Mdawgs Investments
Quote: MDawgYou seem overly obsessed with taxes. As I stated, I know more about minimizing taxes than most, but at the same time, I don't worry too much about it versus just trying to make money. There are many ways to pay little or no taxes, not just the ones you are musing about. And you're the one conjecturing about what someone might or might not be doing to limit taxes. I don't even talk about any of that - I just mention the trades.
My usual block of AMZN shares is 1000 at a time for a trade. I have averaged in to as many as 3000 shares total in the past, but that hasn't been necessary in a long time as I've been right on the mark with the first lot.
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I guess my idea of "making money" is to legally limit my tax burden. My income and the way it is structured provides a net federal tax rate of less than 4%. Everyone here knows what your obsessions entail. However, I do appreciate your candor. It would seem that my "musings" might further benefit you and others, just sayin'
As I stated before, risking $2.1+ million just to make a paltry net $6,000 seems, to me, a bit over the top. But you are who you are.
tuttigym
Anyway, the money is invested, thrown around, briefly, to make a solid sum in a matter of generally, minutes. It is not "all at risk" as you imply. I like trading, I don't have to do it, but I am good at it.
I don't have to play at a casino either, but I like it, and I am good at that too.
I really don't have to do anything, I mean, if it comes right down to it.
Quote: tuttigymAs I stated before, risking $2.1+ million just to make a paltry net $6,000 seems, to me, a bit over the top. But you are who you are.
You can if you want. I don’t believe a word of it. Oh, he might be trading…but find me one single solitary losing trade in this entire thread from him and I’ll eat my hat. Even 400 point Nasdaq sell offs…he’s making money on the long side of tech. LOL.
Actually what the man doesn't understand, is that this sort of volatility is what traders LIVE for.
https://www.cnbc.com/2015/08/31/market-has-become-traders-paradise-technician.html
https://www.cnbc.com/2018/06/04/this-market-is-a-traders-paradise-heres-why.html
Even in India: https://economictimes.indiatimes.com/markets/stocks/news/pandemic-spread-traders-paradise-this-market-is-not-for-faint-of-heart/articleshow/74587667.cms?from=mdr
Basically, during each period when the market was rough and tanking skilled traders were making more money than ever. This guy just can't imagine what is a reality for anyone who is skilled. Really, the reason I haven't made more money lately trading is because I don't have time and have been in different time zones too during some periods.
I know what I am doing here, I am the best.
So, put up, or shut up 😆 as they say!
Quote: MDawgTDVegas, I'll bet you any amount of money I made that trade AMZN 2134 to 2148 today and NO other trades whatsoever. I actually had a follow up order in for 2103 but I got busy with a remote court appearance and cancelled it out. That trade woulda been fine too.
I know what I am doing here, I am the best.
So, put up, or shut up 😆 as they say!
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I’ll bet you any amount of money that you also made trades in AMZN at 2178 (dropped)…again at 2154 (dropped)….again at 2134 (dropped)…again at 2132 (dropped)…again at 2119 (dropped). Stock closed at 2107.
All red trades now in long term bin…if anyone even believes that. Put up or shut up.
Quote: TDVegas
I’ll bet you any amount of money that you also made trades in AMZN at 2178 (dropped)…again at 2154 (dropped)….again at 2134 (dropped)…again at 2132 (dropped)…again at 2119 (dropped). Stock closed at 2107.
All red trades now in long term bin…if anyone even believes that. Put up or shut up.
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I accept the wager. I made no such losing trades, no such trades at all as you describe "all red trades now in the long term bin." What amount of money will you put up? I propose $100,000. put up to the Wizard to be held in trust, plus a lifetime ban from WOV for the loser.
Quote: MDawgQuote: TDVegas
I’ll bet you any amount of money that you also made trades in AMZN at 2178 (dropped)…again at 2154 (dropped)….again at 2134 (dropped)…again at 2132 (dropped)…again at 2119 (dropped). Stock closed at 2107.
All red trades now in long term bin…if anyone even believes that. Put up or shut up.
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I accept the wager. What amount of money will you put up?
