Comments on: Lifestyles of the Rich and Boring http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/ personal finance that makes cents Fri, 10 Oct 2008 22:33:33 +0000 http://wordpress.org/?v=2.5.1 By: The Daily Dough (We Reached 1,000 Visitors Per Day edition!) » The Dough Roller http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-98272 The Daily Dough (We Reached 1,000 Visitors Per Day edition!) » The Dough Roller Sat, 22 Sep 2007 11:12:19 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-98272 [...] Lifestyles of the Rich and Boring @ Get Rich Slowly [...] [...] Lifestyles of the Rich and Boring @ Get Rich Slowly [...]

]]> By: Dani in NC http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97936 Dani in NC Wed, 19 Sep 2007 00:15:43 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97936 Thank you for posting this. I needed something about investing that doesn't make my eyes roll back in my head. Thank you for posting this. I needed something about investing that doesn’t make my eyes roll back in my head.

]]> By: InvestEveryMonth.com http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97924 InvestEveryMonth.com Tue, 18 Sep 2007 21:36:21 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97924 My father in law is always harping on me to only invest in things that have low or no fees. This article helped me understand why he is so adament about not paying fees. My father in law is always harping on me to only invest in things that have low or no fees. This article helped me understand why he is so adament about not paying fees.

]]> By: Frank-Europe http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97918 Frank-Europe Tue, 18 Sep 2007 20:34:22 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97918 A lot of peolpe don´t know the difference between investing and speculating. Mark Twain said; There are two times in a man's life when he should not speculate: when he can't afford it, and when he can. A lot of peolpe don´t know the difference between investing and speculating.
Mark Twain said; There are two times in a man’s life when he should not speculate: when he can’t afford it, and when he can.

]]> By: JenK http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97915 JenK Tue, 18 Sep 2007 19:37:29 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97915 jtimberman noted he paid a 7% fee when opening his account and no ongoing fees. In general, I can see the value of reducing ongoing expenditures, but even so, 7% is pretty high. I pay a .02% management fee on my Vanguard index funds. Returns? A rolled-over IRA is in Vanguard's Balanced Index fund and has averaged a 9.7% annual return over the past 5 years. I've also had the Small-Cap Value Index for 5 years, and it's averaged a 15.5% return. I agree that an index fund isn't always preferable - I wouldn't want one that charged high (2%) fees, for example. And a Morningstar account can really help with research. :) jtimberman noted he paid a 7% fee when opening his account and no ongoing fees.

In general, I can see the value of reducing ongoing expenditures, but even so, 7% is pretty high. I pay a .02% management fee on my Vanguard index funds.

Returns? A rolled-over IRA is in Vanguard’s Balanced Index fund and has averaged a 9.7% annual return over the past 5 years. I’ve also had the Small-Cap Value Index for 5 years, and it’s averaged a 15.5% return.

I agree that an index fund isn’t always preferable - I wouldn’t want one that charged high (2%) fees, for example. And a Morningstar account can really help with research. :)

]]> By: Minimum Wage http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97909 Minimum Wage Tue, 18 Sep 2007 18:41:19 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97909 We want Dave! We want Dave! We want Dave! We want Dave!

]]> By: Fabulously Broke http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97907 Fabulously Broke Tue, 18 Sep 2007 17:58:49 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97907 Here's the PDF document that changed my life. <a href="http://www.ifa.com/12steps/" rel="nofollow">IFA 12 Step Guide to Investing</a> Goes deep, DEEP into the history of index funds, the stock market, and lays out a pretty solid case for why index funds work so well. It's also really fun/good to read, solid, good for a casual investor, and has pictures/quotes/sayings/research from many philosophers, scientists, stock market gurus, etc Here’s the PDF document that changed my life.

IFA 12 Step Guide to Investing

Goes deep, DEEP into the history of index funds, the stock market, and lays out a pretty solid case for why index funds work so well.

