Nope, part it is rural property in a growing area that I got cheap. The rest is rental.
Best type of investment
- Thread starter Twisted2v
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Nope, part it is rural property in a growing area that I got cheap. The rest is rental.
Put it all on “RED”...
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They'll tag you when you convert to primary res.
I didn't know that until recently....buddy didn't either and they BFd him.
The best investment is the one you know and understand. I invest in real estate because that is what I know. I could make money in the stock market, but I don't have the time to learn and understand it, and I got really screwed over by an investment manager a while back. I don't trust people to invest for me.
luxury watches and bitcoin....
Hey smart guy thanks for spelling out how investing 101 works
but why not reply to the OP's question with your own insight rather than trying to pick at my post... which happens to answer his question regarding where to put his money, while providing a decent return in the short term, and how he would be taxed if he pulled the money out early... of which EVERYTHING I wrote is true.
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Hey smart guy thanks for spelling out how investing 101 worksbut why not reply to the OP's question with your own insight rather than trying to pick at my post... which happens to answer his question regarding where to put his money, while providing a decent return in the short term, and how he would be taxed if he pulled the money out early... of which EVERYTHING I wrote is true.
but why not reply to the OP's question with your own insight rather than trying to pick at my post... which happens to answer his question regarding where to put his money, while providing a decent return in the short term, and how he would be taxed if he pulled the money out early... of which EVERYTHING I wrote is true.
Thanks for the complement.
If you took the time to read post #6, you will find that I addressed the question on the investment chassis and since the money is used for a home purchase or downpayment, consider a conservative portfolio since there is the potential for market volatility in a short time frame.
Investment advising mistake 101 is telling someone returns on mutual funds average 10%-14% without specifying investment objective, time frame and risk.
If the OP needed the money in 12 months, and as an example....invested in an International growth fund ( due to your stellar advice of “ mutual funds average a return of 10%-14%”) and lost 10% or more......the OP may become pissed off because he thought he would get 10%-14% return.
If the OP utilized a Roth IRA, his gain portion regardless of time held is always taxed at ordinary income tax rates plus a potential 10% penalty if withdrawn under age 59.5. He may be able to forgo most or all of the penalty portion on a first time home purchase. Utilizing a brokerage account ( non IRA) and holding the asset for 12 months and 1 day would be taxed at no more than 15% or less on the gain portion. I guess you knew that but failed to mention it.
Its a good thing the OP did not ask about share classes of mutual funds, ETF investing or asset allocating.
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It's a good thing we have Ohio Snake here to tell us how high risk = high returns and low risk = low returns. And there is no conceit in his family... he has it all.
I'll leave these examples here:
Fund ... 1 Year ... 3 Year ... 5 Year ... 10 Year
FOCPX ... 26.04% ... 19.41% ... 21.16% ... 15.03%
FNCIF ... 23.10% ... 15.72% ... 18.31% ... 13.67%
FBCGF ... 28.19% ... 16.01% ... 18.45% ... 13.65%
FTRNX ... 23.37% ...14.33% ... 16.28% ... 11.67%
I'll leave these examples here:
Fund ... 1 Year ... 3 Year ... 5 Year ... 10 Year
FOCPX ... 26.04% ... 19.41% ... 21.16% ... 15.03%
FNCIF ... 23.10% ... 15.72% ... 18.31% ... 13.67%
FBCGF ... 28.19% ... 16.01% ... 18.45% ... 13.65%
FTRNX ... 23.37% ...14.33% ... 16.28% ... 11.67%
Solid post. The exact thought crossed my mind when I read the OP.
Your the man with plan on investing!
1.) Mutual funds end in the ticker symbol letter X. FNCIF and FBCGF do not seem to be mutual funds, ETF or stock when searched by ticker. Are you sure you have the correct ticker? I can only assume you are sticking with Large Cap US Domestics such as your other two legit mutual funds.
2.) The two mutual funds you list are fantastic performing funds that meet your statement of averaging 10%-14% (3,5,10- year). You cant average a 1-year return, but lets add that in for argument sake. You missed my point that you stated in post #5 “most funds WILL return 10%-14%” which is blatantly false. Fidelity has 1056 funds as of 7/18/18 and I can assure you that “most of the funds” DO NOT average 10%-14%....and I am only relating to Fidelity Funds to keep it simple stupid.
3.) You are using US Domestic Large Cap as your point. You are correct they have performed fantastic over the long term. After all, the investment objective for Large Cap growth is based on long term investing. The OP does not indicate if the investment is for the short term, however there is an indication of at least 12 months invested based on long term capital gains tax in post #1. It is assumed that he may use the proceeds within 3-5 years since since he referenced first home purchase and the 5 year wait on a Roth IRA in the same post.
