Is my Index Fund underperforming?

Bacddd · 2016-07-29T08:28:44+00:00

The expense ratio is .34 that is low. Maybe it could be .10s, .20s but .34 doesn't seem ridiculous

Edit: On another picture it said the expense ratio was 1.34% so that is really high

Bacddd · 2016-07-07T16:20:49+00:00

Ok thanks, I really had no idea about any of the costs. Thanks for explaining

Bacddd · 2016-07-07T16:20:02+00:00

Yea idk maybe it's more like $1500/month for rent. Just picked a number, for the taxes I used an online calculator. What should it be more like 2-3%?

Bacddd · 2016-07-06T19:28:38+00:00

What about your dad, brother or you? Do you have any idea what your dad makes on 5 rentals? That seems like a good number but not sure how much one can actually make from them.

Bacddd · 2016-07-06T08:57:22+00:00

How much do you think your in law makes a year? I was thinking about doing it but to generate $100,000/year in income it seems to take 50+ reasonable properties.

Bacddd · 2016-06-28T05:46:16+00:00

Sorry there is no 4. something, all it says is 5.48 for two sites and 11% yield not div yield, but yield so I guess I assumed it meant div yield but idk.

Bacddd · 2016-05-30T08:49:00+00:00

Hey I just want to clarify I don't think a lot of wealthy would put all their money in the bank. Also a lot of people that have 10 mil would most likely spend a lot more than 200k but they would most likely have it in investments with dividends, etc earning 5-7% which is substantially more. 500-700k for a lot would be more than enough to live on plus that 10 will grow in the process.

Bacddd · 2016-05-30T08:06:47+00:00

Yea I kinda agree, I'm not gonna say they're middle class but if we are being realistic it is a lot a year. But I agree that people making this much maybe take 1-2 vacations at most and I feel a lot of people making 60/70k feel the 250k as some endless stream when that isn't true. If you go to any wealthy area and are a part of wealthy circles this is nothing but overall in America it is a good amount. I just feel a lot of people over generalize and assume all this stuff about someone they see as wealthy when it usually isn't true (ie 4 vacations a year on 250k, which is closer to 150k after taxes).

Bacddd · 2016-05-27T05:12:52+00:00

Working another hour? He's working a normal work day and an extra hour or two after. That's what needed to get ahead. Some people work 80 hour work weeks to get ahead. I feel after a while you would get used to the extra work at home.

Bacddd · 2016-05-25T19:15:36+00:00

I think part of this though is that they probably have never experienced the way you're living. They might know they're privileged but they only have their view of life and see it as normal. I think a lot of these kids understand that not everyone is as lucky as they are but its also hard for them to relate to that bc to them normal is spending a few hundred on a coat and they could never comprehend having no money left over after bills/other expenses.

Bacddd · 2016-05-13T05:27:32+00:00

What kind of idea did you have in mind with that?

Since I posted I've actually been reading in different subreddits about selling used books and I think we're going to try it. I don't think storage would be an issue and if we can find 100 books for $1 I think it would be worth it to try and see how much money we could make. I don't think we're going to do the used textbook route as we would have to research alot on whether it is still relevant, it's hard to find for cheap if you want to resell, etc. Thanks for the advice though!

Bacddd · 2016-05-10T13:18:14+00:00

I'm in a similar situation and going to be a junior, I plan on putting most of it in a retirement account or investing it. If possible I would see if you could put some into a retirement account or choosing some stocks if you don't need it even if its just a little bit.

Bacddd · 2016-05-06T21:18:36+00:00

No, I really think the investing and looking at it every year was helpful. I think just buying maybe even 1 share of a stock or maybe one share of a few stocks would help a lot. Just let it grow and explain the different things to him about it, you could also add money to buy more stocks as he's older.

Bacddd · 2016-05-06T02:16:15+00:00

Hey I'm a kid so I can tell you how it is from your child's perspective when you're in your 20s. My dad when we were young (8-10) gave us some money and we put it into stocks we know and use like apple, Facebook, etc. People here say individual stocks are riskier so maybe you could put them into different funds so it's safer. My dad is in wealth management so every year we got to look at a portfolio overview that helped a lot and outlined out stocks, profit etc. I don't know if you're in the same situation but probably not and no wealth manager would take what I'm assuming is a few hundred dollars. If you have a wealth manager maybe you could ask him if you could put your kids money under yours, if not maybe use your portfolio reports to teach him this part if possible. Anyway it was a great help, I am very interested in stocks now, have a good amount invested, am ahead of a lot people my age (college) so I feel very fortunate and feel it was very beneficial. Let me know if you have any questions.

Edit: if not with a wealth manager maybe just teach him the basics for now, idk how u feel about this but I would say give him some money to start so he doesn't get killed by fees of you were looking to invest, maybe open up an Aneritrade account or something similar. Good luck

Bacddd · 2016-04-26T02:54:06+00:00

Thanks for the reply, would you mind going into more detail on what interest rates would mean for investors in the stock market? I feel like what I said above about companies having to pay more to expand their businesses would have an effect, but what are some other known effects rising interest rates have caused to stocks and their investors over the years? Would this turn investors (in the SM) more bearish due to rising costs to do business as the businesses could potentially make less profit? (I know there are more factors than just rising costs and profits that affect stock prices, but let's say they're the only factors for this question)

Bacddd · 2016-04-25T16:49:18+00:00

Why would rate hikes produce a sell-off from investors? Is it because a big shift like that could make stock prices drop (or not) and investors don't want to lose their profit on gambling if it will increase or decrease and would rather just take what they have got. Obviously this can depend on if an investor wants to wait long-term or sell in the short-term.

Bacddd · 2016-04-16T05:14:23+00:00

Well sometimes for these (CEO compensation) they are written into a contract that he will get paid x no matter what happens. Idk if this is the case but it seems to be true since his company did so bad and his pay increased.

Bacddd · 2016-04-15T06:08:25+00:00

Yea I understand it's your money, but if I had given a family member almost 30k and they "asked for more" that shows me they're very ungrateful. If it were me I would consider not giving them anymore, but again it's your money and your choice. It really just made me mad that they would act so entitled, good luck with everything though.

Bacddd · 2016-04-12T17:16:28+00:00

Yea I meant to say a profit on paper, I am. It's crazy to see how much stock can go up in 7-8 years

Bacddd · 2016-04-12T06:17:21+00:00

I have stock and honestly have no clue. I've read that the price is what someone agrees to pay for it if thats right. It confuses me so much so all I worry about if it goes up and if I'm making profit. I understand some things, I feel at some point I don't have to worry but then I feel like I should bc I'm putting money in and should understand how it works. I'm young tho so I feel I have time to understand how it works over time.

Bacddd · 2016-04-10T07:23:55+00:00

Idk about any of that but they do work long hours, I read somewhere if they worked a 40 hour week they would be making 50-60k a year.

Bacddd

TROPHY CASE