Comments on: A Brief Conversation About Money http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Thu, 23 May 2013 18:36:59 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: La BellaDonna http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-164251 La BellaDonna Wed, 21 Jan 2009 21:11:01 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-164251 @Ryan: they don't show you the flipping when the flippers are a professional chef and his attorney wife. So far the "improvements" include the masonry wall they knocked partly down parking the van they used to carry the sofa they brought into the house, knocking a ROW of holes into the drywall, the bathroom wall cabinet that is only a few inches narrower than the hole they cut for it, the sink cabinet which is not actually attached to the wall behind it ... or anything ... the paintjobs that go ALMOST all the way up to the ceiling, but in several different directions on the walls themselves, the faucets that leak when they're turned on, wiring that was apparently done by the cat ... Yeah. Good job! @Ryan: they don’t show you the flipping when the flippers are a professional chef and his attorney wife. So far the “improvements” include the masonry wall they knocked partly down parking the van they used to carry the sofa they brought into the house, knocking a ROW of holes into the drywall, the bathroom wall cabinet that is only a few inches narrower than the hole they cut for it, the sink cabinet which is not actually attached to the wall behind it … or anything … the paintjobs that go ALMOST all the way up to the ceiling, but in several different directions on the walls themselves, the faucets that leak when they’re turned on, wiring that was apparently done by the cat …

Yeah. Good job!

loading....

]]> By: Are Index Funds the Best Investment? ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-157809 Are Index Funds the Best Investment? ? Get Rich Slowly Wed, 26 Nov 2008 14:36:21 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-157809 [...] everyone believes that index funds the best choice for personal investors. A week ago I shared a brief conversation about money with Sparky, a friend to whom I often go for investment advice — he reads widely on the [...]

[...] everyone believes that index funds the best choice for personal investors. A week ago I shared a brief conversation about money with Sparky, a friend to whom I often go for investment advice — he reads widely on the [...]

loading....

]]> By: Dave M http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-125821 Dave M Wed, 02 Apr 2008 01:39:59 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-125821 Hey J.D. I know this entire post is a little old, but I just happened to find it while doing some research/reading about index investing. Anyway, I wonder what your friend Sparky would think about a strategy like the one FundX.com teaches. Sparky mentioned wanting "the good and the good", which is basically what FundX does. They rank mutual funds and ETF's every month, and then provide a list of recommended picks based on their scoring model. You basically buy their top picks until those funds/etf's are no longer ranked above a certain mark. At that point, you "upgrade" by getting rid of the ones that have fallen out of favor and replace them with new ones from the top of the list. You end up holding most funds/etf's for a minimum of 3 months, and most are held much longer. You might end up only doing a handful of "upgrades" each year. There's a little more to it than that, but if you check out fundx.com you'll see what I mean. They also have a chart showing past performance of their strategy. I'm seriously thinking about moving my investment portfolio around in a major way so that 25-30% of my funds are indexed, 25-30% in good dividend paying companies (via funds or ETF's) and then with the rest of my money, I was going to do the FundX thing. Waddya think? Dave Hey J.D. I know this entire post is a little old, but I just happened to find it while doing some research/reading about index investing.

Anyway, I wonder what your friend Sparky would think about a strategy like the one FundX.com teaches. Sparky mentioned wanting “the good and the good”, which is basically what FundX does.

They rank mutual funds and ETF’s every month, and then provide a list of recommended picks based on their scoring model. You basically buy their top picks until those funds/etf’s are no longer ranked above a certain mark. At that point, you “upgrade” by getting rid of the ones that have fallen out of favor and replace them with new ones from the top of the list.

You end up holding most funds/etf’s for a minimum of 3 months, and most are held much longer. You might end up only doing a handful of “upgrades” each year.

There’s a little more to it than that, but if you check out fundx.com you’ll see what I mean. They also have a chart showing past performance of their strategy.

I’m seriously thinking about moving my investment portfolio around in a major way so that 25-30% of my funds are indexed, 25-30% in good dividend paying companies (via funds or ETF’s) and then with the rest of my money, I was going to do the FundX thing.

Waddya think?

Dave

loading....

]]> By: The Reviewer http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-50563 The Reviewer Tue, 23 Jan 2007 21:36:07 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-50563 Flipping is not easy. Me and my partner just lost 12K on the first house flip we attempted. They don't even show you on those shows, if you have to carry the house and the 10-20K your agent is gonna take from you. Flipping is not easy. Me and my partner just lost 12K on the first house flip we attempted. They don’t even show you on those shows, if you have to carry the house and the 10-20K your agent is gonna take from you.

loading....

]]> By: Jenn http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-49716 Jenn Mon, 22 Jan 2007 21:36:40 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-49716 It seems like Sparky is thinking carefully and doing research, and you're just telling him that because he's not Warren Buffet, he could never possibly succeed, so just give up. Why not tell him to just be cautious and make sure to only invest a little bit to try it? I read several personal finance blogs and this is the first time I've ever heard "you can't possibly handle your own money, it's way too hard." What the heck kind of philosophy is that? Flipping a house adds lots of value, whether it be from the cost of raw materials, the labor, the effort put into that particular location, or even the "vision." Also, banks are not stupid or cavalier about how much a house is worth; it's doubtful you'll be able to get a loan for a substantially inflated house price. It has to appraise for the higher value. Dusitn: If anyone could know how mutual funds would do in the future, we'd all be rich. It seems like Sparky is thinking carefully and doing research, and you’re just telling him that because he’s not Warren Buffet, he could never possibly succeed, so just give up. Why not tell him to just be cautious and make sure to only invest a little bit to try it? I read several personal finance blogs and this is the first time I’ve ever heard “you can’t possibly handle your own money, it’s way too hard.” What the heck kind of philosophy is that?

