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It happens. I had an investment in a fund full of solid companies like Gillette and McDonalds with a proven track record. A month after I bought shares they announced fee increases. Six months later it had lost half it's value. Sometimes you are just unlucky. Also super-low risk funds for old people sound about right, but holy poo poo just stick it in a money market then.
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Jul 30, 2018 22:13
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Active managers are scum. If you'll forgive the  Self Post , here's what my family-mandated money people have me in. This financial manager is supposed to be one of the most highly skilled, elite and exclusive money people in the nation, catering solely to high net worth individuals with blah blah blah whatever. They're morons, and after considering the 1% annual fee, the balance has increased by about 5% TOTAL since 2012. Note of course that they do all the trades with Schwab, so their constant churning hits me with a 1-5% fee and gives themselves a nice commish Can't wait to see how they do during a down market!
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Jul 30, 2018 22:24
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Hm yes 11% in cash.
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Jul 30, 2018 22:30
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Gotta have dry powder to buy the dip!!!! *misses entire bull market cycle*
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Jul 30, 2018 22:32
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GoGoGadgetChris posted:Gotta have dry powder to buy the dip!!!! Chris I really don't know what kind of position you have in the family but I'd throw a loving FIT about these idiots managing a substantial amount of your family's wealth.
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Jul 30, 2018 22:38
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So what's the negative consequences of quietly pulling the money out of this poo poo and putting it into real funds?
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Jul 30, 2018 22:38
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My great-grandmother sold the family cola company in 1951 and put $50k in the checking account. When she died 42 years later it was still there.
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Jul 30, 2018 22:41
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OneTruePecos posted:
GoGoGadgetChris posted:They're morons, and after considering the 1% annual fee, the balance has increased by about 5% TOTAL since 2012. Note of course that they do all the trades with Schwab, so their constant churning hits me with a 1-5% fee and gives themselves a nice commish So if that fund had a 2% fee (pretty common), it would be negative.  I guess
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Jul 30, 2018 22:57
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How is that even possible? Are they cash funds?
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TraderStav posted:Cash funds wouldn't lose money. Unless the fees/overhead was larger than the interest earned. e: Whoops, that'll teach me to reply without refreshing. Krispy Wafer posted:It happens. I had an investment in a fund full of solid companies like Gillette and McDonalds with a proven track record. A month after I bought shares they announced fee increases. Six months later it had lost half it's value. Right, but I meant in particular how was it possible over the last 5 years. The NASDAQ has literally doubled during that time-frame, for reference. Looks like the answer is the money was in an instrument(s) designed to lose value due to fees swamping any possible return. So, yeah quote:holy poo poo just stick it in a money market then. OneTruePecos fucked around with this message at 23:31 on Jul 30, 2018 |
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Jul 30, 2018 23:20
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GoGoGadgetChris posted:Active managers are scum. Tag urself. I'm the 17.5% in J&J. Also, family-mandated? YOUR money is allocated in this manner? What the hell?
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Jul 30, 2018 23:35
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My dad bought a way overpriced house a little over a year ago, pretty much exclusively because a former owner had turned the garage into a recording studio. He did this before selling his current house or the townhouse he was renting out (at a loss, all things considered). He then spends the next 7 months doing renovations on the places as cheaply as possible, largely by himself, and in the process misses the spring and summer selling seasons, which is a big deal in central Alberta as nobody wants to move in the winter. During this time local real estate prices poo poo the bed, and his houses sit empty, unrented and unsold for months until early this year where, after drastically lowering the prices on both, they finally sell. He still comes away with some equity, but it's way less than initially planned. Due to the stress of all this, and some drama at work, he decides he's going to retire early. Actually he decided early last year but I at least managed to convince him to wait until his houses had actually sold first. He's lucky as hell and has defined benefits public sector pension, and between the house sales and living frugally he has a few years income saved up across his RRSP (401K) and TSFA (IRA). Running some numbers found that his pension income, and income he gets from an in-home renter, would just barely cover his current costs, the largest being the mortgage payment. So he retires. Now, in Canada, fixed rate mortgages are only 5 years, after which you have to renew. I just realized today that with interest rates climbing, property values falling, and his income being slashed due to retirement, there's a very real possibility that he just straight up won't be able to renew his mortgage in 3 years, and will either have to sell at a loss or drain his retirement savings. He might be ok though, because since the house (other than the garage) is, like, 80 years old and a piece of poo poo, the broker wouldn't give a mortgage that was amortized longer than18 years, so maybe he'll have paid off enough of the capital when he goes to renew that the LTV will let him squeak by, even with higher interest rates. But then he'll still be stuck in a lovely ancient house with a even bigger mortgage payment. Also the house is full of stairs and the bathroom is literally a poorly-retrofitted closet, and he's already had sciatica and 2 knees replaced so mobility is likely to become an issue for him. Also he's been retired 4 months and hasn't even started setting up his recording studio equipment. Also his renter has a handicap so my dad isn't able to leave his house for more than 24 hours without paying somebody to take care of the renter, but he desperately needs the extra income to keep above water. TLDR: My dad blew his nest egg on an overpriced poo poo house, renovations that made no difference to selling price (do they ever?), and then decided to retire early into a life of house-poor imprisonment, and will probably lose the house anyway when he renews his mortgage in a few years because Canadian real estate is about where the US was in late 2007! Square Peg fucked around with this message at 23:43 on Jul 30, 2018 |
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Jul 30, 2018 23:41
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GoGoGadgetChris posted:Active managers are scum. I'm the 3.89% in Hewitt Packer Enterprise and the 5.80% in HP Inc.
