Investing 102

[WSSix]

"There's not such thing as a failure who keeps trying. Coasting to the bottom is the only disgrace" - Blues Traveler- Just Wait




Anyway, I've been absent from my own thread for too long and just caught up with it today. I'm going to sit down and figure out how to move things around within the accounts I already have since i have both a ROTH IRA and 401K. Both are set up on autopilot basically. I think I set the 401K at moderate growth level and I know I set the ROTH at a targeted retirement age of 2045 with in Vanguard's Star Fund. I'm not sure I want to touch the ROTH. I think it may be just fear on my part. I honestly am not sure how to read exactly what it's doing in terms of performance overall. I believe the most I can see is from 3 years ago on and I've had it longer. I don't know what I've put into it total versus where it is sitting right now. I know that's bad but I was kind of working on the assumption that I would always be able to pull that info up from day one on their website.

The 401K is new and for whatever reason I feel more comfortable playing with it. I just need to figure out Fidelity's website.

All the same, the point is, I'll be making my changes and posting the results etc as I said I would many many pages ago. I started the thread and I'm ok with being the guinea pig even if I walk into a wall, doh!

Alright, time to plug in the Rush In Rio DVD and get to work. I'll be back.

[GregWeld]

Originally Posted by lmnop

Hey Greg*
*You just have to buy down your loss on your condo. By three more at 100k. Total investment on 4 units 600k or $150k per condo. Net rent per unit $700 so on 4 units that is $2800 per month. That is 5.6% on the 600k or $33,600 a year until the market comes back. I know you know this and don't care for the hassle but $1200 a month on $100k condo is really good rent for the landlord. Plus I learned about buying down a loss a couple of pages ago.*
Ray

Good info -- and for this forum is very good information for OTHERS.... as this can and does work. I'll "average down" a stock investment - which I've discussed in previous posts.

I have owned LARGE (300 plus units per building) class A apartment complexes... so I understand the rent reward capital depreciation etc. BUT -- big BUTT -- they are professionally managed and I just collect a check every 6 months. Again -- the risk/reward/work factor just isn't worth the 6 tenths of a percent differential of owning McDonalds or Annaly Capital Management. $600K in Annaly (NLY) gets you 35,000 shares of dividend paying stock - it pays .57 per share per quarter... or a total of $79,800.00 per year.

Do you see why I'm rich and you're not?

[WSSix]

This is a copy and paste from my Fidelity 401K account under the heading of Average Annual Total Returns(%) as of 9/30/2011. Yeaaaaaaaaaaaah


1 Year -0.35 -0.12
3 Year 6.07 4.45
5 Year 3.24 2.08
10 Year 6.30 N/A

I don't think that's too stellar personally.

[GregWeld]

Originally Posted by WSSix

"There's not such thing as a failure who keeps trying. Coasting to the bottom is the only disgrace" - Blues Traveler- Just Wait




Anyway, I've been absent from my own thread for too long and just caught up with it today. I'm going to sit down and figure out how to move things around within the accounts I already have since i have both a ROTH IRA and 401K. Both are set up on autopilot basically. I think I set the 401K at moderate growth level and I know I set the ROTH at a targeted retirement age of 2045 with in Vanguard's Star Fund. I'm not sure I want to touch the ROTH. I think it may be just fear on my part. I honestly am not sure how to read exactly what it's doing in terms of performance overall. I believe the most I can see is from 3 years ago on and I've had it longer. I don't know what I've put into it total versus where it is sitting right now. I know that's bad but I was kind of working on the assumption that I would always be able to pull that info up from day one on their website.

The 401K is new and for whatever reason I feel more comfortable playing with it. I just need to figure out Fidelity's website.

All the same, the point is, I'll be making my changes and posting the results etc as I said I would many many pages ago. I started the thread and I'm ok with being the guinea pig even if I walk into a wall, doh!

Alright, time to plug in the Rush In Rio DVD and get to work. I'll be back.

Vanguard Star Fund SUCKS! That is the fund you should move. It invests in other Vanguard funds --- how dumb is that (for them not you) and has a 5 year growth of a whopping 3%

This is a bunch of drunks throwing darts at a dart board of a bunch of drunks throwing darts. A fund investing in other funds all owned and managed by the same group. UGH!

In TEN YEARS its UP 23% -- so 10 grand invested is now 12 grand. OMG! Horrible.

Sorry -- it's just another Mutual Fund disaster du jour.

[WSSix]

Well crap. It appears I can't change my 401K around to the point where I can select what stocks I am in. I can only make changes based on a few premixed portfolios or single index funds like the S&P 500. Is that common with employer sponsored 401K plans? Can I have more than one 401K plan where I control everything or is controlling my ROTH the only option I have now beside going outside either of these plans totally and opening my own brokerage account with say Schwab?

