TOPIC: Do You Own Any Investments? (Stocks, Bonds, Index Funds, etc.)

Good Looking Loser wrote:

drunkinduck wrote: Good Looking Loser Investment Guide

I am in the finance industry (asset management) and work closely with some of the most prestigious hedge funds and vc funds.

My simple advice would be.... DO NOT INVEST UNLESS YOU HAVE A SUBSTANTIAL STEADY INCOME STREAM

if you do not have a steady income stream INVEST IN YOURSELF and YOUR OWN BUSINESSES

Buying individual stocks/making your own portfolio is a sucker's game...

Read a couple of the basic investment books to get a understanding but your best bet is...

+Low cost Index-funds
Figure out your risk tolerance for splits of us stocks, bonds, emerging markets, etc

Put an auto-depositor for every 2 weeks (ex: $500/every two weeks)

^this is called dollar cost averaging and it is the only method that is nearly guaranteed for you to win over the long run

So for example you have 30% in US stocks (vanguard VTI) 24% Foreign (vanguard VEA) 18% emerging markets
9% Mun bonds 9% dividend stocks 5% natural resources

^^^^ the key is finding out what you % break up is and what asset classes.. depending on age and income
Put that baby on autopilot don't look at it for 20years other than to rebalance it

Lastly I recommend if you're like me and like to "gamble" on individual stocks make those speculations <10% of your investment portfolio

Hope this gives you a direction on where to look for resources and your inv. strat

Conclusion

DIVERSIFICATION DIVERSIFICATION... if you plan on investing say in rental property, I'd recommend that is not a majority of your net worth.. ideally it would be something more than like 20%, but Hey.. gotta take big risk for big payouts

Obviously this isn't an official GLL guide (published by me), but I agree with the VAST MAJORITY of what DID said. This applies to 99% of people that are not skilled active traders.

- Don't buy individual stocks
- Index everything (low expense ratios)
- Don't buy any stock index funds that you aren't willing to keep for 15+ years
- Money is best invested in your business or another business that gives you ownership

thohon wrote: 1. Mutual fund with 50% stocks and 50% bond

2. Considering using a Roboinvestor to get a diversified portfolio like the one quoted above. I'd have to do some research into the costs but as far as I can tell, they are extremely low. I think it's like 0.5% of portfolio per year.

My question would be, does that include the transaction fees or is the 0.5% on top of ETF fees etc.

Ire wrote:

thohon wrote: 1. Mutual fund with 50% stocks and 50% bond

2. Considering using a Roboinvestor to get a diversified portfolio like the one quoted above. I'd have to do some research into the costs but as far as I can tell, they are extremely low. I think it's like 0.5% of portfolio per year.

My question would be, does that include the transaction fees or is the 0.5% on top of ETF fees etc.

.5% is probably not including transaction fees. Why are you trying to get into bonds? I find them a really unattractive investment, especially in the current environment. There are better ways to receive fixed cash flows imo