Where to invest my money?

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castafari

castafari

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Currently paying down my student loans at about $5000 per month. Once they are paid off I'd like to continue to live like I do now and invest the $5000 per month and save for retirement. Question is, what's the best way to invest and save this money?
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castafari said:
Currently paying down my student loans at about $5000 per month. Once they are paid off I'd like to continue to live like I do now and invest the $5000 per month and save for retirement. Question is, what's the best way to invest and save this money?
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Read bogleheads and while coat investor. Everything you need to know is contained in those 2 sites.
 
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1) emergency fund/ensure you have appropriate life and disability insurance as appropriate
2) Total stock market index fund/total word except-us index fund/"index" bond fund at lowest expense - vanguard usually does the trick.

You need to figure out what asset allocation (I.e. What percent of your savings goes into each fund) will be, then start investing and occasionally rebalance.

If you're the kind of guy or gal who doesn't want to mess with it (I.e. Aren't interest in any investing stuff and want it to be on autopilot), go into one of the target date vanguard funds. They essentially do the above split in what they consider appropriate and rebalance themselves and slowly get more conservative with time.
 
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TimesNewRoman said:
If you're the kind of guy or gal who doesn't want to mess with it (I.e. Aren't interest in any investing stuff and want it to be on autopilot)
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I second the recommendations to read the books by the White Coat Investor and then the Boglehead's Guide to Investing.

Keep it simple.

Prioritize your investing instruments with your goals. Even as you pay off student loans, you should at least be contributing to a workplace plan (401k/403b) to the match. Probably all $18k because on an Attending salary that should be possible.

Also consider things like a backdoor Roth IRA and HSA investment account. Anything extra can go to loans and taxable brokerage account.


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Arch Guillotti said:
Read bogleheads and while coat investor. Everything you need to know is contained in those 2 sites.
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Also, for a very easy to read book, get Rick Edelman's "Rescue Your Money". It shows you how when you attempt to time the market you mostly likely will mis-time. Also that for all "corrections", the recovery occurs in a very short window, relatively speaking. So, being vested is important.

I highly recommend this book and bogleheads and white coat investor.

You are doing the right thing by burying that debt the way you are. Kill it.
 
i think you could do even more. keep paying off your debt at 5k/mth. on top of that, invest $1500/mth. it's doable. especially if you don't have kids and not married.
you're doing right by starting good habits.
 
“I spent half my money on gambling, alcohol and wild women. The other half I wasted.”

― W.C. Fields
 
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Max out any tax sheltered accounts (401k, 529's if you have kids) first. As for investment choices, low fee index funds (Vanguard is great). You can make your own allocation but generally if you're young it's recommended to have 90% stocks / 10 % bonds. Can be divided in different funds. I personally have about 30% in Total International Stock Index, 30% SAP500, 10% Emerging Markets, 10% REIT's, 10% Total Bond Fund, 10% small cap index fund. Rebalance every 6 months (spreadsheet to help) and otherwise DON'T TOUCH it. If all of this is quite foreign to you and you're not interested in the nitty gritty, can also invest in Target Date Fund for your age and get similar results with basically no work whatsoever. Most importantly...DON't TOUCH IT. You can't time the market no matter what anyone on here or in real life will tell you. Invest over time and stay the course.
 
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Max out your retirement plan, put the rest in a brokerage account at Vanguard.

Yeah, and read WCI.
 
facted said:
Max out any tax sheltered accounts (401k, 529's if you have kids) first. As for investment choices, low fee index funds (Vanguard is great). You can make your own allocation but generally if you're young it's recommended to have 90% stocks / 10 % bonds. Can be divided in different funds. I personally have about 30% in Total International Stock Index, 30% SAP500, 10% Emerging Markets, 10% REIT's, 10% Total Bond Fund, 10% small cap index fund. Rebalance every 6 months (spreadsheet to help) and otherwise DON'T TOUCH it. If all of this is quite foreign to you and you're not interested in the nitty gritty, can also invest in Target Date Fund for your age and get similar results with basically no work whatsoever. Most importantly...DON't TOUCH IT. You can't time the market no matter what anyone on here or in real life will tell you. Invest over time and stay the course.
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THIS. Expect market corrections. Look at them as nice ways to acquire some shares at great prices. But do NOT attempt to time the market. The research is so unbelievably clear on this. It's a losers proposition.

