chris smith-MI (Discord ID: 213111265373978635), page 1

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Yeah, sometimes bringing people back from an arrest isn't really doing them any favors..... But, we do it..... uggghhhh

o.k. so, i'll be very boring for you fine men. Fail to diversify at your own risk. Finance is one where we must totally accept things the way they are. Idealism shouldn't play a role in finance, in my opinion. Indeed, I've learned a good deal from well vetted Jewish finance authors, among many other goys as well. This is an area where, while I cringe to throw any money (((their))) way, I have become a pragmatist. Examples of good Jewish financial authors who have it right (not scams) are Rick Edelman and William Bernstein. Among goys, classics such as Value Investing by Benjamin Graham, anything by Jack Bogle (founder of Vanguard), Rick Ferri, and many others are worthwhile. Diversify to be sure, and depending on your risk tolerance, you can do that any number of ways in terms of assett allocation. Also, maximize 401k, IRA's (even if you don't qualifty you can do back door Roth's), HSA's (a great way to further maximize pretax savings), and MINIMIZE expenses. Do not pay loads, or excessive fees, and Vanguard is an excellent source of low cost index funds (among many other things). Don't speculate on stocks either. It's a total crapshoot.

Also, while rebalancing is something I'll chat about later, the data strongly suggests that if you have greater than a decade of risk tolerance, then indexing and STAYING invested is important, because the data shows that trying to time the market highs or lows keeps you from gaining on the recovery side, and losing on the buying low side of things. It's very clear. Sometimes big market busts which may last 1-2 years, show that the entire recovery occurred within a few very short months . If you were sitting on the sidelines waiting for the bottom you may very well may have missed the entire recovery (into positive returns) if you were not vested during that particular time. Nobody can time the market either. Nobody. So, I urge you not to try it.

Now. If you have a goal of 60/40 (stoks always supercedes bonds when people talk like that), and stocks run up, your assets may become valued such that your prior goal of a 60/40 portfolio is now 80/20 (via the big run up in stocks). So, REBALANCING is the term used to sell some stocks, while buying some bonds (in this example) such that your portfolio resembles your original 60/40 target. When to do this is controversial. Some funds constantly do it for you (quite neat actually). Otherwise, maybe every 1-2 yeasrs seems to be concensus amongst the vetted financial guys I will allow myself to listen to. You aren't so much as timing the market by rebalancing, but inherently, you are selling high (those stocks that ran up) while buying low (those bonds that have been lagging or going down).

Also, depending on the asset, and the SEC yield, you'll want to hold some things (REITS or High Yield Bonds) in tax "advantaged" accounts (like IRA, 401k, Cash balance accounts, HSA's) etc.

This is because they can return such high distributions that you will be taxed if in a regular brokerage (non-tax advantaged) accounts.....

You studs are on top of it. Proud of you guys. That's exactly why I joined IE. Good crowd.

@Deleted User Hey brother. Just be aware of the pitfalls of residential real estate renting. Lots of hidden expenses and possible headaches. Consider a REIT? Not hard asset, but I have become (was not always) a proponent to sticking within your area of expertise in order to maintain excellent cash flow (via your job), and advancing within, while letting others handle endeavors which you have less expertise in.

That being said, I'm pretty sure at some point I will develop a small tract of land, or at least build some homes in the next 15 years. Indeed, I've even looked at Epcon Communities as a franchise opportunity. Would need partners and I am for sure not ready for that myself yet, but it looks very interesting. TIming will be important, as will location. I actually think there is value in a franchise like this. Zoning and approval help. Marketing strategy. Excellent floor plans and architectural/design plans. A managemnt and trades networking system......

@John O - Bro, where are you from? I'm not really ready to do anything big in RE, but there may come a time. Also, timing in RE is important. I've always had an interest in building though, and will be looking for the opportunities in the future, perhaps.

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