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GA teacher

Finance novice searching for answers

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1 hour ago, GA teacher said:

just finished a documentary series on capitalism

What documentary was that?

Three quotes from the greatest American to ever live:

We must ask the question, "Why are there forty million poor people in America?" And when you begin to ask that question, you are raising a question about the economic system, about a broader distribution of wealth. When you ask that question you begin to question the capitalistic economy...one day we must come to see that an edifice which produces beggars needs restructuring. 

 

I am much more socialistic in my economic theory than capitalistic. Capitalism started with a noble and high motive but fell victim to the very thing it was revolting against.

 

There must be a better distribution of wealth and maybe America must move toward democratic socialism.

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On 7/6/2020 at 12:07 AM, EdLaFave said:

What documentary was that?

I was watching a documentary series from EBS Korea.  EBS is an education broadcasting station.  I wish I can post it here but it's in Korean... It was a 5-hour series and covered much history and topics.  The documentary covered John Adams and Kaynes vs Hayek and many more.  

I had to look up the quote and to find out who said it- MLK Jr. of course 🙂  It's so important to learn from history. 

A finance person from YouTube who recommended the above also suggested BBC's 2008 documentary,  "Ascent of Money"  (link to episode 1)

Perhaps you already watched it 🙂

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Hi guys!  I'm trying to move the assets to Vanguard's VINIX.  I finally got out of the Valic's guided portfolio service.  Should I move the assets to VINIX now or wait until tomorrow?  I think I may be late because it's already almost 5pm ET?  Did I have to do it before a certain time?  It's my first time doing this so I'm unsure and a bit nervous because I'm trying to move a lump sum of money from other mutual funds into here.  I got the analysis picture from finviz.com.

07.07.2020.jpg

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1 hour ago, GA teacher said:

Should I move the assets to VINIX now or wait until tomorrow?

The general answer to this question is always now. When you buy or sell a mutual fund you have to get the order in by 4 PM eastern, if you do the transaction will close based on prices at the end of the day.

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If you do it now you will get today's closing. If you do it after the markets close you will get tomorrow's closing. Just do it anytime you want.  Even after hours.No need to be nervous at all. The market fluctuates daily. You might get in when it closes high or you might get in when it closes lower. In the scheme of things it won't matter . 

What's important is that you pull the trigger and get that money over to VIINX.  I would ignore charts like the one you posted. It tells you only what happens daily. You are in this for the long term and daily stock gains and losses per stock means nothing.

Congratulations on making a positive , smart move.

 

Tony

 

 

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Thank you all so much for your help.  It takes a day for the assets to be moved around within the Valic platform so perhaps I will get today's closing rather than yesterday's.  It's assuring to hear that the timing of buying/selling doesn't matter since it's a long-term investment.  The world of finance is very complicated but I think I understand a lot more than before where I understood zero 🙂  Thank you guys again for guiding me!

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GA Teacher

2 hours ago, GA teacher said:

The world of finance is very complicated but I think I understand a lot more than before where I understood zero 🙂

Don't drink the kool aid that it is complicated. The  financial complexity is mostly   intentional  and deliberate . That way there is a demand for their services.  They make money by making you feel stupid and keeping you in the dark, draining you of your money long term with various fees.  When you own a few index funds at lowest possible cost  you are covering the total market and minimizing your long term risk. Keep reading and you will see what a facade the financial industry really is. I recommend you buy and read this book  https://www.amazon.com/Little-Book-Common-Sense-Investing/dp/1119404509/ref=sr_1_3?crid=2QAY7445XKKWY&dchild=1&keywords=bogle+little+book+of+common+sense+investing&qid=1594235911&sprefix=bogle+%2Caps%2C313&sr=8-3

Please keep asking questions, you seem like someone who wants to learn and grow on this subject. We are here to help. We sometimes go off the deep end here but you can learn a lot about investing by reading through our discussions and sometimes arguments.:) 

Tony

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3 hours ago, GA teacher said:

finance is very complicated

All you really need to know:

  • Minimize your spending so you can maximize your investing.
  • Abandon the notion that you or anybody else can predict and therefore outperform the market in the long term.
  • Understand that stocks can drop by 50% very quickly, pick a bond percentage that will stop you from behaving foolishly during a crash. Know that stocks have the higher expected return.
  • Total market index funds give you diversification at rock bottom costs, which are the two keys to successfully picking funds.
  • You can own three individual total market index funds (bonds, domestic stocks, international stocks).
  • Alternatively you can own an all in one fund, which internally holds those individual funds (see target date funds that get more bond heavy over time or LifeStrategy funds that keep the same asset allocation over time).
  • Max out tax advantaged accounts first (IRA, 401k, 403b, 457b, etc.) and then put the rest of the money in a taxable account.
  • Whenever you have extra money, invest it regardless of what the market is or isn't doing.

It really isn't rocket science. Tony is 100% right.

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If i may add. The plethora of  actively mutual funds out there, even Vanguard's, are to bring in revenue through fees. At least, Vanguard's managed funds are almost as cheap as their index funds and much cheaper than most others.. Most managed funds are just variations of the same companies. If you own the Total Stock Market Index, An International Fund index fund and a Total Bond Market Index fund, you pretty much own the stock universe. It's all you need.

These guys loading you up with many  funds are not improving your performance long term.  It's easy to assume that stock funds with fancy names might be better. They are not. Any out performance by these funds is usually short term. They'll hype those returns but they will never tell you that overtime barely only 20% of these funds beat a basic index fund. And good luck finding these outperformers year after year out of thousands of choices.  Stick to index funds. 

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