Sign in with
Sign up | Sign in
Your question

Investment

Tags:
Last response: in News & Leisure
Share
September 3, 2012 9:12:39 AM

Thinking about investment.

Any advice?

More about : investment

September 3, 2012 12:51:07 PM

There's lots of ways to invest, depending on how much you want to spend and your goals and risk tolerance. For example, my company offers a 401K type plan (earnings are tax-deferred until retirement, at which time you are supposed to be in a lower tax bracket.

You have to be careful about 401K's however - some investment firms who handle them have been in the news lately about the fees they charge, which could amount to as much as $70K or so over a 30 yr career or so.

Many banks like Wells Fargo will give you investment advice as well. Dunno about the minimum investment requirement however - think WF's is $2500. Make sure you get the list of fees charged, as many kinds of investments where they 'actively' manage them are charged around 1-2% per year. If you can join a credit union, their fees are lower typically.

September 4, 2012 1:23:58 PM

What type of investment?

You can do your 401k as stated, you can start an IRA or Roth IRA (I would guess you would go with a Roth at this time).

You could use an online broker like Tradeking, ScottTrade, BoA, eTrade, etc. to purchase individual stocks, mutual funds, etc.

Read up on investing techniques. Then, before you start with your own money, pick a few stocks and watch them. Research, research, research! It will almost become a full time job and can be addicting (or at least should be, it's your money working for you!)

I prefer TradeKing, $5 trades (buy/sell = $10) and the interface is fairly simple to use. Go with companies you know well and you should be safe.
Related resources
September 4, 2012 1:29:17 PM

Yeah ... AMD stock is cheap ... well worth the ride up with Piledriver looking to be a good (but not fantastic) product on the horizon.

I suggest it will bottom out over the next few weeks (buy) then spin up after the product launch.

That would be my tech stock tip.

Regarding Resources FMG stock is cheap now ... the China appetite for Iron ore will improve in the mid term ... buy over the next two weeks ... it will dip a little further as they shed a couple of hundred staff ... then improve as China continues to but.

Iron ore will push through 90 bucks and go up to 115 again ... sell then.
September 4, 2012 3:05:21 PM

IIRC there was a "granny daytrader" club in the news maybe 12 years ago - a bunch of women who instead of sitting around playing bridge or pinochle, invested in various stocks. They got in the news after the club made a million dollars (maybe 10 or 12 women total).

Of course, that was during the dot-com boom when a blind monkey could do well :p .
September 4, 2012 3:38:00 PM

Check out options.

With proper research, a careful eye, and about $2000 seed money, you can consistently make $200-$500 profit per option over a period of 3-7 days.

This method IS NOT about striking it rich or hitting it big, it is about monitoring the weekly stock price fluctuations and leveraging the value of an option to turn a profit in a short amount of time. Buy one 1-month option for +/- $400, the stock goes up 3 dollars in 3-7 days, cash out the option while it is still close to full value, and make $250-$300 profit. Buy more than one option at the same time to multiply your profit.

This method requires daily monitoring, a willingness to take a loss, knowing when NOT to be greedy, and knowing when to cut your losses.
September 4, 2012 5:29:13 PM

fazers_on_stun said:
IIRC there was a "granny daytrader" club in the news maybe 12 years ago - a bunch of women who instead of sitting around playing bridge or pinochle, invested in various stocks. They got in the news after the club made a million dollars (maybe 10 or 12 women total).

Of course, that was during the dot-com boom when a blind monkey could do well :p .


I tried to get into a group like that through a broker. They were against the idea. Long story short, I gave them $1500 to invest for me and I invested $1500 on my own. A year later I had over $11k in my personal account. In the account they managed for me I had around $650.

After that, I decided to keep investing on my own and doing my own research.
September 4, 2012 6:34:24 PM

chunkymonster said:
Check out options.

With proper research, a careful eye, and about $2000 seed money, you can consistently make $200-$500 profit per option over a period of 3-7 days.

