Dow 30,000
- Thread starter RonBurgundy
- Start date
I half agree. I prefer they be reasonably priced when I buy them but I would like them to be ridiculously overpriced when I sell them.
In the month since I enlisted Edward Jones to handle my retirement account, it has grown by $2,200. I was very happy with that result. Over a full year, the interest rate would be about 14 percent if it kept growing at that rate, which it won't. I understand that. But still, I was happy. And all of that was strictly interest, because I don't contribute to it anymore.
Just curious, but is your Edward Jones account handled by someone in Ames? Mine is, and I couldn't be happier with the results the last 3 years since I switched. I also don't contribute anymore, but the gains have been fantastic!
A coke-addled cockatoo could have gotten you great returns the past three years.
- Jun 20, 2006
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Not sure I understand that logic, but should I thank my financial adviser or Trump for my "great returns"? Hell, I've been in finance for 30 years, and I still won't trust my instincts over a well-qualified financial planner. If I make 5% or 10% more than the average "cockatto", then I think I'm good to go...
I do not think you should thank anybody. The market does what the market does for reasons far beyond the control of any individual, including the President of the United States. Just saying -- the market has been so good over the past few years that any idiot with a random number generator or the ability to buy into an S&P index fund should have gotten you great returns. Your adviser is not exactly displaying a unique or special talent there when the market is paying out for basically everybody of late.
Now, if you find their services valuable, then great for you. I tend to think financial planning is something anybody can do with a spreadsheet (or even a few sheets of paper and a basic calculator) and some organized thinking on their part, but if you find farming that out to a professional useful to you, then do enjoy it. Their fees are going to eat into your investment returns from the market, however, so they better be *much* better than the market average, else you are better off with a low-fee index fund. You get the same (or better!) returns without advisory fees eating into the return, which adds up long-term.
Or at least that is how I play it.
The most recent round of tax cuts is roughly $150 billion per year.
So you still have that other $850 billion to explain.
Your basic point is sound, though, even if slightly overblown. The size of the tax cuts is not nearly enough to explain the increases in capitalization we are seeing.
To quote CBO --
On the basis of the analysis described in The 2018 Long-Term Budget Outlook, which incorporates the assumption that current law generally does not change, the Congressional Budget Office projects that those trust funds combined would be exhausted in calendar year 2031, requiring the amounts scheduled to be paid in 2032 to be reduced by 26 percent.
https://www.cbo.gov/publication/54868
That is the point the "kicking the can" probably cannot go on any longer.
Around then is probably when you get a real fiscal crisis, which would mean a major contraction in fiscal policy and much higher real interest rates.
The market would not like either of those things.
Do you mean earnings? Fixed accounts pay interest and you don’t need a financial planner to invest in fixed vehicles.
- Jun 20, 2006
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Someone pay me to throw their cash into SPY or QQQ and then shower me with accolades.
With an accommodating Fed chairman and an economy running on a deficit driven sugar high..... Not too hard to cash in on those advisory fees
Of course I'll be hard to contact when that 30% correction comes to town. At that point I'll pivot to installing Roku sticks for $100 a home
I don't live in Ames. Full disclosure: I had used a different Edward Jones brokerage in the same city where I live about 8 years ago. I got an insurance check after hail damaged my car and rather than use it to fix the car, I invested it with Edward Jones. I contributed more to it when I could for about 2 years. In that time, the fund lost nearly $700. The original check was for $4,400 and I probably only contributed $500 after that. I ended up cashing it out and using the $4,200 on a vacation for me, my daughter, and my grandson.
So I was a little hesitant to go back to Edward Jones, but I figured, as someone else hinted in this thread, that it would take a real moron to lose money in this financial environment. And they seemed to have changed practice. The first guy seemed like he was more hands-on, picking things he liked. This new one seems to go more with what the experts at corporate are suggesting.
The sky is falling!
I bet you believe you can diagnose yourself when sick and prescribe yourself meds too. I mean anyone can be a dr. Come on! Financial
Advisors go through many many years of schooling and tests to learn and know what they know. I challenge you to go head to head with a advisor for 1 year and see how that turns out
I think it's a combination of earnings and interest. I have different accounts. Some in mutual funds, some in bonds and I think I even have some in money markets.
https://us.spindices.com/spiva/#/reports
I would take your bet.
Let me do it under more realistic conditions --
(1.) over ten years, not one
(2.) net of fees
...and I'll blow them out of the water with an S&P index fund.
If you want the full report, go here --
https://us.spindices.com/documents/spiva/spiva-us-mid-year-2019.pdf?force_download=true
