Results 1 to 15 of 15

Thread: Full of bullshit?

  1. #1
    ghostinpa
    Guest

    Default Full of bullshit?

    One of my regulars is a financial advisor and we were talking about investing the other day. I wanted to see what everyone thought of his advice. I've been storing away money for quite a few years now. He feels like I should take some risk and take it from under my mattress and do something with it. He told me that since we are heading in a downward motion right now concerning the stock market I should be ready to invest around summer. That's when he thinks we will bottom out for the most part. He said stocks and dividend investing is really only for major players with thousands to put on the table. He says I shouldn't take a lot of risk and get involved in Vanguards? Any opinions?

  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Full of bullshit?

    well the first issue is that, if money comes out from under a mattress and suddenly appears in investment accounts which automatically report to the IRS, you may be asked to prove that the mattress money was declared as income and taxed via a previous tax return filing.

    The next point I agree with ... you should be doing SOMETHING with your money besides hiding it under a mattress.

    The next point I don't agree with ... that economic fundamentals are likely to improve by summertime. Of course stock markets have been known to launch skyward despite a total lack of economic fundamentals, and this seems to happen during election years, but that's the topic for a whole 'nuther thread.

    As to the virtues of mutual funds in general, and Vanguard mutual funds in particular, this is also a topic for a whole 'nuther thread. I would expect to find that this particular advisor / broker has a Vanguard connection ?

  3. #3
    God/dess Paris's Avatar
    Joined
    Nov 2002
    Location
    Oregon
    Posts
    6,345
    Thanks
    168
    Thanked 801 Times in 419 Posts

    Default Re: Full of bullshit?

    Just storing money in a mattress (or safety deposit box or whatever) is a bad idea. If you don't like the idea of banks, you could buy coins that would increase in value over time at least. If you have been saving your money under a mattress for two years, it is worth half of what it was worth two year ago. Gold, on the other hand has gone through the roof in that same time period.

    I don't recommend just investing in any old mutual fund. Seek financial advice from a certified financial planner to find the right savings vehicle for your personal needs. Heck, coins might be just the thing for your own personal savings needs.


    Promote yourself and earn more money! This is a business that is owned by strippers for strippers. Let's make that money!


  4. #4
    God/dess Bella21's Avatar
    Joined
    Sep 2003
    Location
    SoCal
    Posts
    7,772
    Thanks
    2
    Thanked 40 Times in 35 Posts

    Default Re: Full of bullshit?

    Are you really hiding it in a mattress? Literally? Hehehe. Okay, my two cents is basically that I agree that you should do something with it... But I wouldn't recommend the stock market. Try a CD.
    If you think school is hard, try being stupid.

  5. #5
    Veteran Member
    Joined
    Sep 2005
    Posts
    426
    Thanks
    0
    Thanked 9 Times in 9 Posts

    Default Re: Full of bullshit?

    As usual, you'll get plenty of replies all of them leave you more confused and you continue to leave your money under the mattresses which is the worst investment move you could ever move

    I don't have any Vanguard connections,
    But go to Vanguard.com

    and put $100-$1000 every month (automatic transfer is even better) on Total International Stock Index (VGTSX). You'd beat 98% of the investors out there and you don't have to read shady web-sites and worry about what the stock market is doing.

    You'll retire pretty well and you can generate additional income with the time you save

  6. #6
    Veteran Member person's Avatar
    Joined
    Sep 2007
    Posts
    633
    Thanks
    33
    Thanked 34 Times in 23 Posts

    Default Re: Full of bullshit?

    Inflation gives me a headache - If I just stand here motionless and hold a dollar in my hand, its worth is going down

    If you're really risk adverse, put your money in a high interest account or term deposit (though as Melonie said, heaps of cash appearing in your account from nowhere might be a bad move...). Supposedly higher return but "safe" investments are stuff like index funds and gold, I guess. Watch out for that incoming depression and possible drop in purchasing power of the USD you all have going over there...

    Or spend the money on strippers and booze- at least that doesn't depreciate.
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

  7. #7
    Featured Member thechaosfairy's Avatar
    Joined
    Sep 2005
    Location
    Dear Gods plz send money to Oregon K luv you bye
    Posts
    1,780
    Thanks
    0
    Thanked 13 Times in 12 Posts

    Default Re: Full of bullshit?