This method IS NOT about striking it rich or hitting it big, it is about monitoring the weekly stock price fluctuations and leveraging the value of an option to turn a profit in a short amount of time. Buy one 1-month option for +/- $400, the stock goes up 3 dollars in 3-7 days, cash out the option while it is still close to full value, and make $250-$300 profit. Buy more than one option at the same time to multiply your profit.

This method requires daily monitoring, a willingness to take a loss, knowing when NOT to be greedy, and knowing when to cut your losses.

That is a very volatile risk investment. It does sound too good to be true!

What were you investing? What was your prospectus? Methods?

I understand all investments carry risk; however,did you leverage or hedge your portfolio with other options to counter losses and inflation over time?
riser said:
I tried to get into a group like that through a broker. They were against the idea. Long story short, I gave them $1500 to invest for me and I invested $1500 on my own. A year later I had over $11k in my personal account. In the account they managed for me I had around $650.

After that, I decided to keep investing on my own and doing my own research.

Mutual funds with a very low annual rating should be a great idea. However, check out the fund(s) before investing as there may be a greater risk to your portfolio if their is a failure with in the market.

------------------------------------------------------------------------------------------------------------------------------

I want to start out with a coupel thousand dollars.

My goals are these:

1) Begin a low risk, basic gain in capital increase on stable investments
2) Apply a continual investment strategy to allocate investment capital and reinvest in more stable options
3) Allow interest to gain over time and allocate capital gains
4) Settle many portfolios: One for retirement, one for capital gains for future investments, and one for livable taxable income to live off of or to offset expenditures.

Basically, I want to start out small and continue to grow over the long run in very stable investments.

No day trading, no overnight sensation stock, not trying to be the next Warren Buffet!
September 4, 2012 7:30:51 PM

First, let's define capital gains. This is any gains that you've had for 1 calendar year. If you buy and sell within 1 year of acquiring it, you'll pay income tax on it, not capital gains. What Chunky is suggesting is day trading and will increase your income tax unless you have a significant amount of money to play with and some other criteria is met. You can easily lose as much as you gain. Very risky.

Only invest if you can afford to lose the money to start. Basically, if you need that money for a security blank or a car repair, you're not in a place to invest your money. Moving on from that...

If you're young, go aggressive. There is no reason to not be aggressive if you are under 45. The rule of 72 hasn't applied in the market for years so I would avoid that common thought for now until stability returns to the market - seems to be getting stable but with elections coming up, it will become bumpy.

To review yours:
1) You want a steady growth account. This is generally used for people in retirement.
2) Reinvesting, might as well reinvest in what you're already invested in, periodically change up your investments. Easier done with mutual funds in this case instead of individual stocks.
3) You should look for stocks that pay out dividents instead of banking on interest. Again, interest would be a money market account. If you have a lot of money, sure, 3% is great. If you have $2,000, go with something that pays dividends. You'll make more money quicker than the standard compound interest.
4) I would say at best 2 portfolios. One that you set and forget almost and just watch it grow. Have another portfolio to play with, maybe make a risky bet, or experiment with it. Again, after 45 you should start looking to go from a highly aggressive down to aggressive or semi-aggressive funds.

Realistically, 50-55 is when you want to start focusing your portfolio towards retirement. If you're starting off small, go high risk because the reward far outweighs the risk.
September 4, 2012 7:34:49 PM

What about medium risk...I do not want to wipe out my entire portfolio if a recession hits or the market crashes!

What about bonds and T-bills?
September 4, 2012 8:35:24 PM

Bonds and T-Bills aren't something I would lock my money up in because they can be called in at any time and you take a loss on them.

If the market crashes, you'll still have the shares available for a recovery unless the company goes under completely. That being said, it goes back to my statement of being able to lose that money.
September 5, 2012 1:02:00 AM

On bonds: If there is a recall on them, you get what you collected on per coupon with your initial principle, so you do not lose money, you just get less than what you expected over the last 10 years.

