Like Vanguard 500 or something?
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Stock-Age: Stocks, Options and Dividends oh my!
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Like Vanguard 500 or something?
:O
Halp
developing, emerging, US total and you're set, really
Ether_Snake
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It all depends on timing for the short term because you might be investing at a high or a low. That's why you have to stick to a plan, such as investing X amount every 1st day of the month or every two months, etc., in the same funds.
I averaged around 8% return on my RRSP doing that (401k equivalent in Canada) since 2006 or so. In my trading account, I probably just broke even over as many years. I should have always followed the same strategy as my RRSP.
I averaged around 8% return on my RRSP doing that (401k equivalent in Canada) since 2006 or so. In my trading account, I probably just broke even over as many years. I should have always followed the same strategy as my RRSP.
I think one of the big factors for why I'm up so much is that most of my index funds are in CAD but US investments, and the CAD sunk like a goddamn rock, so my investment went up. Right about now would probably a decent time to invest in TSX, but I'm not gonna lie, I don't want the CAD to recover :lol I also don't wanna fall in the trap of selling/buying according to market value, but it's tempting when the CAD fell 70% (!!!) in just the last 2 years (and the USD is up the same)
Oh, so you're paying someone to manage your portfolio? I'd take a hard look at his commissions and decide if it's worth it.
Not that I'd say it's completely his fault that you are even since September, but if his commissions are really eating up that much, then I'd do some thinking.
I am. It's a long-term thing, so I'm not too worried. But I'm talking to him soon. I wrote down what I see as the problem areas, but I'm pretty clueless at all this stuff.
It's 2%. That's fairly standard, isn't it?
RumblingRosco
Member
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2% plus the fees for the funds themselves?
I don't know what is standard as I won't be paying anyone to handle my money until I have tens of millions and don't care about fees anymore (even then I probably won't)...but that's a lot of money you're losing out on; exponentially more over time.
edit: A lot of those mutual funds you said you're invested in have expense ratios close to and over 1% on their own. If you're paying 2% to the guy in addition to those then you are really, really losing a lot of your gains to fees. And again, this just gets worse the longer you have it set up that way.
That's a lot. Doing it yourself will cost you only the MER (which is <0.5%), whereas for him you're paying 2% PLUS whatever MER he recommends. I just looked at your first one, SAEMX, and it has an insane 1.45% MER, so get out of that.
You're paying 3.5% in fees! With a 10 year investment of 10k, that's with an average market return of 8%
Vanguard: 0.25% MER, 10k after 10 years = 10000*1.0775^10 = ~21100.-
After 40 years: ~198'000.-
SAEMX: 3.5% MER+Fee, 10k after 10 years = 10000*1.045^10 = ~15500.-
After 40 years: ~58'200.-
6k difference aftr 10 years, 140k difference after 40 years, and that's with only 10k invested. Now imagine the difference with a bigger investment and you get the idea.
(50'000: Vanguard after 40 years is 990k, yours is 290k, 700k difference)
For comparison, there are financial management companies that will charge you 0% to handle it that are commission-based (e.g. free if you also get life insurance or sth), not to mention you can handle it yourself, too.
RumblingRosco
Member
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Yeah I got out of a couple of funds from my bank, RBC, because of the high MER. Going full steam ahead with ETF. Free market for the win!
I actually thought we were in this for a second, I'm subscribed to both :lol
But yeah, it's one of those things that's just not taught anywhere, so you just assume a professional knows what they're doing, until you find out "wow it's so much better to do it myself and really not that difficult"
put money in index funds, keep adding money when you can, take it out in 40 years, done
Better late than never, bank rates can't even compete with inflation -.-
Ah, thank you. That's actually the thread I was looking for.
My situation is a bit unusual in that I'm already retired (and have been for 8 years) but I'm only 40.
RumblingRosco
Member
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I'm not really "set", I'm just trying to make it last. If it doesn't grow then I'm basically screwed. Like I said, I pretty much just started investing.
Ether_Snake
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I expect it to go in the low 70s eventually, because I believe the housing bubble will hurt more than currently anticipated.
vpance
Member
I'm kind of warming up to the idea of a notable correction, if not a crash, starting sometime between 2017 - 2020 when the CAD bottoms. Then I'll convert all my USD back, buy commodities again and wait for house prices to drop.
