-
Please take a moment and update your account profile. If you have an updated account profile with basic information on why you are on Air Warriors it will help other people respond to your posts. How do you update your profile you ask?
Go here:
Edit Account Details and Profile
Investing
- Thread starter othromas
- Start date
Ummm... thanks for the tip, but reading 480 pages worth of "behavioral finance" is a bit much. Thanks though.
Roger that you aren't just starting out and have enough of a nest egg to be diversified. In that case I still think having all of your international allocation in India specifically is a bad idea. Better off targeting all emerging markets or Asia, though that still could be diversified a little better.
"Random Walk down Wall Street" is the best book out there WRT the efficient market hypothesis. It is a short quick read. The behavioral finance section is merely an update to the 9th edition.
If you read one book about investing, read Randon Walk. Been around since 1973, regularly updated, and still one of the best books out there.
EDIT: Make sure your international fund doesn't try to hedge for exchange rate risk. You want exchange rate risk in your international fund. That has been a big part of their appreciation lately, and it defeats their purpose not to have it in my opinion.
Concur on Vanguard. Their emerging markets fund (VEMIX), which is mostly foreign stuff, did >45% last year. It's expense ratio is a bit higher, but I wish all my funds performed like that.
Brett
Quick question - USAA has that investart program, where you can:
1. Set up a reasonable allotment
2. Avoid 3k min initial investment
3. Not pay loads
4. buy decently ranked mutual funds
- is there any other company out there that does that?
- what is the latest on First commands reputation? Are they still selling funds that is 40% commission to themselves upfront?
1. Set up a reasonable allotment
2. Avoid 3k min initial investment
3. Not pay loads
4. buy decently ranked mutual funds
- is there any other company out there that does that?
- what is the latest on First commands reputation? Are they still selling funds that is 40% commission to themselves upfront?
snizo
Supply Officer
I'd be a bit hesitant to invest in something called the "international fund" and here is why...
Say the global economy is stagnant, but the US economy is still growing a bit. How can you take advantage of the US economy's growth, and avoid the losses of the emerging or foreign markets? Or say the reverse is true - overseas markets are doing well, but the US economy has slowed a bit.
Get in to a mutual fund that does both - and where the money can change back and forth between the overseas investments and American securities depending on which is performing better. USAA has one of these - I think its called the Capital Growth fund. It isn't a "domestic" fund, but it isn't a "foreign" fund either. Let the fund managers worry about do which country has the up-and-coming companies and watch your account grow.
Say the global economy is stagnant, but the US economy is still growing a bit. How can you take advantage of the US economy's growth, and avoid the losses of the emerging or foreign markets? Or say the reverse is true - overseas markets are doing well, but the US economy has slowed a bit.
Get in to a mutual fund that does both - and where the money can change back and forth between the overseas investments and American securities depending on which is performing better. USAA has one of these - I think its called the Capital Growth fund. It isn't a "domestic" fund, but it isn't a "foreign" fund either. Let the fund managers worry about do which country has the up-and-coming companies and watch your account grow.
That's good logic, nevertheless, my overseas funds have consistently outperformed my domestic funds over the last 10 years by a significant margin. Since this thread has been restarted, I'm going to put in another pitch for Vanguard. Their funds always appear prominently on Money Magazine's list of top funds and I have been very happy with them over the years. If you're after emerging markets, check out Vanguard's VEMIX (stock symbol) fund.
Brett
why not invest in multiple mutual funds?
Diversify yo bonds, *****.
Between my wife and myself we are invested in 18 different mutual funds ranging from a high yield bond fund to an emerging markets fund, to a precious metals fund, to small cap, etc, etc.... don't put all of your eggs in one basket.
Diversify yo bonds, *****.
Between my wife and myself we are invested in 18 different mutual funds ranging from a high yield bond fund to an emerging markets fund, to a precious metals fund, to small cap, etc, etc.... don't put all of your eggs in one basket.
I for one am kind of fond of real estate. But that's just me. I have a little higher risk tolerance than most.
I think I gotta disagree with you on that one. TSP reduces your current taxable income. Yes, you will pay taxes on it when you start to draw from it, but many expect their retirement income tax rate to be lower than current tax rate. So, with TSP, you pay less in taxes and have more money working for you early on.
Of course, everyone needs to look at their own personal finanacial plans. But I have worked with maxing out TSP/403, then IRA (regular if you can deduct, Roth if not), then the rest.
Yeah, that's putting a lot away every year. Start out at a managable level. Then every time you get a raise put 1/2 of your monthly raise into savings/investments, you'll set yourself up for success.
And even if it doesn't seem like a lot, start early. Time is the best thing working for you as an O-1. Put $100 a month away for 10 years, then stop for 20, you'll have more money than the person who waited 10 years and then put $100 away for 20 years (assuming the same annual yield on investment).
Agreed. I will say it again, unless things have recently changed, no matter how convenient you find it, go FC and you are being taken. There is no reason a 23 year-old single Ensign needs life insurance, let alone whole life. They sell it to you as a savings and investment vehicle which is BS. If you take the money you put into whole life and invest it instead, the return will be greater by the time you take the money out of what would have been your whole life policy.
I got the FirstCommand spiel when I got commissioned. I crosschecked with several other financial advisers and their universal response was that FC's program is bunk. YMMV.
