Author Topic: Money Market Fund, Annuities, Etc  (Read 3148 times)

Offline ADG

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Re: Money Market Fund, Annuities, Etc
« Reply #30 on: April 28, 2015, 02:40:29 PM »
I wouldnt do index funds... thats kind of like giving up... Its meant for ppl like me that dont know what they are doing. I may fall into the category but i wont let my money fall into it.
 
Does 15k justify hiring a firm to manage my money?
 

Online 12HRS

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Re: Money Market Fund, Annuities, Etc
« Reply #31 on: April 28, 2015, 02:44:14 PM »
I wouldnt do index funds... thats kind of like giving up... Its meant for ppl like me that dont know what they are doing. I may fall into the category but i wont let my money fall into it.
 
Does 15k justify hiring a firm to manage my money?

say what?

Offline ADG

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Re: Money Market Fund, Annuities, Etc
« Reply #32 on: April 28, 2015, 02:45:23 PM »

Online 12HRS

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Re: Money Market Fund, Annuities, Etc
« Reply #33 on: April 28, 2015, 02:50:52 PM »
why is outperforming most funds in the market giving up?
Quote
"Indexing" is a passive form of fund management that has been successful in outperforming most actively managed mutual funds.

Online skyguy918

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Re: Money Market Fund, Annuities, Etc
« Reply #34 on: April 28, 2015, 02:57:04 PM »
I wouldnt do index funds... thats kind of like giving up... Its meant for ppl like me that dont know what they are doing. I may fall into the category but i wont let my money fall into it.
 
Does 15k justify hiring a firm to manage my money?
That's an extremely ignorant comment. First of all, index funds just means they're meant to track a 'basket' of other assets. So you can have an ETF tracking international REIT's, which would obviously be big risk/big reward. Future Advisor's approach is based on a ton of research, with foundations in modern portfolio theory and other major, data-driven investment theory. When they suggest the portfolio, they also show you the expected returns in various market conditions.

Offline srf60

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Re: Money Market Fund, Annuities, Etc
« Reply #35 on: April 28, 2015, 03:00:32 PM »
I wouldnt do index funds... thats kind of like giving up... Its meant for ppl like me that dont know what they are doing. I may fall into the category but i wont let my money fall into it.
 
Does 15k justify hiring a firm to manage my money?
For example , you will go with  those mutual funds...
Do you know that index funds outperform mutual funds by far????

Offline ADG

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Re: Money Market Fund, Annuities, Etc
« Reply #36 on: April 28, 2015, 03:04:54 PM »
I read other articals that are against index funds . with proof showing that the only make money on 10-20 days of the year. while loosing on all the other. so yes if you would look at the anual history it may have made money but you have to be in on all the bad days aswell ... The name of thwe aurther was rick edelman in "the lies about money" . He disproves mutual funds...

Online skyguy918

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Re: Money Market Fund, Annuities, Etc
« Reply #37 on: April 28, 2015, 03:07:19 PM »
Just to give you an example, my portfolio (mostly Roth money with a little Coverdell too) that I have invested based on Future Advisor's recommendations is sitting at a >9% return YTD, which has only been 4 months. Contrast that with the best performing of the major indices this year (S&P) at ~6.8% on the year. I'm paying no commissions or fees because of the ETF's they use.

Obviously this is a small (perhaps even tiny) sample size, and my investment horizon is extremely long, but it should give you some food for thought.

Online skyguy918

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Re: Money Market Fund, Annuities, Etc
« Reply #38 on: April 28, 2015, 03:08:16 PM »
I read other articals that are against index funds . with proof showing that the only make money on 10-20 days of the year. while loosing on all the other. so yes if you would look at the anual history it may have made money but you have to be in on all the bad days aswell ... The name of thwe aurther was rick edelman in "the lies about money" . He disproves mutual funds...
So you're looking to be a day trader then? That's called putting it all on red.

ETA: Lol, just googled it.
Quote
Edelman summarizes the academic research on Modern Portfolio Theory (MPT) and the value of holding a portfolio of noncorrelated asset classes in Chapter 2. Chapters 3 and 4 cover the history of the mutual fund industry and its recent scandals. Chapters 5 and 6 explain the advantages of passive investing using low-cost institutional index funds, namely Dimemsion Fund Advisors and exchange-traded funds (ETFs).
So basically he wants you to have a portfolio of ETF's that are diversified according to MPT - exactly what Future Advisor's does for you. Except that they do it for fee, while his company charges for it.
« Last Edit: April 28, 2015, 03:11:42 PM by skyguy918 »

Offline ADG

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Re: Money Market Fund, Annuities, Etc
« Reply #39 on: April 28, 2015, 03:12:19 PM »
Just to give you an example, my portfolio (mostly Roth money with a little Coverdell too) that I have invested based on Future Advisor's recommendations is sitting at a >9% return YTD, which has only been 4 months. Contrast that with the best performing of the major indices this year (S&P) at ~6.8% on the year. I'm paying no commissions or fees because of the ETF's they use.

Obviously this is a small (perhaps even tiny) sample size, and my investment horizon is extremely long, but it should give you some food for thought.

Did you set up your protfolio by your self ( meaning just with future advisor)?

Online skyguy918

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Re: Money Market Fund, Annuities, Etc
« Reply #40 on: April 28, 2015, 03:15:42 PM »
Did you set up your protfolio by your self ( meaning just with future advisor)?
Yes. I opened an account with TD, set up Roth IRA's for me and my wife (and later Coverdell's for the kids), and invested the money there in the ETF's suggested by Future Advisor.

Just remember that you're not supposed to be touching this kind of portfolio frequently, only to rebalance a few times a year max. With TD's commission free ETF's, you have to actually enroll in the 'program' before you start trading (otherwise you'll get hit with a commission), and keep whatever you buy for at least 30 days (if you sell something after holding it for less than that you get hit with a short term trading fee).

Offline ADG

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Re: Money Market Fund, Annuities, Etc
« Reply #41 on: April 28, 2015, 03:17:09 PM »
whats TD?

Online skyguy918

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Re: Money Market Fund, Annuities, Etc
« Reply #42 on: April 28, 2015, 03:20:22 PM »
whats TD?
TD Ameritrade. The other option is Fidelity. Both are solid online brokerages with excellent selections of commission free ETF's.

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Re: Money Market Fund, Annuities, Etc
« Reply #43 on: April 28, 2015, 03:23:30 PM »
thanks for your advice?

Because im doing this for a first time. Is there some place where i can go to double check my portfolio

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Re: Money Market Fund, Annuities, Etc
« Reply #44 on: April 28, 2015, 03:30:58 PM »
thanks for your advice?

Because im doing this for a first time. Is there some place where i can go to double check my portfolio
Not sure what you mean. Once you've set up an account at TD Ameritrade or Fidelity, deposited the money and invested it, you can obviously check on the progress of your portfolio by logging into your account. If you're talking about checking whether, in the future, Future Advisor recommends a change, the answer is yes. You can link your brokerage account to your Future Advisor account so that it checks your portfolio and recommends changes if necessary.