Blood on the streets cleaned up

[248Lancer]

Did you ever find out why they wanted to change 401K providers?

It was a small partnership that was also a family business. The “committee” was likely 2-3 of the 8 partners, who deferred to whomever saw the dog and pony show from the fund manager that recommended the switch. When the majority partner / founder saw the reaction, he mixed the deal.

I was in my mid 20s, and only understood what was going on because of my research into investing the prior years bonus (prev mentioned).

If the switch attempt had happened a year earlier I would have shrugged and walked out of the meeting befuddled.

 

[Doubleyellow]

I remember the old days where Fidelity's Magellan fund was an interesting one with a long history. Often thought to take a look at its history, but never did. I seem to recall it was the first fund to crack a billion in assets, maybe 45 years ago or more.

Peter Lynch was king at the time.

 

[Doubleyellow]

The problem with Employee 401K funds is that Fund managers only have to go to country clubs, sporting events and board rooms to pitch plans that are not in the best interest of everyone. I would for a company that Used Fidelity to manage the accounts and offered Vanguard funds in that account. I would constantly ask management why are they paying two fund companies to manage our money. I asked at every annual benefits meeting until finally that said Charlie is going to be very happy this year, the 401K accounts are being shifted to Vanguard.
We like to think the people in Government, Wall Street. Board rooms and executive suites are doing their very best for all parties. The truth is that that stratosphere is all about networking, connections and what is best for us in this group.

Long term tip for younger workers. DO NOT LEAVE 401K Money in an employer sponsored system when you leave. There are hidden charges and they go up once you are no longer part of the corporate account. Move it to a discount brokerage has and/or Vanguard and let the drop in fees improve your net worth down the road.

I consistently transferred out of the fidelity 401k to create IRA's that opened up alternative opportunities, and I moveed all after tax 401k funds into a Roth. That was my only way in without paying conversion taxes. Thank you to those who created this nice loop hole/back door that ignored the income limits.




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[charliebrown]

Just remember the old saying, sell in MAY and go away.

This is not a rule that always comes true, but it does give you a good sense of what to expect in the summer months.

I don't expect a major drop in the market, but we are due for a definite vacation this summer. I honestly feel most people will absolutely be inactive this summer.

Enjoy the future gentlemen, for most of us, it will be a bright one. Let's keep up the charity so we are helping those who truly can not help themselves.

 

[njlefty]

https://finance.yahoo.com/news/3-strong-buy-stocks-under-181446919.html

 

[248Lancer]

Looks like the mess that's #1 on my list of worries is getting a head start:

https://www.wsj.com/articles/federal-judge-invalidates-national-eviction-moratorium-11620231572

 

[charliebrown]

People who are renting are seeing their rents locked and/or even dropping for long term leases. The real estate market is going to get effected by this pandemic. Office space is going to be a nightmare for possibly the next decade, people will absolutely work remotely more often. There is less need for offices. Video conferences are the alternative that has worked.
Residential Real Estate has absolutely gone up. Rent is definitely not going up like housing because of the pandemic but it will not get driven lower. If the area is undesirable it will have problems. areas that are desirable will go up.
Real Estate is local. There will be losers and winners but the national average is up and will continue that way.
It is May. I sold some call options on stocks that have given me amazing gains. I am still waiting for the sell in May crowd to come out.

 

[Drjon7]

Regarding working from home, I think most companies are going to realize that too much is lost and will summon most to return. Goldman Sachs and Chase have already started. Once the other companies see their competitors gaining an advantage because of
in-person relationships, the party will be over.

https://www.cnbc.com/2021/05/04/gol...ng-workers-back-to-the-office-by-june-14.html

 

[charliebrown]

Regarding working from home, I think most companies are going to realize that too much is lost and will summon most to return. Goldman Sachs and Chase have already started. Once the other companies see their competitors gaining an advantage because of
in-person relationships, the party will be over.

https://www.cnbc.com/2021/05/04/gol...ng-workers-back-to-the-office-by-june-14.html

If you believe that, buy some of the national office space REITS and watch your money go up.

