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JSH · 10-23-2020, 06:32 PM

Some thoughts on the recent conversation:

You don’t want to retire or graduate college in a recession. (Your first salary will set your salary for the rest of your life even when changing companies). There is nothing you can do about graduating into a recession but some basic planning can remove the risk of retiring into a recession.

Attempting to time the market is a fools game. Only 29% of actively managed funds beat their target index after fees in 2019. Or to put it another way 2 out of 3 managers cost their clients money. That is with trained professional managers with teams of researchers who’s full time job is to study the market. Any individual that thinks they can do better is kidding themselves.

The best thing for us mere mortals to do is start investing early, dollar cost average, invest in something simple like target retirement fund with low fees AND LEAVE IT ALONE. Way too many people freak out every time the market dips and cash out. That just locks in the loss.

I’m also surprised how many people don’t invest enough to get their company 401K match. That is free money – a guaranteed return. Even if you took the money out every year and paid taxes and penalties you would still be ahead. (That would be stupid but less stupid than not taking free money from your company)

HSA’s are a FANTASTIC retirement account. Tax free contributions, tax free investment growth, and tax free withdrawals.

Another tip – any “financial advisor” you aren’t paying isn’t an advisor they are a salesman. Unless you have a signed fiduciary agreement they have no legal obligation to give you good advice. My wife and I got screwed early on by Ameriprise and my parents got screwed when he cashed out his 401K by an advisor they knew through church.

*Advise from a guy who graduated in 2000. I'm still got a lot to learn. For example, we were talking with our financial planner yesterday and learned about SMAs (Separately Managed Account)

10-23-2020, 06:32 PM	#112 (permalink)
JSH AKA - Jason Join Date: May 2009 Location: PDX Posts: 3,599 Adventure Seeker - '04 Chevy Astro - Campervan 90 day: 17.3 mpg (US) Thanks: 325 Thanked 2,146 Times in 1,453 Posts	Some thoughts on the recent conversation: You don’t want to retire or graduate college in a recession. (Your first salary will set your salary for the rest of your life even when changing companies). There is nothing you can do about graduating into a recession but some basic planning can remove the risk of retiring into a recession. Attempting to time the market is a fools game. Only 29% of actively managed funds beat their target index after fees in 2019. Or to put it another way 2 out of 3 managers cost their clients money. That is with trained professional managers with teams of researchers who’s full time job is to study the market. Any individual that thinks they can do better is kidding themselves. The best thing for us mere mortals to do is start investing early, dollar cost average, invest in something simple like target retirement fund with low fees AND LEAVE IT ALONE. Way too many people freak out every time the market dips and cash out. That just locks in the loss. I’m also surprised how many people don’t invest enough to get their company 401K match. That is free money – a guaranteed return. Even if you took the money out every year and paid taxes and penalties you would still be ahead. (That would be stupid but less stupid than not taking free money from your company) HSA’s are a FANTASTIC retirement account. Tax free contributions, tax free investment growth, and tax free withdrawals. Another tip – any “financial advisor” you aren’t paying isn’t an advisor they are a salesman. Unless you have a signed fiduciary agreement they have no legal obligation to give you good advice. My wife and I got screwed early on by Ameriprise and my parents got screwed when he cashed out his 401K by an advisor they knew through church. *Advise from a guy who graduated in 2000. I'm still got a lot to learn. For example, we were talking with our financial planner yesterday and learned about SMAs (Separately Managed Account)