New answers tagged

1

Here's the thing. BitCoin, Index Funds, Gold Coins, Beanie Babies all have a value which we use currency (e.g. Dollars) to measure. All else being equal the value of those items doesn't change just because of inflation/deflation. So if inflation makes the dollar worth half as much, your index fund will likely be priced twice as high because that's how many ...


0

Welcome to the site :) Take all this with a grain of salt, since none of us know the details of your situation, but I think that's a reasonable start. It's good that you're focusing on low-cost index funds, and looking for diversification. Here's the things I'd personally recommend looking into as potential changes. I'll link to a lot of Ben Felix's ...


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If you are starting your Roth IRA now, your initial investment is limited and so it will not be possible to create the diversified investment that you propose. Most mutual funds have minimum initial investments of a few thousand dollars for general investments but lower amounts (typically $1000) for IRA accounts provided that you agree to make additional ...


0

Large cap, mid cap, small cap, US stock, international stock, junk bond, reit.....their performance correlation are so high that you cannot reduce risk by much diversifying/allocating among them. Decide how much you want to stay in cash/investment grade bond and allocate the remaining in any way you like.


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It's important to remember the ramifications of hyperinflation or deflation. In periods of inflation, the real value (i.e. purchasing power) of a currency is reduced, so the value of your index funds (all else held equal) decreases. However, higher inflation means higher prices, which means higher profits for companies, which means higher stock prices, which ...


4

Assuming you are sure you want to make the move (and I agree, I did the same): The best time is when they are (both) rather low. That way, you 'harvest' losses for taxes. You get less when selling, but you also pay less when buying, which about evens out. This is true for any taxable investments, so do it on a (near) bottom-day. It does of course not apply ...


7

The only certain things about investing are taxes and fees. So, calculate how much you lose to taxes when making the transition. Calculate how much you would save on fees every year after making the transition. You didn't specify the details of the taxation scheme. I'm not familiar with US tax system, but at least in Finland we pay 30% capital gains tax on ...


13

To me, there are two great reasons to invest passively. The first is that it is impossible to time to market. Bargains may come along and you may choose to do some individual stock investment then, but it will be for meaningless amounts of your portfolio (< 5%). The second is that you are far better off concentrating on your chosen career then trying ...


1

I'm currently making below the poverty line, but I'm getting by. 20k alone invested today isn't going to prepare you for retirement. At an 8% average return, in 30 years you'll have about $200k, which isn't a lot to live on today and will likely get worse as expenses like health care (which will be increasingly more important to you as you get older) rise ...


1

I'm specifically looking for a low-risk, low-maintenance option that makes the most sense over a long period time (30 years-ish?). If you lived in Finland, and if you were lucky enough to find joint forest ownership for sale, I would recommend investing into a joint forest. It's low-risk, low-maintenance option, definitely. However, I'm in my 30s, living ...


2

If you don't expect to need the money for the next 30+ years, the best thing you can do is invest in the stock market. The return on investment for CDs is abysmal. They're only a good choice if you need absolute certainty that your investment won't lose value (or, won't lose value too quickly after adjusting for inflation). Real estate is risky, ...


0

What I would do (which I think is the safest given the circumstances) is to take advantages of the welcome offers most of the bank have. They are offering around $500+ cash if you open an account and leave your money typically about 90 day. Most of well known banks here in US offering this bonus cash. If you can do this persistently do this for say four ...


0

If you send money from your checking account to your Roth IRA, that is a contribution to your Roth IRA. Your Roth IRA can be invested into many different mutual funds, and no, you don't have to open a new IRA account when you make a Roth IRA contribution to a different mutual fund; your brokerage or even Vanguard itself (if you don't use a brokerage ...


3

Many of the online tools will allow you to look at the financial details of the company. They typically have a section/tab that list the largest investors. This includes people, investment companies and mutual funds. for example: https://finance.yahoo.com/quote/GOOG/holders?p=GOOG Top Mutual Fund Holders Holder ...


3

Copied from the comment by @BobBaerker, so some poor sap wouldn't have to experience my last few days... There is an online system that allows doing just that One can look for overlaps in funds and also find funds with specific stock


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