Flipping a house adds lots of value, whether it be from the cost of raw materials, the labor, the effort put into that particular location, or even the “vision.” Also, banks are not stupid or cavalier about how much a house is worth; it’s doubtful you’ll be able to get a loan for a substantially inflated house price. It has to appraise for the higher value.

Dusitn: If anyone could know how mutual funds would do in the future, we’d all be rich.

loading....

]]> By: Ryan http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-49439 Ryan Mon, 22 Jan 2007 14:19:24 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-49439 I would disagree with your claim that flipping a house "inflates" housing prices without adding value. The way I see it, a pleasant place to live is more valuable than an unpleasant place, so transforming a house from an unpleasant place to a pleasant place does add value. I would disagree with your claim that flipping a house “inflates” housing prices without adding value. The way I see it, a pleasant place to live is more valuable than an unpleasant place, so transforming a house from an unpleasant place to a pleasant place does add value.

loading....

]]> By: Dusitn http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-49079 Dusitn Mon, 22 Jan 2007 05:43:36 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-49079 How does Sparky know if this newly created mutual fund will Get Rich Slowly if it has only been tracked back one year? How will this fund do in the years to come? How does Sparky know if this newly created mutual fund will Get Rich Slowly if it has only been tracked back one year? How will this fund do in the years to come?

loading....

]]> By: J.D. http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-48427 J.D. Sun, 21 Jan 2007 02:30:49 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-48427 Oh, I make *lots* of typos. I just go back and correct them before I hit enter most of the time. Actually, I'm fairly new to IM. My friends make fun of me. I write so much every day that proper writing style is burned on my brain. I can't make myself do lower case. I've played plenty of World of Warcraft, so I know some of the standard abbreviations, and I'll use them, but I have this burning compulsion to create well-formed English sentences. :) IM's handy, though, and I can see why so many people use it... Oh, I make *lots* of typos. I just go back and correct them before I hit enter most of the time.

Actually, I’m fairly new to IM. My friends make fun of me. I write so much every day that proper writing style is burned on my brain. I can’t make myself do lower case. I’ve played plenty of World of Warcraft, so I know some of the standard abbreviations, and I’ll use them, but I have this burning compulsion to create well-formed English sentences. :)

IM’s handy, though, and I can see why so many people use it…

loading....

]]> By: Susan Carley Oliver http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-48387 Susan Carley Oliver Sun, 21 Jan 2007 01:33:01 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-48387 I just can't believe you only made *one* typo in the whole exchange! I just can’t believe you only made *one* typo in the whole exchange!

loading....

]]> By: Don http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-48171 Don Sat, 20 Jan 2007 15:40:13 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-48171 I think the investment talk was a bit over my head (I put 10% of my paycheck into the "moderate risk" section of my 401k...beyond working on nudging that up to 15%, I try to not think about it), but the bit about the philosophies of money I found very interesting. Any chance you could expand on that in a future post JD? By the way, it's posts like this that make you seem so accessible and real, in my opinion. I think it's great! I think the investment talk was a bit over my head (I put 10% of my paycheck into the “moderate risk” section of my 401k…beyond working on nudging that up to 15%, I try to not think about it), but the bit about the philosophies of money I found very interesting. Any chance you could expand on that in a future post JD?

By the way, it’s posts like this that make you seem so accessible and real, in my opinion. I think it’s great!

loading....

]]> By: J.D. http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-45737 J.D. Mon, 15 Jan 2007 22:25:05 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-45737 Though I disagree with some of Sparky's viewpoints, I like that he's a deep thinker about money. He's usually a <i>conservative</i> investor, not a risky one. This is a new side of his investment personality. It was also a chance for me to think about some of the things that I've learned, and to realize that I'm not happy with where i have my money now (individual stocks). I'm a point where I'd prefer to be invested in index funds. Though I disagree with some of Sparky’s viewpoints, I like that he’s a deep thinker about money. He’s usually a conservative investor, not a risky one. This is a new side of his investment personality. It was also a chance for me to think about some of the things that I’ve learned, and to realize that I’m not happy with where i have my money now (individual stocks). I’m a point where I’d prefer to be invested in index funds.

loading....

]]> By: James Kew http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/comment-page-1/#comment-45732 James Kew Mon, 15 Jan 2007 22:10:32 +0000 http://www.getrichslowly.org/blog/2007/01/15/a-brief-conversation-about-money/#comment-45732 <i>Sparky: i made my own mutual fund last night and backed tested it from January 6, 2006 / it came back with a 30% increase to-date.</i> Well done. I just picked last year's Superbowl and World Series winners. Nailed 'em. Sparky: i made my own mutual fund last night and backed tested it from January 6, 2006 / it came back with a 30% increase to-date.

Well done. I just picked last year’s Superbowl and World Series winners. Nailed ‘em.

loading....

]]>