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Any amount you wish.
Quote: MDawgQuote: TDVegas
I’ll bet you any amount of money that you also made trades in AMZN at 2178 (dropped)…again at 2154 (dropped)….again at 2134 (dropped)…again at 2132 (dropped)…again at 2119 (dropped). Stock closed at 2107.
All red trades now in long term bin…if anyone even believes that. Put up or shut up.
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I accept the wager. I made no such losing trades, no such trades at all as you describe "all red trades now in the long term bin." What amount of money will you put up? I propose $100,000. put up to the Wizard to be held in trust, plus a lifetime ban from WOV for the loser.
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Quote: TDVegas
Any amount you wish.
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Quote: MDawgSee above. I'm willing to put up the $100,000. with the Wizard who will be the judge.
Quote: MDawgQuote: TDVegas
I’ll bet you any amount of money that you also made trades in AMZN at 2178 (dropped)…again at 2154 (dropped)….again at 2134 (dropped)…again at 2132 (dropped)…again at 2119 (dropped). Stock closed at 2107.
All red trades now in long term bin…if anyone even believes that. Put up or shut up.
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I accept the wager. I made no such losing trades, no such trades at all as you describe "all red trades now in the long term bin." What amount of money will you put up? I propose $100,000. put up to the Wizard to be held in trust, plus a lifetime ban from WOV for the loser.
link to original postQuote: TDVegas
Any amount you wish.
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Ok…
How do we know if you have or don’t have other trading accounts with other brokerages? Maybe your trust fund set up by Great Uncle Gordon has a link to a brokerage trading account. How would we ever know? Maybe your Dads company trust fund that was set up for you contains a brokerage trading account for you. So many “ifs”.
Maybe your older brother set up and funded a brokerage account for you with his business. A kind of “take care of MDawg” account. So many questions to verify.
So you'd better follow through and accept that you'll soon be $100,000. poorer, or just lifetime ban yourself from WOV now.
Quote: MDawgI'm directing the Wizard to this discussion. I accepted your wager. I'm ready to put up the $100,000. I wouldn't do that if I didn't know I have already won.
So you'd better follow through and accept that you'll soon be $100,000. poorer, or just lifetime ban yourself from WOV now.
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I’ll await further clarification and direction.
You also said, "any amount you wish" and I responded with $100000 which closes up the wager for that amount.
I'm definitely in the driver's seat here and ready to go! Thanks for the $100K free roll.
I'll await the Wizard's clarification too.
P.S. What's more important to you, your word at WOV, or $100000.? I suppose that is the question, because I promise you you lost this wager. I've spent a fair amount of time including socially with the Wizard and I would not have accepted this wager if it were going to put me in the position of other than looking like the truthful winner that I am.
Quote: MDawgSee above. I'm willing to put up the $100,000. with the Wizard who will be the judge.
Quote: MDawgQuote: TDVegas
I’ll bet you any amount of money that you also made trades in AMZN at 2178 (dropped)…again at 2154 (dropped)….again at 2134 (dropped)…again at 2132 (dropped)…again at 2119 (dropped). Stock closed at 2107.
All red trades now in long term bin…if anyone even believes that. Put up or shut up.
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I accept the wager. I made no such losing trades, no such trades at all as you describe "all red trades now in the long term bin." What amount of money will you put up? I propose $100,000. put up to the Wizard to be held in trust, plus a lifetime ban from WOV for the loser.
link to original postQuote: TDVegas
Any amount you wish.
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Or, five years from now, people who sold when the Dow was still above 30,000 will be considered geniuses since they sold at the VERY TOP of the most overvalued market in history. Nobody knows for sure but time will tellQuote: MDawgI’d advise against a situation where you might end up selling at the bottom and then get stuck watching it rise the rest of your life and not want to reenter higher. When something good drops that far that fast it usually bounces back. If your stop loss was only fifty cents below yesterday's SPY close, you were stopped out today at the open at 398.
