Join Early Retirement Today
Reply
 
Thread Tools Display Modes
More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 01:54 PM   #1
Full time employment: Posting here.
VaCollector's Avatar
 
Join Date: May 2007
Posts: 549
More dumb questions from another newbie that can't spell worth $***!

Hello from a newbie in Virginia!

I have been reading from the sidelines for a few weeks now....enjoying....all of
the information about early retirement....the movie reviews.....the variety of
particpants and their extensive knowledge base.....the jokes....the importance
of dryer sheets ....all good except for something about a "Piglet Sodomizer"
....not sure I even WANT to know about that one....

...and now thru the miracle of something you guys call "FireCalc" I have
discovered (REALLY!) that I am FI too! ....now on to RE.....

About me.....52 years young; MWC (married with child), my SI (significant other)
is 16 years my junior and my "baby" (14 y/o) still has 3 more years of high school.
I am a SE accountant who no longer enjoys the rigors of the job and the 100 hour work
weeks at "tax time"...although the $$$'s are good!....

I have notified my staff that I am retiring (effective June 30) and (rather than sell the
business) have presented an attractive opportunity for one of them to "transition" into
ownership with very little risk on their part....allowing for diminishing part time work
for myself over (no more than) the next three tax seasons.....so I am ALMOST RE'd

Enough about me.....I ain't all that special.

Question time!

#1 - I have noticed a board bias towards investing with Vanguard that seems to stem from
minimized investment fees.....are there any other reasons? I am currently with Wachovia
Securities and Ameriprise....comments please!?

#2 - I am a true novice at investing and do not understand the more complicated
aspects and/or terminology (although I am learning here).....My hands off investment policy
has been to stash it and leave it alone and let it grow!

A large portion of my nest egg is in "one basket" with a dividend producing bank stock
(Bank of America - currently 4+% div'ds) that has grown nicely over the last several years....
but I have garnered from reading here that I should diversify, right?....OK....I tend to
agree....but it's hard to look success in the face and send it down the road! Advice please....
maybe an educational book or two?

OK.....that's enough rambling for now.....thank in advance for any and all commentary!

VaCollector is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 01:59 PM   #2
Full time employment: Posting here.
 
Join Date: Jun 2006
Posts: 718
Re: More dumb questions from another newbie that can't spell worth $***!

1. Vanguard is used because of the low fee's and quite a few folks here believe in index funds. You can get the same thing at Fidelity or TRowe Price.


2. 4 Pillars of Investing is a good book to start off with. Reading the book will answer your diversification questions. What happens to you if Bank of America has some huge scandal and destroys the price of the stock? Yes, it probably wont happen however...
Mwsinron is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 02:08 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2003
Posts: 18,085
Re: More dumb questions from another newbie that can't spell worth $***!

Quote:
Originally Posted by VaCollector
A large portion of my nest egg is in "one basket" with a dividend producing bank stock
(Bank of America - currently 4+% div'ds) that has grown nicely over the last several years....
but I have garnered from reading here that I should diversify, right?....OK....I tend to
agree....but it's hard to look success in the face and send it down the road! Advice please....
maybe an educational book or two?
Val, you'll have some reading to do to show you why you should do this, but before you get to that there is an old saw about investing: if you want to get rich you should concentrate your portfolio in hated sectors trading on the cheap; if you want to stay rich you shoudl diversify as widely as possible. You are transitioning into the part of your life where you are trying to stay wealthy, so you should invest accordingly.
__________________
"All animals are equal, but some animals are more equal than others."

- George Orwell

Ezekiel 23:20
brewer12345 is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 02:39 PM   #4
Recycles dryer sheets
 
Join Date: Apr 2006
Location: Hardscrabble Texas
Posts: 372
Re: More dumb questions from another newbie that can't spell worth $***!

Agree that "Four Pillars" is a great book. Another good basic investing/money managment book is called "Making The Most of Your Money" by Jane Bryant Quinn. You will read the word "Vanguard" often in that book also. Any of the good books can be checked out from your library.
__________________
.....#.....
Poundkey is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 03:06 PM   #5
Recycles dryer sheets
aenlighten's Avatar
 
Join Date: Apr 2007
Posts: 275
Re: More dumb questions from another newbie that can't spell worth $***!

Stocks for the Long Run by Jeremy Siegel is invaluable.
aenlighten is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 03:26 PM   #6
Full time employment: Posting here.
VaCollector's Avatar
 
Join Date: May 2007
Posts: 549
Re: More dumb questions from another newbie that can't spell worth $***!

"quite a few folks here believe in index funds.'

I suppose it will be in one of the reference books suggested, but what are
index funds (plain English please)??
VaCollector is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 03:35 PM   #7
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,000
Re: More dumb questions from another newbie that can't spell worth $***!

Read all about index funds and actively managed funds here:

https://flagship.vanguard.com/VGApp/...ndxContent.jsp
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 03:38 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,483
Re: More dumb questions from another newbie that can't spell worth $***!

Quote:
Originally Posted by REWahoo!
Read all about index funds and actively managed funds here:

https://flagship.vanguard.com/VGApp/...ndxContent.jsp
How about fundalarm.com or Morningstar.com?
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 03:39 PM   #9
Full time employment: Posting here.
VaCollector's Avatar
 
Join Date: May 2007
Posts: 549
Re: More dumb questions from another newbie that can't spell worth $***!