If the market crashes, and doe snot recover...does that mean I am at a loss?

What if I had money in the big banks stock then I took a hit? Will I get my money back.

Remember, the stimulus was not just for bailing banks out...
September 5, 2012 1:15:36 AM

If they recall a bond, you can take a loss. That's a lie that you can't take a loss on them. Dave Ramsey will cover that information. It could be that you're doing good over 9 years, and 9.5 years you're doing bad and losing, they recall.. you're out. They're bad investments overall.

The market not recovering means you have bigger issues to worry about. In the case that it does not recover you will want to be invested in the three Bs: Beans, Bullion, Bullets.

The stimulus hurt the economy as many reports are pointing out. While in theory the thought may have worked, in practice it has failed significantly.
September 5, 2012 2:21:07 AM

Never heard of losing out on a recalled bond, but on default default...yes!

Even a AAA rated bond certifier can default on their IOU. (Hint: Greece)

Even if the market fails, there will be hyper infaltion and not many of us could afford to purchase commodities.

Dave Ramsey does not have gold as part of his portfolio. His reason: It is not the hedging tool many of us think it is. It hold not value against the dollar; in fact, it is a competitive currency against the fiat USD.

Right now, it is over inflated in value and may devalue or crash.
September 5, 2012 6:34:49 AM

I am still a bit worried about ivesting.

I do not want to put in hard earned money and have it wiped out. Let us say I invest 1000 USD in a stock that is valued at 20 dollars per share. What happens if in the next 6 months is goes to 22 then drops over time to 3 dollars per share? I just lost 850 dollars over the year!

I cannot figure out if a sell ceiling and buy floor are good options.

I guess what I am saying is...I am scared of investing. I am asking to collect enough information that I am able to feel more comfortable about placing money in investments. I do not want to lose my shirt because someone played fast and loose with hard earned cash I have allocated.
September 5, 2012 1:25:09 PM

When you invest, you buy shares. Don't look at the dollar value, look at how many shares you have. If you have 100 shares at $10 or 100 shares at $20, either way you have 100 shares. It goes up, it goes down. It will happen.

Fisher doesn't look that good. They're flat, their P/E is high (which is good), but their average daily volume in my opinion is low - meaning it isn't trading much which is why the stock is flat.

They're high being around 50 in the last few years, they're sitting well considering the current condition of the market and economy. I would suspect they have more to lose than to gain though.
September 5, 2012 1:26:17 PM

Put money in you don't need. Put $1000 in and leave it.. don't pull it out. Don't get antsy and sell if it starts dropping.

The buy/sell/call/put stuff is a safety net.
September 5, 2012 2:20:51 PM

Alternatively you can invest in improving your own home ... then selling it and buying another and doing it up ... and so on.

I thought of this ... then the wife spat out four kids and I am screwed.

Pity me and learn ... don't do what I did.

:) 
September 5, 2012 2:29:45 PM

What about us non-stock investors (Or home owners)?

Ive always just dumped up to the matching amount in my 401k. Whats the best type of account to throw a percentage of my pay check into?

September 5, 2012 2:44:26 PM

People think a house is an asset. A house is a liability until you sell it and make money on it. We are the first generation to get screwed with home ownership. Personally, I'm looking at a 50% loss on my house, up from a 75% loss on it. Heck, the bank is taking the loss, not me.

Rental properties will always be worthwhile, especially now that many people can't 'afford' to buy a house. I quote afford because they may have bad credit, laws limiting, etc, while financially able.

International stocks are a bit weaker than US stocks. I invest lightly in some with my 401k and do so-so with it.

A lot of people like Large Cap stocks, I prefer Small. They're riskier and the reward is far better. The loss is generally small.

