Any stockbrokers here?

I think it is unrealistic to compete with the big guys who have teams of people working for them, combing for information about the stock market.

Personally, the only advice I'd give anyone about the stock market is to follow the advice of Ramit Sethi in his book, "[ame="http://www.amazon.com/Will-Teach-You-Be-Rich/dp/0761147489"]I Will Teach You To Be Rich[/ame]", which is basically, invest in these funds, keep contributing regularly and forget about it.

Most people screw up their own investments, me included. The level of daily knowlege needed to stay on top of this on your own is mind boggling.

Anything else is speculative investing. It really is, unless you're in the business.

It's not that you can't do it... it's just that everyone has their pet theories. And people boast when it works for them, but they usually won't tell you when it stopped working.

I actually would suggest [ame="http://www.amazon.com/Building-Wealth-One-House-Time/dp/0071448357"]this book[/ame], and [ame="http://www.amazon.com/Estate-Investor-Flow-Financial-Measures/dp/0071422579"]this book[/ame], instead of trying to become a whiz stock market investor.
 
You don't have to be a "whiz" stock market investor to do perfectly well for yourself. I retired at age 55 after investing steadily in plain ol' garden-variety index mutual funds. Large caps, small caps, gov't bonds, and corporate bonds index funds. Consistent, every paycheck, don't even think about it, style investing, in my 401(k), IRAs, and non-tax advantaged accounts.

Numerous studies have shown that asset allocation has a bigger effect on your total return than which exact mutual fund or stock you choose.

Don't even worry about "timing the market" if you've got more than 20 years before you'll need the money. Start worrying about pulling back from stocks once you get within 5 years of needing it.

Google "bucket theory" and you'll find articles about putting your money in various "buckets" (for immediate, short, intermediate and long-term needs) and how to re-allocate regularly.
 
Right, I'm not saying that you can't do well on the stock market. I'm just saying that too many people try to find some magical forumula for amazing returns and end up killing their principle. Thus, my suggestion.

The other problem is that many people can't resist tweaking their allocation. They really need to pick a strategy and stick with it. And probably a more "boring" strategy than an "exciting" one. But a lot of people don't leave it alone and end up damaging their investments.

I liked the earlier suggestion by a poster...to start off with a core princple that is invested the "boring" way and to invest in the "exciting" ways with some money you can afford to lose.

In short... "Pay attention to the boring stuff." :)
 
deafaussie said:
So far, my investment in stocks had delivered more than 600% since I started but lost 30% this year only due to European debt crisis and debt super committee did not agree to cut 1.2 trillion in debt over 10 years.
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Very interesting. 600% over how many years?
 
Beach girl said:
You don't have to be a "whiz" stock market investor to do perfectly well for yourself. I retired at age 55 after investing steadily in plain ol' garden-variety index mutual funds. Large caps, small caps, gov't bonds, and corporate bonds index funds. Consistent, every paycheck, don't even think about it, style investing, in my 401(k), IRAs, and non-tax advantaged accounts.

Numerous studies have shown that asset allocation has a bigger effect on your total return than which exact mutual fund or stock you choose.

Don't even worry about "timing the market" if you've got more than 20 years before you'll need the money. Start worrying about pulling back from stocks once you get within 5 years of needing it.

Google "bucket theory" and you'll find articles about putting your money in various "buckets" (for immediate, short, intermediate and long-term needs) and how to re-allocate regularly.
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I agree and I love the "bucket theory" and have mentioned similar methods here on AD. I am a big advocate for having several different bank accounts. (as long as they are free and you are organized)

I do think however, you have to pay attention and know when to fold and when to take more risk. All the warning signs were there in 2008.....I was shocked people waited so long to get out. I was literally begging my friends to get out but sadly they didn't listen.

The worst thing I saw was a friend that didn't get out and then his business crumbled and he had to start selling off at the lows. Brutal.
 
I did the same in 2008; moved everything into a gov't bond fund and stayed there for better than a year, and then got in again. Did very well from 2010 until mid-2011; then we all know what has been happening since about mid-July of this year.