"I see" said the blind man....

Thank you REWahoo!

Any body else have more suggested reading before I head off to Barnes & Noble??

VaCollector is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 03:42 PM   #10
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,000
Re: More dumb questions from another newbie that can't spell worth $***!

Quote:
Originally Posted by FinanceDude
How about fundalarm.com or Morningstar.com?
Sure. Go ahead and give VaCollector a link to the pages that discuss index funds from those two sources as well. I gave the Vanguard link simply because I'm more familiar with that site than others. Anything wrong with Vanguard's explanation?

__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 03:44 PM   #11
Moderator Emeritus
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,811
Re: More dumb questions from another newbie that can't spell worth $***!

One more good one for you to read:

"How to Live Well and Retire Early" Bob Clyatt (a member of this forum).
Use the link at the bottom of the page.
__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 03:47 PM   #12
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,000
Re: More dumb questions from another newbie that can't spell worth $***!

Quote:
Originally Posted by SteveR
...Bob Clyatt (a member of this forum).
AKA "ESR Bob"

__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 03:47 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,483
Re: More dumb questions from another newbie that can't spell worth $***!

Quote:
Originally Posted by REWahoo!
Sure. Go ahead and give VaCollector a link to the pages that discuss index funds from those two sources as well. I gave the Vanguard link simply because I'm more familiar with that site than others. Anything wrong with Vanguard's explanation?
I think he needs to understand things from various sources, not just the main source of index funds,just for perspective sake..........

Hopefully, he'll read them all............
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 05:01 PM   #14
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Re: More dumb questions from another newbie that can't spell worth $***!

Quote:
Originally Posted by VaCollector

maybe an educational book or two?
"The Intelligent Asset Allocator" by William Bernstein. Proper asset allocation is the most important part of investing and RE IMHO.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-14-2007, 07:37 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
Re: More dumb questions from another newbie that can't spell worth $***!

Perhaps the readers digest version of "The Four Pillars" will be of some assistance in lining up further reading and thought provocation?

http://early-retirement.org/forums/i...hp?topic=661.0
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-15-2007, 06:30 AM   #16
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Re: More dumb questions from another newbie that can't spell worth $***!

Quote:
Originally Posted by VaCollector
"quite a few folks here believe in index funds.'

I suppose it will be in one of the reference books suggested, but what are
index funds (plain English please)??
For a whole lot of info about index funds, see Rick Ferri's All About Index Funds

Also, since your going to B&N, check out "Mutual funds for Dummies" and "Investing for Dummies" by Eric Tyson.

- Alec
ats5g is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-15-2007, 07:37 AM   #17
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Re: More dumb questions from another newbie that can't spell worth $***!

See also from Vanguard:

The Case for Indexing

- Alec
ats5g is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-15-2007, 08:13 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
Re: More dumb questions from another newbie that can't spell worth $***!

I think i've hit on a possible gold mine.

A whole series of "how-to" books titled "xyz for people who arent idiots, dummies or morons".
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-15-2007, 09:10 AM   #19
Full time employment: Posting here.
bosco's Avatar
 
Join Date: Jul 2005
Posts: 987
Re: More dumb questions from another newbie that can't spell worth $***!

Quote:
Originally Posted by VaCollector

#1 - I have noticed a board bias towards investing with Vanguard that seems to stem from
minimized investment fees.....are there any other reasons? I am currently with Wachovia
Securities and Ameriprise....comments please!?
Vanguard is somewhat religion but it pays to think through things on your own rather than just following the party line.

Vanguard is cheapest IF and ONLF IF you buy Vanguard funds. If you buy other companies' funds, ETFs, individual stocks, there are cheaper alternatives. Not only that, but FIDO has cheaper index funds than Vanguard, just not as many of them.

IF you want the widest selection of index funds and IF you plan only to buy Vanguard products, then use Vanguard. Otherwise, check around. Also, be sure to notice that many of the popular Vanguard funds that you might want to buy (i.e. healthcare, precious metals) are closed to new investments.

If you use Wells Fargo's Wellstrade, for example, you can still use Vanguard for free AND buy other things as well.
__________________
I have an inferiority complex, but it's not a very good one.
bosco is offline   Reply With Quote
Re: More dumb questions from another newbie that can't spell worth $***!
Old 05-15-2007, 09:26 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
Re: More dumb questions from another newbie that can't spell worth $***!

After investing 1966-2007 for a while.

Vanguard is God. All others are lesser deities.

Not that I'm not a dirty old man and mess around a little on the side once in a while.

heh heh heh heh heh heh heh heh heh heh heh - a little confession is good for the soul. And hormones!
unclemick is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Newbie question(s)! devo Young Dreamers 1 07-01-2006 09:56 AM
Calculating your net worth justin FIRE and Money 59 07-02-2005 09:18 PM
Dumb tax questions cute fuzzy bunny FIRE and Money 10 05-11-2005 11:47 AM
NET WORTH FOR ONE'S AGE gary Life after FIRE 68 02-02-2005 04:00 PM

» Quick Links

 
All times are GMT -6. The time now is 04:04 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.