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I would put half with two reputable financial planners, let them battle it out for a few years, then give the second half to the winner. Our little nest egg is with Edward Jones, so they’d be one of them. I don’t have the stomach for managing things my self.....just keep the checks coming and spare me the details.
you really do need to be aware of what they do . my wife was a widow once and she had zero interest in what her money guy did . that was until he lost half her life savings in tech and dot coms .
after all if everyone was making big money and she wasn't she would blame him . so he put her where the money was . what did she know from investing ? nothing .
today she is so in tune with things that i don't buy a thing without running it by her first , i explain it to her and then we debate it .
With respect, I would recommend the exact antithesis of post #71. It is both costly (in terms of fees) and risky (in terms of what these advisors would do).
As to Hikernut's point, yes, the topic merits it's own thread. But in brief, if one believes that the market is nearly perfectly efficient, nearly all of the time, then alternatives to indices become hard to justify. If on the contrary one believes that there really are unexhumed nuggets to be found, then of course it would be silly to desist from trying to find them.
If you really want a discussion we should probably open another thread. This is my own belief and experience. Let's be clear, I'm not suggesting that there is any way to "beat the market" each and every year, or over every five year period, etc. I'm saying that the market does not always price things accurately, and there are times when it's worthwhile to take some action. Essentially, the "madness of crowds" can still take over, even with all of our various gadgets providing information at the touch of a button or the command of a voice.
You are absolutely correct. I'm not going to get into the backtesting of mutual funds/ETFs and model portfolios, but let me say there are excellent funds that beat the market during this time period. I expect to beat the s&p 500 over a 10 year period by a considerable margin.
You are absolutely correct. I'm not going to get into the backtesting of mutual funds/ETFs and model portfolios, but let me say there are excellent funds that beat the market during this time period. I expect to beat the s&p 500 over a 10 year period by a considerable margin.
You don't need to beat anything though.... Sometimes good enough is good enough.. There are faster ways to get rich than a long term investor...
You could put money into Russian banks, their interest rates are higher than s&p ytd...
1. Put it all into an S&P500 index fund at {vanguard|fidelity|schwab}
2. Spend 20+ hours at https://www.bogleheads.org/forum/viewforum.php?f=10
3. Reallocate funds after reading a lot.
4. Do not pay an advisor. They offer zero value.
5. Keep reading boring financial stuff every day.
You don't need to beat anything though.... Sometimes good enough is good enough.. There are faster ways to get rich than a long term investor...
You could put money into Russian banks, their interest rates are higher than s&p ytd...
I'm not interested in making $, regardless of risk, rather in finding finds with high alphas, funds that have high returns with relatively lower risk. They're out there, but it takes some interest and research.
I'm not interested in making $, regardless of risk, rather in finding finds with high alphas, funds that have high returns with relatively lower risk. They're out there, but it takes some interest and research.
This is what I've backtested. I have these funds in my retirement plan, so I don't have to play a load on any of them.
I started this in January 1997 and just did a steady $1000 a month:
The real results would actually be better because I have cheaper share classes of all of these except for Janus Henderson Small Cap Value. I used more expensive share classes because the cheaper share classes weren't available back in 1997. Overall, the portfolio would've done about .20% better with the cheaper share classes But below, I list all of the funds and the share classes I actually have:
The below portfolio beat the S&P 500 Index fund (I used VINIX, the institutional share class) and Vanguard Wellington (I used VWELX since the cheaper Admiral share class VWENX didn't exist in 1997, although the below portfolio still would've beaten VWENX).
Parnassus Core Equity 45% PRILX
Templeton Global Bond 25% TGBAX
Oppenheimer Developing Markets 10% ODVYX
VY Clarion Real Estate 10% IVRIX
Janus Henderson Small Cap Value 10% JSCOX
My experience with advisors is that they either direct you toward preferred vehicles or give you an asset allocation recommendation based on their interpretation of your stated risk tolerance. I can do that myself.
I've found these people to be not much more helpful than real estate agents these days. Brokerages give you the same kind of research tools they have.
I prefer to make my own choices and own them, not outsource my decisions.
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