Investing, Stock Market and Retirement Planning Thread
Investing, Stock Market and Retirement Planning Thread
Since not a homeowner, I rely on my Roth as the big time emergency insurance - losing my job. My boss would kill me if I left, so I consider the chance to be < 0.05%
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Investing, Stock Market and Retirement Planning Thread
It has a whopping .030% interest rate. Basically nothing.
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Investing, Stock Market and Retirement Planning Thread
ya you should probably look into an online savings account and increase your return by 32x
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Investing, Stock Market and Retirement Planning Thread
Check out DepositAccounts.com when you get a chance. It's a great resource for bank/CD rates, and Ken posts stuff continually.It has a whopping .030% interest rate. Basically nothing.
Investing, Stock Market and Retirement Planning Thread
I wish PA did prize-linked savings accounts. I'd put some of that emergency fund kind of money into one.
Investing, Stock Market and Retirement Planning Thread
Back to the infamous Chinese stock market issue. To refresh your memories, I had commented that companies listed on the Shanghai exchange were being added to certain emerging markets indexes. Fast forward a few years and most major international/global funds now have also added them. Whether you like it or not, you now probably own some of Tencent Holdings, Alibaba and Baidu, etc.
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Investing, Stock Market and Retirement Planning Thread
TL;DR - 56% of the people polled are dumb.Among five celebrity business moguls, 32% [of 18-44 year olds polled, ] said they would be most likely to take investing advice from Winfrey compared to 15% choosing Trump, in a poll conducted by SurveyMonkey for Acorns, the microinvesting app that invests your spare change from credit card purchases.
Sheryl Sandberg - 4%
Jay-Z - 5%
Trump - 15%
Oprah - 32%
Warren Buffet - 44%
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Investing, Stock Market and Retirement Planning Thread
capital one raised the rate on its money market account from 1.3% to 1.4%. HOLLER!!!!
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Investing, Stock Market and Retirement Planning Thread
When I was young and poor, I had an ING savings account before Cap One swooped them up. It had a 4.5% return. I can't even fathom that now that I have a little money to save.capital one raised the rate on its money market account from 1.3% to 1.4%. HOLLER!!!!
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Investing, Stock Market and Retirement Planning Thread
It dropped to .75% very quickly, which is about when I dropped them. Marcus (GS Bank) has been pretty good to me lately.Source of the post When I was young and poor, I had an ING savings account before Cap One swooped them up. It had a 4.5% return. I can't even fathom that now that I have a little money to save.
Investing, Stock Market and Retirement Planning Thread
I made my first Roth contribution for 2018. I find it easier to buy in that account, if I just do 4-5 chunks throughout the year.
That doesn't make sense, probably, but it works for me.
That doesn't make sense, probably, but it works for me.
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Investing, Stock Market and Retirement Planning Thread
Today was certainly not the day to update Quicken. Yowza.
Investing, Stock Market and Retirement Planning Thread
Note that probably 99% of the shares you own did not go down in value, in relation to what you originally paid for them.
Investing, Stock Market and Retirement Planning Thread
Unless you put that nice contribution into your kids' college account on Friday, all while congratulating yourself that you did not do it earlier that week...Note that probably 99% of the shares you own did not go down in value, in relation to what you originally paid for them.
Investing, Stock Market and Retirement Planning Thread
Today was interesting to watch from 3:00-4:00
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Investing, Stock Market and Retirement Planning Thread
I'm scheduled to do that today, oddly enough. Nice.Source of the post Unless you put that nice contribution into your kids' college account on Friday
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Investing, Stock Market and Retirement Planning Thread
As a "pension", my company will put the equivalent of 3% of our salary in our 401k account as long as you are with the company through the end of the year. They put in 2017's portion last week. Bad timing.
Investing, Stock Market and Retirement Planning Thread
I am just preparing to teach my Saturday EMBA finance classes, and I created this summary that should help you make the stocks vs bonds choices for various maturities.
*AVERAGE* Stock HOLDING returns (S&P 500 including dividends) vs. LT Govt. bonds for various windows if the investment started in 1928 or later, until 2016. Enjoy!:
Years in the picture describe the ENDING year of the investment. For example: The best 30-year horizon annual rate of return for stocks was 13.63% per year for investment that was held from beginning of 1970 to end of 1999. So, your $1 invested would have grown to $1*(1.1363)^30 = $46.22
The "Stock minus Bonds" is the difference in annualized returns for investments ending in a particular year. For example: For 30-year investment horizon, the worst relative stock performance happened in 2010. In terms of average returns, investment in stocks held from beginning of 1981 till end of 2010 outperformed the investment in bonds by "only" 1.7%, because average stock return was 10.61%, while average bond return was 8.91% per year. So, your $1 invested in stocks would have grown to $1*(1.1061)^30 = $20.60, while $1 invested in bonds would get you to $1*(1.0891)^30 = $12.94. Still, even in this WORST investment horizon, stocks would have made you more than 50% richer...
