VTI YTD is 15%

[ua_guy]

What a joke. These tariffs are uncoordinated and reckless, economically speaking, at best. Better hope to heaven all the other countries we've pissed off decide to back down on their escalating tariffs as well. The US doubling down on our 2nd largest trading partner (China) is also a recipe for economic disaster but at least there's a 90 day, totally self-imposed reprieve from yet another self-imposed and manufactured economic disaster.

[disneysteve]

From my understanding of the reciprocal tariff list, we are only applying tariffs at half the rate of what they are applying to American made goods.

That might be okay if it were actually true, which it isn't. Not even close. And even then, it needs to be based on some sort of real economic policy.

Not all imported goods are bad for the US. Many of them are critically important in fact. As I've said before, there is not a single automobile made in this country that doesn't use at least 13% foreign parts and most are much higher than that. By imposing blanket tariffs on entire countries, rather than specific items as is usually done, you decimate American manufacturers and American retailers who can no long get the products and raw materials they need for their business.

You might not like the fact that a lot of goods sold here are made overseas, but that's the reality of living in a global economy. If you suddenly increase the price of those goods by 25% or 50% or 100%, then what? Who is going to buy a t-shirt at Old Navy for $30 that was $15 two weeks ago? Who is going to spend $60,000 for a car that was $48,000 a month ago? Small businesses are especially sensitive to price increases due to tariffs. That mom and pop British shop in my neighborhood that sells 100% imported items from the UK is going to get buried. If these tariffs last much longer, I can't see them staying in business even though they've been there for probably 20+ years.

Targeted well thought out tariffs can be a very useful economic tool. That just isn't what is happening right now.

[ua_guy]

Do you people live in a fantasy world where the markets only go up?

Every other country on the list has been charging us tariffs for years. Go watch the videos of Nancy Pelosi saying we should challenge China's tariffs back in the 90's. From my understanding of the reciprocal tariff list, we are only applying tariffs at half the rate of what they are applying to American made goods. I agree with Nancy, this needed to have happened a long time ago.

As for Mexico and Canada, all they need to do if secure their side of the border.

What the markets do on a day to day basis has no effect on me at all. And if you're 80 and were foolish to have everything in the stock market, then don't withdrawal for the next six months, or until the markets rebound and seriously rethink your investment strategy. I plan on being alive in 10 years and historically the markets have always increased over that period.

Stay in don't sell, ride the wave out and quit worrying about every doomsayer on TV.

We live in a world where markets ride on stable economic and trade policy as governed by the biggest players. That's reality.

If markets slide 20-30%, which they are doing, with no recovery in sight, a lot of people can't just wave that portion of their wealth goodbye and be happy with it. Not for something that was totally avoidable in the first place.

I appreciate that you think anyone who disagrees with you is obviously influenced by TV media. However, the president's closest advisors are turning on the idea, the GOP is turning on it, the wealthy have signaled it's a bad idea, and large business is shaking its head no. Nevermind there isn't a single credentialed economist who thinks this is the right direction for our economy. But hey, tv, right?!

[myrdale]

How long until you think people turn and say enouogh?

Do you people live in a fantasy world where the markets only go up?

Every other country on the list has been charging us tariffs for years. Go watch the videos of Nancy Pelosi saying we should challenge China's tariffs back in the 90's. From my understanding of the reciprocal tariff list, we are only applying tariffs at half the rate of what they are applying to American made goods. I agree with Nancy, this needed to have happened a long time ago.

As for Mexico and Canada, all they need to do if secure their side of the border.

What the markets do on a day to day basis has no effect on me at all. And if you're 80 and were foolish to have everything in the stock market, then don't withdrawal for the next six months, or until the markets rebound and seriously rethink your investment strategy. I plan on being alive in 10 years and historically the markets have always increased over that period.

Stay in don't sell, ride the wave out and quit worrying about every doomsayer on TV.

[disneysteve]

^this. My parents have a FA and the dude literally receives funds from them, buys an index fund, and let's it ride.

When my dad dabbled in investing. He would constantly move money to different funds, then move them back, rinse/repeat. He wasn't capable of not screwing things up. Now, they pay someone whatever percent to make the purchases for them. Seems insane but a lot of people are like that.

There are plenty of surveys showing that most investors underperform the indexes for just this reason. They trade too much, sell at the wrong time, and just generally are their own worst enemy.

If paying an advisor 1%/year to stick the money in an index fund prevents that behavior, that's actually not such a bad thing for most people.

[EasyMoney00]

The only possible upside to using an advisor is having someone who can talk you off the ledge at times like these and convince you not to sell it all and move to cash.

^this. My parents have a FA and the dude literally receives funds from them, buys an index fund, and let's it ride.

When my dad dabbled in investing. He would constantly move money to different funds, then move them back, rinse/repeat. He wasn't capable of not screwing things up. Now, they pay someone whatever percent to make the purchases for them. Seems insane but a lot of people are like that.

For every one success story of someone timing it right, there are many others that screwed it up and would have been better off not touching it.

