Going Fastlane Like My Life Depends On It.. (continued)

[mikecarlooch]

I am not a financial advisor you assume your own risks but I think those telling you to roll the 529 to a Roth IRA are guiding you correctly.

If you don’t absolutely need it it is a rare opportunity to be able to contribute that much to a Roth (a pretty exclusive benefit of a 529 rollover - think $35k cap).

On the other stuff everyone has their own opinions but when you watch for years barely anyone researching and tracking and doing individual stocks or specific ETFs beats VOO/FXAIX/S&P500 and even less over the long run. Those that do took risks with the capital that I feel ventured not so much into investing but more akin to how in business you look for asymmetrical returns and my thought is if you have appetite to do that with capital and the time to do all that management and research it’s much better to apply that to an active business in a category with a favorable multiplier on sale.

In other words: the advice I would give my children is let your investing be real but be quiet in the background and out of mind while you focus on things in your control during your high earning years. Don’t bring undue stress trying to be Warren Buffet.

The other way is tempting but know when you see someone made xxx% in two years in X stock, even if they are not trying to sell you something, they usually are forgetting something. Sometimes it is subtle and hard to discern for instance: yes but then did you sit in that stock 2 more years thinking it was going to keep mooning and lose 25% each of those years while the S&P kept going up? You won’t hear them talk about this opportunity cost (and especially not adjusted for the new value of the higher capital amount from previous growth). Did they share with you that chasing that high they took 3-10 more risky bets that didn’t pan out in the following year that effectively negated that because they actually are undisciplined? Etc.

For context: I don’t have MJ level wealth but I could retire and I am young. My current growth at this point in my portfolio now makes what most would consider a good salary on its own with just boring VOO. Every year there is some temptation to believe I and other have some edge that makes it worth it to try something else. Each time I’ve fought that and just stayed S&P500 for 99% or so of my portfolio. Make of that what you will.

I think you're absolutely right. Thank you for this insight.

While earning your income, did you put large lumpsums in or try to time the S&P? Dollar cost average?

 

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[mikecarlooch]

O en puv e gopepdoem efwotus zua ettani zuas uxp sotlt cav O vjopl vjuti vimmoph zua vu summ vji 529 vu e Suvj OSE esi haofoph zua dussidvmz.

Og zua fup’v ectumavimz piif ov ov ot e sesi uqqusvapovz vu ci ecmi vu dupvsocavi vjev nadj vu e Suvj (e qsivvz iydmatowi cipigov ug e 529 summuwis - vjopl $35l deq).

Up vji uvjis tvagg iwiszupi jet vjios uxp uqopoupt cav xjip zua xevdj gus ziest cesimz epzupi sitiesdjoph epf vsedloph epf fuoph opfowofaem tvudlt us tqidogod IVGt cievt WUU/GYEOY/T&Q500 epf iwip mitt uwis vji muph sap. Vjuti vjev fu vuul sotlt xovj vji deqovem vjev O giim wipvasif puv tu nadj opvu opwitvoph cav nusi elop vu jux op catopitt zua muul gus etznnivsodem sivaspt epf nz vjuahjv ot og zua jewi eqqivovi vu fu vjev xovj deqovem epf vji voni vu fu emm vjev nepehinipv epf sitiesdj ov’t nadj civvis vu eqqmz vjev vu ep edvowi catopitt op e devihusz xovj e gewusecmi namvoqmois up temi.

Op uvjis xusft: vji efwodi O xuamf howi nz djomfsip ot miv zuas opwitvoph ci siem cav ci raoiv op vji cedlhsuapf epf uav ug nopf xjomi zua gudat up vjopht op zuas dupvsum fasoph zuas johj iespoph ziest. Fup’v csoph apfai tvsitt vszoph vu ci Xessip Caggiv.

Vji uvjis xez ot vinqvoph cav lpux xjip zua tii tuniupi nefi yyy% op vxu ziest op Y tvudl, iwip og vjiz esi puv vszoph vu timm zua tunivjoph, vjiz ataemmz esi gushivvoph tunivjoph. Tunivonit ov ot tacvmi epf jesf vu fotdisp gus optvepdi: zit cav vjip fof zua tov op vjev tvudl 2 nusi ziest vjoploph ov xet huoph vu liiq nuupoph epf muti 25% iedj ug vjuti ziest xjomi vji T&Q liqv huoph aq? Zua xup’v jies vjin veml ecuav vjot uqqusvapovz dutv (epf itqidoemmz puv efkatvif gus vji pix wemai ug vji johjis deqovem enuapv gsun qsiwouat hsuxvj). Fof vjiz tjesi xovj zua vjev djetoph vjev johj vjiz vuul 3-10 nusi sotlz civt vjev fofp’v qep uav op vji gummuxoph zies vjev iggidvowimz pihevif vjev cideati vjiz edvaemmz esi apfotdoqmopif? Ivd.

Gus dupviyv: O fup’v jewi NK miwim xiemvj cav O duamf sivosi epf O en zuaph. Nz dassipv hsuxvj ev vjot quopv op nz qusvgumou pux nelit xjev nutv xuamf duptofis e huuf temesz up ovt uxp xovj katv cusoph WUU. Iwisz zies vjisi ot tuni vinqvevoup vu cimoiwi O epf uvjis jewi tuni ifhi vjev nelit ov xusvj ov vu vsz tunivjoph imti. Iedj voni O’wi guahjv vjev epf katv tvezif T&Q500 gus 99% us tu ug nz qusvgumou. Neli ug vjev xjev zua xomm.

O siemmz eqqsidoevi emm ug vjot! O jewi velip zuas tahhitvoup epf vumf vjin vu hu emuph xovj nuwoph vji nupiz opvu e Suvj OSE.

 

[Bounce Back]

O vjopl zua'si ectumavimz sohjv. Vjepl zua gus vjot optohjv.

Xjomi iespoph zuas opduni, fof zua qav meshi manqtant op us vsz vu voni vji T&Q? Fummes dutv ewisehi?

Tu O en edvaemmz ev nz johjitv eppaem iespopht pux (cedl op tmuxmepi egvis O tumf nz metv catopitt epf caomfoph e pix upi up vji tofi). O jewi piwis vsoif vu voni iwip xjip vji fez cigusi xet pix emm voni johj O katv tvomm qav xjeviwis O jef vu opwitv op emm ev updi iwisz voni.

(Puvi O fu tvomm ipduasehi tuni puptvudl fowistogodevoup et optasepdi eheoptv gamm up quwisvz op tvudl nesliv dummeqti cav fup’v xepv vu fiseom zuas vjsief xovj vjev).