Buying into the stock market

[Duds13]

your not going to if your in a target date fund, your close to retirement, your money is in the safest vehicle they offer.

I am in the most aggressive. Target date funds are for people who want safe no touch options, their returns sucks, i was out by year 2

Simply not true. There are some very good target date funds and some are very aggressive

 

[part-time-Farmer-NC]

I've always been told the idea if you have money to invest in the market is to buy in cheap but the market has been high now for several years , seemingly not a lot of low points to buy in, bottom line is I have a little money that has been setting in the market in cash bonds which is a really low performer and I have been toying with the idea of moving most of it over into some other funds that I am invested in that have performed well over the past few years but have been hesitant to because of that old saying that was beat into my head about buying in cheap. I'm 56 years old and can't see myself needing this money anytime soon, what are you guys thoughts ? Thanks in advance for any advice/opinions.

Many good stories/ideas about types of stocks/funds etc to get. No need for me to hash them out further.

I would suggest to you to research putting your money into a ROTH IRA. Then inside of that you can pick the funds/investments you want. The beauty of it though is when its time to take money out you do not have to pay taxes on those capital gains, you already pay the tax on what was invested up front. If you don't choose a ROTH and choose just to invest you pay capital gains on your "winnings". The longer you keep it invested the more you will realize the savings a ROTH will help you.

And if say you just bought some stock (not in a ROTH) to test the market and it did well say 4-8 months down the road and you sold it before the year is up you pay a premium tax for that... I want to say its like 37%. OUCH...

Good luck in what ever you do, just keep in mind do nothing and inflation will eat it for you!

 

[Lineman North Florida]

Many good stories/ideas about types of stocks/funds etc to get. No need for me to hash them out further.

I would suggest to you to research putting your money into a ROTH IRA. Then inside of that you can pick the funds/investments you want. The beauty of it though is when its time to take money out you do not have to pay taxes on those capital gains, you already pay the tax on what was invested up front. If you don't choose a ROTH and choose just to invest you pay capital gains on your "winnings". The longer you keep it invested the more you will realize the savings a ROTH will help you.

And if say you just bought some stock (not in a ROTH) to test the market and it did well say 4-8 months down the road and you sold it before the year is up you pay a premium tax for that... I want to say its like 37%. OUCH...

Good luck in what ever you do, just keep in mind do nothing and inflation will eat it for you!

I appreciate all the advice, I may not have been clear in my original post.
1. I have a 457B that I have been putting money in for over 30 years, a lot of that money is in money market accounts and not really earning much while another portion is invested in a Vantage point long term growth account and has really performed well, my intention is to move the bulk of the money market account into the VP long term growth account to enhance my portfolio's earnings , and was curious if others thought this wise as the market is so high, but I have been waiting for 2 years and it has done nothing but get higher, seeing as how I don't really need this money now or in the very near future I think I am going to go ahead and move a percentage of it and see how it goes.
2. I have been putting the maximum amount $7k per year in a Roth IRA for quite a few years as I like the idea of tax free gains. Again I appreciate all the advice/opinions as one can always learn something new. Charlie.

 

[riptides]

Do you look years out with your money?

Think long term, maybe 5 to 10 years out, and invest based on how much risk you are willing to accept.

 

[LittleBill21]

Simply not true. There are some very good target date funds and some are very aggressive

whole point of target date, is to move it to safer vehicle as you get older, my company offers like 20 of them, they all suck

 

[Duds13]

whole point of target date, is to move it to safer vehicle as you get older, my company offers like 20 of them, they all suck

HA! Ok...

 

[LittleBill21]

HA! Ok...

um,ok? what exactly do you think they are ? they literally have a retirement date in the fund name generally

"
A target date fund (TDF) is a type of mutual fund or exchange-traded fund (ETF) designed to simplify retirement investing by automatically adjusting its asset allocation over time. It is structured to become more conservative as the investor approaches their target retirement date.