[disneysteve]

Honestly, I don't. I doubt their portfolio performance is significantly better than average (wouldn't everyone use an advisor, then?), but obviously my parents feel there is some value there. I don't use an advisor for my portfolio, I manage my own, for better or worse. I've considered consulting with a fiduciary to review overall status, and did, a long time back. But nobody actively manages anything except for me.

Many people believe that "professionals" must have specialized knowledge that the average person can't possibly access, which simply isn't true. Maybe 50 years ago but certainly not today. And with ETFs and mutual funds, getting a well-diversified low-cost portfolio is ridiculously easy. You can literally put all of your money in a single fund from day one of your first job, keep adding to it every paycheck throughout your career, and retire a multi-millionaire. How much easier could it possibly be?

I've seen the portfolios that the "pros" build for their clients. It is very common for them to employ 20-30 funds which is insane. By making investing appear vastly complex, however, they justify their own existence. Certainly the average person couldn't handle all of that. The fund expenses along with the advisor fees are criminally high and just eat into the already sub-par return being generated. The entire industry is one big scam.

The only possible upside to using an advisor is having someone who can talk you off the ledge at times like these and convince you not to sell it all and move to cash.

[ua_guy]

Come on now, you already know the answer to that question.

No paid advisor is going to outperform the market long term. Just their fee alone makes that virtually impossible to accomplish.

Honestly, I don't. I doubt their portfolio performance is significantly better than average (wouldn't everyone use an advisor, then?), but obviously my parents feel there is some value there. I don't use an advisor for my portfolio, I manage my own, for better or worse. I've considered consulting with a fiduciary to review overall status, and did, a long time back. But nobody actively manages anything except for me.

[disneysteve]

They had been working with this individual for more than 20 years. He wasn't a complete stranger, but I also don't share my father's strategy of having a paid financial advisor. I would love to know if their portfolio has actually outperformed the market as a result of this guy's expertise and guidance, or if he's just hanging on for the ride and following best practices that any individual can.

Come on now, you already know the answer to that question.

No paid advisor is going to outperform the market long term. Just their fee alone makes that virtually impossible to accomplish.

[ua_guy]

The fact that they have delegated their financial lives to a complete stranger is the problem here. That's almost never a wise decision as we often discuss.

They had been working with this individual for more than 20 years. He wasn't a complete stranger, but I also don't share my father's strategy of having a paid financial advisor. I would love to know if their portfolio has actually outperformed the market as a result of this guy's expertise and guidance, or if he's just hanging on for the ride and following best practices that any individual can.

[disneysteve]

I haven't gotten to that level of detail with my parents finances, and doubt I will unless they ask for help. They appear to have saved and invested very well, but my dad was pretty concerned about the direction his investor had led him, and market conditions following the fact that the tariffs actually came to fruition. I think a lot of people didn't expect tariffs to materialize like they did. Markets are easing a little this morning, but it's this lasting uncertainty, and wild swinging seemingly every day. He needs to sleep at night. This advisor of theirs has kind of gone off the deep end and I shared my concerns with my dad. At least there will be some change there.

The fact that they have delegated their financial lives to a complete stranger is the problem here. That's almost never a wise decision as we often discuss.

[ua_guy]

I haven't gotten to that level of detail with my parents finances, and doubt I will unless they ask for help. They appear to have saved and invested very well, but my dad was pretty concerned about the direction his investor had led him, and market conditions following the fact that the tariffs actually came to fruition. I think a lot of people didn't expect tariffs to materialize like they did. Markets are easing a little this morning, but it's this lasting uncertainty, and wild swinging seemingly every day. He needs to sleep at night. This advisor of theirs has kind of gone off the deep end and I shared my concerns with my dad. At least there will be some change there.

[disneysteve]

so it depends on if they live off of the portfolio or not. I left my mom pretty much 80% invested 20% cash because she's got a pension/ss. But it really sucks to be watching the go down. She can ride it out because she has houses and she has pension. but it's not a good thing anyway you cut it.

I haven't touched my mom's portfolio, or ours for that matter. She doesn't live off of the principal so a drop in the value has no direct impact on her. If companies start cutting dividends due to a prolonged economic downturn, that might be an issue, but at least for now, we're just staying the course. And if she does eventually need to sell some shares, she has enough money that she'd still be fine. She's almost 95 so honestly the only impact the market performance is having is possibly decreasing my future inheritance and I'm okay with that.

[LivingAlmostLarge]

I'm very worried for my parents. They're almost 80 and I found out last week they are very heavily invested in stocks. Needless to say, they may not have the time for their portfolio to recover, and they live off it. We don't talk money in my family, but we sure as heck do now! And their advisor is getting fired.

so it depends on if they live off of the portfolio or not. I left my mom pretty much 80% invested 20% cash because she's got a pension/ss. But it really sucks to be watching the go down. She can ride it out because she has houses and she has pension. but it's not a good thing anyway you cut it.

[Atretes1]

I have VTI in my taxable account. I am taking advantage of the drop and have bought in several times. The advantage has not happened yet because it is still dropping. I am going to keep buying in during the crash until I run out of m spendable cash. I'm 48, retiring at 56 with a pension. I can ride this out.