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Either way, I did not lock in losses by selling a chunk today...I locked in enormous gains. All long-term sales for 2 or 3 times what I paid years ago. I will never go to 100% cash but I've sold a fair amount this year
PS, stock market drops are usually very fast. Hence the adage that stock prices generally go up an escalator and down an elevator. I'm referring to the broad market not just a few fad stocks like TSLA AMZN Netflix
But...if you've held for years, why sell today? Why didn't you sell at the end of 2018? I held through 2008, and December 2018.
https://thenextweb.com/news/end-of-year-stock-roundup-how-did-amazon-perform-in-2018
Even real estate that collapsed in early '90s, and '08 and so on, is higher now than ever.
All investments might drop for a while, but over time the good ones almost always go up.
https://finance.yahoo.com/news/bitcoin-whale-michael-saylor-tries-134205244.html
Really??Quote: MDawgOtherwise, over time it always goes up and to think that stocks will go down "for years" is to not understand the current market at all.
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Nasdaq March2000: 5,000. March 2014: 4200
Dow close 1999: 11500. 2009: 10400
Dow close 1965: 969. 1981: 875
Dow close 1928: 300. 1953: 281
Stocks have been down for over a decade several times. And I didn't cherry pick the low points... there are much lower values within each period presented
By selling now, I'm using one of your favorite strategies: I'm quitting while I'm still (way, way) ahead. I'm surprised you would disagree with it
The ultra-low interest rate environment has propped up stocks and other assets tremendously. When (not if) that changes, which might be soon, you will see p/e ratios drop like a rock, guaranteed.
Me, I’ll just keep doing the IRA for the same amount every year and then try to catch some falling knives named Mays, Mantle, Koufax, Aaron, Clemente, Pele, Messi, Trout, Brady, James, and CR7. Probably end up with some bloody hands.
True, now let's see if these bubble values stick..they sure AF didn't last time! In some markets, if you bought a home in 2005-2006 you waited nearly 15 years for its value to recover back up to its purchase price. And it might never fully recover in real, inflation adjusted termsQuote: MDawg
Even real estate that collapsed in early '90s, and '08 and so on, is higher now than ever.
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Also, the time periods you picked include picking a high juxtaposed with a low, those are the ten year periods you have chosen. The average ten year period has always shown a gain. The average fifteen year period even more so.
Quitting while ahead is good! Giving up at or near the bottom, is not.
If I had picked low points then I would have, for instance, used a March-2009 Dow value of about 6800, which would be around its 1996 value, 13 years prior.. Or the 1974 value of 600, which was its value in 1958 sixteen years earlier.
Of course the average return of the stock market is positive. But there are 10, 15 and even 20 year periods when its return has been negative. The last 10 years have been fantastic, but I'm betting the next 10 won't be. That's a normal cycle for stocks...10-15 good years then 10-15 poor years. It's like we're in the stock market of 1999, only MUCH more overvalued, plus an overheated real estate market
I believe stock market variance is highly misunderstood just like gambling variance. You might know the averages, but people don't realize what "long-term" really is. For the stock market, probably 40 years to be confident of realizing the expected return, which is a full lifetime of investing for most people
We agree here. Sell a large chunk of your holdings at the top (anything above Dow 30,000). Don't be the guy that sells at 15,000Quote: MDawg
Quitting while ahead is good! Giving up at or near the bottom, is not.
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However, if you're mostly in tech/fad stocks, then it's already way too late to sell
Those who thought the Russian invasion was going to kill the market were wrong. The market actually throttled thru it.
Now, high inflation and interest rates…that will kill the golden goose. If you haven’t noticed the price of food goods, gas and other costs going thru the roof, you’re out of touch.
If we get a severe recession (probably), you'll see the last few years of spectacular real estate gains vaporize very quickly. That plus higher rates: far fewer average Americans will be qualifying for $600,000 mortgages. And just as important: the bubble psychology of "buy now before it goes up more" will disappear, which is an enormous factor in the mature stages of any bubble
Quote: MDawgNotwithstanding misreading the situation and false rumors to the contrary, there will be no "margin call" for MicroStrategy if BTC drops below 21K.
https://finance.yahoo.com/news/bitcoin-whale-michael-saylor-tries-134205244.html
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Other than his denials, I see little evidence to dispute the widely reported margin call issue. I suppose it comes down to his credibility. I don't know enough about him to judge if he is more credible than the many business writers who have a different postion.
