financial dudez: 100g's investing....what do you do ?

[VenomVeins]

As a 39 year old financial advisor (not retired) with a $3mm house... My tip is to remember we're in a decade long year bull market. Everyone thinks they're smart when stocks have basically gone up every year except 2 in 11 years..

That's my tip for the day.

Everyone in 2000 thought they were smart with 100% of their 401k in QQQ.

ETA: financial advising is so much more than just picking a stock or mutual fund or whatever. Planning your legacy, planning your financial life, generally has little to do with "beating the market."

Agreed.

Its why i diversified my portfolio with stocks, bonds, 401k and Roth IRA.

Any sage advice to offer OP?

Also, what does your own personal portfolio look like?


Had quite a few older family members lose a hefty chunk of money in the 2000 dotcom bubble burst. Not looking to repeat that in my investing life.

 

[Pribilof]

Agreed.

Its why i diversified my portfolio with stocks, bonds, 401k and Roth IRA.

Any sage advice to offer OP?

Also, what does your own personal portfolio look like?


Had quite a few older family members lose a hefty chunk of money in the 2000 dotcom bubble burst. Not looking to repeat that in my investing life.

I'm 100% equities. Mostly individual stocks. For $100k... Possibly buy an index and don't look at it for 20 years. Maybe a factor based ETF would be a good fit. I like QUS. Can't really give advice without knowing the OPs particular situation.

Investing is all about time horizon. If you have 20 or 30 years to invest, forget about the volatility you'll see in one to three your time horizons. Forget about it. It's meaningless. If you retiring next year or two, dial back that risk significantly. Sequence risk will crush your retirement.

A good financial advisor will do a few things for you. First, they will completely eliminate emotion from investing. It's numbers, not emotion. Second, they will do financial planning for you determine where you are compared tobwhere you should be compared tonwhere you need to be when you retire.

Financial planning is more of an art than a science. Most people I deal with it's nearly impossible for them to run out of money. The focus for them is what legacy do they want to live and what kind of estate they want to leave for their children.

last piece of advice, if you have a financial advisor who's trying to sell you some bullshit like non-traded REITs, annuities, structured products,whole life, etc. Run as fast as you can in the opposite direction. Those kinds of products are sold and not purchased. 98% of the time they work out significantly better for the seller than they do for the purchaser. I've never sold any of those types of products in my entire career. Any product with a 10% upfront sales commission is crap. Literally. That's my rule. I don't get paid to sell stuff to people. I get paid to help people plan in their future.

ETA: think of your investment portfolio the same way you do a home. Do you get minute to minute pricing on the value of your home? Of course not. Pick good investments for the long term and forget about it. If you got minute to minute pricing on the value of your home you'd literally have a heart attack.

ETA2: one of my best investments has been Nike. I've got over an 1800% gain. Second best investment has been CCK (a canning company) at a 1500% gain. Neither one is an exciting investment. I bought both at the right time, when they were each unloved in the marketplace. Well managed, low debt loads, good distribution and boring products. Exciting isn't always a winner in investing. Think about that for a second. I have a 1500% gain in a company that makes aluminum cans. You don't need to stretch to have awesome gains over a long period of time. If the market goes down 50%, you need a 100% gain to break even. In my opinion, it's all about minimizing losses, planning for the future, and being realistic about attainable goals.

ETA3: none of this has been meant to be specific investing advice. I don't know anything about any of your specific situations. Investing is done on an individual basis and none of this is a solicitation to buy or sell any particular securities. Past performance is no guarantee of future results.

ETA4: my portfolio is significantly different then most of my clients my own age. I do this for a living and I'm comfortable with the risk and volatility of my portfolio. if you're not comfortable with the volatility, 100% equities is not the correct allocation for your portfolio.

 

[Stanley]

Sounds like you need to give your money to one of these guys.

 

[jmsa540]

Either ford will go bankrupt or they will skyrocket.

A few weeks ago, end of December, I put another $10g into apple, $10g into Facebook, and $10g into Ford.

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[coposrv]

jesus christ why so bitter on the flippers and realtors LOL...bad experience?

I know plenty of people doing this shit and making GOOD money. and no I'm not saying it's easy. I've been selling my entire life so I think real estate could really be my cup of beer. =)

It’s not that I’m bitter it’s that years ago realtors were necessary to a transaction and knowing the basics of different areas, lenders, inspectors etc was valuable knowledge and only acquired through years of guiding clients through successful transactions.

Now we can all find out the second a house is on the market, general neighborhood demographics, price per square foot, building permits etc etc all within a few minutes but realtor fees still reflect a time when they were the ones that would be doing all of that legwork for you.

For example; A few years back a mutual friend of ours who is a realtor wanted to show us a few homes so we followed her around on a Saturday. I asked her, the realtor we started to work with to provide these things for me and I was looked at like I had 6 heads. That experience was with more than just one realtor. I’m sorry but you’re going to have to do more than just unlock the door for me if you’re expecting a decent commission.

