How many of you invest?
- Thread starter HawkFan75
- Start date
You do realize most fund managers can't beat the market. http://fortune.com/2017/04/13/stock-indexes-beat-mutual-funds/
Do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes?.... O you of little faith? So do not worry, saying, 'What shall we eat?' or 'What shall we drink?' or 'What shall we wear?' For the pagans run after all these things, and your heavenly Father knows that you need them (Matt 6:25,31,32).
There are plenty of reputable mutual fund companies that have funds beating their index over long time spans (10-15+ years). I'm not interested in a fund beating their index in 1 year (and neither are index fund managers).
So a 4.5% cut to detroits retirees should enter into the op’s investment strategy.
Got it.
I got to believe we are going to see more defaulting as time goes.
Just waiting for an entire state to declare bankruptcy and make huge cuts.
For me, a good wealth management advisor is worth the fee. I don't enjoy researching investments - I'd rather read HROT. I like the service aspect of my advisor as well.
I use a passive investment strategy in which my money is invested in all market sectors, and I'm about 60/40% equity v fixed income. I rebalance quarterly. Some of the funds I use are not available to an individual investor.
I've used the same strategy and advisor since 2002 and I earned an annual return of 7.6%, after all fees. By being balanced, I have minimized my risk.
Works for me.
I use a passive investment strategy in which my money is invested in all market sectors, and I'm about 60/40% equity v fixed income. I rebalance quarterly. Some of the funds I use are not available to an individual investor.
I've used the same strategy and advisor since 2002 and I earned an annual return of 7.6%, after all fees. By being balanced, I have minimized my risk.
Works for me.
Take $1000 of it and put it into Cryptocurrency. Assume that $1000 will be lost but it has the potential to turn into $1,000,000. I like Verge XVG and Litecoin LTC right now. Verge has the potential to make huge jumps if people adopt the technology. It's like bitcoin only faster and more secure.
I kept reading waiting for the punchline.
If somebody advised you to do that, they should be fired. That’s an awful decision in my opinion.
My father in law who died with about $12 million in assets advised me.
Seemed to make sense.
Working out for me great but thanks for your opinion.
My wife and I both have ipers. My pension will be three times hers, if earning patterns continue. When we retire, we will max her pension payout, with the option for hers to pay a lump sum value on her death if it hasn’t already been reached. Mine will be a survivors pension. In all likelihood, I will die first. When that happens, she can cash the remainder of hers out, then begin drawing mine. If she dies first, I can do the same thing.
I don’t think any of those give an example of benefits not being paid that we’re already owed. Now California is a good example. Many municipalities in California stopped making contributions to calpers, and retiree benefits were cut or stopped.
Having said that, IPERS is very sound financially. Relative to other pension funds. I don’t have any choice but to participate. Last check my wife and I had just at 400k in value. That’s our retirement.
Sounds like you've thought about it and come up with a plan. Just curious...could she draw both hers and yours, or is that not allowed?
FWIW, active managers tend to outperform during market turmoil. Given the age of this bull I have a good mix of active and passive right now.
According to this story it's only about 84% funded and has $5.6 billion of unfunded liability.
https://www.desmoinesregister.com/s...unfunded-liability-nears-56-billion/94735470/
I’m impressed with those asset numbers for sure. Hope he didn’t have liabilities against them to offset.
At any rate, this is about what you posted, which I’m going to attempt to repeat to see if it is accurate. When you paid your first house off, you cashed out all investments to put 40% down on a second home. Is that in fact what you did?
Yes.
Left about one year salary in the market with stop losses.
Took the rest and invested it in my retirement/vacation home.
Once that was paid off back in land and market.
Mt mother is spending 6K per month now in assisted living. The yearly growth in her funds pays for everything plus SS and Pension pay for everything. I do know older people that are about to use up there insurance, and don't know what to do after that happens.
Ok, I do not understand why one would do that though... think of the market gains you missed out on, unless somehow this all started in 2007 and you bought the real estate during 2009 when it was distressed. Even then the markets have roared since 2009. I’m just saying I’d never advise anybody to do what you did, although to be fair I’m not a financial advisor, planner, broker, etc.
What the PASSIVE investor really doesn’t understand is you can buy any stock at any time. Good luck selling some of them during a bear though, especially the smaller or mid cap stocks that were lifted up to 80x earnings and no active investor will buy them on the way down.
The only way all of these ETFs work when they make up this much of the market is if the flows never stop.
84% is actually pretty damn good. At least when compared to many others. I deal with pera a lot out here in Colorado. It is only 64% funded right now.
You seem to know your stuff. I have to be really careful as I am a licensed professional, but I am moving more and more to active right now.
Huh? So how many individual stocks is it ok to own before you aren’t an idiot?
No, it's not. It's better than some plans that are in big trouble, but I wouldn't call it pretty good. A big market downturn could put a lot of people in jeopardy of substantially reduced benefit levels.
Saying pretty damn good was not the best way to put that. I really meant it in the context of comparing it to many other plans that are in very poor shape.
As many as it takes to eliminate your exposure to unique risk that you aren't being compensated for.
I wonder what the actuarial assumptions are for ipers or if that’s easily found? My guess is they’re assuming at least 7.5% return per annum?
For retail investors anyways. Institutions can always redeem and take possession of the underlying securities.
Very good point although I believe individuals could end up redeeming in kind as well?
Edit - I believe the market maker can decide but I’d assume for most individuals this would be a silly F-You. It could easily happen with illiquid bond funds though.
That I agree with. Illinois is a big mess, and several other states have plans with big problems, too. It's just not as noticeable as long as the equity markets are doing well.
You're spot on with that comment. The IPERS chiefs just announced a reduced return projection a month or so ago. It was either going 8% down to 7.5% or 7.5% down to 7%. I don't remember which. It caused a slight change to funding estimates.
Well, that’s closer to what reality will be than some estimates for other plans... I’m not a big fan of these type of retirement plans at all, but IPERS is by all accounts fairly well off.
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