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      11-27-2019, 10:25 AM   #1
VisualEcho
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So if you had $50K to invest, where would you put it?

Lately I've been thinking of selling my Lotus Exige and investing the money. The car is worth $60K IMO, but let's call it $50K to be safe.

If I sell the car I'd like to make that money work for me. Imagine I know nothing of investing, what advice would you offer to make a decent return?
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      11-27-2019, 10:29 AM   #2
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I would put it here:

https://finance.yahoo.com/quote/IVOG/performance?p=IVOG

https://finance.yahoo.com/quote/VOO/performance?p=VOO
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      11-27-2019, 10:42 AM   #3
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I agree with this statement.
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      11-27-2019, 10:42 AM   #4
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Wait for a dip and index it.
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      11-27-2019, 10:50 AM   #5
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You guys are way over my head already.

Imagine I'm a car guy, not an investment guy...
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      11-27-2019, 10:54 AM   #6
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Quote:
Originally Posted by VisualEcho View Post
You guys are way over my head already.

Imagine I'm a car guy, not an investment guy...

Invest the money in solid index funds through a self managed account, such as something from Merrill Lynch or similar.

The market is pretty strong right now, so wait for a light dip and then dump it all in any fund that mirrors the S&P500, such as the ones I linked to. These are simply index funds that will provide a return that is similar to whatever the market as a whole does.
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      11-27-2019, 10:57 AM   #7
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Go to Vanguard.com and set up an account.

Invest in VTI/VTSAX (depending if you prefer mutual fund or ETF)...
If you want some international exposure choose VT/VTWAX.

Sit and wait...add new shares as you can.

-Mark in St. Louis
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      11-27-2019, 11:14 AM   #8
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Originally Posted by buldogge View Post
Go to Vanguard.com and set up an account.

Invest in VTI/VTSAX (depending if you prefer mutual fund or ETF)...
If you want some international exposure choose VT/VTWAX.

Sit and wait...add new shares as you can.

-Mark in St. Louis
Maybe after I sell the car I'll just drive up to STL (I'm 1.5 hours away). We can have a small BMW meet, and you can school me on all this stuff.
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      11-27-2019, 11:34 AM   #9
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There’s not much to be schooled on. You’d just need to open up an account with any decent online broker (just read all the fine print on what you get charged a fee on - a good low cost broker will charge you a small fee per transaction and not much other bullshit). Deposit money. Enter a market order for any of the securities the people above have mentioned. Done and done.

Although if you’re more of a high risk/high reward guy, i would open up a stable of man-whores. Recruiting is pretty easy, I’ve heard that some of the finest gigolo talent is right here on BPost
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      11-27-2019, 11:36 AM   #10
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I would question what mix of investments and retirement savings you have already and determine your risk aversion before making any recommendations for investing. The market is doing well now, but if you are a ways from retirement it may be wise to diversify the investment across index funds, growth funds, small and low cap, and international funds. If you have a low tolerance for risk something like an index fund or large cap fund may make more sense to you. Either way it may be best to spread the investment across several options, the question is just how much to allocate to each. Or choose a target date retirement mutual fund that will alter that mix for you from aggressive to conservative as you and the fund age.
https://www.fidelity.com/mutual-fund...olios/overview


In car talk, do you get the safe reliable Honda Accord which so many buy and have a great track record (index fund, think major stable companies with large market share and steady consistent slow growth). Hop into the sporty 911 that is a female and cop magnet (small and mid cap funds that can produce higher returns because of faster growth funds but aren't stallworths and have risk). Chase the Aventador, a bigger magnet, that is awesome but an expensive risk (international funds). Or go electric with the Model S that everyone is chasing and may be the next best thing (venture capital). A solid Ford Explorer will take you on your journey for many years and adapt as you grow from single outdoor guy car, to versatile young couple ride, to reliable kid hauler (target date retirement fund). Don't forget the reliable and boring Town and Country that isn't glamorous or fast but gets you there slow and steady (low yield bonds). Or stock your garage with a mix of cars that each serve a purpose and spread around the fun; wouldn't it be nice to have a choice of different rides each day.
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      11-27-2019, 11:47 AM   #11
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I'd keep the lotus it's beautiful.
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      11-27-2019, 12:05 PM   #12
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First thing is to figure out what your purpose with this fund will be. If you have other investments or secure retirement savings, this might be “play” money. If this is your whole nut, then you might want to be more careful.

