Need Opinion

MEDICALJMP

Well-known member
First Name
Jeff
Joined
Apr 28, 2020
Threads
248
Messages
1,238
Reaction score
2,479
Location
Omaha, NE
Vehicles
Toyota Avalon, Rav4, Tri-motor Cybertruck
Occupation
Nurse
Country flag
It's all about how much risk you want to assume. Buying a MY and selling/trading it in will surely be worth less than just sitting on the money. But, if you have to be paying on a car anyway, why not a MY? They'll hold their value pretty well if they follow the pattern of the M3. Buying stock could pay off big or could be at a low when you need the money the most.

Opinions are like ... well, you know the rest of that. I think I'd put half into Tesla stock and sit on the other half in some easy to cash out interest bearing account of some sort. Then, maybe that original $20K will have done well with Tesla stock and between that and the $20K in the safe account, you'd be able to buy the CT when available without owing much if any. Again, depends on the amount of risk you want to take.

This is close to where I am right now. My wife's MY has me wanting one of my own and I don't want to wait 2 years or longer to get it! So, I'm weighing the possibility of buying a M3 to sell when my CT gets made... I look at it as a "forced savings account with a crappy negative return" but it lets me ride in a M3 for a year!


Basically agree with you with one exception. I would do $20K in Tesla stock and $20K in a total stock market exchange traded fund using a low cost provider such as Fidelity, Vanguard or T. Rowe Price.
Sponsored

 

Handy Artie

Well-known member
First Name
Arthur
Joined
May 1, 2020
Threads
3
Messages
127
Reaction score
113
Location
Palm Beach Gardens, FL
Vehicles
2011 Mercedes Sprinter 2500
Occupation
Retired surgical oncologist
Country flag
Please don’t forget the principles. The stock market is a market of many individual stocks both long term winners and losers and short term winners and losers. Betting on averages and indexes instead of individual stocks limits your upside as well as your downside.
Holding individual stocks for more than a year helps make up for the costs of maintaining a trading account by lowering your tax bracket to the capital gains rate, which is now 15% of net gains. You only realize gains when you sell.
Staying in cash loses you 50% of it over 20 years on average because of dollar inflation and the consumer price index.
 

alan auerbach

Well-known member
Joined
Feb 15, 2020
Threads
16
Messages
554
Reaction score
446
Location
Waterloo, Ontario (West of Toronto)
Vehicles
'90 Isuzu PU (has to last until my CT arrives), '91 Grand Marquis, '02 Grand Cherokee (I'm so grand I can't stand it), e-bike.
Occupation
Retired prof.
Country flag
Financial advisors?

If they knew (or just had a reasonably good handle on) what the market, -- no, what a market sector -- no, what just one stock is about to do, why wouldn't they invest their own money and make a killing, rather than advise you what to do in exchange for a few pennies of commission or however they profit from you.
 

ajdelange

Well-known member
First Name
A. J.
Joined
Dec 8, 2019
Threads
4
Messages
3,213
Reaction score
3,403
Location
Virginia/Quebec
Vehicles
Tesla X LR+, Lexus SUV, Toyota SR5, Toyota Landcruiser
Occupation
EE (Retired)
Country flag
Why would he risk his own money?

Financial advisors charge you annually something like 1% of whatever they are managing for you. A good one, i.e. one with a good reputation, with a book of 50 - 100 high net worth individuals is thus pulling in $10 - 20 M per year in fees whether the market is going up or down. In addition to which, of course, he has his own portfolio.

How to tell a good financial advisor from a bad one: Ask him whether you should buy Tesla stock.
 
Last edited:

CyberJagg

Member
First Name
Joel
Joined
Apr 7, 2020
Threads
1
Messages
22
Reaction score
40
Location
Toronto, Canada
Vehicles
2008 Chevy Express
Occupation
Electrician
Country flag
I stopped using a financial guy and became my own financial guy. I grew my investment 300% over 2 years. I suggest you start doing your own homework and just dollar cost average(buy continuously). Find a company that allows you to buys fractional shares and just buy, buy, buy.
 


ajdelange

Well-known member
First Name
A. J.
Joined
Dec 8, 2019
Threads
4
Messages
3,213
Reaction score
3,403
Location
Virginia/Quebec
Vehicles
Tesla X LR+, Lexus SUV, Toyota SR5, Toyota Landcruiser
Occupation
EE (Retired)
Country flag
Well I guess I'll just fire my financial advisors and do that then.
 

OneLapper

Well-known member
First Name
Mark
Joined
Dec 3, 2019
Threads
12
Messages
452
Reaction score
928
Location
NE Conn
Vehicles
BMW 328d Sportswagon
Country flag
Well I guess I'll just fire my financial advisors and do that then.
Whoa! You still need that guy on your side!

But I will say, I have left my investments to their hands for the last 25 years and I'm, quite frankly, pissed about the lack of returns. I compare this to what my parents have invested, and there's a substantial difference in performance.

I recently told my FA that I was pulling out $X amount to manage myself and suddenly he had a change of heart. We're now actively discussing options. Fortunately I did buy the Tesla stock I wanted, but not quite WHEN I wanted, but it's still up significantly........
 
