Investing General Discussion

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Sanrith Descartes

Sanrith Descartes

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Foler said:
I bought QQQM and IXUS (ya I know). Why do people make such a big deal about having to manually invest dividends from ETFs? Am I missing something or do they just prefer mutual funds reinvesting it for max lazy?
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Nothing wrong with IXUS. If you are going to have some international exposure its a solid cheap (net fee) instrument.
 
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Jysin said:
The difference in these percentage points doesn't sound like much, but it can really add up over the years. Take these three hypothetical friends: Joe, Tyler and David each invest $100,000 in a mutual fund at age 35. Each account earns an annualized return of 8%, but the accounts charge annual fees of 1%, 2% and 3%. David paid 3% and has $432,194 in assets at age 65. Tyler paid 2% and has $574,349 for retirement. Joe paid 1% and is the big winner, with $761,225 saved for retirement.
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They're forgetting Bob, who chose a Vanguard fund with a 0.01% expense ratio and finishes with $1,003,474
 
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Foler

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Sanrith Descartes said:
Nothing wrong with IXUS. If you are going to have some international exposure its a solid cheap (net fee) instrument.
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Ya. Took your suggestion and followed it up with some research. Staked 20% of portfolio in it for now. May end up lowering it to 15%.
 
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Sludig

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Jysin said:
The thing you REALLY need to consider is that compounding works both ways. That 1% AUM fee each year also compounds against you (some are as high as 2-3%). Fees are the bane of long term investing accounts. Real talk, 98%+ in this thread should just be DCA into the S&P500 and forgetting the login to your brokerage account until retirement. For those that want to dabble in timing and stock picking, take a very small portion of your account and play with that (maybe 5% total acct). If you lose that, game over, leave the rest to just ride until retirement.

Those managed accounts will far often fail to keep up with the S&P returns, especially when adding in the fees.

From Investopedia:

​

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Depressing since my dad was an electrical engineer for a defence company, amazing money. I think last I knew was close to a million or so between retirement accounts/401k, etc, that was like 5 years ago or so, and I think a lot of it took a hit with the market last few years. He didnt know shit about finance, mom paid all the bills kinda thing.

For decades growing up they had I still remember his name for whatever reason Tom Wrenn the investment guy. 10 years ago they finally ditched him after realizing he wasn't doing any favors. I actively don't want to see the details to see what he cost them over riding the S&P.
 
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Foler

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I’m loving doing my own investing. I’m now finding myself instead of wanting to spend money on useless shit, wanting to buy more stonks.

Current portfolio
66% FXAIX
13% QQQM
31% IXUS

I can be a little bit more aggressive and have fun in this portfolio since it’s not my primary. Doesn’t mean day trading. Maybe it means overweighting a sector like you said Sanrith Descartes Sanrith Descartes .

Wondering what next. Overweight into tech a little more aggressively? (I work in tech so kinda like the idea). Maybe add something that touches small and mid cap domestic equities? Something like FZIPX maybe or just straight up small cap like IJR

Seems like a lot of folks pair FXAIX with FSMAX to capture total market
 
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Locnar

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So after witnessing the magic of GLP-1's , I believe these things will become widespread all across the world even for long term maitence. I've bought some Novo and some Lily , anyone have other ideas? After some people die from the illicit supplies from China, I think that loophole will be closed and big Pharma will leave people no choice but to go through them. I think insurance will come around and see its cheaper to pay for this than treat obese people forever.
 
Sanrith Descartes

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Sanrith Descartes

Sanrith Descartes

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Foler said:
I’m loving doing my own investing. I’m now finding myself instead of wanting to spend money on useless shit, wanting to buy more stonks.

Current portfolio
66% FXAIX
13% QQQM
31% IXUS

I can be a little bit more aggressive and have fun in this portfolio since it’s not my primary. Doesn’t mean day trading. Maybe it means overweighting a sector like you said Sanrith Descartes Sanrith Descartes .

Wondering what next. Overweight into tech a little more aggressively? (I work in tech so kinda like the idea). Maybe add something that touches small and mid cap domestic equities? Something like FZIPX maybe or just straight up small cap like IJR

Seems like a lot of folks pair FXAIX with FSMAX to capture total market
Click to expand...
If you havent already, teach yourself what the basket of holdings are and how to read them. By owning the S&P and also QQQM, you are probably already overweight big tech.

That being said, the next step is to pick a number (I use 5%) as the max weight a stock can have in my portfolio. For overweight I use 7-8%.
Then build a little chart in excel to track each individual holding (in the basket of holdings and individual stocks) to track sector weighting. Then have excel calculate the weight of each stock. Example. if AAPL is 5% of the S&P index and you own $100,000 of the S&P index then you technically own $5,000 in AAPL. If its 10% of QQQM and you own $50,000 of QQQM you own another $10,000 of AAPL. If you have $25,000 in IXUS then your total portfolio is $175,000 and $20,000 of it is AAPL. So AAPL is 11.4% of your total portfolio and you haven't bought a single share of AAPL yet.

Its pretty critical to understand basket weights when you are dealing with big tech and how much they influence the indexes because of their market cap. Below is an old version of what I am talking about to track sector weighting.

1702478204528.png


To check individual weighting:

1702478337116.png
 
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Furry

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Foler said:
Wondering what next. Overweight into tech a little more aggressively?
Click to expand...
If you want to make BIG money, options are the real man's game of investing. Naked puts in particular rake in the dough, and you can use leverage to multiply your earnings.
 
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Foler

The_Black_Log Foler

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Sanrith Descartes said:
If you havent already, teach yourself what the basket of holdings are and how to read them. By owning the S&P and also QQQM, you are probably already overweight big tech.

That being said, the next step is to pick a number (I use 5%) as the max weight a stock can have in my portfolio. For overweight I use 7-8%.
Then build a little chart in excel to track each individual holding (in the basket of holdings and individual stocks) to track sector weighting. Then have excel calculate the weight of each stock. Example. if AAPL is 5% of the S&P index and you own $100,000 of the S&P index then you technically own $5,000 in AAPL. If its 10% of QQQM and you own $50,000 of QQQM you own another $10,000 of AAPL. If you have $25,000 in IXUS then your total portfolio is $175,000 and $20,000 of it is AAPL. So AAPL is 11.4% of your total portfolio and you haven't bought a single share of AAPL yet.

Its pretty critical to understand basket weights when you are dealing with big tech and how much they influence the indexes because of their market cap. Below is an old version of what I am talking about to track sector weighting.

View attachment 504105

To check individual weighting:

View attachment 504106
Click to expand...
Awesome thanks for the next steps. I’d have thought that there would be a better option than excel for this. An app that links to fidelity accounts via plaid or something. I’ll have to look.
 
Sanrith Descartes

Sanrith Descartes

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Foler said:
Awesome thanks for the next steps. I’d have thought that there would be a better option than excel for this. An app that links to fidelity accounts via plaid or something. I’ll have to look.
Click to expand...
When the AI finally achieves sentience and kills us all, it will be Excel that it originates from.
 
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