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Jul 30, 2018 23:45
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DariusLikewise posted:I'm the 3.89% in Hewitt Packer Enterprise and the 5.80% in HP Inc. HPE isn’t awful but I sure as poo poo wouldn’t touch the consumer end of HP with a ten foot pole.
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Jul 31, 2018 00:21
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The Best Money Manager In The World
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Jul 31, 2018 00:24
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There's something about energy MLP etfs that active managers just can't resist. I can't figure out what it is, since they don't charge a load fee so they probably don't get a kickback.
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Jul 31, 2018 00:45
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This poo poo makes me sad, mostly because of how common it is...... Father Putting My Name On Properties and Vehicles https://www.reddit.com/r/personalfinance/comments/939jju/father_putting_my_name_on_properties_and_vehicles/ quote:My father wants to buy my grandfather's rental property and says he's going to put it in my name so "the IRS doesn't come after him"? I don't really understand what this means; I'm not sure he does either. The property is near the Alabama/Florida panhandle if that matters. He says he will be putting my name in a trust for the new property, and wants my name in other things as a trust too. He's never been that great with investing, so I just worry this will set me back when I get older or when he dies.
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Jul 31, 2018 01:21
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Motronic posted:This poo poo makes me sad, mostly because of how common it is......
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Jul 31, 2018 01:27
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Wolfy posted:Good on them for having a suspicion that this might be a horrible idea. Idgi, what will happen. I’m not nearly as schooled on this stuff as some of the people in here and I also don’t understand the implications of this
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Jul 31, 2018 01:37
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Cacafuego posted:Idgi, what will happen. I’m not nearly as schooled on this stuff as some of the people in here and I also don’t understand the implications of this That's kind of the point. It's unclear what or why he wants to do this crap. "So the IRS can't get him" is sketchy AF. Putting a bunch of property in someone else's name for "tax purposes" should set off all kinds of alarm bells.
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Jul 31, 2018 01:41
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If he doesn't sign any debt notes, the worst thing that (I think) could happen would he'd lose the asset in a foreclosure that he didn't really own or invest in. Someone weigh in and tell me if I'm wrong here. E: oh, or tax scam. TraderStav fucked around with this message at 01:44 on Jul 31, 2018 |
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Jul 31, 2018 01:41
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Square Peg posted:
No. Without diving too much in to self-posting, my elderly parents did this - the whole "Realtor said add a closet, then we can advertise it as 4 rooms instead of 3 etc." bullshit - which ended up adding nothing in the end, except a lot less cash for my parents and a free closet to the new owner. Square Peg posted:and then decided to retire early into a life of house-poor imprisonment, and will probably lose the house anyway when he renews his mortgage in a few years because Canadian real estate is about where the US was in late 2007! Not to stereotype, but this seems to be a common boomer fallacy, the "I have a guaranteed pension/etc., so as long as I can live on <x> each month I'll be ok" which boils down to not understanding poo poo about cash-flow and related considerations and basically leaves people hosed. Try your very hardest to get him off this path while there is time. No matter how bad it is now it can and probably will get worse later as you've already guessed.
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Jul 31, 2018 01:47
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Maybe the father wants to protect the assets in case he’s looking at a long stay in assisted living. Medicaid never expects that and plans to hide assets always work.
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Jul 31, 2018 01:49
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Krispy Wafer posted:Maybe the father wants to protect the assets in case he’s looking at a long stay in assisted living. This is my guess. Put it in a family members name and guilt them in to the income on the side while staying under the benefit threshold. Like you said, it's an A #1 plan that Medicaid never catches on to. The latter is probably (almost certainly) a lovely web ad running right now; I'm not old enough, so haven't seen it (I'm sure Google or whoever will suss me out in 20 years though) but I'd lay money on it existing.
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Jul 31, 2018 01:55
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Fellow BWM thread posters, it may be me who is bad with money. Or bad with reading comprehension. I did not consider that the funds in my grandmother's mutual funds showed negative growth because she was in her 80s and withdrawing money. I don't know if that is actually the case, but I feel kind of stupid for not considering it before now. I'm meeting my dad in a couple of weeks to help him move all the funds to a new account and setup the investments, at which point I'll take a closer look at the records and will update if either they were horribly mismanaged funds or I am a colossal dumbass that can't read a statement.
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Jul 31, 2018 03:11
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Ornamented Death posted:Fellow BWM thread posters, it may be me who is bad with money. Or bad with reading comprehension. I did not consider that the funds in my grandmother's mutual funds showed negative growth because she was in her 80s and withdrawing money. To be fair, if well funded and properly invested, a safe withdrawal rate should still result in positive growth. There’s a metric fuckton of assumptions and caveats in that statement.
