The Investment Thread

Happy hour starts in 5 minutes
Chris

Chris

The All-Time Great
BGO Ownership Group
Joe Gibbs Club Member
Joined
Jul 15, 2009
Messages
15,891
Reaction score
9,224
Points
1,093
Location
W Palm Beach & Helsinki
A place for discussion about investment growth, contributions, and strategies for general wealth building along with both potential retirement and legacy goals.

These include but are not limited to:

-Individual Stocks, ETFs, Mutual Funds, and Index Funds
-Bonds, Real Estate, Precious Metals, Commodities, Crypto, and other monetary instruments
-Dividends, Capital Gains, and RMDs.
-Asset Allocation

Whether you are many years from retirement, near retirement, or in retirement…there is most likely something to be of interest to you and maybe, just maybe, something to be learned from our community members.
 
Property has been my best investment and returns
 
Some things to consider IMHO are:
  • (i) your risk/volatility tolerance - i.e., trading currency futures is quite a bit different than buying & holding a DJIA/Russell 2000 Index Tracking ETF as well as e.g., keeping risk on even in a major drawdown or crystalizing losses,
  • (ii) the horizon for when you're going to need access to principal and/or income (/interest) - i.e., what are your liquidity needs,
  • (iii) tax considerations/consequences - i.e., are you doing your investing through an IRA/401k or through a personal account and/or is there any means by which you can more (tax) efficiently allocate your capital to reduce your tax liabilities and not generate "phantom income" and/or short term gains, if that's important to you,
  • (iv) what are the real risks in your portfolio, how correlated are they in various stress environments and how diversified you actually are - i.e., if you have a significant portion of your net worth in your home, then you're effectively "long" real estate in your area, and therefore it may behoove you to consider how you can hedge that risk and/or whether your other assets are providing differentiated returns that are non-correlated to real estate in your area; similarly if all of your assets are cash equities but the companies are all e.g. components are of a Tech or related sub-index, you may have a bad time if the sector hits headwinds as compared to a broadly diversified bundle of ETFs which are linked to totally different asset classes, sectors, factors, countries, industries, revenue source, etc.; running the correlation analysis of your portfolio may reveal some interesting insights in this area,
  • (v) fees & expenses - e.g., say you're invested in a mutual fund & you're spending 3% in management fees with a 3% trail (and I hope none of you are!), you're giving away 6% of your money in that investment per annum & the power of compounding can kill your net returns, particularly if performance isn't great.
In general, (a) most of these things are deeply personal (perhaps mitigating the efficacy of any non-personalized considerations), (b) it's extraordinarily difficult to "time" the market or a particular asset, (c) there's an enormous information processing difference between institutional investors and main street investors, & (d) thinking with the longest time horizon may be helpful.
 
Good rough points for the market /\

I buy, wait, make my money and get my original investment back as soon as feasible. Than I move on. Very few stocks I have held for 20 years+. My real profits have been in real estate. Patience is a virtue.

I have closed on two properties in the past 6 months and I have two more to go. Minimal return is 100% if not more
 
I just saw I did 17% overall last year on a very diverse portfolio. Not bad! 😀👍😀
 
RedWolf said:
Good rough points for the market /\

I buy, wait, make my money and get my original investment back as soon as feasible. Than I move on. Very few stocks I have held for 20 years+. My real profits have been in real estate. Patience is a virtue.

I have closed on two properties in the past 6 months and I have two more to go. Minimal return is 100% if not more
Click to expand...
3rd property (townhouse) near Río 270/370 is under contract! Bought at 126 and more than tripled that!

Just have the 24 acres of prlvate beachfront property in Colombia left! I am so close to my number that I can taste it! 😍😆👍😍
 
I have never significantly altered my asset allocation over the past 30+ years. Though I vastly utilize index-type funds they are aggressively structured towards equities (90% stocks, 7% bonds, 3% cash). From my regular viewing of the Bogleheads forums, I am a distant outlier among those in my age group. Since I really don’t have a need for the money invested now and don’t foresee that changing in the future, I maintain a stomach for risk tolerance and I am not afraid like so many seem to be. (It’s not like I haven’t already experienced many severe market disruptions in the past.) If 1929 happens again there will be bigger things to worry about.

That said…I am beginning the process of putting together my ‘death book’ so that those I might potentially leave behind have access to all of the information that they would need to make that transition as painless as possible. Because though I may have decades remaining…one never truly knows.

I just found out yesterday that Apple has a Legacy Contact designation within their operating system so that named individuals can have access to the info within my phone like emails, photos, etc. Pretty neat.
 
