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Um, no. I can list several mutual funds that have beaten the S&P 500 Stock Index and have low minimums:
FPA Crescent (FPACX)
IRA Minimum: $100
Taxable Account minimum: $1500
Trailing Returns:
20 Year: 11.13%
15 Year: 10.60%
10 Year: 8.35%
Amana Income (AMANX)
IRA & Taxable acct. minimums are same as above.
Trailing Returns:
20 Year: 9.53% (It trails the S&P 500 Index here, but not by much)
15 Year: 7.87%
10 Year: 10.10%
Returns for Vanguard S&P 500 Stock Index, Institutional Share Class, over the same time period. This fund tracks the S&P 500 Stock Index but requires millions to get its very low expense ratio (unless you can get it through your employer)
20 Year: 9.88%
15 Year: 4.26%
10 Year: 7.68%
Nice try. But I guess you'll have to try again.
Totally unrelated to my point. The point was to invest over the long haul. Generally , for the average person that's in a diversified etf such as spy, vti, etc. or many others. If you are really sophisticated you can easily beat it using other methods such as options etc like us elite like Hillary and me do.
Yup. Its not just welfare either, its the combination of all the support that makes disincentives. Its why I think a basic income that is unconnected to income and given equally to all will be inevitable.
Yup. Its not just welfare either, its the combination of all the support that makes disincentives. Its why I think a basic income that is unconnected to income and given equally to all will be inevitable.
So you acknowledge that welfare programs and policies create disincentives.
Easy, get them mortgages the rich know the poor can't payback and sell those mortgages and millions others to Fanny, Freddie, or AIG. But then the rich will tell you that the Democrats had guns to their heads and forced them to give out bad mortgages, and if you're really a genius, not only will you make money off of American citizens losing their houses, but the government will then bail you out and give you millions for failing. If you're poor and commit robbery at a convience store, you go to jail, if you're rich and steal millions from the taxpayers, you'll get millions more.. That's a fact that no one can deny. Taking advantage of someone who should know better is one thing, taking advantage of people who don't know is wrong. But thats capitalism at its finest.
Yeah, heck James. The lending rules have been liberalized again and since I haven't owned a home in three years I qualify for first time goodie deals!! Thanks to everyone who will be subsidizing my purchase! It's the American way!
If anyone has any other good ideas of how I can take advantage of all the great subsidies this country offers please let me know! Nothing like letting others help me out!
Just to add support to what you're saying. I can list several mutual funds that have beaten the S&P 500 Stock Index and have low minimums:
FPA Crescent (FPACX)
IRA Minimum: $100
Taxable Account minimum: $1500
Trailing Returns:
20 Year: 11.13%
15 Year: 10.60%
10 Year: 8.35%
Amana Income (AMANX)
IRA & Taxable acct. minimums are same as above.
Trailing Returns:
20 Year: 9.53% (It trails the S&P 500 Index here, but not by much)
15 Year: 7.87%
10 Year: 10.10%
Returns for Vanguard S&P 500 Stock Index, Institutional Share Class, over the same time period. This fund tracks the S&P 500 Stock Index but requires millions to get its very low expense ratio (unless you can get it through your employer)
20 Year: 9.88%
15 Year: 4.26%
10 Year: 7.68%
A few more good, low minimum balance mutual funds are listed here:
Not that this will convince greywar. He's already made up his mind it's impossible for folks to do anything about their situation.
I have a 401k in work, as do many Americans.
What they don't tell you is that mutual funds can take as much as 2% in "fees" rich investors like warren buffet may have some mutual funds actually buy a lot of stocks individually to avoid the fees. Guys like Buffett and Peter Lynch (fidelity fame) buy stocks they think will remain in the S&P 500 and sit on them. They dont sell their stocks during downturns and actually buy more during that time. Of course theres a risk the company can abruptly fall off and dusintegrate.
Also most guys like Buffett own lots of real estate. Because of our flawed tax code they can write off all the mortgage interest they can write off large amounts of taxes, and pay a low tax rate. They get rich renting to poor people and get no limits on how much interest they can deduct. Also most poor cant afford the 20% down payment to partake in these ventures themselves
What they don't tell you is that mutual funds can take as much as 2% in "fees" rich investors like warren buffet may have some mutual funds actually buy a lot of stocks individually to avoid the fees. Guys like Buffett and Peter Lynch (fidelity fame) buy stocks they think will remain in the S&P 500 and sit on them. They dont sell their stocks during downturns and actually buy more during that time. Of course theres a risk the company can abruptly fall off and dusintegrate.
I would argue that this is all the more reason to provide mandatory financial education in middle and high school. People who are paying such high fund fees oftentimes don't know any better (I suspect).
Quote:
Originally Posted by njbiodude
Also most guys like Buffett own lots of real estate. Because of our flawed tax code they can write off all the mortgage interest they can write off large amounts of taxes, and pay a low tax rate. They get rich renting to poor people and get no limits on how much interest they can deduct. Also most poor cant afford the 20% down payment to partake in these ventures themselves
If they can't save any money while living in the slums, what makes you think they could pay a mortgage? It is precisely this attitude that "you must allow everyone to buy a house" which crashed our economy in 2008. Have we learned nothing?
What they don't tell you is that mutual funds can take as much as 2% in "fees" rich investors like warren buffet may have some mutual funds actually buy a lot of stocks individually to avoid the fees. Guys like Buffett and Peter Lynch (fidelity fame) buy stocks they think will remain in the S&P 500 and sit on them. They dont sell their stocks during downturns and actually buy more during that time. Of course theres a risk the company can abruptly fall off and dusintegrate.
Also most guys like Buffett own lots of real estate. Because of our flawed tax code they can write off all the mortgage interest they can write off large amounts of taxes, and pay a low tax rate. They get rich renting to poor people and get no limits on how much interest they can deduct. Also most poor cant afford the 20% down payment to partake in these ventures themselves
First of all, Buffet is a Democrat and ver liberal. Second, etfs are very cheap and accomplish the same as mutual funds. Third, with all due respect, your post is drivel and full of errors such as Buffet owning lots of real estate. He owns lots of Berkshire H.
Get them to offer a brokerage account for your deferred comp at work. Then you can use almost no cost etfs. Geez, your company is behind the times!!
You sound like kind of an amateur. I work in the field.
Third, with all due respect, your post is drivel and full of errors such as Buffet owning lots of real estate. He owns lots of Berkshire H..
He does lots of things. Actually he not to long ago gave an interview about real estate investing. Hes one
Of many, I was just using him as an example.
Yes mortgage interest is deductible, and mutual funds have fees. Thats all I said. I gave you an example of 2 successful investors and listed their particular atrategy. Never said it was the only way, or best case to invest for most. I'm not a professional financial either but thats not the point.
Also when I pay off the rest of my student loans I'll look into a wider variety of investment options. 401k is just one of many.
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