OT, chinese ETF, high risk, too high?

[echappist]

Originally Posted by jimcav

I checked with our bank, usaa, barclays, and a general goggle search and even locking in 10k plus it was 3

You need to buy it via a brokerage account. I buy it in my Roth IRA account. Vanguard requires minimum purchase of $10000 (for new issues), Schwab and Fidelity require $1000.

[joosttx]

Originally Posted by echappist

undoubtedly, you won't be sharing what your secret sauce is, but do you purchase individual stocks or just mutual funds/ ETFs? Also, is the criteria you apply value investing or is it something else?

I buy stocks, preferred stock and some bonds. I don’t own mutual funds. The secret sauce is don’t over think it and don’t be nervous . Find a sector you know about or can understand. Seek quality analysis compare to your assumptions. Find the strongest companies in ththe sector buy the ones with the lowest value. I like dividend stocks . Several years ago I liked MLPs like kinder Morgan now up until recently I like REITs. There is still value in those but it’s harder to find. My biggest winner thus far and I am stilling holding is TLP my biggest losser was Dutch royal shell before the spill.

[jimcav]

Originally Posted by echappist

You need to buy it via a brokerage account. I buy it in my Roth IRA account. Vanguard requires minimum purchase of $10000 (for new issues), Schwab and Fidelity require $1000.

will check there

[Ken Robb]

Originally Posted by MattTuck

Jim,



It sounded to me like you were trying to 'make up for lost time' with a high risk investment, and putting a big chunk of your wealth into a single investment. That is generally a bad idea. Sometimes capital preservation is more important than capital appreciation... and leading into your retirement is one of those times.

I thought the same thing but Matt is better qualified than I to comment. In my years as a real estate broker I saw a few people get very aggressive too close to retirement when they realized they didn't have enough saved/invested to live their dream. When their "can't miss" investments went south instead of having to cut back a little in retirement they had to cut back a lot and get part time jobs to make ends meet. Just for fun look up J. David Dominelli to see where many San Diego folks lost their shirts. It was a classic Ponzi scheme and his office was right across the street from mine.

[NYCfixie]

USAA mutual fees are only second lowest to Vangaurd. Also, how involved do you want to be with managing and researching your investments? Don’t invest in individual stocks unless you have the time to keep current on the analysis.

Our investment advisor is a family realative who was in private wealth management until she retired in her early 50s. Wharton MBA.

Her advice to me and my wife:
Purchase 10 low cost vanguard mutual funds and add at least 10% of your income each year after you have maxed out all 401k and IRA options. Do nothing else but rebalance every other year if needed.

We have done very well with this strategy.

[Ken Robb]

I just chatted with my Schwab broker last week and was surprised to learn that he could get better rates from local banks than I can get myself on CDs and the banks pay Schwab commissions to boot. It sure is a more convenient way for me than setting up new accounts at different banks on my own. We will be sure not to exceed the amount insured by FDIC in any one bank.

[jimcav]

Originally Posted by NYCfixie

USAA mutual fees are only second lowest to Vangaurd. Also, how involved do you want to be with managing and researching your investments? Don’t invest in individual stocks unless you have the time to keep current on the analysis.

Our investment advisor is a family realative who was in private wealth management until she retired in her early 50s. Wharton MBA.

Her advice to me and my wife:
Purchase 10 low cost vanguard mutual funds and add at least 10% of your income each year after you have maxed out all 401k and IRA options. Do nothing else but rebalance every other year if needed.

We have done very well with this strategy.

that was why i did tracking ETF stuff, and i guess a mutual fund is a more diversified but managed variation of that. To be clear I am on track to retire and this is "extra" won't affect that, only if it is hugely positive it frees me up to retire earlier or do something dumb like by a 911

[jimcav]

Originally Posted by Ken Robb

I just chatted with my Schwab broker last week and was surprised to learn that he could get better rates from local banks than I can get myself on CDs and the banks pay Schwab commissions to boot. It sure is a more convenient way for me than setting up new accounts at different banks on my own. We will be sure not to exceed the amount insured by FDIC in any one bank.

i believe it is with Merril Lynch so will ask her to check on CDs. I use etrade and didn't see any CD options there, think I'd have to open an etrade bank account

[Ozz]

Originally Posted by NYCfixie

...Her advice to me and my wife:
Purchase 10 low cost vanguard mutual funds and add at least 10% of your income each year after you have maxed out all 401k and IRA options. Do nothing else but rebalance every other year if needed.

We have done very well with this strategy.

^^

This....it does not have to be complicated or risky.

I would add: start in your 20's.

[biker72]

Originally Posted by NYCfixie

Purchase 10 low cost vanguard mutual funds and add at least 10% of your income each year after you have maxed out all 401k and IRA options. Do nothing else but rebalance every other year if needed.

We have done very well with this strategy.

I've too have done really well with this approach. Many years ago I invested in some high return CD's from Mexico. First few months were great but ultimately didn't turn out well.

[fignon's barber]

Originally Posted by jimcav

i believe it is with Merril Lynch so will ask her to check on CDs. I use etrade and didn't see any CD options there, think I'd have to open an etrade bank account

I would invest $8 in this book. It's really a quick read and will provide you with a nice framework. As for the Chinese etf exploration, I would highly avoid. My wife is a broker who was born in China. We talk about this all the time: one problem with investing in Chinese stocks is that you never know the real numbers, as they are manipulated by the government. Secondly, the Chinese market cannot withstand a prolonged trade war with the US (much worse than US). As for mutual funds, generally a poor choice. Over the last 2 decades, mutual funds have underperformed the market about 80% of the time, and then you pay them a fee for this underperformance.

[MattTuck]

Originally Posted by jimcav

that was why i did tracking ETF stuff, and i guess a mutual fund is a more diversified but managed variation of that. To be clear I am on track to retire and this is "extra" won't affect that, only if it is hugely positive it frees me up to retire earlier or do something dumb like by a 911

If you want a high risk, high return investment, consider some put options on Tesla

[joosttx]

Originally Posted by MattTuck

If you want a high risk, high return investment, consider some put options on Tesla

My cousin is an analyst of Tesla for CNBC (really cool to see
Her on TV) and others. She would disagree.

[joosttx]

Originally Posted by NYCfixie

USAA mutual fees are only second lowest to Vangaurd. Also, how involved do you want to be with managing and researching your investments? Don’t invest in individual stocks unless you have the time to keep current on the analysis.

Our investment advisor is a family realative who was in private wealth management until she retired in her early 50s. Wharton MBA.

Her advice to me and my wife:
Purchase 10 low cost vanguard mutual funds and add at least 10% of your income each year after you have maxed out all 401k and IRA options. Do nothing else but rebalance every other year if needed.

We have done very well with this strategy.

Not having kids helps too

[saab2000]

Originally Posted by fignon's barber

As for mutual funds, generally a poor choice. Over the last 2 decades, mutual funds have underperformed the market about 80% of the time, and then you pay them a fee for this underperformance.

Can you elaborate? Warren Buffet has had bets with fund managers that he will beat them over a ten-year period with an S&P mutual fund vs a managed fund. He wins these bets.

S&P funds are also mutual funds and the good ones are available with fees as low as 0.03%. This price is available for the SWPPX fund from Charles Schwab and doesn't require a massive initial investment.

Are you referring to actively managed funds vs passive index funds? Over time the passive index funds normally win the race.