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donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
13058 posts

Portfolio Percentage of Mututal Funds vs Stocks

In your opinion in a standard stock portfolio how much percentage would you have in mutual funds vs. individual stocks?

also which mutual funds do you happen to like?

Background: yesterday i met with a Edward jones in regards to an account they handle for my mother. About 20-25% of the holdings are in 3 mutual funds. Capital Income Builder, Capital World Growth, and Fundamental Investors. Wasn't too impressed with the yield they offered, but i also don't know much about Funds.
This post was edited on 12/1 at 7:57 pm



TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
17797 posts
Online

re: Portfolio Percentage of Mututal Funds vs Stocks
quote:

In your opinion in a standard stock portfolio how much percentage would you have in mutual funds


whatever %age is in bonds

quote:

vs. individual stocks?


0%

Index fund ETFs are superior to Mutual funds for equities, and have lower transaction fees.

The average investor shouldn't be playing stock picker.


Janky
LSU Fan
Team Primo
Member since Jun 2011
11141 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
How old is your mother?


donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
13058 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
mom is 55

she said the account is "eventually to pass on to the kids" where as i disagreed and said this is for her retirement.


Janky
LSU Fan
Team Primo
Member since Jun 2011
11141 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
quote:

mom is 55


Oh, she is relatively young. A balanced approach will probably be good. Basic solid core holdings with maybe a few individual equities/ETFs sprinkled around the edges for higher yields and appreciation. Nothing too crazy though.

The funds she is holding now are ok, but notice what they did in 2008. She cannot afford to let that happen again. All of this is only my humble opinion.


donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
13058 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
quote:

The average investor shouldn't be playing stock picker.


so i assume since i haven't started my 401K yet, however i have a Scottrade account you would think I'm dumb
which is the truth, i need to get my 401K going. long story on why i have a scottrade account though.

i can honestly say i am not THAT stock savvy. however my little account has done alright. current holdings: ADM, BA, CAT, CENX, CHK, COP, CVX, MO, MPC, MRO, PSX, RAX, RF, RTN, T, TSH, XOM
AFL and JPM separate on paper.


donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
13058 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
quote:

The funds she is holding now are ok, but notice what they did in 2008. She cannot afford to let that happen again. All of this is only my humble opinion.


i agree and when they were touting the gains on them yesterday i saw was that there price is less now then when purchased in 2006. gains were only due to the dividends

appreciate your opinion


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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
17797 posts
Online

re: Portfolio Percentage of Mututal Funds vs Stocks
quote:

you would think I'm dumb


No, you aren't at all "normal".

Normal people don't read financial message boards. I would say just poking around here would put you in the top 10%.


donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
13058 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
I don't post here too much. But I am always reading.


TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
17797 posts
Online

re: Portfolio Percentage of Mututal Funds vs Stocks
quote:

I don't post here too much. But I am always reading.


Like I said, not even close to average. The average LSU finance Jr. doesn't know the difference between market cap and stock price. I cringe when I think about the "average person" trading.



lighter345
New Orleans Pelicans Fan
Member since Jan 2009
10847 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
I'm pretty average, but I have gotten pretty lucky with the stocks I have picked the last few years. I am not very good at knowing when I need to get out though. I got CBST at $18 and it is hovering around $47 right now, but I think it will continue to grow.

Just bought 200 shares of SNTS.


Buying Biotech stocks is the closest thing to legal gambling I have come across. It's awesome. I know the stock market is a gamble, but just in this industry all it takes is one approved drug to make the company.


donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
13058 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
quote:

SNTS


what are your thoughts for this one?

going intense google search now!


lighter345
New Orleans Pelicans Fan
Member since Jan 2009
10847 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
Two words: Travelers Diarrhea


Haha but seriously, one of their drugs just passed Phase III testing which has caused the stock to go to all time highs, a lot of "experts" have it a strong buy. That is the thing with these Biotechs is one hold up with the FDA and it can all come crumbling down.

Combined with winning their appeal against Par Pharm who was selling a generic version of their heartburn drug on faulty patents. They have rights to that drug until 2016.


I buy stuff like this when I have some extra cash and don't count on them like I would an Exxon or Walmart stock that I am going to have for years to come.


donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
13058 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
same here. vast majority of my portfolio is long. i keep a little on the side that i like to buy and sell with.

eta:
quote:

Travelers Diarrhea


i get it now
This post was edited on 9/13 at 3:58 pm


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
32131 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
quote:

Index fund ETFs are superior to Mutual funds for equities, and have lower transaction fees.

The average investor shouldn't be playing stock picker.



+56456984532165456

And someone who knows basically nothing at all would be well-served just buying a target retirement fund and reinvesting dividends. Then forget about it.


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donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
13058 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
i ended up buying a few hundred shares of SNTS for the hell of it. up almost 20% now.


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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1674 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
quote:

Normal people don't read financial message boards. I would say just poking around here would put you in the top 10%.


I am upset it took me 6 months after college to finally read the Money Talk board. I figured as much time as I used to spend browsing the OT, and football related boards, it was time to dedicate it to finances and make myself financially secure for the long haul.

I am still a complete noob as far as acting on investments, although I rather continue learning up front and developing a sound base of knowledge before I make any moves. I have learned quite a large amount of useful information so far since reading this board, which is why I remain positive about simply building savings and making deposits into my retirement accounts.


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Llama
Member since Nov 2012
12 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
Also- do a little background on the advisor. They may have her only in mutual funds only because they are not licensed to sell individual stocks.


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JPLSU1981
LSU Fan
Baton Rouge
Member since Oct 2005
17636 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
The vast majority of people are just fine 100% mutual funds.

The more important question is asset allocation ... equities (funds or individual securities) vs bonds ... not M/F vs stocks.

The issue is that most people don't have enough money to build a diversified enough portfolio using individual equities. Not to mention sometimes people tend to get emotionally tied to particular stocks and never want to sell, regarless of how their situation and risk tolerance is changing as they age. Rarely do people get emotionally tied to funds.


Llama
Member since Nov 2012
12 posts

re: Portfolio Percentage of Mututal Funds vs Stocks
I thought coldwell banker was only a real estate firm... Can someone school me on this? Referring to the original post here...


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