Also, Vanguard Life Strategy funds will rebalance automatically for you and are nicely diversified except for REIT's.
 
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BLADEMDA said:
My best investments recently have been in foreign equity mutual funds. I still believe they may be in for a multiyear run. Emerging Markets, Foreign mid/small caps and of course large cap foreign funds.

Many investors are under-exposed to these types of equities and focus too much on domestic only ETFs/Index funds.

How Much International Exposure Should You Have?

Investing in International Stocks - Fidelity
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How is PCRX doing?

Isn't it weird they are advertising poster presentations at a small meeting as if it were a big achievement?

Pacira Pharmaceuticals Announces Multiple EXPAREL Data Presentations at the Upcoming New York School of Regional Anesthesia Annual Fall Symposium
 
I'm spending all of my saving per month right now to load up on Chipotle stock. The price at current level is too lucrative especially if your investment horizon is 10+ years.
 
Pacira remains on track to resubmit its supplemental new drug application (sNDA), to the FDA later in 2017. This, in turn, will seek expansion of the Exparel label to include the indication of administration via nerve block. The sNDA will be based on two pivotal efficacy studies.
Furthermore, the company announced positive top-line data from these studies in July 2017. The company believes that the data from these two studies will meet the requirements of the FDA as stated in the complete response letter (issued in March 2015).

FYI, I use more Bup with dexamethesaone on a daily basis than Exparel. I still think Exparel is a good drug and will replace a lot of catheters/pumps once the company gets FDA Approval for nerve blocks.
 
68PGunner said:
I'm spending all of my saving per month right now to load up on Chipotle stock. The price at current level is too lucrative especially if your investment horizon is 10+ years.
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I can't tell if you're being sarcastic. But, spending all of your savings on any one stock is absolutely crazy IMHO.
 
GA8314 said:
I can't tell if you're being sarcastic. But, spending all of your savings on any one stock is absolutely crazy IMHO.
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My portfolio doesn't comprise of one stock. However, based on my valuation, CMG is one of the biggest steals available on the stock market right now. There's no reason not to spend my every month saving on a steal that I will now will be 14-15x the current price in 10 years. I had a strong finance background before starting medical school, so I'm quite comfortable with my decision.
 
68PGunner said:
My portfolio doesn't comprise of one stock. However, based on my valuation, CMG is one of the biggest steals available on the stock market right now. There's no reason not to spend my every month saving on a steal that I will now will be 14-15x the current price in 10 years. I had a strong finance background before starting medical school, so I'm quite comfortable with my decision.
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Why do you think it's so undervalued?

By the way, anecdotally, I used to eat there a fair amount and now it just doesn't sound good and I drive right by.
 
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okayplayer said:
Why do you think it's so undervalued.

By the way, anecdotally, I used to eat there a fair amount and now it just doesn't sound good and I drive right by.
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I studied the stock market history of some of the biggest names for the past 10-20 years. If you want an example of the current CMG, it's MCD during 2002-2004 after the Mad Cow Dx scare. The one thing that I care about is management. Management seems to understand the key ingredients to turn this ship around. Before the whole food scare, the same management was driving this business at the growth of 20-25% per year in term of sales. This is nothing more than an unfortunate hiccup that comes with every growth story. However, the management team is aware of the loss of credibility and has placed a team of experts to look at this issue.