How It Works:​

1. Set Target Date: The fund is labeled with a year (e.g., 2040, 2050), which represents the approximate time an investor expects to retire.
2. Glide Path Strategy:
   • In the early years, the fund is heavily invested in stocks to maximize growth.
   • As the target date approaches, the fund gradually shifts toward bonds and cash-equivalents to reduce risk.
   • After reaching the target date, the fund may continue adjusting or maintain a conservative allocation.

Benefits:​

• Hands-off investing: Ideal for those who prefer a set-it-and-forget-it approach.
• Automatic rebalancing: The fund adjusts risk exposure over time without requiring manual intervention.
• Diversification: Typically includes a mix of stocks, bonds, and other assets.

Considerations:​

• One-size-fits-all approach: May not align perfectly with an individual's risk tolerance or financial goals.
• Expense ratios: Fees vary, so it's important to compare costs among different TDFs.
• Retirement flexibility: Some investors may retire earlier or later than the fund’s target date, requiring adjustments.

 

[Carl_NH]

LittleBill - thats why doing a blend % in a target date fund as a "safe harbor", then a % into a mix of S&P 500, Tech Stock funds, or higher growth funds is a simple move that enables one to diversify.

This is to each his own to decide the actual ratio 80/20 50/50 based on their risk profile, timeline etc., but if you have a 10 year timeframe before withdrawal the higher growth/risk will provide better returns.

 

[LittleBill21]

LittleBill - thats why doing a blend % in a target date fund as a "safe harbor", then a % into a mix of S&P 500, Tech Stock funds, or higher growth funds is a simple move that enables one to diversify.

This is to each his own to decide the actual ratio 80/20 50/50 based on their risk profile, timeline etc., but if you have a 10 year timeframe before withdrawal the higher growth/risk will provide better returns.

you can get different tiers of target date funds that have aggressive/moderate balancing etc. people doing target dates really don't need to step outside of them, because if you look at the underlying assets its pretty much the same as the ones you mentioned at least in beginning stages of them.

me I am 99% heavily aggressive/single stock, and for the most part has paid off, after reading this post I went and checked one of my smaller brokerages. I did 175% growth over 5 years. pretty much have beat the market returns for the last 15 years across on everything I own.

I have a single stock that did over 300% since covid.

I feel slightly bad for the OP, we had a guy at work who was retiring after 35 years we were lightly talking about stocks, and investments and he mentioned he was in a money market fund, I said for what a month or 2? (expecting he was going to buy on a dip) he said no 30 years, the entire group got quiet. I actually looked up the return it was barely ever more then 3-5% I simply said I'm sorry and walked away, my 401k does like 14-26% on average per year.

 

[Duds13]

um,ok? what exactly do you think they are ? they literally have a retirement date in the fund name generally

"
A target date fund (TDF) is a type of mutual fund or exchange-traded fund (ETF) designed to simplify retirement investing by automatically adjusting its asset allocation over time. It is structured to become more conservative as the investor approaches their target retirement date.

How It Works:​

1. Set Target Date: The fund is labeled with a year (e.g., 2040, 2050), which represents the approximate time an investor expects to retire.
2. Glide Path Strategy:
   • In the early years, the fund is heavily invested in stocks to maximize growth.
   • As the target date approaches, the fund gradually shifts toward bonds and cash-equivalents to reduce risk.
   • After reaching the target date, the fund may continue adjusting or maintain a conservative allocation.

Benefits:​

• Hands-off investing: Ideal for those who prefer a set-it-and-forget-it approach.
• Automatic rebalancing: The fund adjusts risk exposure over time without requiring manual intervention.
• Diversification: Typically includes a mix of stocks, bonds, and other assets.

Considerations:​

• One-size-fits-all approach: May not align perfectly with an individual's risk tolerance or financial goals.
• Expense ratios: Fees vary, so it's important to compare costs among different TDFs.
• Retirement flexibility: Some investors may retire earlier or later than the fund’s target date, requiring adjustments.

