JohnL77,

I owned VGSLX...

<<Hey, what do you think about owning real estate? Jim Altucher doesn't like the idea, and I agree with him that it can be a drag.>>

Who the hell is Jim Altucher?? How does that RELEVANT to you??

If you KNOW how to invest on Real Estate, it will work for you. If not, do something else..

There are many people that invest on many things and became very successful. But, they are not YOU. You need to know what will work for you and pick that.

If you asked the WRONG question, you will NEVER get the RIGHT answer!!!

Dreamer

No, I'm definitely going to own REITs as part of my investment. But taking a loan to buy a house... I have some doubts about that. Besides, you have this great idea of owning an RV. Do you live the dream?

I'd just like to hear your opinion on owning a house.

This post has been edited by JohnL77: Jun 17 2013, 01:03 PM

JohnL77,

<<I'd just like to hear your opinion on owning a house.>>

Owning a house to stay is an expense. It is not an investment. Now, as to buying rental property to earn income, I am not interested. It takes too much active involvement and I do not want that.

I believe doing rent versus buy calculation for my primary residence. If it costs less to buy, I will buy. Or else, I will rent.

Dreamer

Looks like we pretty much agree on this. I think REITs are the best way to invest in rental property. But I don't know anything about how to pick REITs. Any book recommendations?

Yes, I just read an article on Time mentioning P/R ratio, haha.

JohnL77,

Don't pick... VGSLX (mutual fund) or VNQ (ETF) is the REIT index fund for all the REIT in USA.

Dreamer

Folks,

In this approach, other than the effort to establish the A/C and transfer money, the amount of effort and intelligence required is minimal. You do not have to be SMART in order to get this to work. You just need to have a plan and stick with it.

This plan provides you with LOW COST and DIVERSIFICATION. You are investing on 4,000 to 5,000 largest companies in the world and 3,000 bonds in USA.

You just need to get started and re-calculate and invest when you have new money. You can do either

A) Annual rebalancing -> calculate every year.

B) Band based rebalancing -> calculate every week.

You can do this via Spreadsheet or pencil and paper.

Please note that any investment approach that require you to be VERY SMART probably will not work for a lot of people.

Dreamer

Folks,

The followings are my personal story / journey of how I come about to this investment approach.

The PROBLEM with adopting this approach is you have to admit that you are not very smart in term of investing. You cannot beat the average. You might be smart in many other different area but beating the market average is not what you can do.

10+ years ago I lost half of my life savings in stock trading. I got so scared of the stock market that I convert everything into cash except one S&P 500 stock index. After the crash, this stock fund survive. But, this is a lesson that I need to learn. I could not sleep at night during the crash. I have to sell everything in order to get a good night sleep.

As a result of this lesson, I searched and studied an approach that I have confident in and I can keep going even with a bad crash. And, this the approach that I settled in. I cannot know this approach works for me until I survive the 2008/2009 crash without losing my sleep.

Dreamer

Hi Dreamer,

Do you invest in ETF using DCA/VCA or as and when you want to invest?

jutamind,

I invest whenever I have extra cash. What I buy is based on which asset is below allocation. Normally, I invest on the increment of USD 1K.

Dreamer

Hmm.. yes, but what about global property? For some reason, I feel I should diversify.

Since bond yields are so low right now, wouldn't it be better to put your money in fixed deposit for say... 1 year or half a year?

"The PROBLEM with adopting this approach is you have to admit that you are not very smart in term of investing. You cannot beat the average. You might be smart in many other different area but beating the market average is not what you can do."

LOL, the average driver thinks he's better than other drivers. If some people can't understand what that means, this thread is not for them. Let's face it, the average IQ is 100. 1 or 2 standard deviations could mean you are much smarter or much dumber, lol.

Wasn't it Socrates who said, “I know that I am intelligent, because I know that I know nothing"?

"10+ years ago I lost half of my life savings in stock trading."

Today's episode of The Apprentice Asia was about day trading. This show is a bloody joke. I lost interest since the second episode. The task was to make a viral video and even though the losing team was a bit misguided, their video was interesting. The winning team's video was as boring as white bread. The worst part was, Fernandes called the losing team's video a disaster and he repeated that statement today. I feel Fernandes is just not committed. He said the producers persuaded him many times before he relented. The show is so bloody obviously scripted.