EmptySpace
Banned
hopefully the cad rises up. go cad!
RumblingRosco
Member
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For him, nothing
for the advisor and his company, something
but we don't really care how those 2% are split between advisor and company, really :lol what matters is he's not getting it
Schwab.
vpance
Member
Nationalism and investing may not mix well
Canadian banks themselves say Cad will drop for the foreseeable future, and to buy USD on spikes. The Cdn market sucks now because it's mostly commodity based which are all getting whacked by the strong USD. US will raise rates by end of the year if not early 2016, and Canada will lower at least once over the next year. That spells sub 75 cents.
1.3 USDCAD (or 77c) is on the books with US rate hike. After that, 1.4 is an easy target. Max target is 1.6 which is back to the highs of 2002 which would be a dream but I think 1.45 looks ripe in the next 2 years.
This is a beautiful time to be Cdn investing in the US market, particularly, borrowing USD to trade in US stocks. You just have to out run your interest costs, which isn't too hard the way the CAD is poised to drop. As of today we are talking potential instant additional 25% gains on short term trades! Can't wait for 40 and more...
Anyways, if I were index investing I wouldn't even bother with the Cdn market, at least until the whole USD hype period is over, which could be a while.
Ether_Snake
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Rumors of GE buuing DDD. DDD are apparently looking into it with GS.
You holding onto it?
Zaraki_Kenpachi
Member
Glad to see oil rebounding. My Russian index is getting murdered though. Wish I could have dropped while I was up 15%.
anonymous_abc
Member
I would hazard a guess that improvement is not really just around the corner. So good luck with that and stay strong.
Zaraki_Kenpachi
Member
Yeah, debating whether to dump to not ride it down but don't really have anything I feel strong to move to.I would hazard a guess that improvement is not really just around the corner. So good luck with that and stay strong.
Zaraki_Kenpachi
Member
Ugh, did something specific happen that Russia is dropping so hard?
vpance
Member
Strength in USD, weakness in commodities. In general there's an inverse correlation. Russia is similar to Canada in that their economy is reliant on rising commodity prices, so I'd say it's another place to avoid investing in at the moment.
Zaraki_Kenpachi
Member
Yeah, I think I may dump all my holdings tomorrow and take the loss. I'm debating whether to switch to China or not since they don't seem as deeply affected and will likely recover quicker.
Ether_Snake
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Anyone holding some REITs? Any idea why they have been on a steady decline this year?
edit: On another topic, lol:
http://www.bloomberg.com/news/artic...h-for-gross-as-china-stocks-seen-next-to-drop
edit: On another topic, lol:
http://www.bloomberg.com/news/artic...h-for-gross-as-china-stocks-seen-next-to-drop
vpance
Member
Up by almost 3x my orig OVAS position now, great stock. Added on yesterdays dip also.
China is just trying to catch up to the gains made elsewhere in the world since 09.
China is just trying to catch up to the gains made elsewhere in the world since 09.
that's one scary ass graph
Bought Box today. Nice price and I am really confident for midterm, last earnings were also much better than expected. There are many cloud services but only Box is focusing so hard on the company / enteprise sector. Think this will pay off, there are still so many companies that could use a service like this for less paperwork. Also got some big US government customers, that will boost confidence for others.
Melon Husk
Member
AERI and AAVL today are perfect examples why I keep away from biotech. (Aerie is airy +50% and Avalanche is avalanching -50%.)
Keeping a small position from $50. We'll see how much it gives back today, but I'm predicting (guessing) it's hit its lower bound today.
Keeping a small position from $50. We'll see how much it gives back today, but I'm predicting (guessing) it's hit its lower bound today.
vpance
Member
Nice. TAN still looks bullish so I think most solars will hold. Some of these solar co's swing hard day to day but it's good to know they all follow each other more or less.
ZeezbruhTV
Member
I'm bored so I'll go ahead and post some of my best ideas. Personally I'm still a poor 22 year old so I don't have any skin in the game but if I did I would go heavy into these. IMO when people talk about % of individual people getting beat by the SPY is overblown. From browsing online it seems people literally pick the most random, no name companies and products to invest in because they "think" it'll do something or have some crazy theory. IMO if you find a solid company, with a societal trend and/or demographics backing up the story with competent management you can beat the market. Same thing with hedge funds, they constantly have a stick up their ass to produce 3 month returns.
