ilovedolphins
Well-Known Member
Joined: Jan 31, 2011 10:56:31 GMT -5
Posts: 1,930
|
Post by ilovedolphins on Sept 1, 2019 15:52:52 GMT -5
I have my money at Etrade. They have an ETF prebuild portfolio that you can invest in. Do you consider these or do you choose your own stocks, etfs, etc to invest in?
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,571
|
Post by CCL on Sept 1, 2019 17:04:44 GMT -5
We started investing in mutual funds in a 401k with Fidelity. After a few years it started to accumulate, so kept it there. Now and then I'll pick up a couple individual stocks, but don't put much money into them. I've never seen much point in investing in ETFs since I've already got mutual funds that I'm happy with overall.
|
|
Deleted
Joined: Mar 28, 2024 23:42:10 GMT -5
Posts: 0
|
Post by Deleted on Sept 1, 2019 19:17:33 GMT -5
Do they rake off an expense %? What ETFs do they use and how often do they re-balance? Frankly, if I were to start all over again I'd pick maybe 4 ETFS and periodically re-allocate to keep the allocation %s in line.
I'd be more interested in general market index ETFs (SPY, SDY, BND) than sectors (consumer staples, consumer durables, utilities, etc.). I think the sector allocations are trickier to get right and the best allocation will change with economic conditions.
|
|
ilovedolphins
Well-Known Member
Joined: Jan 31, 2011 10:56:31 GMT -5
Posts: 1,930
|
Post by ilovedolphins on Sept 1, 2019 19:22:39 GMT -5
They choose 3 ETF's for you...whether you are conservative, moderate, or aggressive. They have no commission fees. I looked at the return on them and they are around 7 - 12%.
|
|
Deleted
Joined: Mar 28, 2024 23:42:10 GMT -5
Posts: 0
|
Post by Deleted on Sept 2, 2019 7:28:40 GMT -5
Might be worth it. Note that these have been VERY good years in the market despite some well-publicized downturns. Past performance is no guarantee, etc. You should also find out how often they re-balance. Simple example: you have your money invested 50% in SPY, 50% in BND. Over the next 3 months the stock market drops and bonds are stable, so you now have less than 50% SPY. They "re-balance" by selling some of the BND and buying SPY.
If they do this often, say, quarterly, it keeps the balance where it should be but might generate some short-term capital gains, which are taxed as ordinary income. (There are much lower tax rates if you sell securities you've had over a year.) One of my favorite stock market sayings is, "Nobody ever went broke taking profits", but it's something to be aware of so you're not surprised on April 15.
|
|