Investments and bankroll

by **k3nt** » Thu Mar 16, 2006 12:31 pm

No matter what you make, 10k per year should be easy to put away if you play poker on the side. Live on your earnings from your job and put away $833.33 per month from poker. How hard is that?

by **black_knight6** » Thu Mar 16, 2006 12:38 pm

Sure...just gotta get 'the job' part down

by **kennyg** » Thu Mar 16, 2006 2:06 pm

well almost all my debt is paid off, and the government will have their check in april. after i move in may and deal with those costs, i think i will look into investing. otherwise most of my bankroll will just be sitting there, stagnant.

i assume i can pull the money if i ever had a poker diaster and needed to?

by **black_knight6** » Thu Mar 16, 2006 2:30 pm

Completely depends on the investment...many have fees.

by **k3nt** » Thu Mar 16, 2006 2:35 pm

Most mutual funds do not have fees. Some do. They'll tell you up front. Stick with "no-load" funds.

by **iceman5** » Thu Mar 16, 2006 8:44 pm

by **bobby** » Fri Mar 17, 2006 1:35 pm

by **mapleleaf** » Sun Mar 19, 2006 9:02 am

I'm actually a licensed supervisor of financial advisors at a large investment firm, so if anyone has any questions about guidelines for investing feel free to PM me. Posting on an open forum any advice that could be construed as a recommendation is actually illegal for someone in my position.

However some points that I would like to agree with and reinforce

1 - Paying off debt is almost always better than investing, assuming that debt in charging you an interest rate

2 - Contributing the maximum amount possible to a retirement program (ROTH IRA, Trad IRA, 401K, 403B, Pension, etc) is somethign that should be done as much as possible. Which retirement program yuo select should be based on your tax situation and expected tax situation in the future.

3 - Opening an account at a large brokerage firm is generally a waste of money unless you do have 7 figures or above to invest. In general we don't care about you until you have that much...in fact we would prefer you not open an account with us as it costs more to maintain than the profit we make from holding and investing your money.

4 - Always understand the fees, whether its an account fee, a minimum balance fee, a check writing fee for any account yuo decide to open. For mutual funds there are loads, early withdrawl fees, 12-B1 transaction fees, expense ratios. Just understand them before you invest.

5 - Paying off principal in a house loses you money in the long run, assuming you would have invested it in the market . For more details on that PM me (most people don't understand this)

6 - Those figures posted about how much you would have if you invested X dollars in the stock market for the next Y years are generally accurate. However, please realize that this is a long term thing...just like poker the variance is very high and its possible to lose all your money as well. However, past data indicates a positive return, and thats what those numbers are based on. No one can be truly sure that stocks will go up over the next 30 years...that is just what is expected. Its kinda like saying, I;m expected to win a hand heads up with AA vs 73, but can you guarantee that, of course not.

Good luck,
Steve

by **black_knight6** » Sun Mar 19, 2006 9:30 am

That's awesome to know mapleleaf...can you suggest a really good book to read up on all this, instead of bothing you with PMs

I'm canadian too...if that matters for your suggestion.

by **mapleleaf** » Mon Mar 20, 2006 9:22 am

Hey BK,

Actually, I'm not Canadian, just a fan of a bad hockey team and this online handle has stuck with me for 8 years. However, Canada is my favorite place to visit

With regards to readings, I actually can't help you too much with that...unless of course you want economics text books and licensing manuals to read? All the books I do read are high level mathematics books delving into market indicators, which generally pan out to "it works 50% of the time"

If I were to recommend one thing it would to be invest in diverse group of mutual funds, with low fees and high morningstar ratings.

Feel free to PM me, I don't mind

by **k3nt** » Mon Mar 20, 2006 10:03 am

by **mapleleaf** » Mon Mar 20, 2006 11:43 am

by **black_knight6** » Mon Mar 20, 2006 12:51 pm

by **JJSCOTT2** » Mon Mar 20, 2006 4:07 pm

Got a mutual fund question if we got any experts out there. I am looking to drop some money into a Vanguard mutual fund (won't mention it specifically because it's not relevant). Found one with no fee's or withdrawl penalties because that's important to me, but what I'm wondering about is what an "expense ratio" is. I think I've got an idea but if someone could explain it clearly I'd appreciate it, I believe this specific one is like 0.26% or something.

by **Xaston** » Mon Mar 20, 2006 4:36 pm

Investments and bankroll

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