If you hold these for over 15 years I don't really see how you can do bad, of course I probably have deluded myself into knowing wtf im doing.
AL: Airplane passengers are supposed to increase 4% pretty much indefinitely minus depressions/recessions/WW3 etc. Especially in Asia where the middle class is going to explode over the next 20 years. A decent portion of these emerging market airlines will lease instead of buy. They have around 200 planes at the moment, and are expecting deliveries of another ~225 into 2019ish. Also just started a fleet management business which is margin heaven. Their CEO is also a complete air industry baller. He sold another rental company to AIG for billions and after the financial crisis made another.
BABA/JD: If your one of those people scared of china because of some fraud in some small sketchy companies skip this paragraph. China has 1.4 billion people, only ~800m living in cities, government pushing hard to increase that. They have also shifted over to turning china in a consumption based economy. I don't think I really need to explain the sheer ridiculous fucking numbers of users for these 2 sites. Both have been playing quasi venture capitalist which in a economy growing this fast they will both most likely make out HUGELY. JD is more amazon, BABA more ebay, JD more reliable products, BABA more fakes, JD better experience lower margins, BABA worse experience high margins. BABA has also invested in pretty much everything, JD more reserved. JD has been break even for a year or 2 which breaks the amazon criticism of "will they ever make money?" As massive economies of scale, order density increases and increased autonomy over the next 10+ years they should be set up perfectly. JP Morgan said they expect them to have 6-7% margins eventually. I prefer JD, but I would buy both.
CSIQ/SCTY: Societal play, solar energy is the future at least until we figure out fusion power and even then...CSIQ weathered the 11 solar crash and is going into the distributed market and also is making a yeildco which will give them solid financing. I see SCTY becoming one of the biggest utitilies in the world in 20ish years, as solar prices drop, they expand manufacturing of their new 24% efficient panels, keep vertically integrating and keep innovating. International expansion could be huge, in places where everyone has cell phones but no running water, panels would be perfect for place that like which 1/3 of the world lives in. Huge risk is financing, which they have shown they are pretty good at getting, definite risk though. I would get both, SCTY as the residential utility and CSIQ as the more big solar farm type company but also into everything.
V/MA: One of the best duopolies there are. Credit cards pay you to spend money you already would spend (they way I use them) and just make your life so much easier. I see more and more of the world moving twords CC's. China is opening up to these 2 next year and over the next 20 years they could process trillions easily. Huge margins, massive moats, make your life easier and even pay you to spend money you would already pay. Risks include governments capping fees and some crazy bitcoin v2.0 that takes over the world, although I suspect these 2 would be involved somehow in that.
Start ups I wish I could invest in: Palantir technologies, they do the big data and cloud for the CIA and FBI, super secret company but you know they are doing some crazy shit and have a next level pedigree.
Flipkart: Pretty much same story as BABA/JD but at a infant level in India.
Private Companies I follow/wish I could put money into: Aldi's, over twice the margins of target and walmart, super efficient,crazy low prices and treat their employees well. Expanding rapidly and I don't see them slowing down.
Kwik Star: If you don't live in the upper midwest you don't know about this company. Doing the same things as Aldi's except as a gas station.
SpaceX: Doing absolutely crazy shit.
If you hold these for over 15 years I don't really see how you can do bad, of course I probably have deluded myself into knowing wtf im doing.
AL: Airplane passengers are supposed to increase 4% pretty much indefinitely minus depressions/recessions/WW3 etc. Especially in Asia where the middle class is going to explode over the next 20 years. A decent portion of these emerging market airlines will lease instead of buy. They have around 200 planes at the moment, and are expecting deliveries of another ~225 into 2019ish. Also just started a fleet management business which is margin heaven. Their CEO is also a complete air industry baller. He sold another rental company to AIG for billions and after the financial crisis made another.