Dog, for you though. If you're afraid to lose your money, you haven't done your homework yet. Pick a stock, watch it for 3 months, 6 months, and make your predictions. See where you end up, understand why it went up/down/stayed the same. Mutual funds are always recommended but I prefer highly aggressive investing since I'm younger and can afford to take a loss should it happen.

I started off with $1500 investing. I picked up stocks all under $10. Anything under $5 is considered a Penny stock - don't let the name fool you. Anything that drops below $2/share (I think it was $2, maybe $1) falls off the DOW and you're SOL. Keep that in mind. I made a healthy amount off Ford (F), Human Genome Sciences (HGSI), Lazy-Boy (LZB), Delta (forgot the symbol), Citicard (C), and a coulpe others.

High volume means more people are buying/selling so you're safer in my opinion. Low volume means people aren't selling/buying that often so you could be stuck with a loss for a while until someone is buying. Larger stocks, people might be trading half a million shares for $.02 per share. Do the math, you're looking at a health sum of money gained for a small transaction.

Grab a few stocks, watch them. Read about the company, follow their press releases.. it might as well become a second job. When I was investing regularly, I spent about 15-20 hours a week following my companies. I found this little $2.43 per share stock called HGSI. I took a risk on them and bought 500 shares. One day I woke up and the stock went from $2.xx to $14 overnight. A few days later, $18.. I sold. 9x my money, no way was I going to get greedy. Stock went up to $33/share before dropping back down.

First Solar was a solid bet for a while. It was too rich for my blood starting at $22/share, going up to $311/share within a year.

Keep in mind, you'll make more based on buying more shares. If you buy 1 share at $100, or 100 shares at $1, and the price goes up $.01, the share share is worth $100.01, while the 100 shares are worth $101.
September 5, 2012 3:35:27 PM

Bonds are usually always safe dog; or at least very low risk of losing money. Municipal bonds give a pretty good yield with very low risk. I put about 10% of my 401k contribution into bonds, the rest into large cap, aggressive growth blended funds.

Do your research on the bonds. Some bond yields are taxable and some are tax havens.
September 5, 2012 4:08:00 PM

riser said:
If they recall a bond, you can take a loss. That's a lie that you can't take a loss on them. Dave Ramsey will cover that information. It could be that you're doing good over 9 years, and 9.5 years you're doing bad and losing, they recall.. you're out. They're bad investments overall.

The market not recovering means you have bigger issues to worry about. In the case that it does not recover you will want to be invested in the three Bs: Beans, Bullion, Bullets.

The stimulus hurt the economy as many reports are pointing out. While in theory the thought may have worked, in practice it has failed significantly.


?? All the corporate bonds and muni bonds I've bought have been callable at par value - i.e., what I paid for them. If however you sell them before maturity then yes you can take a loss.

I had a couple corporate bonds paying over 7% interest, and both got called on the first call date.

Munis generally pay a lower rate, but then they're federally tax-free..
September 5, 2012 4:13:15 PM

Reynod said:
Alternatively you can invest in improving your own home ... then selling it and buying another and doing it up ... and so on.

I thought of this ... then the wife spat out four kids and I am screwed.

Pity me and learn ... don't do what I did.

:) 


LOL - too bad it's illegal to sell kids :D ...

When I was in college many moons ago, there were some old houses in a formerly upscale portion of Jacksonville, FL that had nice-sized waterfront lots. Many of them were fairly decrepit and available on the cheap. I had the idea of getting some college buddies together and fixing one up, using the proceeds to buy another and fix it up, etc. I was pretty skilled at electrical wiring although I did not have a license (back in those days you could hire an licensed electrician to inspect and then approve the work).

Alas, no funds available for the initial purchase..
September 5, 2012 4:33:44 PM

dogman_1234 said:
I am still a bit worried about ivesting.

I guess what I am saying is...I am scared of investing. I am asking to collect enough information that I am able to feel more comfortable about placing money in investments. I do not want to lose my shirt because someone played fast and loose with hard earned cash I have allocated.


