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Old 05-01-2020, 07:57 PM   #1
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As a newbie here, just looking for some references to learn about other types of investment options. For about 10 years I have only played with stocks and a few high yield mutual funds. I have seen references to bonds, other "funds", ETF's, equities, CDs, etc. Besides the Google searches that take me to investopedia and other related sites, are there any good references to help me learn about these other investments so I can decide and plan my strategy. As of today I am 100% liquidated and looking for a long term plan that does not include stocks.
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Old 05-01-2020, 08:46 PM   #2
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If you have an account at TDAmeritrade, their education section is really good.
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Old 05-01-2020, 08:56 PM   #3
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If you have an account at TDAmeritrade, their education section is really good.

I had thought about using them based on some research. My bank sold out to Schwab so I will probably go with them since I have to do nothing to make the transfer happen. Not sure what tutorials they have though.
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Old 05-01-2020, 08:58 PM   #4
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Bogleheads.org

Go to the wiki and read that thoroughly (it will take a while). It will give you a wonderful investing education for free. And nobody will try to sell you any investment products.
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Old 05-01-2020, 09:00 PM   #5
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Bogleheads.org

Go to the wiki and read that thoroughly (it will take a while). It will give you a wonderful investing education for free. And nobody will try to sell you any investment products.
I got time! Not sure when I'll be back in the office so I will start this weekend.
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Old 05-01-2020, 10:16 PM   #6
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keep it simple and stick with 3 fund index portfolio, total US market index, Total International index, Total bond index then rebalance when needed. pick an AA you can live with based on your risk tolerance.
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Old 05-02-2020, 01:36 AM   #7
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Morningstar has a free education series.
https://www.morningstar.com/start-investing/classroom
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Old 05-02-2020, 04:54 AM   #8
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Bogleheads.org

Go to the wiki and read that thoroughly (it will take a while). It will give you a wonderful investing education for free. And nobody will try to sell you any investment products.
+1 lots to learn before making any decisions, then ask away on specific questions on this site.
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Old 05-02-2020, 06:33 AM   #9
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Morningstar has a free education series.
https://www.morningstar.com/start-investing/classroom
Yes I have read through the Mutual Fund section a few weeks ago. I need to go refresh the brain.
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Old 05-02-2020, 07:15 AM   #10
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OP, after ďplaying with stocks and high yield fundsĒ and apparently losing your butt, desiring a better way, and emotionally choosing to swing the pendulum to the other far extreme where you might in turn lose your butt to inflation, or to real estate, where you will work your butt off, you face an important tortoise vs. hare decision and a fork in the road:

Choose either the quiet, long Investorís Path that many others have taken successfully to build wealth or attempt a quick Gamblerís Path through a field of landmines chasing an illusion that a person can consistently beat the markets and earn quick wealth. I chose the former a long time ago early in my career after experimenting with the latter, and the choice has made us wealthier than most, so I believe in the Bogleheads Way. Youíll see others on this forum addicted to the Gamblerís path of the hare and susceptible to a massive greed-based financial industry that is only happy to serve them. I spend time here and on Bogleheads, where the predominant investing philosophy is the longer, slower and repeatable path of the tortoise.

I will second and double down on the excellent advice above to read the Bogleheads material. I suggest after 27 years on my investing journey that the simplest and entirely effective products to explore and that are clear expressions of the Bogleheads principles reside at Vanguard.com/mutual funds/All In One Funds/and either their Target Date or Life Strategy funds. Those two products are simple, maintenance free, balanced collections of ultra low cost bond and stock index funds with all the proven principles and investing wisdom baked in. Pick one, stick with it and, in time, you wonít own a Lear Jet but you also wonít lose your stake to the casino. Vanguard also offers some active funds but their defining core is index funds.

Vanguard itself is unique in the industry, as itís a co-op in which we investors own the mutual funds and the funds, in turn, own Vanguard. So the goals, values, and objectives of the company are aligned with the investors more than all other companies, which are designed to drain the maximum fees from your pocket. Vanguard has quietly, frugally, become the largest mutual fund company in the world, yet does not have fancy store fronts downtown or Super Bowl ads. Go figure? Itís hard to argue with massive success like that.

Others will no doubt disagree with parts or all of this advice but I can say that it has worked to make and keep me - a history major with relatively poor math skills who has had a career in non-profit service - a millionaire and then some, so I believe in the water I have drunk. Good luck!
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Old 05-02-2020, 08:08 AM   #11
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oops. Get "The Coffeehouse Investor " by Bill Schultheis. Short, easy read, and even a recipe for pumpkin pie.
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Old 05-02-2020, 08:17 AM   #12
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Morningstar has a free education series.
https://www.morningstar.com/start-investing/classroom
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Yes I have read through the Mutual Fund section a few weeks ago. I need to go refresh the brain.
Your primary choice will be Mutual Fund vs. ETF. It could help to identify a broad index fund or ETF for stocks and bonds. Set your desired allocation, and invest to keep that in balance.
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Old 05-02-2020, 08:18 AM   #13
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Yes I have read through the Mutual Fund section a few weeks ago. I need to go refresh the brain.
Fidelity also offers lots in their Learning Center

https://www.fidelity.com/learning-center
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Old 05-02-2020, 08:44 AM   #14
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As of today I am 100% liquidated and looking for a long term plan that does not include stocks.
I'm not sure excluding stocks is necessary. There aren't many other asset classes that have demonstrated long term growth at the level of stocks...you just have to resist picking winners and losers. Maybe real estate...

