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Old 03-09-2019, 03:11 PM
 
18,255 posts, read 12,965,359 times
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Quote:
Originally Posted by mathjak107 View Post
You can buy I share stuff free at fidelity like Itot ..

I recently bought Iau. Itot shy and tlt all free .

You can open a chase uinvest account and get pretty much any etf or stock free
You are right itís Ishares, they have 240 commission free ETFs on their list
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Old 03-09-2019, 03:15 PM
 
68,395 posts, read 69,162,713 times
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Fidelity and vanguard are mortal enemies.. you canít even buy admiral shares from fidelity only investor class .. chase said they have no problem getting admiral shares from vanguard . I had vanguard admiral shares and wanted to transfer them to fidelity ... they couldnít take them .. I did a conversion to voo and then did an acat transfer
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Old 03-09-2019, 04:00 PM
 
18,255 posts, read 12,965,359 times
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Quote:
Originally Posted by mathjak107 View Post
Fidelity and vanguard are mortal enemies.. you canít even buy admiral shares from fidelity only investor class .. chase said they have no problem getting admiral shares from vanguard . I had vanguard admiral shares and wanted to transfer them to fidelity ... they couldnít take them .. I did a conversion to voo and then did an acat transfer
Was the conversion from admiral to voo a taxable event?
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Old 03-09-2019, 04:03 PM
 
68,395 posts, read 69,162,713 times
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Quote:
Originally Posted by Lowexpectations View Post
Was the conversion from admiral to voo a taxable event?
No not at all because cause it was the vanguard admiral s&p 500 fund so it was converted to like kind voo. there are a few funds vanguard will convert to their etf version tax free
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Old 03-09-2019, 04:51 PM
 
387 posts, read 302,494 times
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Quote:
Originally Posted by Lowexpectations View Post
This is just false. Less than two minutes online can get you started 2.2%+ fdic insured savings that can be transferred within a day to your local checking account. Also with relative ease a normal person can buy spy/voo cheaply or free and over the last 7 years had a return of 150%. Just because you arenít aware of the ease doesnít make your statements true
I agree. I have my emergency fund at Ally Bank savings account earning 2.20% apy.
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Old 03-09-2019, 08:58 PM
 
11,260 posts, read 20,842,918 times
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I buy Ridgid cordless tools. First set was bought 2013. Looking at the flyer this past Black Friday, compared to when I bought my set five years ago, was the same price for a better set with batteries 3x the capacity.

It's unfortunate you invested in funds that didn't even get market return and while inflaiton is running a lot higher on certain things such as housing and college education, it's also under on others like technology. We bought our first and only flatscreen in 2011 for $1100 for a 46" Samsung LED 120hz, today that $1100 gets you one hell of a TV!
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Old 03-09-2019, 09:23 PM
 
123 posts, read 14,353 times
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Quote:
Originally Posted by RememberMee View Post
So it's been 7.5 years since I had a sizable home improvement project. I still have well aged lumber left overs sitting in my garage. So finally I felt it is time to do something with it, so to the big box I went. After generally avoiding the place (Lowes) for all those years substantially higher prices just jump at you. Lumber prices doubled in 8 years, branded tools prices doubled or more, the rest Items I checked had less dramatic yet substantial price increases. There is no building boom of any kind in the area. 2 new homes were built within 20 miles radius of my home in the past 8 years.

For comparison my 401k still did not recover its value from December 2017. Bank interest rates are approaching zero at my local bank. So that pile of perfectly aged lumber that doubled its value in 7.5 years is most definitely the best investment of my life time. How could that happen? All I've heard in the past decade that inflation is somewhere between 0 and 2%, maybe 3% at most.

Going back to Trump economic "boom". Yep, local papers and craigslist are booming with ads for the jobs paying $12-16/hr, before the boom those jobs paid maybe $11-$15/hr. At the lower end wages are pretty much stagnant boom or no boom. Stagnant wages, doubling prices, something has to give. And yet "boom" is "booming". Perhaps people higher up the food chain do much better. Something must be booming. One more boom like this and a good chunk of population will pretty much catch up with Chinese sweat shop workers.
Not to be rude, but this is B.S. You lumber may have significantly increased in value but:

Return S&P500 from Dec 2017 till February of 2019 is 4.176% without dividends and 6.144% with dividends.
here is a link to a calculator: https://dqydj.com/sp-500-return-calculator/

The bank down the road has a 25 month CD for 3.0 apy, Fido offers 3 yrs at 2.80, you can get a 1 year at 2.5, I just bought 6 month t-bills at 2.52.
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Old 03-09-2019, 09:40 PM
 