Anyway, I'm sitting on a $100K freeroll courtesy of TDVegas, so that will give me some walking around money notwithstanding the ridiculous drop in AAPL today.
Quote: MDawgWhen stocks are rising, people think they will rise forever, and when they're dropping, people think they will drop forever. The truth is somewhere in between.
Anyway, I'm sitting on a $100K freeroll courtesy of TDVegas, so that will give me some walking around money notwithstanding the ridiculous drop in AAPL today.
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I’m in Vegas today and it really doesn’t matter what happens at the tables. None of it is a needle mover compared to what the market is doing today to my investments. Oh well. My investing horizon is longer than my expected lifetime.
Not everyone. I setup my trailing stop loss orders last year when the market was still going up fast. The first one executed in late January. I like to quit while I'm ahead, just like youQuote: MDawgWhen stocks are rising, people think they will rise forever, and when they're dropping, people think they will drop forever.
Quote: mcallister3200Forget the market play, I just wish I could fast forward 10-15 years and get out of this sinking ship of a country and go somewhere that, while maybe not amazing, doesn’t have it’s best days blatantly clearly behind them. It’s
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Probably generational, but there are a lot of people who are thinking the same way. Personally, I think we’ve lost some of the niceties, the civility, helping others and have morphed into a “me, me, me” self absorbed mentality. This thread might be one of those instances, among many that shows a general decline in society.
Personally, I see so much rip off itis going around in the business world as it relates to the consumer.
Benny Binions mantra was “good gamble, good food, good drink”. Todays Las Vegas is “you need .001 more points to qualify, sir”.
Politics has become a cesspool of you are either with me or against me.
I’ll be looking at land in the desert soon enough. Away from the hustle and bustle. I’m getting like Eddie Albert…looking to escape to Green Acres, or in my case, desert acres.
Quote: TDVegasQuote: mcallister3200Forget the market play, I just wish I could fast forward 10-15 years and get out of this sinking ship of a country and go somewhere that, while maybe not amazing, doesn’t have it’s best days blatantly clearly behind them. It’s
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Probably generational, but there are a lot of people who are thinking the same way. Personally, I think we’ve lost some of the niceties, the civility, helping others and have morphed into a “me, me, me” self absorbed mentality. This thread might be one of those instances, among many that shows a general decline in society.
Personally, I see so much rip off itis going around in the business world as it relates to the consumer.
Benny Binions mantra was “good gamble, good food, good drink”. Todays Las Vegas is “you need .001 more points to qualify, sir”.
Politics has become a cesspool of you are either with me or against me.
I’ll be looking at land in the desert soon enough. Away from the hustle and bustle. I’m getting like Eddie Albert…looking to escape to Green Acres, or in my case, desert acres.
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From what I read Benny Binions mantra was good gamble, good food, good drink, and AP's and other undesirables get buried in the desert
Not sure that's quite the good ole days of hospitality we really want.
Quote: Ace2Not everyone. I setup my trailing stop loss orders last year when the market was still going up fast. The first one executed in late January. I like to quit while I'm ahead, just like youQuote: MDawgWhen stocks are rising, people think they will rise forever, and when they're dropping, people think they will drop forever.
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I just buy and rarely sell. Whatever happens, happens. Of the 50 or so stocks that I have bought over the years I have probably sold three or four.
Quote: darkozQuote: TDVegasQuote: mcallister3200Forget the market play, I just wish I could fast forward 10-15 years and get out of this sinking ship of a country and go somewhere that, while maybe not amazing, doesn’t have it’s best days blatantly clearly behind them. It’s
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Probably generational, but there are a lot of people who are thinking the same way. Personally, I think we’ve lost some of the niceties, the civility, helping others and have morphed into a “me, me, me” self absorbed mentality. This thread might be one of those instances, among many that shows a general decline in society.
