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  • Sampter
    replied
    I recommend reading Jack Bogles little book of common sense investing. It has great examples of mutuals funds that have died because they failed. These were funds by large investment firms with professionals managing them. To think that we can individually (on average) do better than index funds is foolish. Gambling is fine, if you only gamble what you can afford and are able to lose. However, if you are friends with Jared Kushner and Trumps wins back the presidency, then yes take Jared's stock pick recommendations.

    On the flip side of all these people saying to gamble because you can't lose, my neighbor actually has no money in the stock market now as he was trying some risky investments years ago and lost a ton of money. Now he sticks to his business income only.

    Index funds give you your fair share of market returns, no more, no less. You are going to be very wealthy keeping it simple.

    Leave a comment:


  • Jack_Sparrow
    replied
    I would highly recommend getting into individual stock picking and option plays in some capacity. If you couldn't care less about stocks and want to sit it and forget it then leave it in Index funds. But if you are getting into individual stocks plays I would start small, Maybe even a few thousand as play money. If you are looking to FIRE after 10 years of working as a doctor, then the vast majority of your life, is going to be spent "maintaining" that nest egg (aka a potential stock picker). They way I see it you have 10 years to dabble into stocks and options and determine a great hedging strategy which can even help to turn into a second job once you fire and significantly increase your returns.

    I know about 10 stock pickers in my circle. The meme stock chasing noobs are the only one not beating the indexes day in and day out.

    Leave a comment:


  • Nysoz
    replied
    It all depends on your risk tolerance. VTSAX and chill will keep you on your road to success especially with your big shovel.

    Index funds are average returns and average risk. You can get better returns for more risk, but why change your plan if you're ok with what you're currently doing? Create your financial plan and stick to it.

    If you do choose to take more risk and pick stocks or private business investments, then do so with a small amount to not derail your plans. But definitely do your own research and not the advice of people in the doctor's lounge. There's a reason why they're still working and hanging out in the lounge instead of sitting on a beach somewhere.

    Leave a comment:


  • CordMcNally
    replied
    Originally posted by whitemagic View Post
    Appreciate the support to avoid the work chatter. It sounds like tons of people are killing it on stock picks or random business investments.
    There's a very good chance that you're still beating them with your boring index fund.

    Leave a comment:


  • abds
    replied
    Originally posted by whitemagic View Post
    Appreciate the support to avoid the work chatter. It sounds like tons of people are killing it on stock picks or random business investments.
    If you need to scratch the itch, put 5% of your investments, or some other arbitrary small number, into a “play money” account. And stick to your new IPS with the rest.

    My IPS for now is 100% equity between VTI and VXUS (and their equivalent options in my 401k).

    I took less than 10% of my investments and put it in TSLA, GBTC, a few other individual stocks, and some leveraged ETFs starting 2 years ago. I didn’t trade a ton so it was still largely buy-and-hold, and that account was up 2000% as of 1/1/2021. It helped with my FI quest but I felt really smart and was wondering why I have money sitting in my boring index funds when I could have reached fat FI by now had I been more bold. That account is now down like 20% YTD despite making some favorable trades (it could have been worse). Meanwhile VTI is up 20% YTD so I now understand why I got lucky (got in at the right time, didn’t get out at the right time, etc). Now I feel great about staying the course.

    Leave a comment:


  • Sigrid
    replied
    Originally posted by whitemagic View Post
    Appreciate the support to avoid the work chatter. It sounds like tons of people are killing it on stock picks or random business investments.
    Remember that a) people only talk about their wins, not their losses, so the chatter is highly biased; and b) we're having quite the bull run and it's easy to pick the "right" stock right now. That works right up until it doesn't. The same people that are buying high right now are the ones who are likely to be selling low at the next correction.

    Leave a comment:


  • notanotherusername
    replied
    Originally posted by whitemagic View Post
    Thanks all.


    Appreciate the support to avoid the work chatter. It sounds like tons of people are killing it on stock picks or random business investments.
    They never seem to humblebrag when they lose money...

    Leave a comment:


  • whitemagic
    replied
    Thanks all.