Seems like you're ready for some serious reflection on the efficient markets hypothesis, and what that means for your own long term investment strategy. My personal conclusion is that while markets may not be completely efficient, I do not have the knowledge or resources to do better than average. I also don't believe the typical money manager has the the ability either. Perhaps a handful do, but I wouldn't know how to identify them. Furthermore, the market sees the trades they make, and so incorporates their knowledge and actions into the prices anyone else pays.

With a well above average education, it can be humbling to reach such a conclusion, and harder to not react to market information in some way. So what do you do?

Pick an asset allocation among some asset classes that are not correlated, but have demonstrated general long term appreciation at different rates. It also helps to pick more liquid assets.

Then when the market fouls up your asset allocation, you rebalance. This means you sell assets that have appreciated most (price is higher) and buy assets that have a relatively lower price than when you last rebalanced. As a result you sell high, and buy low. Do this for the rest of your life, and you'll be fine.
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Old 05-02-2020, 09:08 AM   #15
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I had thought about using them based on some research. My bank sold out to Schwab so I will probably go with them since I have to do nothing to make the transfer happen. Not sure what tutorials they have though.
I've been at Schwab for years and am a big fan. Zero complaints.



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As of today I am 100% liquidated and looking for a long term plan that does not include stocks.
You lost me at a plan that doesn't include stocks. With interest rates where they are, there is essentially zero chance of building wealth without taking on some risk. Actually, with interest rates where they are there is a good argument to be made that bond funds have some decent risk now too.

You need an AA that reflects your risk aversion, but I don't think that can include zero stocks.
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Old 05-02-2020, 09:10 AM   #16
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@fisemper, if you burn a finger on a hot stove, would you then throw out the stove? You certainly could, but it would limit your diet. I suggest that instead you keep the stove/keep a stock allocation, but wear the oven mitt that a well-diversified equity mutual fund will give you. While you're at it, print out @Markola's post #10, frame it, and hang it over your desk.

Re deciding between mutual funds and ETFs, this is not a big deal at all for a long term investor. Start with the fact that an ETF is a mutual fund. In fact many mutual funds are available either as a conventional mutual fund or in ETF form. VT and VTWAX, for example are the same fund. In a tax-sheltered account the differences are quite ignorable. In a taxable account, an ETF might be very slightly advantageous.

Incidentally, @markola is not the only multimillionaire on this board who is using the strategy that he recommends. It is popular because it works. The investment industry does not admit this because it is not a strategy that puts the Porsches and Benzes in their garages.
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Old 05-02-2020, 09:28 AM   #17
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While you're at it, print out @Markola's post #10, frame it, and hang it over your desk.

Incidentally, @markola is not the only multimillionaire on this board that is using the strategy that he recommends. It is popular because it works. The investment industry does not admit this because it is not a strategy that puts the Porsches and Benzes in their garages.

Thanks, Old Shooter. Iíd start a blog, except Iíd only be capable of that one post, which would be entirely unoriginal. Cheers.
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Old 05-02-2020, 09:43 AM   #18
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I could reply to each response but all are good IMO. Instead just wanted to say I very much appreciate all the advice. That is why I am here asking, so I can learn and do more. I am starting my boglehead reading today. With what I have seen here in all the forum areas I can say for once I'm actually excited about investing (to include some allocation of stocks) and not just hoping something good happens. Took me 10 years to get this far and I have sooo much to learn.
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Old 05-02-2020, 09:54 AM   #19
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... Took me 10 years to get this far and I have sooo much to learn.
Hey, you're doiing well. It took me 35 years to figure out that passive investing was the winning strategy. Slow learner I guess. I tell the students in my Adult-Ed investing class: "Investing is boring. If you're not bored, you're not doing it right."

Good luck.
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Old 05-05-2020, 04:00 PM   #20
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I don't have too much more to add that has not already been said. I will just reinforce the need to keep investment costs as low as possible. Remember, every additional $1 that you incur in costs, comes directly out of your pocket. Don't be fooled by the investment advisor or active fund that promises high returns. They exist solely to sap you with fees and expenses. If you stick with broad based index funds you will be guaranteed the market rate of return, and in the long run, beat out the vast majority of active managers.
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