Personally, I see so much rip off itis going around in the business world as it relates to the consumer.
Benny Binions mantra was “good gamble, good food, good drink”. Todays Las Vegas is “you need .001 more points to qualify, sir”.
Politics has become a cesspool of you are either with me or against me.
I’ll be looking at land in the desert soon enough. Away from the hustle and bustle. I’m getting like Eddie Albert…looking to escape to Green Acres, or in my case, desert acres.
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From what I read Benny Binions mantra was good gamble, good food, good drink, and AP's and other undesirables get buried in the desert
Not sure that's quite the good ole days of hospitality we really want.
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Card counters have historically been persona non grata since Thorpe exposed them.
Quote: TDVegasQuote: darkozQuote: TDVegasQuote: mcallister3200Forget the market play, I just wish I could fast forward 10-15 years and get out of this sinking ship of a country and go somewhere that, while maybe not amazing, doesn’t have it’s best days blatantly clearly behind them. It’s
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Probably generational, but there are a lot of people who are thinking the same way. Personally, I think we’ve lost some of the niceties, the civility, helping others and have morphed into a “me, me, me” self absorbed mentality. This thread might be one of those instances, among many that shows a general decline in society.
Personally, I see so much rip off itis going around in the business world as it relates to the consumer.
Benny Binions mantra was “good gamble, good food, good drink”. Todays Las Vegas is “you need .001 more points to qualify, sir”.
Politics has become a cesspool of you are either with me or against me.
I’ll be looking at land in the desert soon enough. Away from the hustle and bustle. I’m getting like Eddie Albert…looking to escape to Green Acres, or in my case, desert acres.
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From what I read Benny Binions mantra was good gamble, good food, good drink, and AP's and other undesirables get buried in the desert
Not sure that's quite the good ole days of hospitality we really want.
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Card counters have historically been persona non grata since Thorpe exposed them.
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True. But Binion personally had a violent history and would not hesitate to murder people.
I've also been a buy and hold investor for a long time. Not individual stocks, mainly just SPYQuote: DRichQuote: Ace2Not everyone. I setup my trailing stop loss orders last year when the market was still going up fast. The first one executed in late January. I like to quit while I'm ahead, just like youQuote: MDawgWhen stocks are rising, people think they will rise forever, and when they're dropping, people think they will drop forever.
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I just buy and rarely sell. Whatever happens, happens. Of the 50 or so stocks that I have bought over the years I have probably sold three or four.
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Don't you ever plan on selling some and using the money? Or, when you die someday, will your stocks pass on to your heirs with instructions to never sell?
I had thought I'd start a new stock account but am getting more into flipping collectibles one or two at a time.
The fractional ownership concept has really changed the playing field. What once was a hobby is maturing into an industry. I wish it had been around twenty years ago.
Quote: Ace2[I've also been a buy and hold investor for a long time. Not individual stocks, mainly just SPY
Don't you ever plan on selling some and using the money? Or, when you die someday, will your stocks pass on to your heirs with instructions to never sell?
If I live long enough I assume I will sell to help finance my retirement. Most likely i will die and the wife can do whatever she wants with them.
What does a "financial advisor" know that you don't? What value does he provide for his fee?Quote: billryanIt's been a year since I gave control of my portfolios to my financial advisor and I really love the extra time it gave me. I spent at least an hour a day on it, often two or three when some game was afoot. I thought I'd miss being actively involved but surprisingly I don't care. It was fun trying to stay ahead of the curve but far too time-consuming.
Does he have a record of beating the S&P500 over the long run? Teams of well-educated Wall Street analysts never can, yet they still charge high fees to underperform it. They provide no value...actually negative value
Quote: MDawgThe stock market is not something that may be figured out in the long term other than the general strategy of buy and hold. No shorts ever make money for long, only short term, so it stands to reason that these nervous types with their puts and such that were spanked so hard in the past will not have their day for long. The market has a way of taking back fast money made fast unless the victor is very clever, capable of adapting and nimble - in other words, just as these Reddit types are mostly now giving back their gains so will these shorties give back their gains too.