    I should have clarified. I would like to reach FIRE by 2027, but I plan to keep working part-time to cover annual expenses, employer sponsored health insurance, HSA, etc.

    I will look into an investment policy strategy plan.

    Appreciate the support to avoid the work chatter. It sounds like tons of people are killing it on stock picks or random business investments.

    Leave a comment:


  • Tangler
    replied
    Originally posted by Hatton View Post
    You are doing great. Are you wanting to actually retire in 10 years or just be in a position to retire? I think keeping a mortgage is fine for now. You do not want this if you actually retire. You need to think about what you would do for health insurance post work. Lots of super savers keep working part time to keep health insurance. Gradually add BND in your retirement accounts. VTSAX is just fine for your equity position.
    Yes. As she described: VTSAX is great.

    1. Ignore noise. people at work are generally fools who pick stocks, day trade etc.

    2. make an IPS (does not need to be complex)

    3. pay down mortgage some and / or add bonds if you want to lower risk and diversity

    4. 100% VTSAX is good for the young with long time horizons (> 10-20 years) consider some bonds if you want to smooth the ride.

    Consider a 3 fund portfolio if you want to diversify further.
    https://www.bogleheads.org/wiki/Three-fund_portfolio

    Leave a comment:


  • Kennyt7
    replied
    Everyone should know what SORR 3-5yrs prior to Retirement or you could be in trouble

    Leave a comment:


  • Max Power
    replied
    Originally posted by Hoopoe View Post
    VTSAX and chill is a popular mantra for good reason. You could do a lot worse and honestly aside from some slice and dice recommendations about an international allocation or something it’s likely about the best you could do. What it may lack for in diversification it makes up for in simplicity and easier to stick with behaviorally. Just go for it. VTSAX and chill.
    Yes, it is a good strategy for docs and other high earners who have already basically won the game when they graduated from training. All they really need to do from that point is to not make a disastrously bad mistake (lose license, terrible investments, expensive divorces or business break-ups, etc).

    VOO or SPY or IVV or VTI or VTSAX or whatever is basically just settling for average returns. That is fine if risk tolerance is low, if you can make more working than actively managing (most docs), or if you aren't the DIY type with investing. Again, though, income and savings rate has to be fairly high for that to work... and it clearly is for OP.

    Personally, I think there is nothing wrong with some DIY investing, though. It's a personal choice. I started back before there were ultra-low cost ETFs, when most mutual funds had large minimums and many hidden fees (as they still do). Stocks have always been 0% ER, so they just made sense. It doesn't take long to make stock picking, options, etc a hobby for a percentage of your portfolio. Stock picking is like anything... a lot of people are afraid of what they don't understand. It's like the bad rep given to attorneys... many will say they're sleazeballs and they're greedy... yet greedy sleazeballs sure seem to have nicer offices and houses and vacations than most docs do? Hmmm.

    Leave a comment:


  • xraygoggles
    replied
    You actually don't need any more information than what you currently know, as it has obviously worked out spendidly for you so far. Word of advice: ignore anything you hear in the doctor's lounge.

    VTI & chill.

    Leave a comment:


  • jz-
    replied
    Congrats on a strong start. I love that you are all in on the US-only market--bias into technology.
    Last edited by jz-; 07-27-2021, 10:39 AM.

    Leave a comment:


  • jfoxcpacfp
    replied
    You need a financial plan. That's all I'm going to say.

    Leave a comment:


  • TheDangerZone
    replied
    By my count your NW is up 1.4MM in 4 years just counting investments and knocking out the student loan debt. Strong work on that early start, sounds like you have a large shovel and have been putting the proceeds to good use. It is likely reasonable to lighten up the purse strings a bit, if you haven't already. Easier said than done, sometimes.

    Totally agree on getting yourself an Investor Policy Statement aka written investing plan. The process of coming up with one yourself will require some thought and some reading and will be very valuable to reaching your long term goals.

    Here's the WCI link to help you get started: https://www.whitecoatinvestor.com/ho...nal-statement/

    Leave a comment:

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