Investing: Life Cycle or save?

Discussion in 'The BS Topic' started by badazz81z28, Jan 2, 2018.

  1. badazz81z28

    badazz81z28 Veteran Member

    May 4, 2001
    Las Vegas, NV
    I know strange question, but what do you think? I have been doing a savings plan over the past 13 years and have save only about $40K. Looks as though the fund it's in is about a 2% return but guaranteed to never lose money. I can put it in a Lifecycle fund that looks like on average a 4% return but I could risk losing money.

    Is it better to just save my pennies or roll the dice?
  2. MotionClone

    MotionClone Veteran Member

    Jan 20, 2014
    away from the crazies
    You live in Vegas no? Roll the freakin dice man...YOLO
  3. sal70ss

    sal70ss Veteran Member

    Jan 31, 2003
    Auburn NY
    Edward Jones has treated me well with mutual funds over 25 years.
  4. 351maverick

    351maverick Veteran Member

    Aug 11, 2010
    erie, PA
    2% ?

    that is mega horrible
  5. restore-z28

    restore-z28 Veteran Member

    Jul 4, 2010
    Vancouver, BC
    I have worked in the Finance industry for some time. It's about risk, reward and your own level of comfort. If you have a larger timeline then it might make sense to be more aggressive with the money, but be prepared to lose sleep if the investment goes down but again think of the long term strategy and potential payout. My wife and I had time on our side when we started saving years ago and I have always been an aggressive investor, she is kind of mid pack in her comfort zone, yes my investments have done much better than hers but over a longer time frame. Be prepared to re-visit any investment strategy but do not make large wholesale changes each year trying to chase a will only end up losing. Another investment strategy to try is buying some each month (a RIP), this way you dollar cost average out your investment.

    There is no substitution for sitting down with an expert, answer some questions and getting the right plan in place based on your personal goals.

    Anything can be considered an investment, Real Estate, cars etc...I tell my wife all the time old cars are better than stocks because you cannot do a burnout in a stock :cool:
    Last edited: Jan 2, 2018
    PalmbchZ28 and Smokey15 like this.
  6. Mike N

    Mike N Administrator Staff Member Lifetime Gold Member

    Jan 13, 2002
    Spencerport, NY.
    13 years and you've only saved $40K? What is your contribution rate?
  7. 1972_Z-28

    1972_Z-28 Veteran Member Lifetime Gold Member

    Oct 6, 2005
    Sugar Land, Texas
    Edward Jones has done me good for last serveral years. 18% return for 2017. Low to moderate risk.
    Look up your area agent/finacial advisor. Mine gets paid a very nominal percentage on transactions and then small percentage of gains. So he has incentive to grow my account.:crazy:
  8. danbrennan

    danbrennan Veteran Member Lifetime Gold Member

    Mar 13, 1999
    Brighton, MI
    Conventional wisdom is the ratio of risk to safe depends on your age. If one is young one would tilt more towards some risk(calculated risk, not flat out gambles), since one has time to recover. As one gets older and closer to retirement, riskier investments are moved towards safer havens, since the time to recover from a loss gets shorter and shorter.

    Usually, though, even when you're young, you want some percentage in relatively safe investments.
    Smokey15 likes this.
  9. Todd80Z28

    Todd80Z28 Moderator Staff Member Lifetime Gold Member

    Jun 11, 2002
    Northern VA
    What are your intentions for this money, and what is your time horizon? At least from your post, you don't seem to have considered either.
  10. PalmbchZ28

    PalmbchZ28 Veteran Member Gold Member

    Jan 29, 2017
    West Palm Beach Fl
    2017 we made about 18% on our Simple IRA or whatever it is called these days.
    It is best to max out your IRA contributions.. ... And make extra principle payments on your mortgage. Talk to a professional financial advisor....mine is my sister in law.
    Also it never hurts to talk to a good tax professional, is your car/hobby a business...well it certainly could be and allow write offs to reduce your taxable income from your primary occupation.

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