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@Hank- What an amazing coincidence... my very first car was a "previously owned" '56 Plymouth! My parents didn't have a car, so I had to learn to drive on my own. In 1959 the Coast Guard assigned me to a Loran Station on the lonely Northern CA coast and there was no Greyhound bus service. So I had to buy a car and learn to drive on the then very rugged coastal Hwy 1.
My learning experience ended the useful service life of most of the Plymouth's fenders. Fortunately, Yellow Cab had used a large fleet of these cars, and SF junkyards had a good supply of yellow fenders. After a couple of years that car was quite a sight... blue and black with three bright yellow fenders. It did have the advantage that other drivers give me a wide margin of clearance.
I shared your father's experience... on one trip up to the Loran station at Point Arena I was on a back road in the middle of nowhere when the engine lost oil pressure, with the usual ruinous results. Fortunately some kindly folks eventually came along and took me the remainder of the way to Point Arena, in their spiffy Nash sedan.
I'm a little late to this discussion, but here goes: 1. For domestic stocks, use a low-cost index fund/ETF as a core hold. Then, if you want to "explore", search for talented management (team) that runs a fairly concentrated portfolio for a reasonable cost. Another option would be to add a sector fund/ETF or something that does not mimic the index (maybe something like SPHD or something that emphasizes volatility or dividends, for example). 2. For international stocks, there is a lot more disparity, and indexing is not a clear winner, unless you don't want to take the time to research active funds. Fees may be a bit higher for actively-managed funds here, so pay attention to out-performance net of fees. 3. For bonds, understand that the past 10 years will not be repeated over the next 10 years. That being the case, fund expenses are even more critical. 4. If returns, in general, will be lower over the next few years (which some smart people believe), costs take on a bigger part of the screening process. 5. If you are buying actively-managed funds, remember the most important consideration is who runs the strategy and what their record is. You are not buying an index; you are hiring a manager. Do your homework, and do not skimp on this step. 6. In taxable accounts, remember the importance of tax efficiency. That means taxable distributions can sometimes be deadly. Use funds that tend to have these in your retirement accounts, where taxation is deferred.
Comments
http://www.conceptcarz.com/images/Autobianchi/59-Autobianchi-500-DV-08_CbS_05.jpg
plus Channing funds (before Fidelity) and weak-company stocks, evidently.
My learning experience ended the useful service life of most of the Plymouth's fenders. Fortunately, Yellow Cab had used a large fleet of these cars, and SF junkyards had a good supply of yellow fenders. After a couple of years that car was quite a sight... blue and black with three bright yellow fenders. It did have the advantage that other drivers give me a wide margin of clearance.
I shared your father's experience... on one trip up to the Loran station at Point Arena I was on a back road in the middle of nowhere when the engine lost oil pressure, with the usual ruinous results. Fortunately some kindly folks eventually came along and took me the remainder of the way to Point Arena, in their spiffy Nash sedan.
1956 Plymouth (Not Mine!)
Watching Pa working on the carburetor out in the driveway on a 20 degree day with snow flying through the air enriched my vocabulary quite a bit!
Funny story too. Damn those fenders.
1. For domestic stocks, use a low-cost index fund/ETF as a core hold. Then, if you want to "explore", search for talented management (team) that runs a fairly concentrated portfolio for a reasonable cost. Another option would be to add a sector fund/ETF or something that does not mimic the index (maybe something like SPHD or something that emphasizes volatility or dividends, for example).
2. For international stocks, there is a lot more disparity, and indexing is not a clear winner, unless you don't want to take the time to research active funds. Fees may be a bit higher for actively-managed funds here, so pay attention to out-performance net of fees.
3. For bonds, understand that the past 10 years will not be repeated over the next 10 years. That being the case, fund expenses are even more critical.
4. If returns, in general, will be lower over the next few years (which some smart people believe), costs take on a bigger part of the screening process.
5. If you are buying actively-managed funds, remember the most important consideration is who runs the strategy and what their record is. You are not buying an index; you are hiring a manager. Do your homework, and do not skimp on this step.
6. In taxable accounts, remember the importance of tax efficiency. That means taxable distributions can sometimes be deadly. Use funds that tend to have these in your retirement accounts, where taxation is deferred.
Matt