If you are asking me under what metrics is this stock undervalued, it's based on the current market valuation to current sales based on its equity and debt ratio. You should start pulling stories of MCD during 2002-2004 and see what I'm talking about. I'm personally hoping that the market drops this stock to $240-270 level so I could buy more of it. However, I expect that level to be the absolute bottom. I would actually double my position if it goes to that price level.
 
68PGunner said:
I studied the stock market history of some of the biggest names for the past 10-20 years. If you want an example of the current CMG, it's MCD during 2002-2004 after the Mad Cow Dx scare. The one thing that I care about is management. Management seems to understand the key ingredients to turn this ship around. Before the whole food scare, the same management was driving this business at the growth of 20-25% per year in term of sales. This is nothing more than an unfortunate hiccup that comes with every growth story. However, the management team is aware of the loss of credibility and has placed a team of experts to look at this issue.

If you are asking me under what metrics is this stock undervalued, it's based on the current market valuation to current sales based on its equity and debt ratio. You should start pulling stories of MCD during 2002-2004 and see what I'm talking about. I'm personally hoping that the market drops this stock to $240-270 level so I could buy more of it. However, I expect that level to be the absolute bottom. I would actually double my position if it goes to that price level.
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The one thing I can say is, this story is going to end awesomely, one way or the other. This guy is either going to make millions or be bankrupted by mediocre fast-food burritos. Rolling the dice, just like everyone who eats there!
 
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68PGunner said:
I studied the stock market history of some of the biggest names for the past 10-20 years. If you want an example of the current CMG, it's MCD during 2002-2004 after the Mad Cow Dx scare. The one thing that I care about is management. Management seems to understand the key ingredients to turn this ship around. Before the whole food scare, the same management was driving this business at the growth of 20-25% per year in term of sales. This is nothing more than an unfortunate hiccup that comes with every growth story. However, the management team is aware of the loss of credibility and has placed a team of experts to look at this issue.

If you are asking me under what metrics is this stock undervalued, it's based on the current market valuation to current sales based on its equity and debt ratio. You should start pulling stories of MCD during 2002-2004 and see what I'm talking about. I'm personally hoping that the market drops this stock to $240-270 level so I could buy more of it. However, I expect that level to be the absolute bottom. I would actually double my position if it goes to that price level.
Click to expand...

Will be interesting to follow this stock
 
All I know is if you are putting all of your monthly savings into any ONE individual stock, you are gambling.

Emerging market debt? Maybe. Sure. Have some exposure as a component of a broadly diversified portfolio. Unless you can predict the direction of interest rates in emerging markets. (Hint: you can't)
 
68PGunner said:
I studied the stock market history of some of the biggest names for the past 10-20 years. If you want an example of the current CMG, it's MCD during 2002-2004 after the Mad Cow Dx scare. The one thing that I care about is management. Management seems to understand the key ingredients to turn this ship around. Before the whole food scare, the same management was driving this business at the growth of 20-25% per year in term of sales. This is nothing more than an unfortunate hiccup that comes with every growth story. However, the management team is aware of the loss of credibility and has placed a team of experts to look at this issue.

If you are asking me under what metrics is this stock undervalued, it's based on the current market valuation to current sales based on its equity and debt ratio. You should start pulling stories of MCD during 2002-2004 and see what I'm talking about. I'm personally hoping that the market drops this stock to $240-270 level so I could buy more of it. However, I expect that level to be the absolute bottom. I would actually double my position if it goes to that price level.
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Is it the same analogy? Mad cow disease had nothing to to with McDonald's per se. Chipotle's problem on the other hand are just their own.
 
urge said:
Is it the same analogy? Mad cow disease had nothing to to with McDonald's per se. Chipotle's problem on the other hand are just their own.
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Mad cow disease continues to hit McDonald's
Suspected infected cow found at McDonald's supplier - Jan. 16, 2001

Here are some examples. There were questions about management incompetence, lack of growth, etc... If you believe that Chipotle is going to go bankrupt, then you don't buy the stock. However, if Chipotle remains a legit stock 10 years from now, I expect the future price to be min 10x of the current price.
 