4.) The legit mutual funds you use are benchmarked to the SP500. The benchmark and the funds have not seen any volatility since 2008. The maximum drawdown on FOCPX and FTRNX are -45.98% and -44.45% respectively in 2008. The best year for the same two funds is 2009 with a return of 62.25% and 44.94% respectively. The markets are bumpy right now. The OP should be informed that these funds could have a huge loss in an attempt to get the average gain. Should the OP ignore the potential for a large loss on the short term? Your fantastic average returns hide this fact.
5.) When should one expect the markets to have a pullback, correction or see a bear market? Know one knows, however there are a few statistics one should be aware of:
a.) The SP 500 has already been -10% earlier in the year and is currently 2% up.
b.) The current market expansion is at 109 months, the record months for expansion (1990’s) is 120 months. The average months for expansion is 47 months and the average for a recession is 15 months. The current bull market is long over due for a pull back. Short Term investing in Large Caps under these conditions may not be the wisest strategy. Again, no one knows when the market will finally pull back.
Your original post was blatantly false with your statement and lacked the proper information for the OP to make an informed decision. The two legit funds you provided are great performers....no question about it. BTW- ProFunds has a fund up 70% YTD. May be he should go fo that one!
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Fixed it for you.
The others are Fidelity Nasdaq Composite Index Fund and Fidelity Blue Chip Growth Fund.
Just because I didn't quote my undergrad investing course or write a dissertation so I can prove how savvy I am doesn't mean I mislead him or provided him with false information. Notice I didn't mention 401K, stocks, bonds, CD's, real estate, venture capital, or anywhere else I invest my money... because they weren't relevant to his question or situation.
I gave him enough information to investigate and/or open an account with Fidelity, use their available resources, and make the best decision for his needs.
You on the other hand sound like a typical financial adviser who overwhelms clients with information, collects a no risk fee for your "services"... then turns around and invests the same way I suggested.
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Your quoted etf's and mutual fund tickers were cherry picked to 2008 when the markets were extremely low. Timing is everything in the market. The longterm return of the S and P 500 is somewhere around 7%. Bear in mind that at the end of 1964 the Dow was at the same level it was in 1981.
If they were cherry picked to 2008 why the strong 3-5 year returns then?
Did I tell the guy to put all his money here? Nope.
Did I tell the guy he would become a millionaire? Nope.
Should I have to tell someone that a higher percentage return will have a higher risk? Not if the company where I suggested he open an account highlights the risks for him before he purchases.
Did I tell the guy to put all his money here? Nope.
Did I tell the guy he would become a millionaire? Nope.
Should I have to tell someone that a higher percentage return will have a higher risk? Not if the company where I suggested he open an account highlights the risks for him before he purchases.
Because we are in a bull market. Bull markets go in multi year stages. Timing is everything. I would not put any significant amount of money into the market right now. If you think fund managers actually know what to do you need to re-evaluate. Most actively managed funds lose to the passively manage S and P 500 indexed funds.
Thanks for disclosing the actual fund names. The minimum purchase requirement may be relevant only to Fidelity Funds.
Its very clear you did not get an undergrad investing course. What a great way to get sued if you were an Advisor giving investment advice like that. Your post was misleading and false.
Here is your opportunity........Please explain exactly what you mean with your written post “buy Mutual Funds ($2500 minimum purchase), most will return between 10%-14% on average”.
Your post implies all mutual funds have a minimum purchase amount of $2500 and most WILL have a return between 10%-14% on average.
I am a Financial and Investment Advisor. I do provide a lot investment strategies and services to clients. As Advisors, we do not guarantee anything unless its a declared fixed rate of return. Your right, I do charge a fee for my services. One thing to be very clear about......I would NOT invest my clients the same way you suggest. I’d be sued if I followed your methodology of promising returns.
Oh, you probably
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To you Vegas Michael and Ohio Snake... I made suggestions based on where I put MY extra money for short/mid term growth and even provided examples... care to share what you're doing with YOUR money?
Keep arguing.....
You told the guy he will average 10%-14% with mutual funds.
I bet the average return up to 10 years on large caps will look super fantastic from Q1 2009 through Q1 2019 if the markets stay status quo.
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I’d charge you for the advice and i purchase straight stocks.
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FINALLY we get to the bottom of it... none of us are getting paid for our "services".
Try stepping out of the office for 5 minutes, remember we are on a car forum, and try sharing what YOU would do with YOUR money given the circumstances the OP provided instead of grandstanding.
Are you going to tell me that you DON"T take advantage of a strong market?!
And you guys keep referencing 2008-2009... Hell EVERYTHING looks great compared to 2008... even stocks.
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