Second is think about taxes across assets. IRA/401(k) are tax free once in the account, but since the source is a car sale, I’m thinking this would be a regular account. If you can contribute any part of the sale to a tax deferred account, do that.

For the tax deferred account, if there is not enough to fool with (say more than $10k but really more), I’d go with the index funds RunSilent recommended. A fund with high dividend or interest yield is ideal in this account since it is tax deferred. If you do have enough to feel comfortable picking stocks and diversifying (at least 5, ideally 10 or more stocks. So if average price is $50/share and a standard buy is 100 shares (or multiples of 100), you need $5k per stock. $25k-$50k for a DIY diversified portfolio, which can include those index funds.

If taxable account, same rules about diversification and funds, but now buy growth stocks because when you sell them (to realize gains, since you won’t be receiving cash dividends) the gains will be taxed at the lower long-term capital gains rate. Some dividends are ok, just recognize that they will be taxed at your marginal rate.

I like Motley Fool’s basic service ($99/yr I think) except that you will get up-sell emails every week. Use their recommendations as a starting point, do further research and reading on each stock before you buy. And apply your own standards - for example I don’t buy tobacco or alcohol stocks because of the damage those products have done to my friends and family. Fool is a good place to start reading up on stocks, and I really like their foundational advice: Never Sell! If you have that philosophy, you’ll think long-term about the prospects for the stock/company.

Others like to trade more frequently than I, some are in and out the same day, and use options, etc for more fun, gains and risk. All that depends on the level of expertise, confidence and risk you have.

Disclaimer: while I have a lot of experience in this area I am not a financial advisor. These are just my opinions and reflect my own risk tolerance.
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      11-27-2019, 12:09 PM   #13
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One other piece of advice. If you put the same amount of time, research and passion into this as you put into your other hobbies or job (cars, video games, golf, whatever), you will develop expertise and begin to enjoy the investing game like those hobbies. It becomes fun, and for me it lessened my desire to “waste” money on junk when I could be investing that money instead.

If you just roll the dice without much thought or research, you might win and you might lose - perhaps you should just buy lottery tickets!
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      11-27-2019, 12:11 PM   #14
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hookers and blow in Vegas, where you received cash from the buyer.
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      11-27-2019, 12:14 PM   #15
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+1...My Vanguard funds that I mentioned in one of the other threads is kicking some serious ass right now.

Plus the nice little raise in salary that I got when I was complaining on here a couple of months ago my position in the company all got deferred in that direction. I never seen the money from the start in my pay, but get to watch it work wonders on a weekly basis!
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      11-27-2019, 12:35 PM   #16
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Quote:
Originally Posted by gqgambler View Post
In car talk, do you get the safe reliable Honda Accord which so many buy and have a great track record (index fund, think major stable companies with large market share and steady consistent slow growth). Hop into the sporty 911 that is a female and cop magnet (small and mid cap funds that can produce higher returns because of faster growth funds but aren't stallworths and have risk). Chase the Aventador, a bigger magnet, that is awesome but an expensive risk (international funds). Or go electric with the Model S that everyone is chasing and may be the next best thing (venture capital). A solid Ford Explorer will take you on your journey for many years and adapt as you grow from single outdoor guy car, to versatile young couple ride, to reliable kid hauler (target date retirement fund). Don't forget the reliable and boring Town and Country that isn't glamorous or fast but gets you there slow and steady (low yield bonds). Or stock your garage with a mix of cars that each serve a purpose and spread around the fun; wouldn't it be nice to have a choice of different rides each day.
This is brilliant. I currently own a Lotus Exige, BMW M2, and Acura RDX, so you see what kind of guy I am.

