Cash Was the Best-Performing Asset of 2018. Here's What 'Going to Cash' Means.

[easyrider]

I like trading stocks better than long term investing in mutual fund but I like real estate investments better than all other investments. I always thought sitting on cash is a loser dealio because of inflation. I talked a friend into using some cash to purchase a property this summer. In the first two months the property value gained 18% and the cash flow should be consistent as the property is leased out.

Bill

 

[Shankilicious]

Investing in the market is a long term game. Diversify your investments and over the course of a few years you can average a 10% or better return. Banks will only give you 1-2% at the very best.
On average my investments were up 17% before the market dropped in the fourth quarter of 18. By the end of December I was down -6%. Now I'm back up +%2 already in 19. Just ride it out.
Just avoid credit cards and debt like the plagues they are.

 

[pedro47]

What about tax free money markets and tax free bond account for the pass year?

 

[WinniWoman]

million or millions, it's the same idea.
It just seems like with some of your past comments you were not getting good personal financial advice.
Investing for the long term should not be dependent on luck.
Frugality is good but getting good investment advice is better, actually essential if you don't have a good pension

I do not have a financial advisor. I have always read and researched what I could and winged it.

I spoke with one once and he wanted $10,000 per year to manage our money- he included the value of our home as part of our assets to manage since I told him we will be putting it up for sale in a couple of years. Ummmm- no thanks.....

I am still on the search- but more for advice in when to take SS, how to draw the money to live on, taxes, how to relocate when we need the money from our house to do so, updating of our estate planning- revocable living trust, health care. I am very overwhelmed....Need someone who is holistic in their approach.

But I will be turned off it this person says to put the money in an annuity or hand the money over to him/her to invest or to put tons more in the stock market right now. I am looking more for someone to look at what we have and advise us what WE should do with what we have within our mutual fund company and so forth. But I would consider on-going management of everything. Could they keep our money with our mutual fund company and manage it for us? Something for me to ask I guess.

I have found a couple of local people - CFP's - on-line- and actually a group of accountants who do this and I am thinking of calling them as well. I might even re approach the guy who wanted the big bucks to see what his one time fee would be again- instead of ongoing management.

 

[Talent312]

In the last 10 years, I've moved from 30% bonds to 50% bonds.
My stocks are spread among 4 broad-based ETF's w-good records,
and one M-F for foreign stocks where I want active management.

The only use I have for cash is to buy toys, or remodel my kitchen.
.

 

[pedro47]

mpumilla, a good no load mutual fund / low management fees maybe is something you need to look into..

IMHO, mgt fees are a very big issue in investing, especially small accounts.
Please look at the cost. over a ten (10) years period..

 

[geekette]

I do not have a financial advisor. I have always read and researched what I could and winged it.

I spoke with one once and he wanted $10,000 per year to manage our money- he included the value of our home as part of our assets to manage since I told him we will be putting it up for sale in a couple of years. Ummmm- no thanks.....

I am still on the search- but more for advice in when to take SS, how to draw the money to live on, taxes, how to relocate when we need the money from our house to do so, updating of our estate planning- revocable living trust, health care. I am very overwhelmed....Need someone who is holistic in their approach.

But I will be turned off it this person says to out the money in an annuity or hand the money over to him/her to invest or to put tons more in the stock market right now. I am looking more for someone to look at what we have and advise us what WE should do with what we have within our mutual fund company and so forth. But I would consider on-going management of everything. Could they keep our money with our mutual fund company and manage it for us? Something for me to ask I guess.

I have found a couple of local people - CFP's - on-line- and actually a group of accountants who do this and I am thinking of calling them as well. I might even re approach the guy who wanted the big bucks to see what his one time fee would be again- instead of ongoing management.

whatever you do, also get a second opinion. Could be that your best plan is some combo of what insights you gain from each.

I honestly think that you've got this. Your young panic sell is a lesson you learned along with other things you've cited. I would suggest thinking in terms of income vs expenses. I think when/if you move from expensive location, you will find your money goes a lot farther. It's not what you have, it's what you spend.

 

[Sugarcubesea]

I try to stay diversified. This year I’m looking at Vanguard’s Dividend Funds to put my IRA money in for 2018

 

[WinniWoman]

mpumilla, a good no load mutual fund / low management fees maybe is something you need to look into..

IMHO, mgt fees are a very big issue in investing, especially small accounts.
Please look at the cost. over a ten (10) years period..

I have a slew of no load mutual funds- have had mutual funds all my life.

 

[TravelTime]

I get a kick out of all the articles and discussions that comes out every time there is some volatility in the market and everyone thumping their chest, boasting of how they "went to cash" earlier. What we don't hear is all the times those people went to cash and missed out on significant upward market moves. The lost opportunity costs of missing those upswings is huge.

A market correction doesn't scare me -- I often treat it as a time to increase my savings and investment. I did this in the 2008 correction and have stayed in the market 100% of the time through the longest and most profitable bull market in history and it has paid off in spades. This latest market correction has only taken off a very small portion of my huge gains over the last 10 years, and they are only paper losses. In fact, I have increased my buying recently; I am confident it will pay off again.

Kurt

I agree. I would not thump my chest for going to cash. Like you, we increased investing during the Great Recession in the late 2000s and it has paid off. The real losers are the people who sold/sell at a loss. I know some people had no choice due to foreclosures and buying more than they could afford.

 

[Brett]

I have a slew of no load mutual funds- have had mutual funds all my life.

unfortunately a "no load" designation does not imply low mutual fund annual fees

"Funds can also charge exchange fees, account maintenance fees, and other miscellaneous fees. Moreover, the regular management fees that go into the fund's expense ratio aren't limited by the no-load designation. If other fees are high enough, then the lack of a sales load won't make that fund a better investment."

 

[Talent312]

IMHO, it's possible (imperative) to find good NL Mutual Funds
with annual fees L/T 1.25%. I'd avoid any w-fees M/T 1.5%.

But I prefer ETFs for both their low-cost and trading flexibility.
.

 

[WinniWoman]

unfortunately a "no load" designation does not imply low mutual fund annual fees

"Funds can also charge exchange fees, account maintenance fees, and other miscellaneous fees. Moreover, the regular management fees that go into the fund's expense ratio aren't limited by the no-load designation. If other fees are high enough, then the lack of a sales load won't make that fund a better investment."

Yes. I know this also. I did look at expense ratios.

 

[WinniWoman]

unfortunately a "no load" designation does not imply low mutual fund annual fees

"Funds can also charge exchange fees, account maintenance fees, and other miscellaneous fees. Moreover, the regular management fees that go into the fund's expense ratio aren't limited by the no-load designation. If other fees are high enough, then the lack of a sales load won't make that fund a better investment."

Yes. I know this also. I did look at expense ratios.

 

[Brett]

IMHO, it's possible (imperative) to find good NL Mutual Funds
with annual fees L/T 1.25%. I'd avoid any w-fees M/T 1.5%.

But I prefer ETFs for both their low-cost and trading flexibility.
.

I also prefer ETFs
Schwab and Vanguard (and now Fidelity) offer very low cost '500' and "1000" Index ETF funds
- around .05%