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KSB2424

Retirement, College Fund, & Investments Thread

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Uggh.

 

You can have an advisor who charges you fees to manage your portfolio, which includes stocks and other vehicles. There may or may not be fees in the associated transactions that they do, but in aggregate, he is charging you management fees.

 

You can buy funds that essentially do the same thing and they charge you management fees. Do you see how they are related?

 

The problem is when you have someone (anyone) who is charging you a fee that you don't get commensurate value for.

I see what you're doing here. Talk some circles until you reach a point where you can say "see, you don't know what you're talking about - I told you financial planners were vital!"

 

Frankly I'm a tad disappointed in you, I thought you were better than that.

 

So yes I understand there are fees associated with all funds. What idiot wouldn't?

 

Most of my funds have an expense ratio of about .2%. I invest primarily in passive index funds as opposed to the more expensive actively managed funds. Precisely because I want to avoid paying a lot of fees.

 

What you probably do is pay a financial planner 1% to go out and find you some supposedly hot actively managed fund that costs you an additional 1.5-2%.

 

You think this approach will get you greater returns but fact is it is exceedingly difficult for anyone -- expert or otherwise -- to beat the market over time. Yet alone beat it to such an extent that you make up for those multiple layers of compound fees over time.

 

But hey, you like your approach and it works for you. That's your prerogative and there's really no need to engage in petty target-shifting tactics in an attempt to justify your belief :cheers:

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I see what you're doing here. Talk some circles until you reach a point where you can say "see, you don't know what you're talking about - I told you financial planners were vital!"

 

Frankly I'm a tad disappointed in you, I thought you were better than that.

 

So yes I understand there are fees associated with all funds. What idiot wouldn't?

 

Most of my funds have an expense ratio of about .2%. I invest primarily in passive index funds as opposed to the more expensive actively managed funds. Precisely because I want to avoid paying a lot of fees.

 

What you probably do is pay a financial planner 1% to go out and find you some supposedly hot actively managed fund that costs you an additional 1.5-2%.

 

You think this approach will get you greater returns but fact is it is exceedingly difficult for anyone -- expert or otherwise -- to beat the market over time. Yet alone beat it to such an extent that you make up for those multiple layers of compound fees over time.

 

But hey, you like your approach and it works for you. That's your prerogative and there's really no need to engage in petty target-shifting tactics in an attempt to justify your belief :cheers:

You have really lost your mind. Do whatever the fock you want and I hope you make millions.

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Worms just wants to argue. Can't just make a comment, lend a little help if he can and move on. It always has to devolve into a boring, drawn out diatribe. A wind bag contrarian

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Worms just wants to argue. Can't just make a comment, lend a little help if he can and move on. It always has to devolve into a boring, drawn out diatribe. A wind bag contrarian

I really don't want to argue but otherwise your post has some merit. Of course you are a pretty sh!tty alias so there's the whole glass house and throwing stones thing

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I really don't want to argue but otherwise your post has some merit. Of course you are a pretty sh!tty alias so there's the whole glass house and throwing stones thing

 

I'm not sure who he is an alias of, but he's growing on me.

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I'm not sure who he is an alias of, but he's growing on me.

He's gotten a bit better, I admit. I'm thinking Med Student reborn but could be wrong

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Dont waste money on college funds for kids. College is a scam and huge waste of time and money. I know a handful of people who make 100k a year and tnone went to college. College is a great place to get a hjob paying a nice 30-50k a year and no more. Pencil pushing suicide inducing jobs that people hate, if they get a job at all. Encourage them to start their own business, tell them to try and become "internet famous" or just spend 4 years networking and making connections. School is pointless unless you want to become a doctor, lawyer or dentist.

:first:

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if i don't add another penny, it will still be more than my parents gave me

so...they don't owe you anything. i feel sorry for yer sperm kid you didn't abort this time <_<

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When planning for retirement we must also think about increased energy costs. By the time we retire we will be paying at least 10 times more for energy than we do today. I know you don't want to hear this but just like health care these increased costs are coming and ignoring them will not make them go away.