*AVERAGE* Stock HOLDING returns (S&P 500 including dividends) vs. LT Govt. bonds for various windows if the investment started in 1928 or later, until 2016. Enjoy!:
Years in the picture describe the ENDING year of the investment. For example: The best 30-year horizon annual rate of return for stocks was 13.63% per year for investment that was held from beginning of 1970 to end of 1999. So, your $1 invested would have grown to $1*(1.1363)^30 = $46.22
The "Stock minus Bonds" is the difference in annualized returns for investments ending in a particular year. For example: For 30-year investment horizon, the worst relative stock performance happened in 2010. In terms of average returns, investment in stocks held from beginning of 1981 till end of 2010 outperformed the investment in bonds by "only" 1.7%, because average stock return was 10.61%, while average bond return was 8.91% per year. So, your $1 invested in stocks would have grown to $1*(1.1061)^30 = $20.60, while $1 invested in bonds would get you to $1*(1.0891)^30 = $12.94. Still, even in this WORST investment horizon, stocks would have made you more than 50% richer...
Investing, Stock Market and Retirement Planning Thread
I don’t believe that most retail investors have the stomach for 30 year bonds; right or wrong.
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Investing, Stock Market and Retirement Planning Thread
Bonds as their entire AA? I don't see any scenario in which that would be useful unless you were nearing retirement.
Investing, Stock Market and Retirement Planning Thread
Surprisingly, there are quite a lot of people (including some well-known financial economists) who either invest or advocate for (almost) strictly LT Governmental Bonds investment.Bonds as their entire AA? I don't see any scenario in which that would be useful unless you were nearing retirement.
The table I created is based on US Treasury 10-year bonds being bought and sold at the end of every year (in order to keep the constant maturity). I did it primarily because the main topic of my next lecture is "risk premiums" - and so comparing stocks to LT Governmental bonds allows me to do that.
However, knowing that risk premiums for investment rated corporate bonds are not that big, I can - I think - reasonably safely assert that stocks would beat even corporate bonds for the vast majority of possible 30-year investment horizons...
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Investing, Stock Market and Retirement Planning Thread
Based on all of the reading that I've done over the years, I honestly would not have guessed that.Source of the post Surprisingly, there are quite a lot of people (including some well-known financial economists) who either invest or advocate for (almost) strictly LT Governmental Bonds investment.
Investing, Stock Market and Retirement Planning Thread
One of the "well-known financial economists" is Zvi Bodie who happens to be the author of (one of?) the most frequently used investment textbooks in the US (Bodie-Kane-Marcus: Investment). Just google him, and you can read all about his "TIPS" investment strategy.Based on all of the reading that I've done over the years, I honestly would not have guessed that.Source of the post Surprisingly, there are quite a lot of people (including some well-known financial economists) who either invest or advocate for (almost) strictly LT Governmental Bonds investment.
(I don't agree with him at all, but I also don't draw all those huge sums in annual royalties... )
Investing, Stock Market and Retirement Planning Thread
Yeah, Ziv is the one who convinced me of the importance of TIPS. All of my “bonds” are in TIAA Traditional, but plan a heavy TIPS allocation in retirement.
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Investing, Stock Market and Retirement Planning Thread
Cross post from current events
Yes, to the extent that one of the large institutions who participates in a securities lending program holds it. Anything with a ton of volatility is going to create some degree of short interest. The cost to borrow this one was pretty high before trading halted.@miami vice. Do yinz ever dabble in such things?Yeah, I was reading about that inverse VIX etf last night. No thanks.
But when you consider the types of clients we deal with - government pensions, insurance companies, sovereign wealth funds - they aren't the kind likely to hold something like that. I imagine anything being shorted out there was lent by a mutual fund with some kind of volatility goal.
In general ETFs are a big growth area for securities lending programs. Some ETFs themselves have been in demand shorts (like ticker HYG has been) so we are lending the actual ETF. Lots of money is going into these more passive investments. A pension might be choosing to buy IWM instead of hiring a manager to buy a basket of Russell 2000 stocks. In that sense we likely aren't going to get as much value out of lending IWM as we would by lending the dozen or however many in demand shorts comprise the index.
But we are also adding ETFs as lenders just like we'd lend for a mutual fund. While the underlying shares are just sitting there we are able to lend them out, with returns depending on what it tracks. Signing ETFs up to lend is becoming more important as our traditional clients turn to buying ETFs (which trade like an equity) and mutual funds (which are unlendable). In the case of XIV (the inverse Vix ETF) it's underlying assets I guess are futures contracts, which wouldn't be lent.
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