It's just an outdated model and it needs to evolve.



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[7998]

It’s not that I’m bitter it’s that years ago realtors were necessary to a transaction and knowing the basics of different areas, lenders, inspectors etc was valuable knowledge and only acquired through years of guiding clients through successful transactions.

Now we can all find out the second a house is on the market, general neighborhood demographics, price per square foot, building permits etc etc all within a few minutes but realtor fees still reflect a time when they were the ones that would be doing all of that legwork for you.

For example; A few years back a mutual friend of ours who is a realtor wanted to show us a few homes so we followed her around on a Saturday. I asked her, the realtor we started to work with to provide these things for me and I was looked at like I had 6 heads. That experience was with more than just one realtor. I’m sorry but you’re going to have to do more than just unlock the door for me if you’re expecting a decent commission.

It's just an outdated model and it needs to evolve.



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Agreed, the real estate agent is probably one of the most antiquated & useless parts of buying a house. They get 5% and really are worth 1% at best.
Everybody I know is flipping houses. If you can go from close to close in 6 months you'll be ok. But you need to have a team that is on your beacon call.
2 of the people I know that make money doing it, 1, owns his own construction business and works at it 7 days a week, and the other hires drunks and drug addict day labors to do everything. I consciously couldn't sell a house where some meth addict glued the pex together and than wired the electric.

 

[jaxbusa]

I asked her, the realtor we started to work with to provide these things for me and I was looked at like I had 6 heads. That experience was with more than just one realtor. I’m sorry but you’re going to have to do more than just unlock the door for me if you’re expecting a decent commission.

Sent from my iPhone using the svtperformance.com mobile app

Preach! I’ve spent a lot of time in the past few years looking at land and homes. I’ve been blown away by the lackadaisical realtors. One showed my wife some land that tuned out to be the land in front of what was for sale. That same one had no clue as to what was the size or legal aspect of the easement was. Another one showed us what was supposed to be a 3,000 square foot home that was actually a small old 1,500 square foot farm house and a 1,500 square foot enclosed dock on a pond. That guy was killing me. There were electrical cables that were stapled to the wall and door frames. I’m not an electrician, but I was trying to tell our realtor it was wrong and won’t pass a home inspection. He argued and acted like the house was gold.


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[BlckBox04]

no offense to anyone who is a realtor or real estate broker, but I'm also in agreeance that 9 times out of 10 they're wastes.

I'm trying to sell my condo an I have a reasonable offer, but to get me technically to my asking price my realtor suggested her and the buyer's agent would take off HALF OF A PERCENT each on the commission. The buyers agent came back and said she's not allowed to lower her commission, which is 100% bs and shows the scumbag inside of her. If the buyer knew we agreed to a deal to take her offer on my contingency she would flip a shit because her agent is the one who in essence killed the deal.

 

[coposrv]

2 of the people I know that make money doing it, 1, owns his own construction business and works at it 7 days a week, and the other hires drunks and drug addict day labors to do everything. I consciously couldn't sell a house where some meth addict glued the pex together and than wired the electric.

Exactly. If you’re the investor you have to be in the industry or be an absolute scumbag doing hack work. Most of the time it’s the hacks. In mass a homeowner is allowed to pull his own permit for electrical work. A lot of flippers will do this then hire cheap unlicensed and uninsured “electricians”. I’ve fixed more shit for new homeowners who bought a flipped property than you can believe and the things I’ve found will make your head spin.


Sent from my iPhone using the svtperformance.com mobile app

 

[nxhappy]

It’s not that I’m bitter it’s that years ago realtors were necessary to a transaction and knowing the basics of different areas, lenders, inspectors etc was valuable knowledge and only acquired through years of guiding clients through successful transactions.

Now we can all find out the second a house is on the market, general neighborhood demographics, price per square foot, building permits etc etc all within a few minutes but realtor fees still reflect a time when they were the ones that would be doing all of that legwork for you.

For example; A few years back a mutual friend of ours who is a realtor wanted to show us a few homes so we followed her around on a Saturday. I asked her, the realtor we started to work with to provide these things for me and I was looked at like I had 6 heads. That experience was with more than just one realtor. I’m sorry but you’re going to have to do more than just unlock the door for me if you’re expecting a decent commission.

It's just an outdated model and it needs to evolve.



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It's not even close to being that easy. you really think that's all they do, unlock the door and show you the house? there is WAY more underneath than what you realize...

 

[nxhappy]

no offense to anyone who is a realtor or real estate broker, but I'm also in agreeance that 9 times out of 10 they're wastes.

