/biz/ - Business & Finance

>>536030
put it all in risky funds

she's going to die anyway so may as well try your luck at getting a decent inheritance

>>536030
Buy index funds, around 50-60% should be in quality bonds funds (avoid junk bonds), and the rest in domestic and international stocks (avoid emerging and frontier markets at the moment).

>>536030
if you're gonna ask this on /biz/ then you could better go to a casino and put everything on black.

No but really, read a book before investing.(pic was actually related, what a twist)

If you've actually been entrusted to invest your 70 year-old mother's retirement savings, and thought that /biz/ might helpful, then please go hire a financial advisor immediately. I'm probably being trolled in some subtle way, but on the slim chance this is legitimate, I urge you to seek professional advice.

Don't be a bitch OP. Buy as many OTM call options on the SPY December Expiration. Wait 2 weeks, sell options, congrats now have100k.

>>536070
Hey iHaz, was waiting for you. I think you give out great advice so sorry for hijacking this thread. Anyway I have around 50k in mostly ETF's (non US so no vanguard) and some other stocks/options/etc. making great profits. Looking to drop another 50k just divided into an nasdaq ETF and an ETF that has pharma/biotech US companies. Anyway, I know that you shouldn't try to time the market and that long term it doesnt matter if a correction happens, but with all the talk about an upcoming market correction I feel like I should wait because I might be able to cash in another 5-10% in the next down period that is apparently coming pretty soon. What do you think?

thank a lot in advance

>>536030

A three-fund or four-fund portfolio could be established pretty easily, with transaction costs of $20-30. What is she looking to invest the money for? Is it to generate some small current income to supplement herself, or is she looking to grow it as a nest egg in order to pass it on to somebody else later? Those would have very different allocations in each case.

>>536115
Hey. Haven't been online a few few days, so I'm glad you found me.

Yes, I continue to believe that its opportune to put new money into the markets. I'm fully aware of the potential stresses, but the glide path looks clear through 2015 at least. The recent reaction to the "end" of QE (10% gains in 2 weeks) tells me there is still money on the sidelines looking to be deployed. Also, the yield curve is still showing a green light, and that's the most accurate indicator in the last 40 years.

Honestly, there's every indication that the "correction" already happened. And that the markets jumped back right on track, and already moved higher. Even if you could time the markets (which you can't), you already missed it -- not that it was much of a buying opportunity anyway. At least, that's the way I see it.

Obviously I can't make any guarantees. But if it matters, I put $60K of fresh money into the markets on Friday. So I do put my money where my mouth is.

Good fortune to you, anon.

>>536164
Thanks a lot.

Also I just wanna say thanks for your advice you give out I've read all the posts in the achieve and I just wanted yo know that you make an impact and I got into investing and the whole bogle head thing partly because of your writing...

So thanks a lot

>>536168
You're welcome. Good luck, and stick to your principles. Buy-and-hold isn't sexy or exciting, but it can indeed be extremely rewarding.

>>536187
damn that's impressive

>>536129
this was an inheritance that she received. she would like to grow this money. basicly she doesn't want it to just sit in a bank account.

>>536259
not really since it doesn't say how long he held it for

indexes would have returned double that over the past 5 years...

also keep in mind this guy uses mutual funds ( which may be viable if you have a ton of money as they could waive a lot of the % fees) but for regular people it's a stupid decision

he makes most of his money by being a high paid employee, not from the markets

>>536310

If she doesn't need the income, then something like:

60% total world stock (VT)
10% REIT (VNQ)
10% gold (IAU)
20% long-term government bonds (EDV)

should provide very good long-term capital appreciation.

>>536311
>mutual funds
>for regular people it's a stupid decision
huehuehue
picrelated.jpg

>high paid employee
Hehe. I haven't been an employee since Clinton was in office.

>>536311

>Beating the market.

>>536321
Why do you advise 10% in gold? It's considered too much in any "normal" strategy, and gold is a falling knife these times. What's your reasoning?

>>536328
>image doesn't even take into account survivorship bias
Indexing wins more like 99.6% of the time.

http://www.zerohedge.com/news/2013-04-29/wall-street-rentier-rip-index-funds-beat-996-managers-over-ten-years

I can't post the original link because 4chan thinks it's spam. So go to the zerohedge page to get the link to the original article.

>>536168
>I've read all your posts

anyone else feeling a /sp/ happening upcoming?

>>536838
I don't know why people were so mad about that UTV thing. It's hilarious, maybe a hoax (by "UTV" himself?), but nothing special.

I did more "creepy" things in my life, and I'm not even the average 4chan autist.

>>536857
It is pretty funny indeed, and i think nobody was mad about it, just astonished that someone could be so obsessed about someone who he didn't even know/saw/talked to irl and to be honest that's also pretty creepy.
But ,Anon, enlighten me about your experiences that are even more creepier.

>>536864
Doing the same thing for a whole forum? With all personal information on each member carefully picked up and organised?

>>536384
Indices also beat the ETFs that track them, because indices literally don't exist. Stupid narrative.

>>536030
So you left out a ton of information that would be necessary to give you an educated opinion.

First, what is the goal of the investment account? Is this to grow money for your mother, or is the $40k a gift to you to do with as you please? Because if it's the former, then your mother is too old to take any risks with $40k and she should be keeping it liquid in a savings account. Even with index funds you want to be looking at a 10+ year investment horizon to allow long-term averages to kick in. If it's the latter, that goes to...

Secondly, what are your current holdings and risk tolerance?

Thirdly, how long do you plan to have this money invested?

>>536838
Na I just put his name and trip into google, read some posts in the achieve, found it interesting and started learning and then on a boring evening got caught up in reading like 30 pages of it and started seeing what he is about and i liked it and I started visiting the boglehead forum/wiki etc.

It's going great so far, made 6,19% in october even tho the drop in the beginning