Boston Properties in the largest Office REIT.

 

[Drjon7]

That's a (was) good call. I'm not a Reit guy and don't know the ins and outs of commercial real estate so I would have bought for the initial bounce. Now its up 50% from its low. The easy money has been made. I need something other than real estate and see a lot more risk than value in buying stocks now.

 

[njlefty]

https://www.cnbc.com/2021/05/07/cat...-expects-big-returns-from-her-strategies.html

 

[charliebrown]

Damn guys, Seems like inflation is hitting everything, including stocks. Fed interest rates at historic lows. Government pumping money into the economy. a shortage of materials and labor. If this is our idea of deflation, then holding money makes all the sense in the world. If this is inflation, then holding money is about the only thing that is depreciating these days.

 

[Doubleyellow]

That's a (was) good call. I'm not a Reit guy and don't know the ins and outs of commercial real estate so I would have bought for the initial bounce. Now its up 50% from its low. The easy money has been made. I need something other than real estate and see a lot more risk than value in buying stocks now.

 

[njlefty]

https://finance.yahoo.com/news/stoc...s-inflation-hedge-fund-founder-141439672.html

 

[njlefty]

https://www.fool.com/investing/2021/05/22/stock-market-crash-may-be-near-3-stocks-to-buy-h/

 

[Doubleyellow]

Articles referencing the 2020 low and how much the market has risen since then to me is a bit misleading. The bleed down to the March low was just that, and once the transfusion started, it wasn't a pure gain for the market to return, it was a recovery from an aberration.

I have a friend who has stayed in cash since 2009 because of the soon to come 'crash'. I'd rather take a 20% loss after an 80% gain than see no loss and no gain.

But an adjustment will occurr. Buy.

 

[njlefty]

Articles referencing the 2020 low and how much the market has risen since then to me is a bit misleading. The bleed down to the March low was just that, and once the transfusion started, it wasn't a pure gain for the market to return, it was a recovery from an aberration.

I have a friend who has stayed in cash since 2009 because of the soon to come 'crash'. I'd rather take a 20% loss after an 80% gain than see no loss and no gain.

But an adjustment will occurr. Buy.

Stayed in cash since 2009 seems sad to me, but I understand what we all go through when trying to “figure things out.” Nothing in my investing changed with the 2008 crash because I had to think it would come back, as it did.

I did not anticipate the current market, but frankly, the way things are now for my accounts, it is close to being on automatic pilot. I have not reaped huge gains, but I am somewhat shielded from a great drop, too.

I have retired friends who should be spending and enjoying their money. But they are so stuck in old ways, they cannot. Sadly, they will pass away as wealthy people.

 

[charliebrown]

I have retired friends who should be spending and enjoying their money. But they are so stuck in old ways, they cannot. Sadly, they will pass away as wealthy people.

It is amazing how people who have worked and saved their entire lives to be capable of enjoying their golden years do not go out enjoying their golden years. TBH with you, I am still a relatively conservative person when it comes to living it up but I have found one thing I am interested enough in to spend my money on a regular basis.

 

[East Lake II]

I have retired friends who should be spending and enjoying their money. But they are so stuck in old ways, they cannot. Sadly, they will pass away as wealthy people.

It’s difficult to change ones way of thinking and ones perception of the world. They grew up when money was scarce and they saved and planned. Even though they have plenty now, like you said, they are trapped by the past.

 

[njlefty]

It is amazing how people who have worked and saved their entire lives to be capable of enjoying their golden years do not go out enjoying their golden years. TBH with you, I am still a relatively conservative person when it comes to living it up but I have found one thing I am interested enough in to spend my money on a regular basis.

It’s difficult to change ones way of thinking and ones perception of the world. They grew up when money was scarce and they saved and planned. Even though they have plenty now, like you said, they are trapped by the past.

I do think it is the inability to adjust. It is not even that easy for myself, but I try. I spent quite a bit of money on a large home rental for the entire winter last year. Some of these very guys were aghast at the money spent on a furnished rental, but I golfed all winter and enjoyed a beautiful home by the beach.