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you can buy actively managed funds with higher fees, or passive funds that have minimal or no fees.

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Dont waste money on college funds for kids. College is a scam and huge waste of time and money. I know a handful of people who make 100k a year and tnone went to college. College is a great place to get a hjob paying a nice 30-50k a year and no more. Pencil pushing suicide inducing jobs that people hate, if they get a job at all. Encourage them to start their own business, tell them to try and become "internet famous" or just spend 4 years networking and making connections. School is pointless unless you want to become a doctor, lawyer or dentist.

This is an absurd comment with a hint of truth... Its like anything else, the top schools are definitely worth it. The education and alumni network are invaluable for being well rounded and getting a foot into the door of the corporate world. That said, it is highly highly competitive. Just getting in and matriculating may not mean much. I graduated in the top 25 of a business class of 900 people, I had interviews for all the banking jobs, financial services, wall street...etc. But there you are competing against all the ivy league types and there aren't that many jobs to go around. Jusst ridiculously competitive

 

My roomate had a C average, and had basically no access to any of that. He ended up working at a car rental dealership...eventually left to start a business and has done well for himself. I'm sure his education has and does serve him well regardless, but when you look at opportunity, which is what this whole thing is about, its a make your own way type of deal. There is no red carpet that gets rolled out when you grab a diploma.

 

My other roomate, very smart kid, had a near 4.0 gpa as well and got an investment banking job on Wall Street, but got worked like a mule and burned out and ended up in a more typical corporate job. So even getting that golden ticket to Wall St, there is a super high likelihood you get chewed up and spit out.

 

When I hear generalities about college, the overarching theme is that college is an opportunity to grow your tool set intellectually and in marketable skills. It is not an end, it is an opportunity, a beginning. The world is incredibly competitive, and to pretend that you are owed something because you have a piece of paper is the completely wrong mindset. The conversation is worthwhile because at least now people are walking in with their eyes more wide open.

 

It would honestly be more worthwhile for people to work for a year or so before going to college to get some real world perspective they can bring with them to help use college as a more effective tool. But our system is about funneling you from one thing to the next. MBA schools or other doctorate programs generally like to see some experience for the same reason. They want you to know where you want to go before you head down 6, 8 years of schooling without a clue if its something you want to do the rest of your life.

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When planning for retirement we must also think about increased energy costs. By the time we retire we will be paying at least 10 times more for energy than we do today. I know you don't want to hear this but just like health care these increased costs are coming and ignoring them will not make them go away.

Tesla is going to make super effiicent batteries that make solar power relevant. By the time I retire i will be off the electric grid. I also hope we get our heads out of our azzes on nuclear by then as well.

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This is an absurd comment with a hint of truth... Its like anything else, the top schools are definitely worth it. The education and alumni network are invaluable for being well rounded and getting a foot into the door of the corporate world. That said, it is highly highly competitive. Just getting in and matriculating may not mean much. I graduated in the top 25 of a business class of 900 people, I had interviews for all the banking jobs, financial services, wall street...etc. But there you are competing against all the ivy league types and there aren't that many jobs to go around. Jusst ridiculously competitive

 

College affects starting salary the most. And that is only when you initially hit the job market. After that it means less as less as time rolls on. I didn't go to a big name college. I got hired by a company at a particular starting wage. Two of my coworkers went to bigger name schools. Vanderbilt and Stanford. They got hired in at about $20k more than me doing similar work. After two years I got a huge bump in pay matching their salaries, and then all of our salaries increased equally strictly based upon performance and job experience/relevancy. I held 2 jobs working my own way through school, so maybe they had an easier time during their college experience, but, I'm kind of proud of how I did it, and lived in the real world rather than being sheltered in dorms and surrounded only by college thinking kids throughout the experience.

 

If you (or your family) are very rich, and can afford it, spend away. But if you are not rich, what's the point of getting so far in debt you need to spend your life paying it off?

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