My 401K has several investment options or funds available - one is based on the S&P 500 stock price index, another on 10-year Treasuries, and a third on a bond index. They let me do an interfund transfer twice a month now (used to be daily but the overhead was too high). So I would switch between the 3 based on some research and buy low, sell high :p .. Anyway, I managed to go from about $60K (which is what I had left after my exwife got half of it) in 2007 to about $215K today. Not great considering I pump in $1K a month, but not bad either.

Traditionally the bond fund would be the inverse of the stock fund, but that is not so true nowadays. Anyway, I try to pay attention to the news, particularly potential conflicts like Israel going after Iran's nuke facilities which could shut off a portion of the world's oil supply for a while as Iran tries to sink the tankers & blow up the storage/pumping facilities within reach of its missiles. I doubt it would last long or have that great an effect, but you can bet stock markets worldwide would tank dramatically for maybe a week or two after such an event. That would be a good time to buy, just before the upswing :) . So my strategy would be to shift everything to the T-Bills fund, wait a week or so until Iran's missile capability is degraded, then shift back into the S&P500 fund.

However you also have to monitor economic news around the world, particularly the EU and China, as both of those seem to weigh heavily on the markets.

Nothing is perfect or guaranteed but this is a far safer strategy than day-trading, plus since I eat lunch at my desk mainly it relieves the tedium :D ..
September 5, 2012 5:38:09 PM

On bonds they can call them in early. Say you're supposed to get X amount. If it benefits them to call them in early, you can lose money. You expect X amount, you get Y amount instead.
September 5, 2012 11:21:34 PM

dogman_1234 said:
thanks for the information guys. Here is what I have been traking the last three months:

http://www.google.com/finance?client=ob&q=NYSE:AMD
http://www.google.com/finance?client=ob&q=NYSE:BA
http://www.google.com/finance?q=NYSE%3ATXN

I know they are just three...but better than none.

Even with the bad news about AMD, I still think that they will come back here in 2013.



Make sure you track everything you can within the company. Did they just fire the VP marketing, or are they laying off lots of employees, etc. How the company performs in the market in general is far more important than a rising or falling stock price.
September 6, 2012 12:08:09 AM

Understood.
September 6, 2012 12:42:01 AM

Hmm I don't like any of those stocks. I'd avoid.. but keep an eye on them as market indicators. I would avoid tech since no new advancements are really coming around right now because of the economy. Medical is the place to be still.
September 6, 2012 3:19:02 AM

Invest in the future of humanity.
Donate to charity organisation of your choice.
September 6, 2012 3:04:55 PM

Pyree said:
Invest in the future of humanity.
Donate to charity organisation of your choice.


Die liberal scum! :) 

Did you watch Bill Clinton's Address last night? How investing in sciences, technology, and removing ignorance and all that jazz would make everyone richer. I was like.. yeah.. but then I started thinking as I often do.

Did he mean if we invested in more of that stuff, more of that money being made could be redistributed? Or that all those people who are working would ultimately help those who weren't working have a better life?

He said the work of others would make life better for everyone. Wait a minute.. the message on the surface I could rally around. The intention of that mention makes me take pause and think about that. I have to work my butt off to make meager gains in my life, but others who aren't working will have leaps and bounds better lifestyle? I'm not selfish.. yet that doesn't seem like a quality incentive. I'm working harder and getting less in return, while those not working harder are getting more in return? Hmm.

Is that that really a hidden message in the Left's agenda?
September 6, 2012 3:46:07 PM

It's not hidden at all. That is exactly the lefts agenda. Have as many people as possible on public assistance so they will be voted into office forever.

When more than half the population begin voting themselves bread and circuses, it is the beginning of the end. Atlas shrugged baby!
September 6, 2012 8:03:02 PM

^ Hmm, that's the same philosophy my wife's family uses - a few have to work and the rest sponge off them :p ..
September 6, 2012 10:35:42 PM

Okay, enough about politics.