I'm still ahead of last year, but not by nearly as much right now as I was in July, but unfortunately, did not get out in July when I should have.

It's always wise to look at downside risk vs. upside opportunity, especially for those of us in or nearing retirement who plan on making withdrawals in the near future.

But if you're in your 30's, a market downturn just is an excellent time to buy. You've got 30 years of appreciation ahead of you, roughly speaking, and you don't have to be afraid of buying low - because that is the only way you will eventually be able to sell high!
 
Beach girl said:
I did the same in 2008; moved everything into a gov't bond fund and stayed there for better than a year, and then got in again. Did very well from 2010 until mid-2011; then we all know what has been happening since about mid-July of this year.

I'm still ahead of last year, but not by nearly as much right now as I was in July, but unfortunately, did not get out in July when I should have.

It's always wise to look at downside risk vs. upside opportunity, especially for those of us in or nearing retirement who plan on making withdrawals in the near future.

But if you're in your 30's, a market downturn just is an excellent time to buy. You've got 30 years of appreciation ahead of you, roughly speaking, and you don't have to be afraid of buying low - because that is the only way you will eventually be able to sell high!
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Oh exactly....I was licking my chops when we hit 8,000....it was hard to wait but I am glad I did.
 
My advice? Stay out of financials. The banks are the shadiest of shady. I was doing okay with about half my meager retirement invested until two banks decided to reverse split at 10:1 ratio. I'm sure when they decide to split, they will give me a measily 3:1 and cheat me out of more money.

I hate the stock market. Derivatives and day trading have turned it into an abomination. All it is at this point is legalized gambling and a tool for the 1% to steal more of your money.

Actually, my advice would be to just stay out of it entirely.
 
TheWriteAlex said:
My advice? Stay out of financials. The banks are the shadiest of shady. I was doing okay with about half my meager retirement invested until two banks decided to reverse split at 10:1 ratio. I'm sure when they decide to split, they will give me a measily 3:1 and cheat me out of more money.

I hate the stock market. Derivatives and day trading have turned it into an abomination. All it is at this point is legalized gambling and a tool for the 1% to steal more of your money.

Actually, my advice would be to just stay out of it entirely.
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Ah come on, you wanna play and ya know it. :) How bout if we give a $100 free play?
 
TXgolfer said:
Ah come on, you wanna play and ya know it. :) How bout if we give a $100 free play?
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I just want free money! (Which is exactly what the stock market provides for those who know how to use it well. And you know it!)

Actually, BAC seems like a real good buy right now. It will probably double by the spring.

Where's my hundy?!
 
TheWriteAlex said:
I just want free money! (Which is exactly what the stock market provides for those who know how to use it well. And you know it!)

Actually, BAC seems like a real good buy right now. It will probably double by the spring.

Where's my hundy?!
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Oh you forgot to read the fine print. :lol:
 
TheWriteAlex said:
My advice? Stay out of financials. The banks are the shadiest of shady. I was doing okay with about half my meager retirement invested until two banks decided to reverse split at 10:1 ratio. I'm sure when they decide to split, they will give me a measily 3:1 and cheat me out of more money.

I hate the stock market. Derivatives and day trading have turned it into an abomination. All it is at this point is legalized gambling and a tool for the 1% to steal more of your money.

Actually, my advice would be to just stay out of it entirely.
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I'm curious, what would you do instead? Just putting money into a savings account will not net you anything, after inflation. If you ever want to retire, you need something that will appreciate in value to give you the cash you'll eventually want.

Could be real estate, if you have the expertise for that, but hard to draw cash out of real estate when you need it. Could be your own business; most wealthy people became that way by being entrepreneurs.

Or the lazy person's way, which is investing in the stock market. I'm a lazy person, myself.

-----------

DeafCaroline, are you still reading here? Are you planning to invest in the U.S. market? You might find this site helpful:

How Many Mutual Funds Should You Have in Your Investment Portfolio? | AAII: The American Association of Individual Investors

AAII (American Institution of Individual Investors) has a monthly journal and frequent speakers for local clubs. Obviously it is U.S.-based, so don't know if it would be relevant for you. If you are investing in the U.S., you might find their articles on portfolio management worthwhile.