Last edited:

ajdelange

Well-known member
First Name
A. J.
Joined
Dec 8, 2019
Threads
4
Messages
3,213
Reaction score
3,403
Location
Virginia/Quebec
Vehicles
Tesla X LR+, Lexus SUV, Toyota SR5, Toyota Landcruiser
Occupation
EE (Retired)
Country flag
Oh absolutely! That post was completely sarcastic. Only a very unsophisticated investor would think he can manage his family's future with dollar averaging.

Obviously your advisor built a portfolio for you in which he recognized that upside return comes with downside risk and minimized the latter at the expense of the former. This is, in these turbulent times, I feel a wise thing to do. Yes, it is frustrating to listen to your friends and neighbors say "Well my guy put me in NKLA and its up 100% this month". OK, it was, but its now back down. That bubble burst amazingly quickly.

You financial adviser is there to serve you. If you are greedier than you are fearful then you have the option to do exactly what you did. Tell your man you want to accept more risk. When you started out with him he should have had you fill out some forms on where you want to be on the risk axis. Or, and this is what I did, quietly pull out some change and give it to another manager and tell him pedal to the metal. That account obviously returns more than the conservative manager's one and it is more likely to go into the toilet but when it does the first account won't. And finally, I took a few bucks and bought some TSLA (I couldn't stand being the only guy on here that didn't have any) without telling any adviser (because none of them would even consider buying any) in a little eTrade portfolio I set up. I'm beating the tar out of my professional advisors (annualized growth over 200%) but I'm not stupid enough to think I can maintain that.

So sure, pull out a bit and have some fun but think about risking what you have worked so hard for.
 

alan auerbach

Well-known member
Joined
Feb 15, 2020
Threads
16
Messages
554
Reaction score
446
Location
Waterloo, Ontario (West of Toronto)
Vehicles
'90 Isuzu PU (has to last until my CT arrives), '91 Grand Marquis, '02 Grand Cherokee (I'm so grand I can't stand it), e-bike.
Occupation
Retired prof.
Country flag
Please don’t forget the principles. The stock market is a market of many individual stocks both long term winners and losers and short term winners and losers. Betting on averages and indexes instead of individual stocks limits your upside as well as your downside.
Holding individual stocks for more than a year helps make up for the costs of maintaining a trading account by lowering your tax bracket to the capital gains rate, which is now 15% of net gains. You only realize gains when you sell.
Staying in cash loses you 50% of it over 20 years on average because of dollar inflation and the consumer price index.
I'm unqualified to advise anybody except myself but I've been in and out of the market for seven decades. Presently there's a chance that the vaccines will make Mr. Covid mutate into a deadlier form, whereupon the best occupation will be grave-digging -- which is hard to invest in. That's why all my liquid assets are in cash (equivalents). Sure, the return is about the inflation rate, so my golden egg is not growing. But that's OK at my age -- because it's not shrinking.

If you're still deciding, you could try this. Contact 5-to-10 qualified financial advisors and ask if they'd handle your $40,000, and, if so, what they'd do with it. After they all ask you similar questions (they're required to get to "know" their clients), write down their answers. When you realize that no two are the same, think about what that's telling you.
 

TyPope

Well-known member
First Name
Ty
Joined
Mar 31, 2020
Threads
19
Messages
1,639
Reaction score
2,756
Location
Papillion, NE
Vehicles
'18 F150, '23 MY, '24 CT, '23 Maveric hybrid soon
Occupation
Operations Planner
Country flag
It's up 65% since June 23rd... I was editing a post directly above this one when I saw it. Made me smile. Hindsight is 20/20 so they say. I'd have bought TSLA a LONG time ago if I had any kind of vision.
 


Handy Artie

Well-known member
First Name
Arthur
Joined
May 1, 2020
Threads
3
Messages
127
Reaction score
113
Location
Palm Beach Gardens, FL
Vehicles
2011 Mercedes Sprinter 2500
Occupation
Retired surgical oncologist
Country flag
Speaking of opinions NOT politics, what do future Cybertruck owners think is the root cause of the forest fires threatening population centers on the west coast of the US again this summer. I personally believe bad Forest Management is the immediate cause not global warming. I’m a part time resident of ME for the past 42 years and even though peak temperature were frequently as hot as South Florida this summer we’re not plagued by Forest fires. We have active logging industries in ME and Florida. Keeping the Forest from encroaching on the family homestead is kind of a family tradition in these parts. Felling trees against the lean using wedges is kind of generational education to many of us.
 

ajdelange

Well-known member
First Name
A. J.
Joined
Dec 8, 2019
Threads
4
Messages
3,213
Reaction score
3,403
Location
Virginia/Quebec
Vehicles
Tesla X LR+, Lexus SUV, Toyota SR5, Toyota Landcruiser
Occupation
EE (Retired)
Country flag
That's an easy one. It stems from putting population centers in places where fires are part of the normal scheme of things.
 

TyPope

Well-known member
First Name
Ty
Joined
Mar 31, 2020
Threads
19
Messages
1,639
Reaction score
2,756
Location
Papillion, NE
Vehicles
'18 F150, '23 MY, '24 CT, '23 Maveric hybrid soon
Occupation
Operations Planner
Country flag
That's an easy one. It stems from putting population centers in places where fires are part of the normal scheme of things.
That's probably the biggest contributor to the problem. Though, those fires tend to sweep through the forest quite well with no houses around.
Sponsored

 
 




Top