I am curious on each and everyone of your portfolios. What do you carry?
September 7, 2012 12:03:40 AM

^ Well I already gave you my 401k magic tricks, which is pretty conservative and not risky :) .

As for the other investments, a mix of corporate bonds, mutual funds and a annuity. Or did you want specific names of the funds? Somehow I think these would be too conservative for you as you are starting your career.
September 7, 2012 1:03:17 AM

Why are you insisting that I am or should be an aggressive investor? I do not want to lose my shorts in the market!

I like 401(k)'s, but also Roth IRA's as well.

I think short term T-bills in the mix would be good as well, may even compliment mutual funds.

If I am not mistaken, stocks and bonds follow inversely to a degree of each other.

May have to talk to a financial adviser...if I have the money that is...
September 7, 2012 1:24:35 AM

dogman_1234 said:
Why are you insisting that I am or should be an aggressive investor? I do not want to lose my shorts in the market!

I like 401(k)'s, but also Roth IRA's as well.

I think short term T-bills in the mix would be good as well, may even compliment mutual funds.

If I am not mistaken, stocks and bonds follow inversely to a degree of each other.

May have to talk to a financial adviser...if I have the money that is...


Dog, there's a middle ground between aggressive and conservative. I meant that at your career stage, you can afford to take a bit more risk than somebody mid- or late-career. IOW, you have plenty of time to correct for bad investments. But investing is inherently risky - you can buy the safest one you can think of, and still have it turn out sour.

Take housing. Please! :p  When I bought my last house in 2007, the market was still decent although I got a pretty good deal from the builder - about $80K of upgrades for free (actual cost to builder probably less than half that). But one year later the house was worth maybe $200K less than what I paid for it, upgrades notwithstanding. Nobody that I knew, living or dead, had ever been through a declining real estate market. I had always heard that real estate was a safe & sound investment - while it may not go up for a stretch of years, it never declined and there were times when it would grow dramatically in value. If I had known then what I know now, I would have stayed in my smaller house and bought the new house a year later for far cheaper.

I failed to mention or distinguish that a number of these super-conservative investments - i.e., the annuity - are for my family trusts for which I am the trustee. My personal investments are more middle-of-the-road.

Anyway, my advice is to never think you're too small to be important to a bank or investment firm. If you have the attitude that you're going to be rich and successful one day, then you probably will. It's the complacent and lazy folks who are fairly stagnant as far as accumulating wealth goes, or those who spend every dime they earn immediately. You are already starting out on the right foot so to speak, by thinking of the future and asking advice.
September 7, 2012 1:59:03 AM

So...the only stupid question is the one not asked?
September 10, 2012 12:39:39 PM

If you're buying young, go aggressive and let the money sit. You will tend to be antsy and want to buy/sell, but that's not the goal. This is money you're putting away for a later date.

By being aggressive it means you take a slightly higher risk, but you also take a large profit. If you go with something that is growth oriented, you might just get dividends or something small. If you don't have a lot of money, go big. If you do, you can afford to go with a growth.

If you buy 100 shares at $100 and it drops to $10, you still have 100 shares. It can go up, it can go down. Watch the market and get an idea of what the indicators are for your market.

I have everything highly aggressive. When I used a stock broker, the told me to expect about 7% a year. I pulled my last quarter's 401k that I hand selected myself after about 15 hours of research. In a single quarter I had pulled an unheard of 77% gain. I had like $16,000 in my 401k and 3 months later I had over $30k. They were amazed and obviously didn't beleive me.

Find, watch, invest.

Ford and Lazy boy are good investments. Anderson's (bio fuels, midwest supply company) is good but pricey.

For you, I'd stick to stocks under $10 so you can buy enough shares. It doesn't matter how much you invest if you don't have enough shares.