Location: Honolulu
941 posts, read 1,379,873 times
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Quote:
Originally Posted by RememberMee View Post
Lumber prices doubled in 8 years, branded tools prices doubled or more, the rest Items I checked had less dramatic yet substantial price increases.
You actually remember the price of lumber from 8 years ago and were able to compare it to prices today of the exact same type of lumber? Same with branded tools? Can you give a couple of examples of prices that have doubled?
Quote:
Originally Posted by RememberMee View Post
For comparison my 401k still did not recover its value from December 2017. Bank interest rates are approaching zero at my local bank. So that pile of perfectly aged lumber that doubled its value in 7.5 years is most definitely the best investment of my life time. How could that happen? All I've heard in the past decade that inflation is somewhere between 0 and 2%, maybe 3% at most.
Not sure what's in your 401K but they're meant to be retirement accounts. Assuming you're a long way from retiring, they are very long term investments. If you're close to retiring it's your responsibility to adjust your holdings in your account to something more stable.
Quote:
Originally Posted by RememberMee View Post
For all your emergency cash funds needs you can expect effective 0% interest paid to you, and few people can save more than that.
Effective 0% interest paid to you? I think you mean real rate of return but I understand what you're saying. But so what? It's meant for emergencies, not to grow your money.
Quote:
Originally Posted by RememberMee View Post
Branded tools I am interested in definitely got higher in price
and lower in quality, but I did not run statistical analysis so I will not make strict numerical claims. At the fresh glance prices are at the very least 50% higher across the board with some prices much more inflated. My point remains - investing money in long term use/shelf life items beats anything an average person like me can expect from banks and investment wizards.
How do you know they got lower in quality? Did you run tests on a significant sample of products? 50% higher across the board? I'm wondering if anyone else agrees with you.
Quote:
Originally Posted by RememberMee View Post
2.2% saving rates are offered by a few obscure online banking establishments. Do you have an account with them? You make 2.2% saving rate to sound as a norm. It is not. Less obscure online banks offer saving rates at (well) below 2%. Generally you have to open a money market account to have 2%+. Ok, 2% compounded over 8 years gives you whopping 17% return. So my statement remains, online banks or local ones, neither protects your money against inflation.
Like others have said, there are many major financial institutions that offer 2%+ interest. Who ever said banks are supposed to protect your money against inflation?
Quote:
Originally Posted by RememberMee View Post
I let professionals to run S&P index funds on my behalf. Investing is easy. Getting returns on investments matching real inflation rates is hard. S&P index funds do not cut it at this point. And it is not even a point. As a prole I can invest only a small % of my income and I can't live off the returns. So even assuming stellar performance of index funds a good chunk of population is still screwed given labor-capital dynamics in this country. But at this point it's all around squeeze.
So you're saying earning more than 2-3% per year on your investments is difficult? There are many short time periods where the S&P did worse then 3% return, but if you educated yourself about investments, you'd know that stocks are meant to be long term investments (ex. more than 10 years). More risk, more reward. And over the long term it's almost always more reward than safer investments. I've read your posts on this thread and there's very little I agree with. I guess you can just invest in lumber or branded tools and check back in 10 years.
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Old 03-10-2019, 06:18 AM
 
9,811 posts, read 11,745,640 times
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Weird thread. Visit Harbor Freight or Northern Tool and you will see discounted tools. I am not a lumber expert but I don't think 2X4s cost double now.

Unless you stockpiled the lumber and new tools to resell later then you didn't make a penny, you simply bought the stuff at a discount years ago.
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Old 03-10-2019, 11:54 AM
 
5,448 posts, read 1,795,648 times
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Its true that durable goods are subject to price increases, but not double in 7.5 years for the same exact tools. What you are seeing is higher retail costs due to general increases in operating and production costs across the board for businesses like Lowe's and their manufacturers, coupled with low local demand. Together these factors combine to increase the prices. A mostly economically depressed regional market is not going to give any retailer the volume needed to sell items at low prices. This is fundamental microeconomic theory.

Holding onto commodities for years is not generally a sound investment strategy unless for in this example, you did it with timber instead of harvested finished woods. In timber form, it constantly gains value as the market prices for finished products increases, with zero cost to the owner. Conversely, wood in storage can warp and split as it seasons, making it lose value or become worthless, plus there are carrying costs such as storage, insurance, and inventory maintenance; which is the reason why lumber companies don't cut wood and just store it forever to "ride the wave". There are indeed "investment grade" high end woods, some of which even require lengthy seasoning, but that is a completely different story than the builders-grade crap you are getting at a big box store.

And of course, if you have non-perishable or non-degradable commodities such as precious metals its a different story.

But I agree with the other posters here - the idea you can beat the market buying lumber and tools from Lowe's is a joke. Don't try it unless you want to go broke slowly. And have you ever tried to sell an 8 year old power tool on Ebay? good luck with that. You're not going to make any money that way. Where and how do you propose to unload old (but never sold) inventory like this? Even big national chains with an entire distribution model and supply chain management infrastructure can't do this.

Last edited by phantompilot; 03-10-2019 at 12:02 PM..
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