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OP if you are really serious about putting aside money that you want to grow you will need to invest in equities. This requires the investor to not only ride the ups but also the downs. The key is time. Time is what gives equities the safety as long as your investments are balanced.
Things to not do.
2. Do not panic and sell when the market is down. Selling locks in losses.
Overall agree, I just have a few things I would like to clarify....you don't ride out the ups/downs, while I agree that time is an important criteria it's also centered around is this a ST or LT investment strategy for that particular security/portion of the portfolio (not talking day-trading). And once that is established, creating a trade plan/portfolio plan around that allocation. Do the research (OP), determine the time horizon, then where is that position(s) trading. Then determine your trade plan around that, set your profit exits, exit strategies and stick to them. Don't try to hang on to a stock for the last few pennies, and don't hang on to a position "because it has to come back" or "the fundamentals are good, even though it's broken through all support, it has to come back right?" Find your exit(s) and stick to them. If you lose a little on either side that's ok, the point is you met your thresholds & you can live to fight another day.
Institutional traders are successful b/c they have tightly defined risk strategies. They don't have a lot of big winners, but the they are successful b/c they don't swallow or expose the book to big losses.
so my "personal banker" has been on my case lately
telling me that I should immediately get out of cash right now and invest everything that is in my savings in a managed portfolio
she is saying that cash is going to be nearly useless in the months ahead and dollar is going to crash
WHile I do think that wisely investing is the best strategy but I'm getting uncomfortable why she is being almost pushy right now, secondly I would never like to invest in anything I do not understand ( granted my financial knowledge is poor ) but just seems silly to get into something I dont understand
Is there really a grave concern that dollar will lose most of its value in the near future ?
Do the personal bankers get a cut every time we invest through them or she is doing this out of the goodness of her heart and watching out for my interest ..I'm skeptical
please help
Of course the banker would get a commission cut for having your money in a managed portfolio. I'd if she is pushy and you don't feel comfortable with her action, I would look to go somewhere else.
As for the Dollar crashing. The reminds me of those internet Ads I saw last year that stated how said crash was happening on Sept 22, 2016. The day passed and nothing happened. Saw the same ad a few days later: crash was going to happen on October 5, 2016.
I think your "personal banker" is trying to rip you off.The dollar is not going to collapse in a matter of months.I would just go with a no-load index fund from Schwab,Fidelity or Vanguard.
1 million is hardly "very rich". That gets you maybe a 2 bedroom house on a 4000 square foot lot built in the 1920s.
No need to nitpick. For investment banking $1M is probably the minimum, and even that may be too low. And normally someone with that kind of liquid money to invest probably has money elsewhere too, in 401ks or business ownership, etc., so the $1M typically wouldn't be all of their assets.
In any case, $1M liquid is a lot more than our OP has, and a lot more than most people have--even in the Bay Area.
Agreed- I hate to say it but $1 mill is merely average in today's dollars & even $5 mill is considered comfortable. I would say you need at least $10 to get into the club & even then you are considered low end.
$1M is not average as far as net worth goes. I think the median in the U.S. is something like 200K--and that includes home equity.
But yes, it may not be enough to do investment banking. I don't know as I'm not in that league.
I think your "personal banker" is trying to rip you off.The dollar is not going to collapse in a matter of months.I would just go with a no-load index fund from Schwab,Fidelity or Vanguard.
Those are good choices, although my favorite is still Vanguard Wellington. People on these boards thumb their noses at it because it's about 35% in bonds, but stocks are kinda high right now, and Wellington has actually beaten the S&P 500 Stock Index over the last 20 years. It may not do so over the next 20, but it still has a better "sleep at night" factor.
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