PebHmong Discussion Forum
General Category => General Discussion => Topic started by: hmgROCK on July 27, 2018, 07:43:38 AM
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my background is finance
going give you guys the elementary short version
hater need not reply
just for simplicity and simple math
so we can easily follow and understand
we going say, you have $20,000
50% stock ($10,000) and 50% bond index ($10,000)
stock index (50%) bond index (50%)
$10,000 $10,000
(1,000 share) (1,000 share)
let's say this year stock went down $2,000 but bond went up $2,000
stock index (50%) bond index (50%)
$8,000 $12,000
you would than sell some of those bond and buy more stock
stock index (50%) bond index (50%)
$8,000 $12,000
+$2000 -$2,000
--------------- ----------
$10,000 $10,000
(1,200 share) (1,000 share)
so you sell stuff when it's high
and you buy stuff when it's low
hopefully, i make it easier for you guys to understand
this is the short version of allocating
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Well my 5 years old nephew just looked at your education and says that the only way to come up is if both parameters go up?
Like if the wife goes gambling with the husband, if one win and one lose, we go home even.
Hard to come up that way homeboy
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where's the part for 401k n roth?
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Well my 5 years old nephew just looked at your education and says that the only way to come up is if both parameters go up?
Like if the wife goes gambling with the husband, if one win and one lose, we go home even.
Hard to come up that way homeboy
it's rebalancing
sell high, buy low
sure you might even it out
but now you have more share of the stock index
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How is that even a win?
Once you sell, you pay tax so your money is less now.
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How is that even a win?
Once you sell, you pay tax so your money is less now.
hey, i went back and edit "share" into the example
hopefully that will help explain/clear thing up a little
so yes
even thought the money $$$ add up to the same
and you pretty much come out on even
you now, have more share of the stock up 200, for a total of 1,200 share of stock
this is what we call allocating, rebalancing.
so when stock recovery, you will get a big jump because you now have 1,200 share instead of 1,000
this is what we call allocating/rebalaning
so now you have
stock index bond index
$10,000 $10,000
(1200 share) (1000 share)
YOU DON'T PAY TAX IF YOU DO THIS ON A ROTH IRA
BECAUSE ROTH IRA ARE TAX FREE
FREE FREE
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I don't have time to watch stock, buy, sell. I wish there was someone who will do it for me.
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I don't have time to watch stock, buy, sell. I wish there was someone who will do it for me.
than you want a target date index
https://www.schwab.com/public/schwab/investing/accounts_products/investment/mutual_funds/mutual_fund_portfolio/target_funds (https://www.schwab.com/public/schwab/investing/accounts_products/investment/mutual_funds/mutual_fund_portfolio/target_funds)
scroll down
pick an age that you want to retire
they do all the allocating for you
low fee too
2008 - 2012
SWYAX
Schwab Target 2010 Index Fund 0.08 0.72
2013 - 2017
SWYBX
Schwab Target 2015 Index Fund 0.08 0.74
2018 - 2022
SWYLX
Schwab Target 2020 Index Fund 0.08 0.81
2023 - 2027
SWYDX
Schwab Target 2025 Index Fund 0.08 0.79
2028 - 2032
SWYEX
Schwab Target 2030 Index Fund 0.08 0.83
2033 - 2037
SWYFX
Schwab Target 2035 Index Fund 0.08 0.80
2038 - 2042
SWYGX
Schwab Target 2040 Index Fund 0.08 0.84
2043 - 2047
SWYHX
Schwab Target 2045 Index Fund 0.08 0.81
2048 - 2052
SWYMX
Schwab Target 2050 Index Fund 0.08 0.85
2053 - 2057
SWYJX
Schwab Target 2055 Index Fund 0.08 0.82
2058 or later
SWYNX
Schwab Target 2060 Index Fund 0.08 0.82
this is a easy route if you don't want to deal with investing
just pick a date that you want to retired
and conbrution, you don't have to rebalance or allocated
everything is done
lazy man portifolo
just buy this only, it has everything you need
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i don't like BSing, when it comes to $$$$
go schwab.com open a roth ira account. pick a date you want to retire
contribution $5,500 annual
this is all you need to buy.
google the ticker if you don't believe me
it has everything you need,
apple, microsoft, pepsi, etc...
2008 - 2012
SWYAX
Schwab Target 2010 Index Fund 0.08 0.72
2013 - 2017
SWYBX
Schwab Target 2015 Index Fund 0.08 0.74
2018 - 2022
SWYLX
Schwab Target 2020 Index Fund 0.08 0.81
2023 - 2027
SWYDX
Schwab Target 2025 Index Fund 0.08 0.79
2028 - 2032
SWYEX
Schwab Target 2030 Index Fund 0.08 0.83
2033 - 2037
SWYFX
Schwab Target 2035 Index Fund 0.08 0.80
2038 - 2042
SWYGX
Schwab Target 2040 Index Fund 0.08 0.84
2043 - 2047
SWYHX
Schwab Target 2045 Index Fund 0.08 0.81
2048 - 2052
SWYMX
Schwab Target 2050 Index Fund 0.08 0.85
2053 - 2057
SWYJX
Schwab Target 2055 Index Fund 0.08 0.82
2058 or later
SWYNX
Schwab Target 2060 Index Fund 0.08 0.82
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I don't know what those numbers mean.
For now all I have is maxing out 401k every year and hope to become a millionaire when I retire.
What's the best way to invest for my son? I have alotted some $ every paycheck and just placing it in a savings account. Need to invest it but unsure how.
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You mean I can only contribute max of $5,500 annual?
What if I'm the only one working, can I do $5,500 for me and another $5,500 for my spouse?
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I don't know what those numbers mean.
For now all I have is maxing out 401k every year and hope to become a millionaire when I retire.
What's the best way to invest for my son? I have alotted some $ every paycheck and just placing it in a savings account. Need to invest it but unsure how.
pick a date (year that you want to retired)
than just contribution
you only need to buy one
these are manage/allocate/rebalance every year
if you don't want to do any of the above
for your son, see if your state has a child saving program and get into that
CD is nice too.
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You mean I can only contribute max of $5,500 annual?
What if I'm the only one working, can I do $5,500 for me and another $5,500 for my spouse?
for roth ira
max cap is $5,500
but you need to make that much to contribution that much
because it has a income limit
so if you only make $4,000 for the year
you can only do $4,000 to your roth IRA
so if you make $30,000
you can only do $5,500 because that is the max cap
you can do one for you and your spouse (don't have to work, if you guys do marriage jointly tax together)
so $5,500 for you and $5,500 for your spouse
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so what's the difference in opening a roth account with the website you recommend and the Vanguard website?
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so what's the difference in opening a roth account with the website you recommend and the Vanguard website?
Vanguard is good too
Vanguard, Schwab, fidelity
Those are the big three
The fee are pretty low
I think, I have to google their fund again
Vanguard minimum start up is like $1000
Fidelity $2500
Schwab. Less than $100
I personally use Schwab
But you can pick any of those three
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how do I invest $1 and by the time I retire, that $1 has some zeros at the end?
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my background is finance
;D ;D ;D
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how do I invest $1 and by the time I retire, that $1 has some zeros at the end?
nothing
takes money
to make money
that's too small
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I thought it was the other way around, that it's better to use the stocks to gain more bonds.
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I thought it was the other way around, that it's better to use the stocks to gain more bonds.
It’s both way
When stock is doing well and bond not so well. You sell stock to buy more bond.
When bond is doing well and stock is not, you sell bonds to buy more stock.
This is call allocation/rebalancing
So you are selling at the highs and buying at the low.