Question for Millionaire Mommy...

[REWahoo]

Quote:

Originally Posted by clifp 80%+ of the stuff on your blog is good, LBYM, invest in equities, don't mistake your house for an investment strategy etc.

True, your blog contains a lot of very good advice. As clifp points out it also contains advice many of us here might think questionable and worthy of a discussion from those who see things from a different perspective.

Others have said basically the same thing, but it appears to me that you have a lot of experience speaking to an audience who has little if any understanding of finances and investing (think the equivalent financial knowledge of your average HS senior). When you began posting here it looks like you weren't aware you were addressing a much different audience (think the financial knowledge of an average college graduate who took courses in finance...and many here well above that). Add to that years and years of real world investing experience and you will hopefully begin to get the idea that even someone relatively savvy in the financial world such as yourself might be able to learn a thing or two from some of these discussions.

[Milton]

Quote:

Originally Posted by MillionaireMommyNextDoor I'd never suggest that anyone put 100% of their money in an S&P 500 fund and let it ride. Not enough diversification. Diversification reduces volatility and increases ROI. I am invested 100% in equities, but I spread my portfolio around (diversify) to include 18-20 different no-load mutual funds and ETFs. IMO, placing all eggs in one basket is gambling.

I think you're talking about deworsification, not diversification. You can easily get adequate equity diversification in two or three ETFs ... 18-20 just unnecessarily complicates things.

If the S&P 500 isn't broad enough for you, consider the Vanguard Total Stock Market Viper. For international expsoure, use something like the iShares MSCI EAFE Index Fund and/or the iShares S&P Latin America 40 Index Fund.

Those are just examples. There are many good choices available; but that doesn't mean you gain anything by owning all of them!

[TickTock]

REWahoo,

Good point. Kind of like the star high school student who goes to MIT and discovers they aren't the smartest kid in class anymore.

[RunningBum]

So this is MIT?

[Martha]

Quote:

Originally Posted by RunningBum So this is MIT?

Isn't he running for president?

[twaddle]

Quote:

Originally Posted by RunningBum So this is MIT?

Yes. She's the one making TV appearances and writing a book, but we're the geniuses.

[FinanceDude]

Quote:

Originally Posted by twaddle Yes. She's the one making TV appearances and writing a book, but we're the geniuses.

So I'll ask a dumb question..........what took her so long to get here, it's not like we're hiding or anything...........

And, to follow it up, since most people on here are on their way to FIRE, there might be a bigger audience that could benefit more, like most kids on MySpace.............

[bright eyed]

Fellow mommy, just know that you have to be able to back up your claims and be ready for challenges to your assumptions. As someone who is used to being the one in the "know" and offering advice, perhaps it's hard for you to swallow that you may not be making the most well thought out choices, or worse, leading others down the waterfall with you.

Folks here are quite nice, grumpy, inquisitive - but most of all don't stand for BS...You have to be able to back up your claims/info w/ DATA and/or pretty sound logic. It doesn't even have to be about money - everything is under the microscope (just do a search for "milk" and you'll see...)

People disagree here ALL THE TIME! so it's not about not thinking a certain way, but respecting where others come from and balancing/backing your own claims. Some of us even admit when we learn something or were wrong once in a while too.

If all else fails, the boyz here are easily distracted by naughty pictures, or even the suggestion of them ... or beer.

[twaddle]

Quote:

Originally Posted by bright eyed You have to be able to back up your claims/info w/ DATA and/or pretty sound logic.

Puhleease. She's stated her assumptions, and people are arguing that their assumptions are better than her assumptions.

They are all assumptions. As long as you state them up front, people can take them or leave them at face value.

I sincerely doubt that the "experts" here know any better than she does about the "correct" forward return rate, the "correct" allocation to stocks, or the "correct" number of mutual funds to provide diversification.

[cute fuzzy bunny]

Quote:

Originally Posted by twaddle She's the one making TV appearances and writing a book

So is Britney Spears' mother, but I think I'll take a pass on following her child rearing philosophy.

[twaddle]

Quote:

Originally Posted by cute fuzzy bunny So is Britney Spears' mother, but I think I'll take a pass on following her child rearing philosophy.

I didn't mean that her advice was good, just that she's finding fame and fortune, while we're sitting in our underwear arguing on an internet forum.

[bright eyed]

Quote:

Originally Posted by twaddle Puhleease. She's stated her assumptions, and people are arguing that their assumptions are better than her assumptions. They are all assumptions. As long as you state them up front, people can take them or leave them at face value. I sincerely doubt that the "experts" here know any better than she does about the "correct" forward return rate, the "correct" allocation to stocks, or the "correct" number of mutual funds to provide diversification.

hey, I said and/or sound logic

I think a few people have at least countered that some of her assumptions/logic are a bit faulty... and nobody said "correct vs. incorrect" but more often "unsafe vs. safe" particularly planning on 10% return.

[REWahoo]

Quote:

Originally Posted by twaddle I didn't mean that her advice was good, just that she's finding fame and fortune, while we're sitting in our underware arguing on an internet forum.

So, are you thinking about your chances of finding fame and fortune in your underware/wear?

[brewer12345]

Quote:

Originally Posted by REWahoo So, are you thinking about your chances of finding fame and fortune in your underware/wear?

Does the police blotter count?

[TeeRuh]

did some one say beer?

t.r.

[youbet]

Quote:

Originally Posted by twaddle I didn't mean that her advice was good, just that she's finding fame and fortune, while we're sitting in our underwear arguing on an internet forum.

Damn..... did I leave my camera turned on again? Sorry. I know it's not a pretty sight.....

[Achiever51]

MMND, If nothing else, thanks for revving up the gang here. I think you'll agree that this is a very opinionated, vocal group of folks -- some of whom are college professors, economists, certified financial planners, other professionals -- who give as good as (or better) than they get. Don't take any of this personal and I hope you'll stick around to add your own spice to this interesting melange.

FWIW, I am female and both my father and brother are master plumbers. I've learned volumes from my fellow posters here.

[Notmuchlonger]

What huh you all bother wearing underwear while posting. Pffft

[SecondCor521]

Quote:

Originally Posted by Texas Proud MMND.... NOBODY that I know of that has any real training in portfolio analysis would be in equities 100%... and nobody would use a 10% rate of return for their calculations. Can you get 10%... why yes... but I would not bet my future on that kind of return...

I'm not sure what qualifies for "real training in portfolio analysis".

My retirement funds are 100% equities.

I actually don't use 10%; I use 10.7%, which is the CAGR for the SP500 from the Ibbotson study of stock returns from 1926 or so to the present.

My rule of thumb for what I use for planning purposes is the average over the longest period of time from the most authoritative source I can find. I know there are many folks, including famous smart people, projecting lower rates of return on stocks going forward; I disagree with them.

2Cor521

[cute fuzzy bunny]

Quote:

Originally Posted by twaddle I didn't mean that her advice was good, just that she's finding fame and fortune, while we're sitting in our underwear arguing on an internet forum.

Okay i'm confused now, so help me out. Which is better?

And whats this "underwear" thing you speak of?