Chris

I have a "Red Folder" and all of the details are inside. And yeah, it is red...very easy to identify
 
Chris - that kind of estate planning is a great, great idea - putting together recurring charges/subscriptions, utility account numbers, insurance policies, location of assets and account numbers, banks, trust accounts (if any), etc. etc. all with contact information. Great idea. Obviously critical that it's in a very secure place given the information it contains but huge help for beneficiaries.
 
iheartskins said:
Chris - that kind of estate planning is a great, great idea - putting together recurring charges/subscriptions, utility account numbers, insurance policies, location of assets and account numbers, banks, trust accounts (if any), etc. etc. all with contact information. Great idea. Obviously critical that it's in a very secure place given the information it contains but huge help for beneficiaries.
Click to expand...
Yeah, it’s quite a process. I will have my son as executor and will rely on him heavily. My wife has little understanding of the process in the U.S. and I feel that she would be very overwhelmed dealing with it. She will also need his help with obtaining survivor benefits as they relate to Social Security, etc. My son is very adept with financial machinations and such and I have full faith that he will handle those things with aplomb. I have thought about possibly creating a trust but having a pretty simple situation and living in a no estate tax state, I don’t really see the need. As long as the documents are in place for my wife to inherit the house without complications the money is just money and easy to distribute.

(The docs will have one copy in our safe and a second in a joint safe deposit box.)
 
Chris said:
I have never significantly altered my asset allocation over the past 30+ years. Though I vastly utilize index-type funds they are aggressively structured towards equities (90% stocks, 7% bonds, 3% cash). From my regular viewing of the Bogleheads forums, I am a distant outlier among those in my age group. Since I really don’t have a need for the money invested now and don’t foresee that changing in the future, I maintain a stomach for risk tolerance and I am not afraid like so many seem to be. (It’s not like I haven’t already experienced many severe market disruptions in the past.) If 1929 happens again there will be bigger things to worry about.

That said…I am beginning the process of putting together my ‘death book’ so that those I might potentially leave behind have access to all of the information that they would need to make that transition as painless as possible. Because though I may have decades remaining…one never truly knows.

I just found out yesterday that Apple has a Legacy Contact designation within their operating system so that named individuals can have access to the info within my phone like emails, photos, etc. Pretty neat.
Click to expand...
We just finished this process. I had a folder on the computer of "What to do" but after seeing some friends and family members lose their minds when someone passes, I decided to hire an estate attorney to put it all together for us. I don't know if you've dealt with Medicaid yet, but a nice little surprise you find out is if you have to use it, after you're gone they're coming for your assets. 40 years of paying into the system and they're coming after whatever you leave behind. To prevent that, you have to have at least your house in a irrevocable trust five years prior to starting to being enrolled in Medicaid. We put all of our stuff in an estate/revocable trust, but need to finish the job moving it to an irrevocable one.
 
Ghost of Sarge said:
We just finished this process. I had a folder on the computer of "What to do" but after seeing some friends and family members lose their minds when someone passes, I decided to hire an estate attorney to put it all together for us. I don't know if you've dealt with Medicaid yet, but a nice little surprise you find out is if you have to use it, after you're gone they're coming for your assets. 40 years of paying into the system and they're coming after whatever you leave behind. To prevent that, you have to have at least your house in a irrevocable trust five years prior to starting to being enrolled in Medicaid. We put all of our stuff in an estate/revocable trust, but need to finish the job moving it to an irrevocable one.
Click to expand...
Or have multiple off-shore accounts that the Fed can't touch? 👊😃☝️🦍
 
Ghost of Sarge said:
We just finished this process. I had a folder on the computer of "What to do" but after seeing some friends and family members lose their minds when someone passes, I decided to hire an estate attorney to put it all together for us. I don't know if you've dealt with Medicaid yet, but a nice little surprise you find out is if you have to use it, after you're gone they're coming for your assets. 40 years of paying into the system and they're coming after whatever you leave behind. To prevent that, you have to have at least your house in a irrevocable trust five years prior to starting to being enrolled in Medicaid. We put all of our stuff in an estate/revocable trust, but need to finish the job moving it to an irrevocable one.
Click to expand...

Maybe I have a misunderstanding about Medicaid? I thought it was for low income individuals with limited resources. Am I missing something?
 
Chris said:
Maybe I have a misunderstanding about Medicaid? I thought it was for low income individuals with limited resources. Am I missing something?
Click to expand...
That's my Mother in Laws situation. She has no assets except her house and a SS check. Sorry I wasn't more clear. But I still recommend getting an estate/trust done. No questions after you kick off, it's all written down.
 
BTC getting wild again. 119s today. I wonder how high this eventually goes.
 
I’m hoping that my 0.00409 holding will finally fund the purchase of that private island in the Caribbean. 🤞
 
I know I"m missing out, but I still avoid bitcoin. Currency markets have always scared me and bitcoin more than most. I did buy some Robin Hood stock in November to be in the game somewhat.
 
You must log in or register to reply here.

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)

Help Users

You haven't joined any rooms.

    You haven't joined any rooms.
    Top