Quote:
Originally Posted by ScottSinger View Post
I'd keep the lotus it's beautiful.
Thanks man. And honestly gaining value every year, and will probably continue to do so.

Quote:
Originally Posted by 2000cs View Post
First thing is to figure out what your purpose with this fund will be. If you have other investments or secure retirement savings, this might be “play” money. If this is your whole nut, then you might want to be more careful.
I'm 49 and it's the whole thing, so I'd want to be careful.

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Originally Posted by 2000cs View Post
One other piece of advice. If you put the same amount of time, research and passion into this as you put into your other hobbies or job (cars, video games, golf, whatever), you will develop expertise and begin to enjoy the investing game like those hobbies.
I've tried that, but I'm just not into it. I want to put the money where it's smartest to go, and forget it even exists until the day I retire. So I was looking at Edward Jones, and a diversified portfolio.
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      11-27-2019, 12:51 PM   #17
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49 and its the whole thing, so you want to be careful.

I made that mistake when I was 51 and freshly divorced. Had about $50k in an old IRA, and the same amount in a brokerage account. Was too busy with the divorce and new job etc to invest wisely, but not too busy to be stupid. In the IRA I let them talk me into a managed fund, even though I know managed funds rarely beat the market. In the other account I bought an ETF (Vanguard). 9 years later the IRA was worth $68k and had well underperformed the market. The ETF had more than doubled. I took the IRA back and followed the investing advice I offered above, but I also re-thought that risk statement. Over the long term stocks outperform bonds and most other investments. Why play safe when time is on my side? And, I changed the horizon to end-of-life (and beyond because the investments don’t have to be sold then) instead of a target retirement date, because I’m not liquidating investments on the day I retire.


There is a good investing parable in the Bible about a master who gives his servants equal sums and departs for a time. One buries the money, preserving it but not getting appreciation. He gets whipped. One speculates and loses it, he also gets whipped. The third invests and returns nicely and is rewarded. That’s some investment advice for the ages there!
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      11-27-2019, 02:22 PM   #18
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Quote:
Originally Posted by VisualEcho View Post
I've tried that, but I'm just not into it. I want to put the money where it's smartest to go, and forget it even exists until the day I retire. So I was looking at Edward Jones, and a diversified portfolio.
I’m not into it either. Even though i have multiple degrees in Finance and work for a financial services company, i can’t bring myself to invest my leisure time into investing. Which is why an index fund is such a great idea. A casual/inattentive investor is far more likely to lose his shit than to outperform an index. And as people have said, buying a managed fund means you’re paying for someone to manage your money that usually won’t beat the index over the long run either.
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      11-27-2019, 02:37 PM   #19
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dont just blindy hop on these funds if you don't know how they work. although most of the advice on this fourm is a good starting point; you better educate yourself before you move around money. u can't just start dumping money somewhere and close your eyes, or everyone would be getting rich.
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      11-27-2019, 02:53 PM   #20
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i have no good investing tips, but howd you like the lotus? been looking at those for a little bit now.
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      11-27-2019, 02:54 PM   #21
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I would put a downpayment on a piece of property and rent it out. The numbers would need to cash flow.
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      11-27-2019, 02:57 PM   #22
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Quote:
Originally Posted by G35POPPEDMYCHERRY View Post
dont just blindy hop on these funds if you don't know how they work. although most of the advice on this fourm is a good starting point; you better educate yourself before you move around money. u can't just start dumping money somewhere and close your eyes, or everyone would be getting rich.
Yes ! to the above.

This is actually a pretty good thread - https://www.2addicts.com/forums/show....php?t=1555010

and I think there was another really good investment thread on this forum.


There are just so many factors. But I think most people should have experience opening up their own online trading account and b very familiar with tresurydirect.gov. Start off with a few thousand dollars, but get that experience and get experience dealing with investment on your taxes.
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