I know what they are, but to say they all suck is just completely false

 

[LittleBill21]

I know what they are, but to say they all suck is just completely false

Well I looked at over 100 of them, and wasn't impressed, which one are you doing and what are the returns over a 10-20 year period?

 

[Duds13]

Well I looked at over 100 of them, and wasn't impressed, which one are you doing and what are the returns over a 10-20 year period?

American Funds.

 

[9973720wb19]

Do not waste your time picking stocks or timing the market. Unless you have insider information, it becomes a crap shoot.

My advice is to look at the Vanguard 500 S&P Index Fund. It has very low management fees and has performed well over time. Worst 3 year return was 7.5%...last 5 years it has averaged over 14%

https://finance.yahoo.com/quote/VFINX/performance/

I have most of my investments with Fisher and they have done well (averaging 12%), but you need a minimum of $500,000 to become a client. I have inherited some money and currently looking at the Vanguard Fund or something similar.

totally agree.. vanguard index funds with a balanced portfolio that makes you (not an investment advisor) comfortable is the way to go. vanguard also has a single index funds that is balanced investments 60/40 --- really all you need...with some cash in MM of course. I have only index funds - lg cap, med cap, small cap, intl., bond, and a few total market...there are books out there about "indexing"

 

[LittleBill21]

American Funds.

View attachment 2707790

ok which one is your chart from? they have a ton.

Fund overviews | American Funds

American Funds offers a wide selection of growth, growth-and-income, equity income, balanced, bond, capital preservation and target date funds. Get important details on each of the funds available.

www.capitalgroup.com

 

[Duds13]

ok which ones? they have a ton.

Fund overviews | American Funds

American Funds offers a wide selection of growth, growth-and-income, equity income, balanced, bond, capital preservation and target date funds. Get important details on each of the funds available.

www.capitalgroup.com

That's the 2035 fund

 

[riptides]

One also has to factor in how much money they are willing to risk at what percentage of return. If it meets your money goals. I will gladly take 3 percent on monies IF I have met my finacial goals. It goes back to risk and time.

 

[LittleBill21]

That's the 2035 fund

I am reading these have front loading fee's of up to 5.75, its better that its a front load, but lots of funds out there without the load feed with the same typical returns.

Glad you found something you like though

 

[Lineman North Florida]

you can get different tiers of target date funds that have aggressive/moderate balancing etc. people doing target dates really don't need to step outside of them, because if you look at the underlying assets its pretty much the same as the ones you mentioned at least in beginning stages of them.

me I am 99% heavily aggressive/single stock, and for the most part has paid off, after reading this post I went and checked one of my smaller brokerages. I did 175% growth over 5 years. pretty much have beat the market returns for the last 15 years across on everything I own.

I have a single stock that did over 300% since covid.

I feel slightly bad for the OP, we had a guy at work who was retiring after 35 years we were lightly talking about stocks, and investments and he mentioned he was in a money market fund, I said for what a month or 2? (expecting he was going to buy on a dip) he said no 30 years, the entire group got quiet. I actually looked up the return it was barely ever more then 3-5% I simply said I'm sorry and walked away, my 401k does like 14-26% on average per year.

Don't feel bad for me as only a small percentage of what I saved went into the money market account all those years but it has turned into a fairly substantial pot of money that I feel could be working better for me , I also have a nice monthly pension that is a little over $60k per year, plus the money I invested in the Vantagepoint long term growth and my Roth, I think I will be okay.

 

[kenmac]

Yesterday? Darn! I thought it was twenty years ago.

Yep. But for those that continue to put off investing (and I know many) they wake up and 20 years are gone before they know it ! LOL

 

[Oaktree]

American Funds.

View attachment 2707790

Kind of meh compared to Fidelity's Contra fund:

And keep in mind that American funds have rather high (5.5%) up front sales fees, Fidelity funds have none.