Investing

[BassCat73]

Okay, so I'm an art, build-it, design-it type guy. Money is not my strong suit. I have a little money. I like money. And I'd like to have a little bit more. <br /><br />Right now, the only thing I have other than a money market aco****, is 401k. I would like to look into investing in the stock market. I'm not sure if I'm using the right terminology, but I'm think about using an investment firm like TD Waterhouse or Fidelity. I'm timid about doing this because of the risk factor and also just not being well-educated in this area. I'm even sure what questions to ask here, so if anyone has any advice, recommendations, etc. I'd appreciate hearing your thoughts.

 

[roscoe]

Re: Investing

No-load mutual funds are what you want to look into, research, and start with.<br />No-load means no up front fees.<br />Look for mutual funds with very small administrative fee %, under 1% for sure.<br />Mutual funds buy a bunch of stocks, which lessens the blow if any one stock in the group should go down.<br /><br />Nicholas funds have been good to us over the last 25 years.<br />Templeton World Funds. too.<br />Lots of internet reading for you to do.

 

[Bob in Calif.]

Re: Investing

B-C 73<br /><br />I have a small portfolio of muni bonds, that are tax free both federal and state. These are nice, as I get an interest check every month. I get to smile once a month when the $$$ are deposited in to my bank account.<br /><br />The interest rates are quite good also. I am earning 4.5% to 6.45% on several different muni bonds and they are very safe. <br /><br />...Bob in Calif...

 

[JB]

Re: Investing

All investing involves some risk and some potential payoff.<br /><br />What do you want your money to do? Growing involves some risk of shrinking. Protected capital investment involves lower returns. Liquid investments are vulnerable to market movement. Real estate is not instantly convertible to cash and includes some risk of shrinkage. And so on.<br /><br />Amatuers lose their butts trying to outguess the market. Use a professional financial advisor in a reputable firm.<br /><br />All of my family use Hilliard Lyons. My advisor is Greg Cook in their Greenville, SC office. He has done well by me since I turned over my troubled portfolio to him. Check him out at 877-467-0007.

 

[dtherrien]

Re: Investing

Basscat....realestate is your best investment.Like you i am no investor....but i am a builder.With money...the right area at the right time...will give you the most gain.

 

[JB]

Re: Investing

As far as long term capital gains go, I agree with dtherrien.<br /><br />In 16 years The Hideout has appreciated about 700%.<br /><br />The right piece of bare land, in the right place at the right time is pretty hard to beat.

 

[snapperbait]

Re: Investing

I'm with Bob in Calif...... Slow and steady's the way to go....

 

[KRS]

Re: Investing

I would go to your local bank, open a ROTH IRA money market or a CD if you have $2,000 or so to start. The risk is almost 0, the rate of return is small (probably 2.5% today), but it is a place to start. The ROTH IRA will let you add taxed dollars (take-home pay), and it grows tax free; meaning when you use it after you turn 59 1/2, you take out the original principle and all of it's earnings without paying any income tax.<br /><br />Don't get into the stock market until you have a little more money and more investment education.<br /><br />Diversity is the key to success, and your current portfolio of money market and 401K needs a Roth IRA (in my opinion) and some market investments in the future.<br /><br />Good luck.

 

[--GQ--]

Re: Investing

Basscat here is my "two cents", stocks, IRA and all the like are nothing more than a saving account with a slightly higher interest rate with "risk factors" attached to it. By the time you get to enjoy your earnings, eliminating the "risk" factors, you will be too old. If you have a bit of money and have a steady job, i would go the real estate route. <br /><br />Here is my deal: I bought a duplex from my sister 5 years ago for $250,000. Now it's worth $620,000. That $370,000 in 5 years. I don't thing any mutual funs can grow that fast within that amount of time. About a year ago i did a refi. and used it for a down payment on another house. With the left over, you guessed it, bought a few toys. <br /><br /><br /> The point here is you want to maximize your potiential earnings in the least amount of time at "No risks, no Lost" investment with the money you have now. Waiting till retirement for your investment to mature is fruitless since you will no longer have a need for fun (at least in my case). Social security will be all that you need.......<br /><br />Again this is only my experience, my opinion

 

[treedancer]

Re: Investing

Go to the Vanguard website and the morningstar sight .NO LOAD FUNDS.

 

[Kiwi Phil]

Re: Investing

Here is my take on it Basscat.<br />When passing comment on investments, there are many variables to each individual making advice difficult.<br />The best investment you will ever make is free-holding the home you live in. The sooner you do that, the sooner you will become richer and independant.<br />When you do become freehold, you will accumulate more money faster than you have ever done.<br />If you are investing money before you freehold, them in my humble opinion, you ain't the sharpest sword in the........<br />If you have already done that, then I have found fixed term bank deposits are only fractionally behind good blue chip shares. Mutual Funds are not even in the same class.We have all 3. Started them at about same time (11yrs back). Fortunately we only put wifes 'locked in' Superannuation funds in to Mutual Funds/Funds managed outfit. Poor performers.<br />Another belief of mine.<br />The Richest man in the street is the man who is freehold.<br />Cheers<br />Phillip

 

[f_inscreenname]

Re: Investing

Goverment and corporate bonds. If you go corp pick a big solid company. No risk and 4 1/2 to 6%.