    This thread makes me glad that although I don't have much to hold in my hands (most of it's going to paying off debts, and paying my rent, every month) what I do have in my hands is RMB. Which literally gains value sitting in a drawer right now. :-) Although as Melonie said it may not be easy to invest in internationally.
    Quote Originally Posted by red red red View Post
    Like super-fast, frenetic, chipmunklike stylized humping with this look on her face like "Kill! Kill!"
    Quote Originally Posted by iseestars View Post
    i think people like going to parties and clubs and looking like douchebags.

  8. #8
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Full of bullshit?

    ^^^ actually I see from today's financial news that, because of the G7 meeting, the Renmimbi rose above 7 per US$ for the first time in history ! My only complaint about investing in RMB is that, in the absence of a direct 'China connection', the minimum buy-in through a US bank runs about $20,000.

  9. #9
    God/dess Deogol's Avatar
    Joined
    Dec 2003
    Posts
    5,493
    Thanks
    120
    Thanked 50 Times in 35 Posts

    Default Re: Full of bullshit?

    Quote Originally Posted by xanfiles1 View Post
    ... you don't have to read shady web-sites and worry about what the stock market is doing.
    You got to get off this high horse you're riding.

    Take a look at this web site and ... and realize anyone posting advice on it is a "shady web site" poster.

    I'm sure all the wall street titans are saying "Hey - did you read what was on stripper web last night?"

    Oh yea, welcome to the club.

  10. #10
    Veteran Member
    Joined
    Sep 2005
    Posts
    426
    Thanks
    0
    Thanked 9 Times in 9 Posts

    Default Re: Full of bullshit?

    Quote Originally Posted by Deogol View Post
    You got to get off this high horse you're riding.

    Take a look at this web site and ... and realize anyone posting advice on it is a "shady web site" poster.

    I'm sure all the wall street titans are saying "Hey - did you read what was on stripper web last night?"

    Oh yea, welcome to the club.
    Thats exactly what I meant. SW is for entertainment purpose only. It is not meant for news, knowledge & information.

    It is the same with many of the web-sites that get linked in here.
    It turns you into a cynical idiot by exaggerating things that should only matter a little bit.

    If you spend time with WSJ, the worst that could happen is, you'll actually get Business skills that'll probably increase your income by 20-25%.

    Choice:
    i) Read Shady web-sites ==> Read Lies, Half-truths ==> Underperform markets ==> acquire no skills ==> Turn into a cynic
    ii) Read WSJ/FT ==> Acquire Business / Career skills ==> Get real and balanced information ==> Match market returns ==> Increase Income by 20-25%

  11. #11
    God/dess hockeybobby's Avatar
    Joined
    Nov 2007
    Location
    Canada
    Posts
    4,969
    Thanks
    1,811
    Thanked 597 Times in 382 Posts
    Blog Entries
    1

    Default Re: Full of bullshit?

    Quote Originally Posted by ghostinpa View Post
    One of my regulars is a financial advisor and we were talking about investing the other day. I wanted to see what everyone thought of his advice. I've been storing away money for quite a few years now. He feels like I should take some risk and take it from under my mattress and do something with it. He told me that since we are heading in a downward motion right now concerning the stock market I should be ready to invest around summer. That's when he thinks we will bottom out for the most part. He said stocks and dividend investing is really only for major players with thousands to put on the table. He says I shouldn't take a lot of risk and get involved in Vanguards? Any opinions?
    If you've literally been keeping your money in the mattress, that suggests you are somewhat risk averse. Are you declaring your income? If not, it could be a good time for you to start bringing the money out, declaring it and putting it in a tax sheltered investment/savings plan. I believe they are called 401k in the US. You can either go self-administered or have a financial advisor. Even just a daily interest type account would be better than no return at all.

    Plus, all this ^^^ helps with building credit...not saying that is a problem for you. Having everything above board may help/increase personal integrity...again, not saying that is a problem.
    Professional advice, the kind you actually pay for, as opposed to commission based, would be useful.

    my 2 cents.

  12. #12
    Banned Katrine's Avatar
    Joined
    Nov 2003
    Posts
    13,855
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: Full of bullshit?