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You’ll never see $700 on your NFLX long position again. I’m willing to predict that.
Quote: Ace2What does a "financial advisor" know that you don't? What value does he provide for his fee?Quote: billryanIt's been a year since I gave control of my portfolios to my financial advisor and I really love the extra time it gave me. I spent at least an hour a day on it, often two or three when some game was afoot. I thought I'd miss being actively involved but surprisingly I don't care. It was fun trying to stay ahead of the curve but far too time-consuming.
Does he have a record of beating the S&P500 over the long run? Teams of well-educated Wall Street analysts never can, yet they still charge high fees to underperform it. They provide no value...actually negative value
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I consider my time to be quite valuable so if I free up what amounts to about a day a week, it is well worth his fee. I'm always amazed that people don't hesitate to hire a lawn guy or/and a housekeeper, things they can actually do, but think hiring a money guy is a waste of money. I look at it as I hired a part time employee to relieve me of a headache. Different strokes.
By the way- Wall St. workers are more concerned with making money for their employers than their clients.
Quote: billryanQuote: Ace2What does a "financial advisor" know that you don't? What value does he provide for his fee?Quote: billryanIt's been a year since I gave control of my portfolios to my financial advisor and I really love the extra time it gave me. I spent at least an hour a day on it, often two or three when some game was afoot. I thought I'd miss being actively involved but surprisingly I don't care. It was fun trying to stay ahead of the curve but far too time-consuming.
Does he have a record of beating the S&P500 over the long run? Teams of well-educated Wall Street analysts never can, yet they still charge high fees to underperform it. They provide no value...actually negative value
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I consider my time to be quite valuable so if I free up what amounts to about a day a week, it is well worth his fee. I'm always amazed that people don't hesitate to hire a lawn guy or/and a housekeeper, things they can actually do, but think hiring a money guy is a waste of money. I look at it as I hired a part time employee to relieve me of a headache. Different strokes.
By the way- Wall St. workers are more concerned with making money for their employers than their clients.
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Probably the greatest businessman and stock guy in existence says you don’t need a financial advisor/planner. Warren Buffet. He calls it an enigma. Yes, you do need an obstetrician to deliver a baby. Yes, a plumber to do complex sewer work. You do not need a financial advisor. The value is not there. He cannot and will not outperform a simple SP index fund over the long hall by actively managing your account. It has essentially been proven out over decades. In the process, he will charge you fees, commissions, put you in holdings that have fees and potential profit fees.
He has stated this over and over. It is the one profession that is a sham. The advisor, and this has been proven out historically…will not outperform a simple SP index fund. He bet $1 million donated to charity against any takers. 99% of them passed on the bet. The 1 that took the bet conceded defeat well before the 10 years were up.
You make it sound like you need an inordinate amount of time to invest. You don’t. Hit buy. Vanguard S&P index fund. AFIAX. Done. There is no more time you need allotted to it. It will outperform, over time, your advisor/planner.
Quote: Ace2What does a "financial advisor" know that you don't? What value does he provide for his fee?Quote: billryanIt's been a year since I gave control of my portfolios to my financial advisor and I really love the extra time it gave me. I spent at least an hour a day on it, often two or three when some game was afoot. I thought I'd miss being actively involved but surprisingly I don't care. It was fun trying to stay ahead of the curve but far too time-consuming.
Does he have a record of beating the S&P500 over the long run? Teams of well-educated Wall Street analysts never can, yet they still charge high fees to underperform it. They provide no value...actually negative value
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It’s the one industry that is a sham. Financial planner as it relates to investments, specifically stock investments. They will not outperform a basic index fund SP over long haul by actively managing your account. Buffet bet $1 million on this. The bet taker closed the bet before the 10 years were up. Knew he couldn’t win.
Toss in fees, profit percentage, commissions, management fees, etc….
These guys make their money by buying and selling, in effect “actively” managing your account. The only thing they are contributing to is the addition they put on their house with your money.