68PGunner said:
Mad cow disease continues to hit McDonald's
Suspected infected cow found at McDonald's supplier - Jan. 16, 2001

Here are some examples. There were questions about management incompetence, lack of growth, etc... If you believe that Chipotle is going to go bankrupt, then you don't buy the stock. However, if Chipotle remains a legit stock 10 years from now, I expect the future price to be min 10x of the current price.
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None of those 2 news report question MCD's management.

Why Chipotle could crash another 50%

This one question CMG's.
 
urge said:
None of those 2 news report question MCD's management.

Why Chipotle could crash another 50%

This one question CMG's.
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That article is printed by a typical noob who's paid by some bearish hedge fund. Let me tell you why it won't happen.

CMG is currently being valued at 8.55 billions. A 50% cut would put its valuation at 4.27 billions. CMG equity is about 1.5 billion right now in the worst case scenario of a falling business in which CMG closes shops. So, let's subtract 1.5 billions from 4.27 billions, giving you a valuation of 2.7 billions for its business. Would you buy a 4.0 billions annual revenue business for 2.7 billions? The answer is yes. Garbage article like the one quoted isn't usually worth me responding to most of the times bc it's typically being printed by some garbage journalist. However, I just want to clarify the perspective a little bit since we're on a physician forum talking about investment.
 
urge said:
Did you eat the article yourself?

Questions of incompetent management not found.
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"McDonald's Corp.'s recently reshuffled management team faces a slew of problems, from mad cow disease in Europe to slow sales at home."

Normally, management team doesn't get reshuffled unless there are questions of competency.
 
68PGunner said:
That article is printed by a typical noob who's paid by some bearish hedge fund. Let me tell you why it won't happen.

CMG is currently being valued at 8.55 billions. A 50% cut would put its valuation at 4.27 billions. CMG equity is about 1.5 billion right now in the worst case scenario of a falling business in which CMG closes shops. So, let's subtract 1.5 billions from 4.27 billions, giving you a valuation of 2.7 billions for its business. Would you buy a 4.0 billions annual revenue business for 2.7 billions? The answer is yes. Garbage article like the one quoted isn't usually worth me responding to most of the times bc it's typically being printed by some garbage journalist. However, I just want to clarify the perspective a little bit since we're on a physician forum talking about investment.
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1 Keep in mind that article is 1 year old. CMG was in the 400's when it was written.

2 I don't follow your logic. Are you saying by paying 4.27 billion for the business you are not already paying for the 1.5 billion in equity already, because you are paying 2.7 billion for it (despite writing a check for 4.27 billion)? Aren't you making a circular argument?
 
68PGunner said:
"McDonald's Corp.'s recently reshuffled management team faces a slew of problems, from mad cow disease in Europe to slow sales at home."

Normally, management team doesn't get reshuffled unless there are questions of competency.
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I don't think you understood the article.

The reshuffling was due to some vice president quitting willingly and people getting nervous because he quit. The slew of problems were the mad cow disease and some perception of lines getting longer.

There was nothing intrinsically egregious with the management.
 
urge said:
I don't think you understood the article.

The reshuffling was due to some vice president quitting willingly and people getting nervous because he quit. The slew of problems were the mad cow disease and some perception of lines getting longer.

There was nothing intrinsically egregious with the management.
Click to expand...
McDonald's Is Lovin' Its Turnaround

Another article about MCD being on its third CEO. I think we can put to rest this argument here. I'm very well aware of MCD issues during 2000-2003.
 
urge said:
I don't think you understood the article.

The reshuffling was due to some vice president quitting willingly and people getting nervous because he quit. The slew of problems were the mad cow disease and some perception of lines getting longer.

There was nothing intrinsically egregious with the management.
Click to expand...

