of fund available - plus I can invest directly in any other stocks/bonds/funds via a HarrisDirect service that is an addon.


Fund Current
NAV/
Price Returns
As of 02-24-2006 Average Annual Total Returns
As of 01-31-2006

Last 4
Weeks YTD Return 12 Month Return 1 year 3 years 5 years
Ticker Symbol

Life Cycle Retirement Fund (PDF file)**
N/A $10.685 0.53% 1.65% 5.53% 6.1% N/A N/A

Life Cycle 2010 Fund (PDF file)**
N/A $10.817 0.71% 2.01% 6.51% 7.6% N/A N/A

Life Cycle 2020 Fund (PDF file)**
N/A $11.027 0.88% 2.74% 8.15% 9.9% N/A N/A

Life Cycle 2030 Fund (PDF file)**
N/A $11.155 1.05% 3.36% 9.09% 11.3% N/A N/A

Life Cycle 2040 Fund (PDF file)**
N/A $11.248 1.13% 3.80% 9.89% 12.3% N/A N/A

Stable Value Fund (PDF file)**
N/A $18.448 0.38% 0.70% 4.53% 4.5% 4.4% 4.9%

Core Bond Fund (PDF file)**
N/A $11.868 0.13% 0.10% 2.06% 1.8% 3.7% N/A

High Yield Bond Fund (PDF file)**
N/A $14.267 1.37% 2.13% 2.05% 2.8% 9.4% N/A

US Large Cap Stock Fund (PDF file)**
N/A $14.434 0.89% 2.93% 9.08% 11.1% 17.3% N/A

Non US Developed Markets Fund (PDF file)**
N/A $16.374 0.86% 5.34% 18.36% 23.7% 26.4% N/A

US Small Cap Stock Fund (PDF file)**
N/A $17.089 1.43% 8.53% 19.04% 21.4% 26.8% N/A

Non US Emerging Markets Fund (PDF file)**
N/A $24.148 1.30% 10.70% 38.95% 49.4% 38.2% N/A

Siemens AG Stock (PDF file)**
N/A $13.156 0.81% 9.81% 18.26% 16.7% 31.5% N/A

S-Self Directed Window (PDF file)**
N/A $0.000 N/A N/A N/A N/A N/A N/A

 

[Descartes]

Originally posted by: BlueFlamme
Descartes I'm wondering if you think VTSMX is a better play than the 500 fund? (it appears to be safer and has actually done better recently)


For Azntech, it really is critical to know what time frame they are looking at it being available. One of the reasons I invest in the Total Stock Market (over any particular sector) is that taken as a whole, the US Economy is still at the forefront and doing good.

They're so close in composition that it's really hard to tell; however, VTSMX has a higher holding in consumer discretionary and staples which is a positive attribute in a secular market, and that might actually work to its advantage if the overall economy starts heading that direction.

I haven't looked at the total composition and compared, but at first glance it looks like VTSMX has performed better due to the increase in discretionaries. The reality of the market over the long term is that there will be periods of consumer indecision, secular markets, lulls in rallies (bull or bear), etc.; it's these lulls that increases demand for secular stocks (e.g. Proctor and Gamble) and thus seems to allow VTSMX to perform better.

That's my take on it in a few minutes research. VFINX has a higher yield and a lower expense ratio, so which is a better buy would have to include how much you buy, how long you hold, etc. If I was buying now I'd have to give the edge to VTSMX for its consumer holdings and slightly higher tech holdings.

 

[azilaga]

If you don't already own a home, you may want to consider buying one. That should be sufficient down payment. If you already own a home, you may want to look into investing in a home and collect the rent. If you find the right home, you'll come out in the black. You'll also benefit from some pretty big tax deductions.

 

[vi edit]

If you want low risk you are pretty much restricted to:

Government treasuries (bonds, notes, bills)
CD's (from a bank/CU)
Money market accts (Vanguard VMMXX Prime Money Market)
basic savings accts (ING)

Which one you choose depends on the liquidity you need.

 

[etalns]

Originally posted by: Atheus
Amazing! Perhaps fate brought us together? You will bw pleased to hear that I am the exiled president of a small African republic, and I need only $75,000 to retrieve the sum of 400,000,000 (four hundred million) from my frozen offshore accounts! Please reply as soon as possible so we can continue this most profitable business venture.

lol

 

[Glavinsolo]

How liquid do you want it?
If its going to be invested for less than 6months
Bank it
If its going to be invested for more than 6months less than 5years
Mutual funds
If its going to be invested for longer than 5years
Diversify and manage it across Bonds, stocks, funds