It’s also really fun/good to read, solid, good for a casual investor, and has pictures/quotes/sayings/research from many philosophers, scientists, stock market gurus, etc

]]> By: Andrew http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97904 Andrew Tue, 18 Sep 2007 17:17:49 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97904 Index funds are probably the best bet for most people who don't want to actively research and pay attention to their investing. In my research, however, I've found several very good managed mutual funds that, even after fees, have consistently outperformed the market. The downside, of course, is that many have minimum initial purchases of $3,000-5,000 which puts off many casual investors. That site that you linked to seems to offer excellent advice for the casual investor and I'm glad you linked to it. Everything I've read on that site so far (I've perused a large part of it) has been not only easy to read but also just good advice. Index funds are probably the best bet for most people who don’t want to actively research and pay attention to their investing. In my research, however, I’ve found several very good managed mutual funds that, even after fees, have consistently outperformed the market.

The downside, of course, is that many have minimum initial purchases of $3,000-5,000 which puts off many casual investors.

That site that you linked to seems to offer excellent advice for the casual investor and I’m glad you linked to it. Everything I’ve read on that site so far (I’ve perused a large part of it) has been not only easy to read but also just good advice.

]]> By: Money Blue Book http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97900 Money Blue Book Tue, 18 Sep 2007 16:15:31 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97900 Well it doesn't have to be boring, even for mutual fund investments. I'm 70% invested in various Fidelity emerging market funds, mostly in Southeast Asia. I'm up significantly this year and foresee much more growth in the coming years. I don't day trade but invest actively. I do my own research and I find the upside quite exciting! -Raymond Well it doesn’t have to be boring, even for mutual fund investments. I’m 70% invested in various Fidelity emerging market funds, mostly in Southeast Asia. I’m up significantly this year and foresee much more growth in the coming years. I don’t day trade but invest actively. I do my own research and I find the upside quite exciting!

-Raymond

]]> By: jtimberman http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97887 jtimberman Tue, 18 Sep 2007 14:34:41 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97887 I went with a Dave Ramsey endorsed local provider when it was time to roll out my 401K to an IRA when I left the company I was working for. I'm quite pleased with that account - the funds have an average returns history of 11% after the management fee. The way I set up the account though, they charge a 7% fee when it is opened and no ongoing fee. I went with a Dave Ramsey endorsed local provider when it was time to roll out my 401K to an IRA when I left the company I was working for. I’m quite pleased with that account - the funds have an average returns history of 11% after the management fee. The way I set up the account though, they charge a 7% fee when it is opened and no ongoing fee.

]]> By: Mrs. Micah http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97880 Mrs. Micah Tue, 18 Sep 2007 13:56:58 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97880 Thanks for this link. It looks like it could be quite useful as I start investing this fall! One downside of their blog is its lack of RSS feed! I'll still check it out, but it'll mean being more mindful of finding new posts. Thanks for this link. It looks like it could be quite useful as I start investing this fall!

One downside of their blog is its lack of RSS feed! I’ll still check it out, but it’ll mean being more mindful of finding new posts.

]]> By: Mary http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97873 Mary Tue, 18 Sep 2007 12:36:43 +0000 http://www.getrichslowly.org/blog/2007/09/18/lifestyles-of-the-rich-and-boring/#comment-97873 Is this another example of the <a href="http://en.wikipedia.org/wiki/The_Wisdom_of_Crowds" rel="nofollow">wisdom of crowds</a> and the power of the average? I'm thinking of the studies showing that many faces of varying levels of attractiveness morphed together tend to be judged as very attractive, and of the way contestants on Who Wants to be a Millionaire? can do very well by polling the audience for the right answer. Surowiecki's book (I've linked to the Wikipedia page on it) is absolutely fascinating. Read it and Macolm Gladwell's Blink to get yourself thoroughly confused on whether you should trust your gut or trust the mob. *g* Is this another example of the wisdom of crowds and the power of the average? I’m thinking of the studies showing that many faces of varying levels of attractiveness morphed together tend to be judged as very attractive, and of the way contestants on Who Wants to be a Millionaire? can do very well by polling the audience for the right answer.

Surowiecki’s book (I’ve linked to the Wikipedia page on it) is absolutely fascinating. Read it and Macolm Gladwell’s Blink to get yourself thoroughly confused on whether you should trust your gut or trust the mob. *g*

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