24 year old trying to get to millionaire by 35, punch holes in me plan

[bow-tie]

what's up air jordan? I'm kinda in your shoes...

Was that pun intended? Be careful, his newest versions are out (XXII), and they are 175 bones a pop... that's not very LBYM

 

[ScaredtoQuit]

And if you want to know what I do, I graduated law school at 23, yeah I'm a wunderkind of sorts, and do title analysis for a big oil company (won't say which one). Yipes other message boards were much nicer than this one

It might not seem like it to you, but we ARE being nice to you. And you might not think it, but there are lots of "wunderkind" here on this board. For example, by the time I was 22, I had earned an MBA, a CPA, PLUS I had more than a year of experience under my belt. When I was 24, I bet I was just as arrogant as you were. But thirty plus years in the real world have humbled me and I am now much less likely to "lean unto my own understanding." There are plenty of others here who have even more impressive records of achievement. Cute and Fuzzy Bunny used to take home $1MM per year. Martha was a lawyer; Trombone Al had his own business, and Charles was a CFO of a major corporation. The point I am making is that these opinions are coming from folk with a broad range of experiences.

Listen to the voices on this board and you are likely to prosper. Ignore them at your own risk.

 

[justin]

re: LCV and SCV - VIVAX and VISVX, respectively. That's my recommendation. disclaimer - I own both funds.

 

[FinanceDude]

Q: Which actively managed fund has beat the S&P 500 for the past 15 years?
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A: None! Legg Mason didn't make it last year. The next runner up is around 7 years.


Now all you have to do is pick which one will make the new record. You're a wunderkind. I'm sure you can do it!

I think you can make a LOT of money in actively managed funds............last time I looked, Vanguard had some of THOSE too..........

 

[AirJordan]

Q: Which actively managed fund has beat the S&P 500 for the past 15 years?
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A: None! Legg Mason didn't make it last year. The next runner up is around 7 years.


Now all you have to do is pick which one will make the new record. You're a wunderkind. I'm sure you can do it!

This is just argument is so incredibly myopic and inane that I don't even know where to start. DID YOU EVEN LOOK AT THE AVERAGE FOR 15 YEARS I guarantee you that Bill Miller is waaaay ahead of the SPX. How is that index treating you this year guys? I'm up 1.2% (S&P down -.5%) on the year, up 20.5% (S&P up 15%) for last year, oh noeesss!1!!! How is your precious SPX doing? Honestly for some people who claim to be so knowledgable, any two bit geek knows that the VTSMX will out perform your precious VFINX, AND THIS IS COMING FROM Bogle himself. I've read all the aforementioned books, also one by Malkiel, which is better than anything you mentioned.

Keep going with your haystacking, and keep getting slaughtered by actively managed funds. Seriously, when another bear market comes, what then? You'll still be fully invested while active managers will be hoarding there money waiting for the next steal. Back to the M*Star forums where people are at least a bit more open-minded, and astute.

 

[donheff]

This guy is not serious. Clearly a troll looking for fun. Not worth responding to.

 

[AirJordan]

No I actually am serious, but I was just taken aback by the rudeness and ignorance here

 

[Sam]

I kind of like reading his nonsense. It's entertaining

 

[AirJordan]

Uhhuh, my nonsense like DODFX, will outperform VGTSX over the next 20 years.... right.... pure nonsense

 

[AirJordan]

Serious question how much are you haystackers down for the year?

I told you where I'm at +1.2% as of 2/28, with the funds I've mentioned. Now where do you stand?

 

[devo]

No I actually am serious, but I was just taken aback by the rudeness and ignorance here

Rude and ignorant...two I've never heard attributed to the board in general. Something about a horse and water comes to mind.

Somebody want to warn the M* folks?

Let's play his game and argue that Kobe is better.

devo
O0

 

[Sam]

I told you where I'm at +1.2% as of 2/28, with the funds I've mentioned. Now where do you stand?

I did a poll 2 days ago about the drop on 02/27, several people also reported YTD. Here's the link.

http://early-retirement.org/forums/index.php?topic=12561.0

 

[Olav23]

I say you dump dodge and cox, and stick it all in a microcap ETF. 20% annualized return for the past 10 years! Sure, that is only backtested data, but, good enough right Alternatively, you could travel back in time, and find a nice penny stock.

Seriously though, what I don't really understand, is your comparison of 1 fund to 1 index. I guess the S&P500 is a good and simple benchmark to compare against, but passive indexing doesn't mean stick everything in an S&P500 fund and sit back. You can slice and dice and even time to your heart's content. Small cap, midcap, emerging markets, whatever. *YOU* get to be the active portion of the passive investment...

 

[devo]

Serious question how much are you haystackers down for the year?

I told you where I'm at +1.2% as of 2/28, with the funds I've mentioned. Now where do you stand?

You're chasing performance again. Maybe you just stumbled on the wrong forum. I think most here will tell that this year's performance, let alone last year's or the three before that, isn't considered in our plan. You being up 20% and us down 4% this year doesn't mean anything to this group. Sorry about that.

Excuse me, I have to get back to my free lunch.

devo O0

 

[REWahoo]

Serious question how much are you haystackers down for the year?

