Korean Job Discussion Forums

[eslteacherlooking]

Loans have been finally paid.

Now what do I do for long term investing? Any advice? Someone just told me to stay away from a broker because her priority will be her own pocket.

So.... where does that leave someone with neglibigle investment savvy?

[okokok]

[Robot_Teacher]

Since you won't use a broker, you're a gold bug, but you won't pay fair market value on buying physical gold in retail shops and it's unconventional trying to mail gold or take it through airports other than jewelry. You'll get duty taxed if you do travel with jewelry.

Stuff the man won under your mattress? Seriously, this wouldn't work, because if the market and global economy crashes to a pile of molten microchips and chemicals, then physical currencies won't buy you much. You lose either way should we be facing a great depression where banks go under, currencies devalue, and hyper inflation of consumer goods and other materials sets in. Ok, that's all a bit dramatic.

While I'm not qualified to give financial advice, I say just take the risk of an online broker or save money in a bank account.

[No_hite_pls]

[Morgen]

Before you sign any checks, bear in mind this is a board for discussing teaching English, and you can't even get a coherent answer about that much of the time. Maybe try a financial site (or several).

[GwangjuParents]

Find an extremely reputable, qualified and experienced financial planner.

Check the guy's resume first and make sure he's on his game.


People who try to invest on their own... well.... let's just say this: Would you perform dental work on yourself if you're not a qualified dentist?

Of course not... there is a reason the dentist went to school for years and years. You want his expertise because if you try to do it yourself you'll likely screw it up and end up in real pain.


Also, Dave's is just a comedy board where people can come to read the amusing antics of a bunch of goofy EFL teachers in Korea and get a good chuckle.

I wouldn't buy any particular stocks based on a "Dave's recommendation".

Go with a pro instead.

[No_hite_pls]

[Juregen]

[Jane]

Since you have little investing knowledge overall, I would recommend not picking individual stocks, nor would I recommend investing into a managed mutual fund.

In the middle somewhere of these too options are index funds. These are funds that essential follow the Dow, or other composite and are little or not managed by an individual. Over time they return either equal or more than managed funds, but with index funds you don't have to pay high management fees which only cut into your profits, after the degenerating effect of inflation and taxes.

Also, invest for the long term, in monthly installments or such.

Unfortunately, financial products in Korea are very poor, and even index funds here ask for higher than necessary management fees.

I suggest doing it online or through a bank in your homeland.

Oh, and don't go with a 'pro', as someone earlier on this thread -- who condemned making financial recommendations on Dave's -- recommended. Statistically, 'pro's' are less likely to be successful than your average dude.

[Big Pun Lives]

My advice you be educate yourself AND work with a Certified Financial Planner. First, educate yourself with not just the basics, but more advanced financial instruments. A broker can help you, but it is their advice and they get paid on commission, so keep that in mind. By educating yourself you have more power.

I would look at a smaller brokerage, someone younger in their mid to late 30's with no children. (No distractions) He or she will be hungry and who eats, sleeps, and breathes finance. They are going to be better than some older guy who is more worried about his own impending retirement and paying for his kids college tuition. Ask to see some sort of track record and what is their philosophy on investing.

Don't put all your eggs in one basket, ie ( One pool of Money). Keep some money in different accounts. Your IRA, a brokerage account and a "play account" on an online discount brokerage. The "play" account is for taking risks with smaller amounts, that can you loose.

Final thought; don't get greedy. Make your return then sell it. Keep the money on the sideline until the next buying opportunity comes along. Holding stocks for too long is foolish. Look at what the big boys do. They buy then dump, find the trend and ride the wave along with them.

Good Luck.

[PRagic]

Juregen's advice is sound in sound times, which these are not. Had you done that, you'd be on your arse right now, and a lot of people are. Even Buffet is down, way down, in this market. A newbie pain threshold of 20-30% loss would have helped 1) minimalize the bloodbath even in large caps and 2) provide one time tax write offs had people gotten out. Normally, people suggest sucking up a 20%, but when the news coming down the pike is all doom and gloom across the board globally, when manufacturing is down in double digits in several countries (enter looming unemployment and decreasing conusmer confidence), and the credit marke looks sparse, the smart money dumps and runs. Actually, smart money would have bought stock in dollar stores!

Pick up a book on basic portfolio investing. People will probably be getting back in the water in a year or so. Institutional investors will lead the way, so don't beat yourself up trying to cash in on 'the bottom'. Align your goals with the risk exposure you're willing to take. Usually, you end up with a three-pronged approach, and then juggle with the percentages invested in each category as you get older (and want to convert risk based investment into income based investment).

Real estate? Did you just see the report on Tokyo? They can't get people to buy the upscale places even at deep, deep discounts (70-90%), and that's in the #2 economy in the world. Korea? A Korean expert came out and suggested that there will be a big problem here in the future given all the emphasis on high rises; sooner or later, they have to wear out, and when they go to crap, what will people do? Rebuild? And pay more? After paying top buck to begin with? The real estate market here is way overpriced, but Americans (mostly Americans, but other foreigners as well) are buying in in areas where prices are down. The dollar is strong now, they can bargain hard, and they can count on Koreans to jack the prices right back up as soon as they can. They're doing it already in the area of KangNam that was released from the speculation ban. Not much foreign influence, either. Koreans are bidding each other up and driving up the prices!

Lunch break is over. End the blather. Sorry to have run on....