Normally, the price of a stock doesn't get cut by 55-60% bc of some perception of lines getting longer. There were def questions about MCD ability to get out of its slow growth funk and return as a profit making, fast growing company around this time period. You can google for those articles if you're interested.
 
For comparison sake, Domino's Pizza is being valued at 9 billions while generating 2.5 billions in annual sale. At the same time, CMG is being valued at 8.8 billions while generating 4 billions in annual sale.
 
68PGunner said:
Normally, the price of a stock doesn't get cut by 55-60% bc of some perception of lines getting longer. There were def questions about MCD ability to get out of its slow growth funk and return as a profit making, fast growing company around this time period. You can google for those articles if you're interested.
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Ok. My contention is that it is not an adequate analogy.

Was MCD being sued by it's employees for underpayment, sued by it's shareholders for false claims, and being investigated on criminal charges? If you can answer yes to all, then ok, it is an acceptable analogy.
 
68PGunner said:
McDonald's Is Lovin' Its Turnaround

Another article about MCD being on its third CEO. I think we can put to rest this argument here. I'm very well aware of MCD issues during 2000-2003.
Click to expand...
1 guy died of a heart attack, the other got cancer. And you are trying to imply they had 3 CEOs because they were incompetent.

:wtf:

Give us a break!
 
68PGunner said:
I studied the stock market history of some of the biggest names for the past 10-20 years. If you want an example of the current CMG, it's MCD during 2002-2004 after the Mad Cow Dx scare. The one thing that I care about is management. Management seems to understand the key ingredients to turn this ship around. Before the whole food scare, the same management was driving this business at the growth of 20-25% per year in term of sales. This is nothing more than an unfortunate hiccup that comes with every growth story. However, the management team is aware of the loss of credibility and has placed a team of experts to look at this issue.

If you are asking me under what metrics is this stock undervalued, it's based on the current market valuation to current sales based on its equity and debt ratio. You should start pulling stories of MCD during 2002-2004 and see what I'm talking about. I'm personally hoping that the market drops this stock to $240-270 level so I could buy more of it. However, I expect that level to be the absolute bottom. I would actually double my position if it goes to that price level.
Click to expand...
Did you ever hear the phrase catch a falling knife?
 
urge said:
Ok. My contention is that it is not an adequate analogy.
Was MCD being sued by it's employees for underpayment, sued by it's shareholders for false claims, and being investigated on criminal charges? If you can answer yes to all, then ok, it is an acceptable analogy.
Click to expand...

These things are actually pretty common in today's world especially after a huge stock decline. I literally see these headlines all the times after a huge cut in stock prices.

As for the underpayment, MCD also has this issue recently:
McDonald’s workers in three states sue, claim underpayment - The Tech

To be honest, all of these things are just noises. The main question that you should ask yourself on any investment is: is this company business model sustainable and be able generate enough money to get out of the recent funk? If the answer is yes, then it goes to current valuation. My answer to the main question when it comes to CMG is a resounding yes as evident by its uptick in last quarter revenue in comparison to the same quarter in the previous year, along with returning margin before the whole Texas food fiasco.
 
68PGunner said:
The main question that you should ask yourself on any investment is: is this company business model sustainable and be able generate enough money to get out of the recent funk? If the answer is yes, then it goes to current valuation. My answer to the main question when it comes to CMG is a resounding yes as evident by its uptick in last quarter revenue in comparison to the same quarter in the previous year, along with returning margin before the whole Texas food fiasco.
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Fair enough. For all I know Chipotle can keep growing like it was and the stock could skyrocket again. Or not.

Like I said in another thread. We will check in 10 years.
 
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68PGunner said:
I'm spending all of my saving per month right now to load up on Chipotle stock. The price at current level is too lucrative especially if your investment horizon is 10+ years.
Click to expand...
The only question that really matters is why do you think you know something about this stock that the rest of the world doesn't?
 
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