Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Rain Man]

Originally Posted by arrowheadnation

Thanks for the advice. I appreciate it. I just wanted to make sure he wasn't being taken for a ride by some commission hungry college grad working for Edward Jones. He's reluctant to go the annuity route because he feels some moral/paternal obligation to "leave me something" when he's gone (I'm an only child). I keep telling him not to worry about it because I have a 401k and a pension, but he's old fashioned. I just want him to be able to be comfortable aka pay his bills & have a little left over for recreation/fun/travel/etc.

I've never looked into annuities, and the occasional thing that I read about them is that they're a bad idea.

I can see a value of them, though. For someone like your dad, getting a return while avoiding risk of loss is important. That usually means investing in lower-return investments. Presumably, companies sell annuities because they can take a longer term approach to investment and can be more aggressive. They can spread the risk over a longer-term period, invest more aggressively, and give your dad a little better return because they're making the difference that he would otherwise never see.

At least, that's how it should work. I have no idea the return that your dad would get. Common assumptions would say that he should get more than 4 percent return, but I have no idea if that's true and how much more it would be.

You're also betting that you'll live a long time rather than dying early. If you've got kids and care about inheritances, then maybe this is an issue. For someone like me with no dependents, the financial loss of dying early doesn't matter, and the benefit of always having income is a big draw.

Now that I think about it, maybe I should look into annuities. I think I'm a good market.

[scho63]

US Steel (X) is now at $13.75. Getting real tempted to buy some long term options.

[Amnorix]

Originally Posted by arrowheadnation

Thanks for the advice. I appreciate it. I just wanted to make sure he wasn't being taken for a ride by some commission hungry college grad working for Edward Jones. He's reluctant to go the annuity route because he feels some moral/paternal obligation to "leave me something" when he's gone (I'm an only child). I keep telling him not to worry about it because I have a 401k and a pension, but he's old fashioned. I just want him to be able to be comfortable aka pay his bills & have a little left over for recreation/fun/travel/etc.

So annuities are somewhat infamous as being promoted by brokers for the commissions they get. But, somewhat like regular life insurance policies (which are similarly infamous), they aren't necessarily bad -- they are rather a certain product that might be right for someone depending on the circumstances.

But the concern about the commission aspect isn't misplaced. If he wants an annuity, he should DEFINITELY shop around. The web is filthy with websites that will compare them etc. it seems, based on my ten second review (and I'm hardly surprised; it's exactly what I expected to find).

[lewdog]

I’m done chasing a needle in a haystack.

I’m trading only blue chip companies now for modest gains. Too many times burned by stocks like IQ. Still holding on that piece of shit.

[Amnorix]

Originally Posted by lewdog

I’m done chasing a needle in a haystack.

I’m trading only blue chip companies now for modest gains. Too many times burned by stocks like IQ. Still holding on that piece of shit.

Slow and steady wins the race has been my motto for a long time now. I have neither the time, energy nor experience to micromanage a stock portfolio. Some very high percentage (certainly 95+%) of what I have in the market is in index funds.

[Munson]

Costco (COST) has quietly had a great year.

In January it started around $200, and is currently at $276.

[lewdog]

Originally Posted by Munson

Costco (COST) has quietly had a great year.

In January it started around $200, and is currently at $276.

Yup. Was just looking at that recently. Missed another great company stock ****ing around looking for the small gold mine.

I’m done doing that shit!

[BigRichard]

Once we have sold our house we will be sitting on a very large sum of money we plan on using for a down payment on our next house. This might happen in a month after we sell it or it could be six months after we sell it. Would you risk investing that for a short time? I hate having that much money just sitting there doing nothing but I also don't want to take the chance of a sudden collapse in the market either and lose a gigantic chunk. I know at one point I had found some index fund or stock or something that had a very small rate of return... like <3% or something like that but only lost like 2% in 2008. It was always going up basically just at a very low rate. I was thinking maybe something like that possibly but still on the fence.

What would you do if you had a huge chunk of change sitting around like that and knew you could need it sometime in the next six months?