I also finally figured out how to view the performance of my 401K since inception back in 2010 and it's at 7% since the start. Not bad but more would be nice, lol.

[Bucketlist2012]

Originally Posted by GregWeld

Good info -- and for this forum is very good information for OTHERS.... as this can and does work. I'll "average down" a stock investment - which I've discussed in previous posts.

I have owned LARGE (300 plus units per building) class A apartment complexes... so I understand the rent reward capital depreciation etc. BUT -- big BUTT -- they are professionally managed and I just collect a check every 6 months. Again -- the risk/reward/work factor just isn't worth the 6 tenths of a percent differential of owning McDonalds or Annaly Capital Management. $600K in Annaly (NLY) gets you 35,000 shares of dividend paying stock - it pays .57 per share per quarter... or a total of $79,800.00 per year.

Do you see why I'm rich and you're not?

LOL

I never wonder why you are rich...I am just here to learn some skills to grow my nest egg even more..

Your words and your knowledge tell me why, and Go Greg go..

We can all learn and put the knowledge to work, all be it, at a smaller scale..

My wife and I were talking over coffee this morning, and we are so Glad we put as much money as we did to work, when we did.

Keep sharing knowledge with us... There are some hardcore few of us that are willing to comment, good or bad..

But I know that many more are reading and not commenting.. Also maybe overwhelmed..

i know we talked about a recap, and you did, but among your other millions of things you have going, could you think of the guys not commenting, and see what we can do to get them commenting.

Many successful car guys, that are still overwhelmed with Investing..

Maybe a 101 Generalization of the whole concept.. Better you do it than i do it..Newbie and all..

Thanks .. Too many are reading and not commenting, and i know they have questions ..

Thanks,

Mike V.

[GregWeld]

Yes -- I'd forgotten about the recap.

My comments are all meant in jest of course.

When I write -- such as the comparison of keeping the condo vs buying more of them and renting them out -- is to try to show the THOUGHT PROCESS over arguing about what is the "best way" or the "right or wrong" way. There are so many ways to think about money -- so many what ifs -- that what I'm trying to put a slant on is just to actually put some figures down and start to make these what if scenarios. EACH INDIVIDUAL needs to adjust to meet their needs. There are alternatives if you have the options and people need to examine them.

[Bucketlist2012]

Originally Posted by GregWeld

Yes -- I'd forgotten about the recap.

My comments are all meant in jest of course.

When I write -- such as the comparison of keeping the condo vs buying more of them and renting them out -- is to try to show the THOUGHT PROCESS over arguing about what is the "best way" or the "right or wrong" way. There are so many ways to think about money -- so many what ifs -- that what I'm trying to put a slant on is just to actually put some figures down and start to make these what if scenarios. EACH INDIVIDUAL needs to adjust to meet their needs. There are alternatives if you have the options and people need to examine them.

Thanks about the recap..

And I always take your comments with good intentions.

Yes, I have talked to a few people that are interested, but they just get lost.

You have a few at the front of the Class at the 102 level, me God knows somewhere in the middle, and MANY that may need occasional recaps.

But I do understand the basis of your thread, that the viewer do his or her homework. Totally agreed. I have spent much time on research, and i have just scratched the surface.

But since my Body is not what it used to be, my mind must make up for it, so i am passionate about money, investing, and Life, and the troops may need motivation.

No matter how easy you spoon feed us, we each must determine our specific needs,kids, age,risk, health,.. So many variables , that there is plenty of homework to be done.

[WSSix]

Well nothing is going to happen today for me. I can't figure out how to move things around from the website. Oh well, I'll call this week sometime and speak with a human. Why do they have to make it so difficult? Is this some sort fo ploy to make sure they make as much money off you as possible without you being able to control everything easily, lol?

Oh and I don't have a Star Fund I have their VTIVX fund. Still not great though. It gets good ratings from Morning Star et al though.

[Bucketlist2012]

Originally Posted by WSSix

Well nothing is going to happen today for me. I can't figure out how to move things around from the website. Oh well, I'll call this week sometime and speak with a human. Why do they have to make it so difficult? Is this some sort fo ploy to make sure they make as much money off you as possible without you being able to control everything easily, lol?

Oh and I don't have a Star Fund I have their VTIVX fund. Still not great though. It gets good ratings from Morning Star et al though.

While you are here, thank you for starting this thread.

Although Greg is giving us the majority of knowledge, YOU started this thread.

Whatever , everyone can do to help steer you right, will be done..

Best thread ever.. I tried on other sites to motivate people...

I was bothering their car time...Ok then...You guys are into it...