Big difference: a lawn guy or housekeeper add value. Financial advisors don't...they actually reduce valueQuote: billryanQuote: Ace2What does a "financial advisor" know that you don't? What value does he provide for his fee?Quote: billryanIt's been a year since I gave control of my portfolios to my financial advisor and I really love the extra time it gave me. I spent at least an hour a day on it, often two or three when some game was afoot. I thought I'd miss being actively involved but surprisingly I don't care. It was fun trying to stay ahead of the curve but far too time-consuming.
Does he have a record of beating the S&P500 over the long run? Teams of well-educated Wall Street analysts never can, yet they still charge high fees to underperform it. They provide no value...actually negative value
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I consider my time to be quite valuable so if I free up what amounts to about a day a week, it is well worth his fee. I'm always amazed that people don't hesitate to hire a lawn guy or/and a housekeeper, things they can actually do, but think hiring a money guy is a waste of money. I look at it as I hired a part time employee to relieve me of a headache. Different strokes.
By the way- Wall St. workers are more concerned with making money for their employers than their clients.
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For a truly financially illiterate person (like an athlete or lottery winner without a high school diploma) that suddenly gets millions of dollars, a respected financial adviser would be wise.
Exactly. Using a financial manager is akin to playing a single or double zero roulette wheel when there's wheel without zeros right next to itQuote: TDVegas
Probably the greatest businessman and stock guy in existence says you don’t need a financial advisor/planner. Warren Buffet. He calls it an enigma. Yes, you do need an obstetrician to deliver a baby. Yes, a plumber to do complex sewer work. You do not need a financial advisor. The value is not there. He cannot and will not outperform a simple SP index fund over the long hall by actively managing your account. It has essentially been proven out over decades. In the process, he will charge you fees, commissions, put you in holdings that have fees and potential profit fees.
He has stated this over and over. It is the one profession that is a sham. The advisor, and this has been proven out historically…will not outperform a simple SP index fund. He bet $1 million donated to charity against any takers. 99% of them passed on the bet. The 1 that took the bet conceded defeat well before the 10 years were up.
You make it sound like you need an inordinate amount of time to invest. You don’t. Hit buy. Vanguard S&P index fund. AFIAX. Done. There is no more time you need allotted to it. It will outperform, over time, your advisor/planner.
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Quote: TDVegasQuote: Ace2What does a "financial advisor" know that you don't? What value does he provide for his fee?Quote: billryanIt's been a year since I gave control of my portfolios to my financial advisor and I really love the extra time it gave me. I spent at least an hour a day on it, often two or three when some game was afoot. I thought I'd miss being actively involved but surprisingly I don't care. It was fun trying to stay ahead of the curve but far too time-consuming.
Does he have a record of beating the S&P500 over the long run? Teams of well-educated Wall Street analysts never can, yet they still charge high fees to underperform it. They provide no value...actually negative value
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It’s the one industry that is a sham. Financial planner as it relates to investments, specifically stock investments. They will not outperform a basic index fund SP over long haul by actively managing your account. Buffet bet $1 million on this. The bet taker closed the bet before the 10 years were up. Knew he couldn’t win.
Toss in fees, profit percentage, commissions, management fees, etc….
These guys make their money by buying and selling, in effect “actively” managing your account. The only thing they are contributing to is the addition they put on their house with your money.
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You are welcome to your opinion, and I agree Warren Buffet doesn't need an advisor. If I understood business the way he does, I wouldn't either.
I'm happy, and if that somehow bothers you, I'm sorry.
The way you people obsess over beating the Dow, you'd think it was the only road to wealth. What percentage of their wealth do you think the top 5% have in the market?
Complex tax planning and trusts are something else. That's like legal advice, which you should definitely get in some situations.Quote: unJonI’m in middle somewhere. While I agree with the mounds of empirical data that found that active financial advisors do not beat index funds after reduction for their fees, I do know a few firms that have consistently beaten the market. I also know that there are some things that most people don’t know but should (such as back-door Roth IRA). Understanding tax planning and trusts can also add a lot of value if you care about what happens to your remaining wealth after you die.
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Which firms have beat the S&P for a period over ten years?