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Jul 31, 2018 03:32
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Krispy Wafer posted:My great-grandmother sold the family cola company in 1951 and put $50k in the checking account. When she died 42 years later it was still there. Not this bad, but my grandfather bought a Prudential whole life insurance for me (and my sister) when we were each were like, 2ish. I had no idea until I was about 26. Money put down: $6,000. 24 years later when I found out, the value was around $6,800. Because Prudential charged around $400-500 a year for the life insurance part. I’m grateful for the sentiment, but also it’s holy poo poo why didn’t you just put it in a mutual fund? Some goon did math when I first posted about this; and that $6k could have been $25-30ish if it wasn’t for the drat whole life.
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Jul 31, 2018 03:58
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Harry posted:There's something about energy MLP etfs that active managers just can't resist. I can't figure out what it is, since they don't charge a load fee so they probably don't get a kickback. They're all secret bronies.
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Jul 31, 2018 05:16
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Jesus christ thread we just can't get away from horsechat can we?!? I'm glad I'm not the only dummy who thought about making a mlp joke
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Jul 31, 2018 05:40
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GoGoGadgetChris posted:"Do 401ks get pretty good returns?" is a question I hear allllllllllll the time Contento: http://www.abc.net.au/triplej/programs/hack/young-people-house-ownership-low-savings-debt/10051938 quote:42 per cent of young people are living at home with their parents and working full-time or part-time, but most of them have less than $5,000 in the bank. Young (18 - 29) people are insane or super optimistic. Suspicious Lump fucked around with this message at 07:49 on Jul 31, 2018 |
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Jul 31, 2018 07:09
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Vessels - 401k, IRA, taxable brokerage account Holdings - VTSAX, BND, TSLA, HMNY, etc
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Jul 31, 2018 08:14
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Suspicious Lump posted:Please educate me, what's the difference between a "vessel" and a "holding". That article and the cherry-picked survey behind it is some quality clickbait for pensioners. Love that the header image is of avocado toast too. I'm neither in that age group nor Australian but I can appreciate a good story meant to rile up older people (check the comments). If I turned off my adblockers I bet I would already know what kind of ads I would see. Is "Stupid Boomers vs. spoiled Millennials" a real thing or something collectively dreamed up by companies desperate for ad dollars and pageviews? Seems to be a lot of it the past couple years.
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Jul 31, 2018 12:11
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OneTruePecos posted:
PIMCO
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Jul 31, 2018 12:19
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Ixian posted:That article and the cherry-picked survey behind it is some quality clickbait for pensioners. Love that the header image is of avocado toast too. I'm trying to remember what ridiculous Boomer trait could be used in place of an avocado in articles about their financial habits. Dusty unused time share? PT Cruisers? Hair Club for Men memberships?
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Jul 31, 2018 12:24
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Krispy Wafer posted:I'm trying to remember what ridiculous Boomer trait could be used in place of an avocado in articles about their financial habits. Holding money on a stick right above the outreached arms of poor people.
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Jul 31, 2018 12:34
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boop the snoot posted:Holding money on a stick right above the outreached arms of poor people. No...that image works for every generation.
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Jul 31, 2018 12:42
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CornHolio posted:When you have kids, you end up treating your parents differently. You need to provide for the former first and the latter second. My dad needs a kidney and I can't give him one because of the risk it would impose on myself and my ability to care for my children (I'm also not in good enough health to give him one, but even if I were, my kids and their needs come first). It sucks but it's the way things are when you have kids. Oh I agree completely. I refuse to provide for someone who had opportunities and made poor choices over my children who still have their whole future ahead of them. GoGoGadgetChris posted:"Do 401ks get pretty good returns?" is a question I hear allllllllllll the time This reminds me that my mom didn't think she could change what her 401k was invested in. She claimed she had no choice when she opened it or that she had different options. She was under the impression that she was stuck with whatever the default fund was. She complained that her 401k never did well. Then she revealed that she had never logged into the 401k's website, which is how you pick funds to begin with or change funds. So it's probably in some default fund that gets horrible returns and has high fees. 
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Jul 31, 2018 13:08
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Ebola Roulette posted:Oh I agree completely. I refuse to provide for someone who had opportunities and made poor choices over my children who still have their whole future ahead of them. Thankfully my dad always had good financial sense and now that he's retired is doing quite well. Too well, maybe - with his recent health issues he bought my mom a new Lexus and himself a new Miata and my mom called me freaking out that he was 'spending our inheritance' - something I told her was perfect fine with me, he earned it, I can take care of myself.
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Jul 31, 2018 13:39
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Krispy Wafer posted:I'm trying to remember what ridiculous Boomer trait could be used in place of an avocado in articles about their financial habits. Beanie Babies.
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Jul 31, 2018 13:53
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TraderStav posted:Beanie Babies. So be it, from this day forth behold Boomer.jpg:  Millennials may have gotten off easy with avocados.
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Jul 31, 2018 14:06
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| # ? May 17, 2024 02:09 |
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http://www.gtatsecuritieslitigation.com/ There's ongoing litigation for our favorite old cautionary tale, GTAT.
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Jul 31, 2018 14:09
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