 

[rogerwa]

Re: Investing

I'm with JB. Get an Advisor. Meet with a few of them and see how you mesh. I had an advisor when I was first married and he really didn't do it for me. He pitch proprietary products and was never really into me as a small investor at the time. I have a new advisor now and she is fantastic. I thought I was reasonably smart with my money, but in an hour I was quite humbled.<br /><br />I don't think there is any quick buck in the market without getting fleeced or very lucky if you don't know what you are doing. An advisor should help you meet your goals with a balanced approach that is tailored to your risk profile.<br /><br />My advisor is with Ameriprise, which was recently spun off from American Express. <br /><br />If you do seek an advisor, ensure the firm specializes in advice. Firms that offer advice as side business to promote their insurance or other products will not be as beneficial.

 

[mattttt25]

Re: Investing

1. don't get your investment advice from a web forum.<br />2. don't get your investment advice from a friend or family member (unless this is their actual profession).<br /><br />my recommendation....start saving. put away as much money as possible. while you are doing this, start learning. buy every book you can on investing and read every one. take classes. do your homework, and then start making some decisions.<br /><br />too many people jump in to a few vehicles and don't learn enough about them. they waste years (and money) before they realise they know very little and this lack of knowledge has hurt them.<br /><br />good luck-

 

[mattttt25]

Re: Investing

btw, a good first investment is the purchase and several readings of the book, "rich dad, poor dad."

 

[BassCat73]

Re: Investing

Actually, getting some advice on this forum is helpful because it generates several ideas and I'll research most of them. <br /><br />Obviously, there's a lot of ideas out there. Somewhat overwhelming, but it's lighting a fire under my butt to start working on it.<br /><br />Thanks for the advice!

 

[KRS]

Re: Investing

Forbes magazine, worth the $35 annual price.

 

[Fly Rod]

Re: Investing

OK here is my 2 cents worth, if it is worth anything!!!<br /><br />1st: Educate yourself a little about investing by reading a book or two, about terminology etc:. That financial advisor is going to make money off of you regardless of your ups & downs!!!<br /><br />2nd: Be leary of any financial advisor that is going to manage your monetary affairs, some of them are no better at it then you or I!!!<br /><br />3nd: Stay away from a one man company that only has a secretary and when you call, it takes a day or two for them to get back in touch or they are on vacation or playing golf!!!!<br /><br />4th: Buying investment property!!! 2 family homes are not investment property!! 3 or more families are, if you get them at the right price!!! Still have to do your home work to see if the figures work for a perticular property!!! Normally a 3 family works like this: the 1st two apartments wil pay your expenses and you make your money on the 3rd!!!!<br /><br />GOOD LUCK!!!!

 

[--GQ--]

Re: Investing

Originally posted by Fly Rod:<br /> OK here is my 2 cents worth, if it is worth anything!!!<br /><br />4th: Buying investment property!!! 2 family homes are not investment property!! 3 or more families are, if you get them at the right price!!! Still have to do your home work to see if the figures work for a perticular property!!! Normally a 3 family works like this: the 1st two apartments wil pay your expenses and you make your money on the 3rd!!!!<br /><br />GOOD LUCK!!!!

On the contrary FLY ROD if you ever in the Los Angeles area, drop a post and i'll be happy to show you my properties(on second thought, nevermind thats a little creepy). Wether ur buying a duplex, a triplex....or a 10 units apartment makes no difference if your mortgage is less than the rent you collect. Essentially you and the bank are business partners. Every mortgage payment is split between you and the bank. The more the units you own, the bigger your share (then again if we can afford a 50 units building, would we be here talking)? There isn't a set standard on how many properties you must have to earn a profit. I got lucky sort of speak because of the war in Iraqo/low interest rates sky rocked the real estate values specially in S. calfornia. The first couple of years may be tough, but after that smooth sailing all the way. You can't go wrong investing in real estate (conventional loan). It will yield you more $$$ than any stocks/bonds/junks in any length of time. <br /><br />This is not my opinion, its my experience. If you can elaborate further on your comment would be great. A mind is never full. I'm here to learn.

 

[JasonB]

Re: Investing

Agree with most of the above.<br /><br />I will add though, don't forget the littl;e things as well. Have a mortgage? Probably 4-8% interest? if so, I look at paying your home down/off as a guaranteed rate of return. Not only does it save you 6% a year, you get the joy of a paid for home. <br /><br />Check out Dave Ramsey's books/course (www.daveramsey.com). My wife and believe in the principle so much, we facilitaed the FPU course at our church a while back.<br /><br />Slow and steady is the way to go, but maximizing what you can save/invest may surprise you.