I'm trying to sell my condo an I have a reasonable offer, but to get me technically to my asking price my realtor suggested her and the buyer's agent would take off HALF OF A PERCENT each on the commission. The buyers agent came back and said she's not allowed to lower her commission, which is 100% bs and shows the scumbag inside of her. If the buyer knew we agreed to a deal to take her offer on my contingency she would flip a shit because her agent is the one who in essence killed the deal.

if it doesn't sell in this market within 30-45 days, the price is too high.

 

[nxhappy]

Exactly. If you’re the investor you have to be in the industry or be an absolute scumbag doing hack work. Most of the time it’s the hacks. In mass a homeowner is allowed to pull his own permit for electrical work. A lot of flippers will do this then hire cheap unlicensed and uninsured “electricians”. I’ve fixed more shit for new homeowners who bought a flipped property than you can believe and the things I’ve found will make your head spin.


Sent from my iPhone using the svtperformance.com mobile app

then you should be glad, that gives you a job =)

 

[ON D BIT]

Nothing now. Corona virus may push the Dow down for 3-4 straight months. 10% short and bank the rest...
The Coronavirus Is A Black Swan Event That May Have Serious Repercussions For The U.S. Economy And Job Market

 

[Klaus]

I bought both at the right time, when they were each unloved in the marketplace.

Dont confuse luck with skill. Just saying.

 

[nxhappy]

As a 39 year old financial advisor (not retired) with a $xmm house... My tip is to remember we're in a decade long year bull market. Everyone thinks they're smart when stocks have basically gone up every year except 2 in 11 years..

That's my tip for the day.

Everyone in 2000 thought they were smart with 100% of their 401k in QQQ.

ETA: financial advising is so much more than just picking a stock or mutual fund or whatever. Planning your legacy, planning your financial life, generally has little to do with "beating the market."

Think of Treynor's car goals compared to yours. That's the world I live in.

for sure, I know it's way more complex lol.

 

[nxhappy]

I'm 100% equities. Mostly individual stocks. For $100k... Possibly buy an index and don't look at it for 20 years. Maybe a factor based ETF would be a good fit. I like QUS. Can't really give advice without knowing the OPs particular situation.

Investing is all about time horizon. If you have 20 or 30 years to invest, forget about the volatility you'll see in one to three your time horizons. Forget about it. It's meaningless. If you retiring next year or two, dial back that risk significantly. Sequence risk will crush your retirement.

A good financial advisor will do a few things for you. First, they will completely eliminate emotion from investing. It's numbers, not emotion. Second, they will do financial planning for you determine where you are compared tobwhere you should be compared tonwhere you need to be when you retire.

Financial planning is more of an art than a science. Most people I deal with it's nearly impossible for them to run out of money. The focus for them is what legacy do they want to live and what kind of estate they want to leave for their children.

last piece of advice, if you have a financial advisor who's trying to sell you some bullshit like non-traded REITs, annuities, structured products,whole life, etc. Run as fast as you can in the opposite direction. Those kinds of products are sold and not purchased. 98% of the time they work out significantly better for the seller than they do for the purchaser. I've never sold any of those types of products in my entire career. Any product with a 10% upfront sales commission is crap. Literally. That's my rule. I don't get paid to sell stuff to people. I get paid to help people plan in their future.

ETA: think of your investment portfolio the same way you do a home. Do you get minute to minute pricing on the value of your home? Of course not. Pick good investments for the long term and forget about it. If you got minute to minute pricing on the value of your home you'd literally have a heart attack.

ETA2: one of my best investments has been Nike. I've got over an 1800% gain. Second best investment has been CCK (a canning company) at a 1500% gain. Neither one is an exciting investment. I bought both at the right time, when they were each unloved in the marketplace. Well managed, low debt loads, good distribution and boring products. Exciting isn't always a winner in investing. Think about that for a second. I have a 1500% gain in a company that makes aluminum cans. You don't need to stretch to have awesome gains over a long period of time. If the market goes down 50%, you need a 100% gain to break even. In my opinion, it's all about minimizing losses, planning for the future, and being realistic about attainable goals.

ETA3: none of this has been meant to be specific investing advice. I don't know anything about any of your specific situations. Investing is done on an individual basis and none of this is a solicitation to buy or sell any particular securities. Past performance is no guarantee of future results.

ETA4: my portfolio is significantly different then most of my clients my own age. I do this for a living and I'm comfortable with the risk and volatility of my portfolio. if you're not comfortable with the volatility, 100% equities is not the correct allocation for your portfolio.

i'll admit my main issue is, I can't "set it" and "forget it" lol.... I like trading stocks. I think a good move is dumping more into 401k ..

I have been selling things my entire life, I love doing it and can pretty much sell a dead bird to a blind kid lol...that is why I am thinking about full time real estate. I have been watching Grant Cardone recently, that man is simply amazing.

 

[BlckBox04]

as per the super wealthy and super smart people of svtp you should definitely rent something. you get the most return on your investment that way.