BABA/JD: If your one of those people scared of china because of some fraud in some small sketchy companies skip this paragraph. China has 1.4 billion people, only ~800m living in cities, government pushing hard to increase that. They have also shifted over to turning china in a consumption based economy. I don't think I really need to explain the sheer ridiculous fucking numbers of users for these 2 sites. Both have been playing quasi venture capitalist which in a economy growing this fast they will both most likely make out HUGELY. JD is more amazon, BABA more ebay, JD more reliable products, BABA more fakes, JD better experience lower margins, BABA worse experience high margins. BABA has also invested in pretty much everything, JD more reserved. JD has been break even for a year or 2 which breaks the amazon criticism of "will they ever make money?" As massive economies of scale, order density increases and increased autonomy over the next 10+ years they should be set up perfectly. JP Morgan said they expect them to have 6-7% margins eventually. I prefer JD, but I would buy both.
CSIQ/SCTY: Societal play, solar energy is the future at least until we figure out fusion power and even then...CSIQ weathered the 11 solar crash and is going into the distributed market and also is making a yeildco which will give them solid financing. I see SCTY becoming one of the biggest utitilies in the world in 20ish years, as solar prices drop, they expand manufacturing of their new 24% efficient panels, keep vertically integrating and keep innovating. International expansion could be huge, in places where everyone has cell phones but no running water, panels would be perfect for place that like which 1/3 of the world lives in. Huge risk is financing, which they have shown they are pretty good at getting, definite risk though. I would get both, SCTY as the residential utility and CSIQ as the more big solar farm type company but also into everything.
V/MA: One of the best duopolies there are. Credit cards pay you to spend money you already would spend (they way I use them) and just make your life so much easier. I see more and more of the world moving twords CC's. China is opening up to these 2 next year and over the next 20 years they could process trillions easily. Huge margins, massive moats, make your life easier and even pay you to spend money you would already pay. Risks include governments capping fees and some crazy bitcoin v2.0 that takes over the world, although I suspect these 2 would be involved somehow in that.
Start ups I wish I could invest in: Palantir technologies, they do the big data and cloud for the CIA and FBI, super secret company but you know they are doing some crazy shit and have a next level pedigree.
Flipkart: Pretty much same story as BABA/JD but at a infant level in India.
Private Companies I follow/wish I could put money into: Aldi's, over twice the margins of target and walmart, super efficient,crazy low prices and treat their employees well. Expanding rapidly and I don't see them slowing down.
Kwik Star: If you don't live in the upper midwest you don't know about this company. Doing the same things as Aldi's except as a gas station.
SpaceX: Doing absolutely crazy shit.
vpance
Member
Good write up, I can tell you did more than just a cursory analysis, hehe. Ever try paper trading? I agree with you on the whole not being able to beat SPY thing as kind of dumb.
On the solar tip I also like CSIQ (though not as much from a technical pov with the recent drop). It manufactures out of China so it's basically treated as a Chinese stock with unduly low valuations, but nonetheless as I speculated earlier this year the sector in general could run up huge and it has. The recent pullback is good chance to get in for a long term play. Others to take a look at are JKS and TSL.
With China markets on fire maybe they'll finally carry these Chinese solars to new all time highs. If you compare YTD gains in the sector you'll see amazing outperformance by the Chinese companies, like up near 100% this year vs 50% or so for NA ones.
On the solar tip I also like CSIQ (though not as much from a technical pov with the recent drop). It manufactures out of China so it's basically treated as a Chinese stock with unduly low valuations, but nonetheless as I speculated earlier this year the sector in general could run up huge and it has. The recent pullback is good chance to get in for a long term play. Others to take a look at are JKS and TSL.
With China markets on fire maybe they'll finally carry these Chinese solars to new all time highs. If you compare YTD gains in the sector you'll see amazing outperformance by the Chinese companies, like up near 100% this year vs 50% or so for NA ones.
Ether_Snake
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If you think airlines will grow that much you could invest in CAE which are pretty much the only actual flight simulator company out there. I sold my position this year to lock in gains and because I'm shifting to ETFs.
Autodesk is basically a monopoly on the simulation/modeling front so that is one I think will just keep growing, but again I'm sticking to ETFs.
Autodesk is basically a monopoly on the simulation/modeling front so that is one I think will just keep growing, but again I'm sticking to ETFs.
Ether_Snake
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I think it is now 100% certain that Greece will exit. Tsipras is doing what he has to do to have political support to do so. That's what the IMF comments were for.