Finance Professional / Manager for one of the largest firms in the ๐บ๐ธ.
Bitcoin Miner on the side for fun.
Absolutely financial advice.
Pseudonym.
Realtor fees get cut in half
Now investors see an IRR 2% higher than previous on every property
Prices rise to account for lower expenses because there is no free lunch in finance, rates of return will normalize via higher prices pushing yields back down
Current owners win
Broad stock market and its bloated broad indexes are in danger just like the nifty 50 were decades ago.
Get more concentrated and mix in active strategies.
Drop the bottom 250 off the 500 for example.
Look to small caps over the next 7 years.
Made a lot of trades for clients (and in my own accounts) out of broad total market ETFs in favor of more focused funds and tilting more towards value. Decrease in rates will favor quality to rise with breadth also normalizing.
Don't buy the S&P 500. Buy the top 250 or less.
@MoneyJrod Well index investing has its own risks and cons as well. But it certainly isn't terrible.
With that said. It's actually very easy and statistically backed to beat a large cap index like the 500.
Especially when you have to own the bottom 250.
Better to own the top 250...
@MoneyJrod I mean I don't even know what is meant by above average or below average. Average comparatively? Relatively? Relative to an index? Which index? Why? Should that even be compared.
And so on.
@Budgetdog_ I completely disagree on the killers...(except one)
They are actually:
-Mistakes (numerous fallacies)
-Knee jerk market timing
-Taxes including estate taxes
@acolner Anything that isn't a bloated broad fund where you're buying the bottom of the market.
Something like OEF although that isn't what is recommend.
@Stoy_Hall Mmmmm. Just not enough to move the needle for me.
20% pass through. OK. 24% doesn't start until 178k+ and deductions plus mentioned QBI lower effective rate.
Again. 250k+ income, maybe. 500k. Probably more likely.
I'll stand by it's more cons than pros unless income is there.