11-04-2021, 09:00 PM
(11-04-2021, 05:50 PM)Navi Wrote:(11-02-2021, 06:11 PM)ken-do-nim Wrote:I can live with a 0.02% difference(11-02-2021, 03:07 PM)fenders53 Wrote:(11-02-2021, 02:49 PM)ken-do-nim Wrote:When you talk to Ric next tell him I said he is a moron. Keep borrowing money to finance 3X leveraged equity positions. We'll chat about this in a few years. My last comment stands. Same foolishness that got people wrecked in all the crashes for the past 90 years. Works until it doesn't.(11-02-2021, 02:08 PM)fenders53 Wrote: I can't even imagine #6. The small piece of my world that is risk free is my paid off home. If I want to gamble I will ask my broker for margin. Sounds like a Reddit kid YOLA plan. This will fuel our next crash. At the risk of being impolite it's an idiotic strategy that will have a high price eventually.
You are entitled to your opinion but it can be absolutely the right move depending upon a person's situation. It was for me this past March. I, however, wasn't even close to paid off. I went from 27 years of mortgage remaining back to 30, and my rate lowered in the process.
Ric Edelman wrote about this in his book "The Truth About Money". He advises people to always carry a mortgage. I probably wouldn't recommend a cash-out refinance if the rate is higher.
(11-02-2021, 05:10 PM)Navi Wrote:(11-02-2021, 12:30 PM)fenders53 Wrote: Trading will put you in a battle with SPY returns. Pro's fall short but it's fun to try and with experience you have a chance.
Well I actually have shares in SPLG, which is a lower cost alternate to SPY. My goal isn't to beat the market per se. With trading, my goal is strictly to generate investment income to put in to my dividend investments. In other words, short term trading would feed long term investing.
I'm always fascinated by the various S&P 500 funds.
Year-to-date...
VFIAX: 24.83% (what my 401k uses)
FXAIX: 24.89% (what my daughter's 529 uses)
SPY: 25.25%
SPLG: 25.25%
VOO: 25.27% (what I use in my taxable account)
VOO is still champs. SPY has a bit more liquidity, but it's just so pricey. SPLG is easier to enter, and has a slightly better dividend yield at the moment. I'm actually surprised it hasn't been more popular in terms of index investing. When I found it in 2019, it was a large cap ETF that followed the S&P 500 closely, but it wasn't considered a "S&P 500 Index Fund" until 2020 I believe. I got in at around $35 per share, and now it's at $54...I'm quite pleased with its movement during that time. An S&P 500 index fund is a must to my portfolio, and even though I focus on a lot of individual dividend stocks with better yields, I can't let this etf go.
Check out SCHD. It achieves close to the SPY price (currently 24% to SPY's 26% year-to-date) with double the dividend, though it varies monthly.