[Hog's Gone Fishin]

Originally Posted by BigRichard

Once we have sold our house we will be sitting on a very large sum of money we plan on using for a down payment on our next house. This might happen in a month after we sell it or it could be six months after we sell it. Would you risk investing that for a short time? I hate having that much money just sitting there doing nothing but I also don't want to take the chance of a sudden collapse in the market either and lose a gigantic chunk. I know at one point I had found some index fund or stock or something that had a very small rate of return... like <3% or something like that but only lost like 2% in 2008. It was always going up basically just at a very low rate. I was thinking maybe something like that possibly but still on the fence.

What would you do if you had a huge chunk of change sitting around like that and knew you could need it sometime in the next six months?

I'd buy a boat.

[DaFace]

Originally Posted by BigRichard

Once we have sold our house we will be sitting on a very large sum of money we plan on using for a down payment on our next house. This might happen in a month after we sell it or it could be six months after we sell it. Would you risk investing that for a short time? I hate having that much money just sitting there doing nothing but I also don't want to take the chance of a sudden collapse in the market either and lose a gigantic chunk. I know at one point I had found some index fund or stock or something that had a very small rate of return... like <3% or something like that but only lost like 2% in 2008. It was always going up basically just at a very low rate. I was thinking maybe something like that possibly but still on the fence.

What would you do if you had a huge chunk of change sitting around like that and knew you could need it sometime in the next six months?

I'd probably do an online savings account and call it good. You don't want to mess with risking something going horribly wrong with a big downturn right when you need the money.

[Buehler445]

Originally Posted by BigRichard

Once we have sold our house we will be sitting on a very large sum of money we plan on using for a down payment on our next house. This might happen in a month after we sell it or it could be six months after we sell it. Would you risk investing that for a short time? I hate having that much money just sitting there doing nothing but I also don't want to take the chance of a sudden collapse in the market either and lose a gigantic chunk. I know at one point I had found some index fund or stock or something that had a very small rate of return... like <3% or something like that but only lost like 2% in 2008. It was always going up basically just at a very low rate. I was thinking maybe something like that possibly but still on the fence.

What would you do if you had a huge chunk of change sitting around like that and knew you could need it sometime in the next six months?

I would not. Most certainly not. Find the highest interest bearing account and roll.

Might have to split it into 2 accounts. IIRC the FDIC limit is 150,000.

[lewdog]

Originally Posted by BigRichard

Once we have sold our house we will be sitting on a very large sum of money we plan on using for a down payment on our next house. This might happen in a month after we sell it or it could be six months after we sell it. Would you risk investing that for a short time? I hate having that much money just sitting there doing nothing but I also don't want to take the chance of a sudden collapse in the market either and lose a gigantic chunk. I know at one point I had found some index fund or stock or something that had a very small rate of return... like <3% or something like that but only lost like 2% in 2008. It was always going up basically just at a very low rate. I was thinking maybe something like that possibly but still on the fence.

What would you do if you had a huge chunk of change sitting around like that and knew you could need it sometime in the next six months?

You wouldn’t risk that in the market if you need it that soon.

No penalty CD through ally bank could work.

[Great Expectations]

Originally Posted by Buehler445

I would not. Most certainly not. Find the highest interest bearing account and roll.

Might have to split it into 2 accounts. IIRC the FDIC limit is 150,000.

$250k per social security numbers on the account, POD’s count.

[Rain Man]

I agree with the others. Put it into a money market or other guaranteed vehicle. To do otherwise is essentially gambling on events you can't control.

[MahiMike]

Originally Posted by arrowheadnation

Thanks for the advice. I appreciate it. I just wanted to make sure he wasn't being taken for a ride by some commission hungry college grad working for Edward Jones. He's reluctant to go the annuity route because he feels some moral/paternal obligation to "leave me something" when he's gone (I'm an only child). I keep telling him not to worry about it because I have a 401k and a pension, but he's old fashioned. I just want him to be able to be comfortable aka pay his bills & have a little left over for recreation/fun/travel/etc.

Tell him to avoid Annuities at all costs. And the guy that suggested that to him? RUN! He'll make more out of the deal than your dad.