AirJordan said:
Yah this whole thread is pretty silly now I think about it. Sorry for coming off like an ass, blah blah I have a 100k a year job and I'm only 24. The thing is I by no means want to retire at 35, probably around 50, when I hopefully have 6+ million saved up. I basically just wanted a critique of my investment plan, from which the overwhelming response is put all your money in Vanguard index funds. I think I can do better, but perhaps I'm wrong and you can all laugh at my demise. I was just surprised that so few of you are invested in actively managed funds. There are a lot of great ones out there
Dodge and Cox
Fairholme
Third Avenue Value to name a few, but maybe their 10 year hot streak was just luck
Air... I am still reading this LONG thread... but there are some things that seem to be coming out.... YOU don't like people telling you that your great plan might not make what you say... and then get defensive about it... not good.. YOU asked the question to poke holes in your plan and many have done so...
Not all people are diehard indexers... I have about 30% in index and about another 30% in funds that are close to an index... I am up in my Vanguard account .92 as of today (and lost today which I did not worry about).. I don't know about my 401(k), but probably a bit better as I have a lot of company stock and we have done OK...
BTW, the 'good managed funds' you talk about will not be so in the future... you will not believe me on this... but take a look at Fidelity Magellen back in the early 80s... it was THE fund to be in... Peter Lynch was the best stock picker ever... beat the market all the time.... but finally burned out and another one came along and now it is so large and combersome that it can not even match the market.... (BTW, I think Peter got beat a couple of years even though his overall record did beat the 500)...
Another thing you keep forgetting is RISK... There are funds that take a lot of risk with your money and USUALLY give you a good return... so saying you got 20% return without telling me how much risk you took is meaningless... there were many people who sounded just like you back in 1999... they were making 100% a year and were going to retire by 35... well, they lost up to 75% of their money and are still working and will be for awhile...
And I remember the day the Dow dropped over 500 points from about.. hmm was it 2700?? Do you know how many people who did not have a diversified portfolio lost their shirt
They were just like you... I can make 15% or 20% a year forever... that is why we have market corrections...
Don't get me wrong... I think you will get your million... and if you can keep your expenses down will get your 6 mill without a problem.... Let me ask... WHAT FOR
This will more than be what you need to retire if you are only spending about $40K or so including taxes... do you have something in your background that will make you a better person with 6 mill
?
Let me get a semi joke in.... when Viagra came out there was a lot of talk about men becoming romantic... well, one woman said that if the man was a prick before Viagra, now he was a prick with a hard on.... so don't think money will make you better than others....