    Your regular is giving you good, straighforward advice. There is no bullshit involved unless you are a serious conspiracy theorist convinced that the world is about to fall apart.

    Under mattress=bad. Inflation figures for the year are already 5%, and double digits for staple commodities like milk and bread. Plus, what happens if you get robbed or there is a fire? Every day that your money isn't working for you, its value is deteriorating.

    If you have $5,000, under your mattress, it will be worth half of its value in 20 years while costs will double. Essentially, it will be worthless.

    Keeping it under the mattress is THE riskiest thing you could do.

    Its a great time to invest. My aggressive portfolios are down some (3-6%), but better than the 15-20% a month ago. We are still beating the fuck out of S&P over short and long term, at least 6-9%.

    He may or may not have a connection with Vanguard. Vanguard has a hugely popular following amongst professional advisors and individual investors alike. Some of Vanguard's funds are proprietary, some can be sold by any broker.

    Vanguard sets itself apart by being the least expensive cost ratio funds. They appeal to the cost cutter in all of us and have a great competitive edge that way. Truth is, their passively managed funds/ETFare cheap, but their active funds cost the same as anything else. That being said, I usually only sell one Vanguard fund, which is their rockstar, one of the Windsors, on occasion.

    Melonie and others: all mutual fund companies payout the same. Broker/dealers may payout their registered reps differently. Don't worry so much about this guy's relationship with the overlying fund family, but rather how their B/D commissions them. FINRA has very strict rules about this.

    Low risk/high risk and Vanguard don't mean anything.
    1. Risk is a concept that denotes a potential negative impact to some characteristic of value that may arise from a future event. Exposure to the consequences of uncertainty constitutes a risk. In everyday usage, risk is often used synonymously with the probability of a known loss (from Wiki)

    2. Vanguard is a company. If you want to check out the risks of doing business with them, check out an analyst report or run the fundamentals yourself.


    **I've had to go back and edit out acronyms and shorthand for quite a bit of what I wrote, haha. Hopefully I've explained these concepts clearly.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

  13. #13
    Veteran Member person's Avatar
    Joined
    Sep 2007
    Posts
    633
    Thanks
    33
    Thanked 34 Times in 23 Posts

    Default Re: Full of bullshit?

    Quote Originally Posted by Deogol View Post
    I'm sure all the wall street titans are saying "Hey - did you read what was on stripper web last night?"
    Oh yea, welcome to the club.


    The irony only just hit me Damn shady websites.
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

  14. #14
    Veteran Member person's Avatar
    Joined
    Sep 2007
    Posts
    633
    Thanks
    33
    Thanked 34 Times in 23 Posts

    Default Re: Full of bullshit?

    Quote Originally Posted by Katrine View Post
    Plus, what happens if you get robbed or there is a fire?
    A trader in the Indian state of Bihar has lost his life savings after termites infesting his bank's safe deposit boxes ate them up.
    http://news.bbc.co.uk/2/hi/south_asia/7334033.stm
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

  15. #15
    God/dess VegasPrincess's Avatar
    Joined
    Aug 2006
    Location
    MKE
    Posts
    4,660
    Thanks
    2
    Thanked 182 Times in 40 Posts

    Default Re: Full of bullshit?

    I think it would be best if you came over to my house and put the money in my mattress. Its safer there....
    Sexy Jasmine after getting fucked over at work:

    God loves strippers and when guys do things like that its an automatic ticket to HELL!


    Quote Originally Posted by anomar View Post
    Perhaps you stopped spending money on her. Strippers need money to operate. They are like coin operated juke-boxes of love.

Similar Threads

  1. this that bullshit
    By bluexxxtasy in forum Other Work
    Replies: 5
    Last Post: 11-09-2010, 10:17 PM
  2. This is bullshit!!
    By TheSexKitten in forum Body Business
    Replies: 4
    Last Post: 04-23-2008, 07:44 PM
  3. What bullshit
    By Deogol in forum Political Poo
    Replies: 1
    Last Post: 11-11-2004, 07:55 PM
  4. PC bullshit...
    By Madcap in forum The Lounge
    Replies: 6
    Last Post: 09-18-2004, 04:32 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •