Stock market

ScottyB

Old Mossy Horns
Contributor
All I can say is you got to take both ups and downs to keep makin money

I got a guy…… he helps me watch it in hopes I will use his services when I retire…. So far he is kickin ass!
 

Homebrewale

Old Mossy Horns
All I can say is you got to take both ups and downs to keep makin money

I got a guy…… he helps me watch it in hopes I will use his services when I retire…. So far he is kickin ass!

You got lucky.

Most investment pros can't beat the stock market, so why do everyday investors think they can win?

The Dirty Little Secret Investment Advisors Don't Want You To Know

There are plenty of similar articles. Basically, data shows more than 90% of advisors fail to beat the S&P 500 Index.
 
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woodmoose

Administrator
Staff member
Contributor
You got lucky.

Most investment pros can't beat the stock market, so why do everyday investors think they can win?

The Dirty Little Secret Investment Advisors Don't Want You To Know

There are plenty of similar article. Basically, data shows more than 90% of advisors fails to beat the S&P Index.


I had a great time when the Fisher investment folks were after my account,,, showed them my numbers compared to theirs for the same time period,,, I beat them by 4%,,,and all I did was what I do today,,,,, the index,,,
 

Tipmoose

Administrator
Staff member
Contributor
Just let me know when. I’m gonna go flounder fishing and keep them all the month before.
About 1 billion years is all we have left. In about 5 billion it will be a red giant. :)

 

JWH15

Six Pointer
You got lucky.

Most investment pros can't beat the stock market, so why do everyday investors think they can win?

The Dirty Little Secret Investment Advisors Don't Want You To Know

There are plenty of similar articles. Basically, data shows more than 90% of advisors fail to beat the S&P 500 Index.

Found this article from one of the largest DIY broker dealers out there. Odd they would put that article out there considering most of their clients are DIY.
 

Homebrewale

Old Mossy Horns

Found this article from one of the largest DIY broker dealers out there. Odd they would put that article out there considering most of their clients are DIY.

Are you sure most of their clients are DIY? Vanguard has advisor services and advertise them regularly to their clients. I know because I have a Vanguard account. Also they are used by a lot of employers for their retirement accounts. At one time, my wife's 401k account was run by Vanguard and they also pushed their value-added advisor services.

Reading that article, 1.5% of their 3% estimate is due to behavior coaching. They give an example how staying in the stock market versus going to bonds or cash in 2009 when the stock market tanked. Sure, go with an advisor if you can't stay the course and are tempted to jump out of the stock market every time it burps.

I only listed two of many articles that say advisors don't beat the S&P 500 index. Even if the advisor beats it one year, there is a very good chance he won't the next year. That article from Vanguard doesn't put a value on the advisor beating the market. Some of the pluses for the advisor comes from putting money into low cost funds which I do, determining how to use tax versus tax-deferred accounts which I do, and rebalancing accounts which I do with one press of a button.

Putting $1 million in VOO costs $300 per year in expenses. Using an advisor that charges 1% of assets (common fee) costs $10,000 plus whatever the expense ratio of the stocks, ETF, mutual funds he uses. If he uses the same S&P 500 ETF, that's another $300 per year in expenses.

There are a number of studies on the safe withdrawal rate (SWR) from your investments in retirement. Most of them determined looking at past stock market performance for each 30 year period to be a 4% SWR. A $1,000,000 portfolio will initially provide $40,000 per year for retirement (that amount is adjusted annually for inflation). If you employ an advisor that skims 1% of your assets for his fee, you have to learn to live on $30,000. The advisor is taking 25% of your annual retirement money for his fee. I would prefer my index fund to take 0.03% instead.

Financial advisors are good for panicky people or for people who don't want to put any time into managing their own assets.
 
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JWH15

Six Pointer
Are you sure most of their clients are DIY? Vanguard has advisor services and advertise them regularly to their clients. I know because I have a Vanguard account. Also they are used by a lot of employers for their retirement accounts. At one time, my wife's 401k account was run by Vanguard and they also pushed their value-added advisor services.

Reading that article, 1.5% of their 3% estimate is due to behavior coaching. They give an example how staying in the stock market versus going to bonds or cash in 2009 when the stock market tanked. Sure, go with an advisor if you can't stay the course and are tempted to jump out of the stock market every time it burps.

I only listed two of many articles that say advisors don't beat the S&P 500 index. Even if the advisor beats it one year, there is a very good chance he won't the next year. That article from Vanguard doesn't put a value on the advisor beating the market. Some of the pluses for the advisor comes from putting money into low cost funds which I do, determining how to use tax versus tax-deferred accounts which I do, and rebalancing accounts which I do with one press of a button.

Putting $1 million in VOO costs $300 per year in expenses. Using an advisor that changes 1% of assets (common fee) costs $10,000 plus whatever the expense ratio of the stocks, ETF, mutual funds he uses. If he uses the same S&P 500 ETF, that's another $300 per year in expenses.

There are a number of studies on the safe withdrawal rate (SWR) from your investments in retirement. Most of them determined looking at past stock market performance for each 30 year period to be a 4% SWR. A $1,000,000 portfolio will initially provide $40,000 per year for retirement (that amount is adjusted annually for inflation). If you employ an advisor that skims 1% of your assets for his fee, you have to learn to live on $30,000. The advisor is taking 25% of your annual retirement money for his fee. I would prefer my index fund to take 0.03% instead.

Financial advisors are good for panicky people or for people who don't want to put any time into managing their own assets.
Yes I understand everything you posted, it’s pretty simple. All I posted was a link to an article and yes I believe most of vanguards clients are DIY. Even 401k accounts thru vanguard, participants don’t regularly use the advisor of record.
 

mdunker

Ten Pointer
This year I have started using a Schwab robo advisor and comparing it to some other things. I have been extremely impressed. You can make it as risky or conservative as you like. They rebalance as needed to meet your goals. It is free to use. I have some guys I know with tons of money who are using it. If they trust it with their money I decided to take a look.
 

Homebrewale

Old Mossy Horns
This year I have started using a Schwab robo advisor and comparing it to some other things. I have been extremely impressed. You can make it as risky or conservative as you like. They rebalance as needed to meet your goals. It is free to use. I have some guys I know with tons of money who are using it. If they trust it with their money I decided to take a look.

Maybe I can try it once I'm an official Schwab account holder. I started on Scottrade. TD Ameritrade bought them out and my account transitioned over. Now Schwab bought them. I see it won't be until April 2023 now before they're fully integrated.
 

NCST8GUY

Frozen H20 Guy
Eventually the Fed will be forced to finally raise interest rates. When that happens...buy bonds...welcome to the 70s all over again.
I was hoping that would happen under Trump. Wouldnt have won him votes, but would have created some stability. Rather that, we are at the TOP of the roller coaster imho!!! wWWHHHEEEEEE!!! LOOK MA NO HANDS!!!! WEEEE!!!!
 

gobblr addict

Twelve Pointer
Contributor
I hold my breath everyday when market is green...I watch it too much I know and my financial planner says to check it once a month.....

I'm just glad I guess its fairly stable for the moment, Despite who's POTUS
 
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