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Old 15-09-2014, 22:29   #76
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Re: How to Finance a One-off Custom Boat?

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Originally Posted by TacomaSailor View Post
But some funds do better than others and have very long term gains. the following does not seem to be short term growth
If you look at a Dow chart you can see the corrections are huge. We all know when the Dow tanks - it is no secret and I don't have to be smart to recognize it.

The problem is when the Dow tanks most people have no money. However, when the Dow tanks I try to buy as much as I can. Because until America goes out of business the Dow always comes back. I have been able to outperform the Dow slightly this way.

But when it does tank the absolute key is to not be in a position to need to sell.

I am not a genius nor am I offering anyone advice. But pick a time in history, make your time scale long and see how whatever it is you are talking about stacks up. Yahoo only goes back to 1985 but that's long enough for me and over that time the Dow beats FCNTX.
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Old 15-09-2014, 23:34   #77
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Re: How to Finance a One-off Custom Boat?

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Yahoo only goes back to 1985 but that's long enough for me and over that time the Dow beats FCNTX.
I agree 100% with what you say about never being in a position to have to sell during downturns and to buy when the market appears to bottom. Those are my two keys to successful investing.

But, I think we are talking apples and oranges when comparing your Yahoo DOW -vs- FCNTX chart and the Morningstar measure of what $10,000 invested is worth at some future point.

Ten thousand dollars put into FCNTX in June 1967 would be worth $2.4 million today. Ten thousand put into a fund that tracked the DOW Industrial average at the same time would be worth $1.3 million today.

Looking at the same GROWTH numbers from September 1985 to now - FCNTX would be worth $420,000 and the DOW industrial average would be worth $232,000.

Yahoo is showing the price of a FCNTX share compared to the average share price on the DOW. But, we do not invest in FCNTX shares we only care what our investment would be worth if we liquidated it.

I like mutual funds. Maybe because our investment managers allow us to move between funds with no fees or penalties and we get to do it all tax-free until we actually take procession of the money. We have been very pleased with the results after 20-years of investing in only mutual funds.

Others have equally good results investing in equities, real estate, and I suppose, bonds.

I do think this thread is getting a little more financially technical than is appropriate.
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Old 15-09-2014, 23:47   #78
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Re: How to Finance a One-off Custom Boat?

This thread is getting way off topic.

Please get back to the OP's point, or thread will be closed.
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Old 16-09-2014, 00:20   #79
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Re: How to Finance a One-off Custom Boat?

Excellent points TS and Avb3 - I think by his own admission TS is giving up on the custom and therefor this thread - LOL...
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Old 23-09-2014, 13:43   #80
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Re: How to Finance a One-off Custom Boat?

If your investments are stocks or bonds, your broker should be able to set up a margin account for you and use the stocks and bonds as collateral.
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Old 23-09-2014, 14:28   #81
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Re: How to Finance a One-off Custom Boat?

Collateral, but collateral for a what?

Bear in mind that if the OP gets a boat loan, that can be accepted as a primary home mortgage which makes the interest 100% tax deductible. With any other kind of loan, they lose that. (IIRC there's a specific form the IRS wants to see, showing that the loan is a mortgage loan for a residence, as opposed to a loan for a toy.)
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