Blackrock?

Discussion in 'Investing' started by Jason Pearson, Feb 10, 2021.

  1. Jason Pearson

    Jason Pearson New Member

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    Hi everyone,
    I'm pretty new to all this...but have managed to be pretty good at saving money and have a savings account that's built up over the years. I switched banks a few years ago so my CD's I take out would have a higher interest rate. Now and then, the bank reaches out to me about investing, with the most recent being a BlackRock 'Target Allocation model'. Essentially, you choose which type you want... 80/20, 90/10, etc... which determines the rate of risk, with a 0/100 model being the least risky.

    I've went over everything, and it seems like a good idea...* should * draw in more interest than a CD, even at the lowest risk plan... including the 1% free my bank charges (at least I believe they said 1%). As I am only in my mid 30's, it seems like it would be a good way to go long term as the CD rates have went down drastically over the last year or so. I guess what I'm wondering is there anything I'm overlooking? There seems to be little risk (at least with the lower risk models) in that I can pull the account at any time... but just seems "too easy" to me...
     
  2. TomB16

    TomB16 Well-Known Member

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    I'm not familiar with these Blackrock funds but I wish to point out that portfolio balancing is a philosophy that many people believe in while some do not. Personally, I do not balance my portfolio.

    “Selling your winners and holding your losers is like cutting the flowers and watering the weeds.” - Peter Lynch

    So, these ETFs are probably OK but I am extremely sceptical they would perform as well as holding $10,000 of bonds or high interest savings and the rest in VOO without ever balancing. The bonds being a fire extinguisher for anyone under 50 years of age. For people near retirement, the cash should go up to provide a buffer in case of a market down turn when the money is needed.
     
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  3. Rustic1

    Rustic1 Well-Known Member

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    I do my own but recently liquidated.
    Blackrock has some good funds but I preferred the CEFs, most paid monthly dividends.
    DSU was a decent one.

    GLADSTONE has a couple decent ones also.

    Any type of investments carry a degree of risk.
     
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  4. TomB16

    TomB16 Well-Known Member

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    Not to mention the relatively high MER of managed funds.
     
  5. T0rm3nted

    T0rm3nted Moderator
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    If I was going to be invested in an ETF, it would be in Queen Cathie. In ARKK we trust
     
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  6. Jason Pearson

    Jason Pearson New Member

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    hmmmm. Thank you everyone. I'm so new to this. Just trying to find a good starting place!
     
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