I've found it very useful, and in fact I'm a lifetime member. I learn something practical every month from both the journal and the monthly meetings (D.C. area).
 
Well, I have a mutual fund, but I don't appreciate it because it raises really so damn slow for years. I was told to do this way. Oh boy. TheAlex's comment (#50) is probably right. I also have some stocks, but I hate stock brokers because one of my stock brokers was so wrong to tell me to sell it. Guess what I still have the Apple in stock. Screw him because he does not do his homework and again because he wants my money quickly and walks away from me for sure. He is bad - he works at AG Edward and now Well Fargo.
 
Hey Beach Girl, I already did years ago, my bank is highly regarded internationally and they've got very good mutual funds portfolios so I'm happy with my choice. It was a bit rough this past quarter but it's recovering very nicely.
 
Beach girl said:
I'm curious, what would you do instead? Just putting money into a savings account will not net you anything, after inflation. If you ever want to retire, you need something that will appreciate in value to give you the cash you'll eventually want.

Could be real estate, if you have the expertise for that, but hard to draw cash out of real estate when you need it. Could be your own business; most wealthy people became that way by being entrepreneurs.

Or the lazy person's way, which is investing in the stock market. I'm a lazy person, myself.

-----------

DeafCaroline, are you still reading here? Are you planning to invest in the U.S. market? You might find this site helpful:

How Many Mutual Funds Should You Have in Your Investment Portfolio? | AAII: The American Association of Individual Investors

AAII (American Institution of Individual Investors) has a monthly journal and frequent speakers for local clubs. Obviously it is U.S.-based, so don't know if it would be relevant for you. If you are investing in the U.S., you might find their articles on portfolio management worthwhile.

I've found it very useful, and in fact I'm a lifetime member. I learn something practical every month from both the journal and the monthly meetings (D.C. area).
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Real Estate is pretty attractive right now. :)
 
TXgolfer said:
Real Estate is pretty attractive right now. :)
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Oh, you're definitely right, if someone has the money to buy in, and can keep up the monthly costs. We never thought we'd see mortgage rates this low again, did we?

Real estate almost always works out all right in the end, if you have enough cash flow and patience, bought "in the path of progress," and can hang on for long enough. I HOPE our second home will, in the end, be a good investment, but if we had to sell right this minute, we would lose money on it.

We definitely have made money on our VA home, but we've owned it for nearly 25 years now. There were ups and downs during that time, especially early on, where again, if we had been forced to sell for some reason, we would have lost money.

Thing about real estate is that if you buy the actual property, there are monthly costs for upkeep and, usually, mortgage payments. If you buy REITs you can avoid that and still see some appreciation.

Personally I wouldn't want to put my whole future financial security in the real estate box, but it's worth having some, certainly. Even if only the roof over your own head.
 
Beach girl said:
Oh, you're definitely right, if someone has the money to buy in, and can keep up the monthly costs. We never thought we'd see mortgage rates this low again, did we?

Real estate almost always works out all right in the end, if you have enough cash flow and patience, bought "in the path of progress," and can hang on for long enough. I HOPE our second home will, in the end, be a good investment, but if we had to sell right this minute, we would lose money on it.

We definitely have made money on our VA home, but we've owned it for nearly 25 years now. There were ups and downs during that time, especially early on, where again, if we had been forced to sell for some reason, we would have lost money.

Thing about real estate is that if you buy the actual property, there are monthly costs for upkeep and, usually, mortgage payments. If you buy REITs you can avoid that and still see some appreciation.

Personally I wouldn't want to put my whole future financial security in the real estate box, but it's worth having some, certainly. Even if only the roof over your own head.
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Oh no, like you said....it can take a while to get it out.

With the property values way down and interest way low there is an incredible opportunity to pass wealth and avoid inheritance taxes too. Takes a little creativity
 
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