BDCs.
I put all my money in various holes across Georgia and Virginia. Is that a sound investment strategy?
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All those broad index funds have virtually the same holdings. Just track general market performance. Compare their fees, etc.
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I love this thread mostly because Iāll ask Fresh for Finance advice, heāll gladly give it to me, and Iāll have no clue what his response meant. Hopefully this thread will help me make sense of this world. Weāre off to a start though investments looking good!
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Iām just trying to invest and let it grow. Already have a Roth tsp with the military
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Ahhh, the James Brown financial strategy.
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Iāll be retiring in a few yearsā¦ but 25 years last month.
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Awesome career! Enjoy the retirement!!! 434 bound or settling elsewhere?
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I mean, this is actually incredibly good advice.
If you donāt genuinely enjoy researching companies and looking into stock valuations (and Iām guessing like 5-10% of people, tops, actually do), and youāve got some risk tolerance but not a bunch (most people end up finding out they have a lot less risk tolerance than they think they do), just dumping everything into SPY and checking on it once or twice a year to reinvest the dividends is a great plan.
It seems like such a no-brainer that it canāt be the right answer, and āsurely thereās some magic category of hedge funds rich people put their money into that give 20% returns annually, put me in thatā hoping for a gigantic return. Which sounds a lot more like Vegas than the stock market. And hedge funds have benefitted from the greatest PR ever, because like 20-30% of hedge funds beat the S&P after fees (and last year it was a LOT lower), and sure, a handful do great but the same ones donāt do great year after year.
Because hedge funds tend to have specific strategies that do well in some conditions and badly in others. If you can tell me what investing conditions will be like during the coming year, I can put you into some amazing investments to take advantage of that. But if you donāt (and no one does), youāre just betting on what conditions are going to be and history says youāll be wrong.
Rich people arenāt associated with hedge funds because the hedge funds made them rich. Theyāre associated with hedge funds because hedge funds figured out rich people have a lot of money, so they associated themselves with rich people to get them to invest.
Rich people didnāt get rich because of hedge funds, they got rich doing whatever made them rich, then stuck their money in hedge funds which have honestly not served them super well. The only people who became rich because of hedge funds are the hedge fund managers.
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Congrats!
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I mean, do you like the sounds that the strategy makes? If so, probably sound.
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Great job. We have a tsp account as well. They are managed very well. You in one of the āLā lifecycle funds?
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I feel like HFs were very cutting edge in 90s then dot com, asia and LTCM happened and financial crises. Rules changed and HFs lost their āedgeā. The key is watching the FED non stop print money and that money has had crazy velocity in M2 and M3 scenarios. Spoiler HFs never had edge it was rules and AUM (your point)
Oh it ends badly by the way but I would just buy Spy and maybe maybe now some TLT with whatever dividends you may get
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Good man Sauce. Start early and have a plan and stick to it and dont look at it every day like @JBHoo hahahah
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Look but donāt touch? Hahaha. I think itās fascinating in the same way learning Portuguese would be for me. Donāt understand it, probably never will but I love attempting to learn.
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Auto enrolled into that but moved it around to the C,I, and S fund!
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Trying to get rich like @JBHoo !!
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Weāll get there one day brother. I started a little behind on my Roth but have some other things that have been going for a few years and Iām maxing the IRA contribution to try and ācatch up.ā Itās fun stuff to me.
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I did 10 AD & the last 15 Reserveā¦ Already in Richmond. Moved back from the Ramstein AB area in 2023ā¦ was there for 16 and before that was at RAF Croughton near Oxford.
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My father in law loved Croughton. Hopefully one day I can get to Europe!
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