AJ, welcome to the board...I think.

Hold off trading insults for a minute and take a step back to look at the situation if you would. Look at how you titled your thread. You asked for "holes" and got shelled. Don't get mad, ask why others (most of who have many, many more years of investing experience than you) are recommending a different direction, lower expectations, etc.

While you are at it, I would request both you and those responding to you keep it civil. I suspect few on this board have ever seen a haystack, so using that term and calling people ignorant might not be the best way to solicit advice...which is why you are here, right?

 

[AirJordan]

I did a poll 2 days ago about the drop on 02/27, several people also reported YTD. Here's the link.

http://early-retirement.org/forums/index.php?topic=12561.0

Here's the problem, you all claim to be indexers but yet some of you are up 1.0% - 1.6% YTD which is pretty much impossible for indexers to be this year. VIVAX, VFINX, VWO, all the funds you are touting are down 1-2% this year, yet you all claim to be up. Something has to give here...

 

[AirJordan]

AJ, welcome to the board...I think.

Hold off trading insults for a minute and take a step back to look at the situation if you would. Look at how you titled your thread. You asked for "holes" and got shelled. Don't get mad, ask why others (most of who have many, many more years of investing experience than you) are recommending a different direction, lower expectations, etc.

While you are at it, I would request both you and those responding to you keep it civil. I suspect few on this board have ever seen a haystack, so using that term and calling people ignorant might not be the best way to solicit advice...which is why you are here, right?

Hi Wahoo, yes I may have been a bit uncivil, but it just shocks me that for a forum which I thought touted intellectual discourse of the market, you have completely deified index funds. Anybody mentions actively managed and you're at their throats. Seems fairly odd, since M-Star, Motley Fools, all seem to agree with my plan, and apparently all of you think I'm going broke. Oh well, sorry if I was a bit too acerbic

 

[MooreBonds]

If you have fairly good health, and it's available given your current situation, without a doubt you need to get a high deductible health insurance plan and get an HSA to sock away $2,850 (indexed to inflation), deduct it from your taxes, and withdraw it tax free for healthcare expenses (or pay regular income tax on withdrawals when you're over 65). Especially given your tax bracket.

 

[REWahoo]

Here's the problem, you all claim to be indexers...

I don't think so. Yes, many of us may have a the core of our investments in index funds, but we're all over the board (no pun intended).

What I think you can accurately generalize about the investing style on this board is that few of us realistically believe we can attain 12-14% returns for any foreseeable time period, and to take the risks associated with striving for that average rate of return is not something we would advise.

FYI, I have no index funds and have approximately 10% of my portfolio in DODFX.

 

[Sam]

AirJordan, you need to cool down. People are giving you the benefit of the doubt because of your youth. Don't push it.

Here's the problem, you all claim to be indexers

Who all made that claim? Be very specific with your answer, and make sure you have proof.

 

[justin]

You must be a litigator, not a title searcher

Seriously, plenty of index funds are up this year. Just a few - VG small cap, 2%, Vg midcap: 3%, REIT index: 4%, Pacific index: 3.5%. That's as of March 1 closing prices.

Many of us "index deifiers" own many of these funds.

I'm not so sure "index deifiers" is an insult...

 

[AirJordan]

AirJordan, you need to cool down. People are giving you the benefit of the doubt because of your youth. Don't push it.

Who all made that claim? Be very specific with your answer, and make sure you have proof.

Ok Sam, I made a big generalization there, but it just seems that every single person who responded said, this will never work, past performance doesn't secure future, stick with indexes. Never did I hear one person say active management could beat the market. Perhaps I oversimplified things, since your mod appears to be a very smart fellow to have 10% of his portfolio with D&C I'll try to be nicer from now on, instead of being a young punk

 

[REWahoo]

... Perhaps I oversimplified things, since your mod appears to have 10% of his portfolio with D&C I'll try to be nicer from now on, instead of being a young punk

Sounds good. And BTW, when you combine my DODFX and DODBX, D&C has 30% of my portfolio.

 

[unclemick]

M* Vanguard Diehards think this is a great plan??

Once I was just plain unclemick had a webtv and posted here about my brilliant - laddered dividend stocks via DRIP plans - took a little flack over that one a few years back.

I don't care - I still chase performance(a little, 15% of portfolio) - it's male, hormonal and totally incurable. Only one file cabinet and I don't drive afterward.

Yeah yeah yeah - early retirement rides on balanced index.

But it only takes one stock to put me in Margaritaville - forty years and still trying.

heh heh heh - And I got a cool Curmudgeon certificate. I think you can make, but I also think you 'may' be paying more in expenses for the trip than you have to.

Hobby stocks anyone :

 

[youbet]

3. Millionaire by 35 possible?

Thanks for the help
AJ

Just curious. Why did you ask this question since the answer was already imbedded in your post? You gave the value of your current investments, the value you plan to invest in the future, the time period and the returns you expect. That's everything you need to calculate the answer.

Yes, with $65K now, adding $65K annually and meeting your target of 12% - 14% via managed funds, you'll be more than a millionaire by 35.