Where are all the winners of the US and UK series? They get a high paying job for one year and then they set up their own recruitment company. Because, you know, "if you can't do it, teach."

Sigh, a relative of mine took a loan on his house to day trade and we never saw that money again. I don't think he trades much these days, but he still reads newsletters and watches videos promising, "YOU CAN MAKE IT AS A DAY TRADER!"

I know a lot of butthurt traders will come here to defend themselves, but one thing about day traders, it's very rare to see someone fully disclose their trades. How much money did they start with? What did they buy? When? And most importantly, how bloody consistent was their performance? It's one thing to say, I beat the market this month, it's another to say, I beat the market every year for at least 10 years!

Also, saying you can make money by day trading isn't very objective and clear in telling people just how many people lose money day trading. Yeah, anyone can be rich, but not everyone. People need to learn what investing really means.

My believes are pretty much the same as yours, Dreamer. I believe the best investment is yourself. Improve your skills, start a business or work on your career. Investing should be simple and not get in the way of your business/career.

If you think you are some genius who can beat the market, then do it full time and most importantly, trade other people's money, not your own.

This post has been edited by JohnL77: Jun 20 2013, 04:58 AM

JohnL77,

<<Hmm.. yes, but what about global property? For some reason, I feel I should diversify. >>

https://personal.vanguard.com/us/funds/snap...&FundIntExt=INT

VNQI is international REIT ETF. However I am not convinced that it is good investment. REIT is not well developed all over the world. Hence, International REIT is not as diversified as you think.

<<Since bond yields are so low right now, wouldn't it be better to put your money in fixed deposit for say... 1 year or half a year? >>

You are doing market timing...

<< Also, saying you can make money by day trading isn't very objective and clear in telling people just how many people lose money day trading. Yeah, anyone can be rich, but not everyone. People need to learn what investing really means. >>

My uncles won the lottery 3 times. He can win money by gambling at Genting. But, I am not my uncle. There might be people that can make money by day trading. But, that is THEM and their ways. I know it is not for me.

Don't worry too much about what others do and do not do. Focus and execute your own plan for your life.

Know what is right for you.

Dreamer

Sorry, I don't really understand how investing in bonds work. Especially since retail investors cannot buy bonds directly in Malaysia. (Correct me if I'm wrong)

Haha, I'm just giving a warning to those who will heed. I especially don't want any of my friends or family to gamble their savings away. It would pain me to see that. (since I've already seen it first hand)

Your uncle is one of those coin flippers that has been destined to get heads all the time, lol.

Hmm.. should I own domestic REITS?

JohnL77,

BND is US bond index ETF...

<<Hmm.. should I own domestic REITS?>>

I do not invest locally except for PBB. Malaysia is TOO SMALL and it is totally dependent on the government. IMHO, Malaysia's economy will crash soon and may never recover. Anyhow, I do not believe in dependent on any single country to begin with.

Dreamer

What about the United States.

JohnL77,

What is the question??

A) Will USA crashes??

B) What happened if USA crashes??

I am diversifying across the world. I invest on 4500 largest companies all over the world.

Dreamer

Yes, will the USA crash? How much of your portfolio is US stocks?

JohnL77,

40%.

Dreamer

Hmm.. I think it's hard to say whether Malaysia will crash. Why do you think Malaysia definitely will crash?

What about the US? Don't you think it will crash? Or is it recovering now? Is it recovering for a crash?

40% of your entire portfolio or 40% of your stock portfolio?

This post has been edited by JohnL77: Jun 21 2013, 02:42 PM

JohnL77,

<<Hmm.. I think it's hard to say whether Malaysia will crash.>>

It is not hard. You just need to open your eyes and see.

<<Why do you think Malaysia definitely will crash?>>

The question should be in reverse. What makes you think that Malaysia can sustain itself??

<<What about the US? Don't you think it will crash?>>

http://www.shadowstats.com/alternate_data/...ployment-charts

US had crashed. TRUE UNEMPLOYMENT is 10+%.

<<Or is it recovering now? Is it recovering for a crash?>>

It is still in a crash.

<<40% of your entire portfolio or 40% of your stock portfolio?>>

40% of my entire portfolio.

Please note that stock market is not necessary a reflection of REAL ECONOMY.

Dreamer

40% of your portfolio means you are confident the US will recover?

I'm really on the fence on whether Malaysia will crash. But not recover? That's very pessimistic.