Buy Term and Invest the Difference...NOT!!!

[DHK]

Pretty sure the average in the S&P is over 10% since its inception...at you 3% inflation that makes a 7% RoR...i also put my 10 year up as well my 20 year is closer to 15%....im using averages...and you want to try and get it twisted, but I knew you would..it is your MO.

My point still stands...find me a permanent solution that can outpace 'the market'....

Your assumption is also neglectful of political, economical pressures that may occur...so don't play your fear mongering bullshit games with me...that dog don't hunt here bucko

Averages is not the same as actual "bucko". I can give you a 25% average return, no problem. Let me prove it:

$100,000 earns 100% return in 1 year = $200,000
$200,000 drops -50% return in 1 year = $100,000
Do it again:
$100,000 earns 100% return in 1 year = $200,000
$200,000 drops -50% return in 1 year = $100,000

100% - 50% + 100% - 50% = 100% / 4 years = 25% average return.

What was the REAL return? 0%.

But you're in your 30's and have never managed investments for another person, therefore, your experience is limited and biased towards your own perspective and experience.

Reverse dollar-cost-averaging and sequence of returns is a real risk "bucko". You're still in the "accumulation" phase "bucko".

Your problem... is what you think is true, just may not be so.

 

[DHK]

And for the love of god...please stop playing the role of CNN and posting videos of half truths as if they are hardened facts...smfh at the links you'll go to...god bless your clients for buying any of the shit that you tell them....

They aren't "the full facts". They are to help you THINK beyond your limited and narrow perspective.

You just keep thinking the way you've been thinking. It's quite okay with me.

 

[goillini52]

And for the love of god...please stop playing the role of CNN and posting videos of half truths as if they are hardened facts...smfh at the links you'll go to...god bless your clients for buying any of the shit that you tell them....

Could you and DHK put it on pause while I throw some popcorn in the microwave.

 

[DHK]

Only long enough until Gooner shows me any evidence of past securities licensing that gives me an inkling of knowing anything about investing for anyone else besides himself.


Maybe he'd rather see FINRA's own Financial Capability Study in 2016. Make sure you pay special attention to page 18 (19 in the PDF file) about people's willingness to take risks.
http://www.usfinancialcapability.org/downloads/NFCS_2015_Report_Natl_Findings.pdf

Look at how in:
2009, 12% were willing to take risks.
2012, 17% were willing to take risks.
2016, 21% were willing to take risks.

Why is that? Because the market was rebounding and they are buying high because they are "comfortable".

Most people don't have a flippin' clue about investments... and YOU are criticizing MY information??? This came from FINRA itself.

"Outpacing the market" is a poor investment strategy and most risk-adverse advisors would tell you that. If you are paying your advisor to "outpace the market"... you should transfer your account out now and save him the grief.

 

[KRobby]

Averages is not the same as actual "bucko". I can give you a 25% average return, no problem. Let me prove it:

$100,000 earns 200% return in 1 year = $200,000
$200,000 drops -50% return in 1 year = $100,000
Do it again:
$100,000 earns 200% return in 1 year = $200,000
$200,000 drops -50% return in 1 year = $100,000

200% - 50% + 200% - 50% = 100% / 4 years = 25% average return.

What was the REAL return? 0%.

But you're in your 30's and have never managed investments for another person, therefore, your experience is limited and biased towards your own perspective and experience.

Reverse dollar-cost-averaging and sequence of returns is a real risk "bucko". You're still in the "accumulation" phase "bucko".

Your problem... is what you think is true, just may not be so.

If 200% return turns 100k into 200k, what would 100% return on 100k equal?

 

[DHK]

If I'm including the original principal in the % (which is what I did), 100% on the original balance = the original balance.

 

[toolbelt]

I had to look those terms up. Must be a Canadian thing, because those are the only sites that defined "DSC" and "MER".

For mutual funds, I can't think of any good reason for selling B-share mutual funds with a CDSC - contingent deferred sales charge. They are very similar to annuity surrender charges, without a 10% free withdrawal amount. A-shares are best for longer term investors (3+ years), or C-shares for short-term (1-3 years).

As far as the MER (which I couldn't get a good definition other than it's a broker or advisor fee on mutual funds)... it depends on the style of investing. If I were an investment advisor charging a management fee, I'd probably be recommending tactical asset management strategies that preserve capital in down markets, but may have limited upside potential upon rebounds. The investment "ride" would be smoother, but not necessarily get the higher returns. Either the investor is on board with that... or they're not.

The closest equivalent I could think of (and I could be wrong) is the portfolio metric R-squared. This is looking at mutual funds and seeing how much of the performance is purely market-driven versus management of the fund. I prefer a low R-squared figure because if I'm going to be paying for mutual funds, I want the funds and the fund managers to do the work, rather than just rely on the market for their returns.

I go into far more detail in my video above.

DSC's are declining rate charges for pulling your money out early, once you realize you were mislead in purchasing funds. They force the client to essentially be locked in for a period of years, or face financial penalties. Only very unsophisticated investors, like those typically recruited into the MLM ranks fall for these.

 

[Thedude]

I'm cracking up at goober right now.

 

[myinsurebiz]

Two peeps with over 5000 posts is like watching water drip . . .

 

[DHK]

If you hate permanent life insurance, check out my post regarding Suze Orman's televized advice and my 7 points refuting said "advice". Even on a policy I would never sell, it was poor advice.

https://insurance-forums.com/community/threads/be-wary-of-advice-from-financial-entertainers.92316/