My 401k looks at a lot of small cap stocks, equitity holding firms, and highly aggressive funds. I avoid bonds and the money market since the pay out is low for the risk invested.
September 10, 2012 12:40:08 PM

Post up some stocks you're watching.. let's see what they look like and see if we can figure out where they're going.
September 11, 2012 2:08:32 PM

The only two worth looking at, in my opinion, are Texas Instruments and Intel. Though I have reservations about both.

Tell me why you are interested in these stocks?

Also, how much do you plan on investing? I think you had mentioned $1000 to start?
September 11, 2012 3:28:41 PM

500.

I chose theses stock because they are well known, (some are blue chip), companies. Certain ones like TXN and INTC are part of the semiconductor group of which I am a fan of.

Others, like the telecom, are more 'local' businesses if I may say.
Oil seems to be good, just a thought.
No way in hell am I investing in NASDAQ:FB !
September 11, 2012 6:36:45 PM

$500 won't buy you much when you're looking at $50 a share stocks. You get 10 shares, it goes up a dollar to $51. You now have $510.

If you bought a stock at $10, you'd have 50 shares. If it went up a smaller amount, you'd make more money. What you're looking to do is buy low and sell high. Intel is around 80% of their high.. not a good deal in my opinion if you're looking at market indicators.
On top of that, Intel really is stuck with their position. They'll be flat. The CPU market is kind of dead since heat is the biggest limiting factor in a CPU. Personally, the problem with investing in things where you have a bias is that you really blind yourself to reality. Reality is Intel isn't going to come out with any crazy life altering items that revolution the world and increase their stock.

AMD is the same way.

Boeing is a bad choice because prior to the elections coming up, mandatory military spending cuts go into effect days before the election. This means a lot of layoffs and they'll likely get hurt or stay flat. You won't see much of a profit there.

I would be look at local companies more than national companies. Oil.. look at oil based products. Cooper Tires for example. Plexiglass companies, etc.

The auto industry is iffy, so avoid anything that goes that route. Construction is slow, avoid that area. Medical is always good because there is consistent investment and money to be made there.

Find a company that produces something people want and they have to keep coming back for more and you'll find yourself a gold mine.

I know I discount auto industries, but Ford is still going strong and I think a good long term deal. Symbol is F.

Get on something that shows you stats.. for ease, Yahoo Finance. Look at the day's range, look at the year's high/low, etc. Plus the indicator of where the year is to end.
September 11, 2012 8:10:07 PM

Not much to invest into I see.

You mentioned Pharma and Auto. I would think that they would be down since the last 4 years have been a rough ride for them.

Should I talk to a financial adviser to see what they recommend and what is available for me and my potential portfolio? I would think they have tools that you and I do not have.

I have to look at Yahoo Finance.

What about mutual funds?
September 11, 2012 8:28:14 PM

Sign up for an account at something like TradeKing. It's free and they have the same tools the financial advisors have. A FA will want you to put your money into a mutual fund that they recommend. They get a monthly kickback for getting you to put your money into an account. For $500, they might be $0.50 a month, but you get 200 people doing that it can start to add up. Generally, those funds will decrease value as more and more investors put money in... they're mainly the FA wealthy, not you since you're a small account. If you have $20,000 to invest, they'd actually work for you because you'd actually make money and they'd get some of it.

I would really recommend buying a book and learning it on your own. You'll learn much more and know what you're doing. Meet with an FA, they'll talk about 7% yearly returns and the rule of 72 and all that. They will recommend you pay off all debt before investing any money and they'll do a budget for you and want you to make monthly contributions. This is them making money off you.

Mutual funds are collections of stocks that someone manages. They're actually the best to way invest when you don't have a lot of money. Someone else watches the stock for you and reinvests as needed. It is the simplest form of investing and if you're worried about losing money, I would definately say pick a mutual fund of your own, not one recommended by an FA.

Pharm is up actually. Everyone is on a pill these days, everyone has some condition that needs treated, etc. Auto I would avoid, but tossing in some money into Ford and letting it ride for years might be a nice pay off. Ford used to sit around $40-$50 a share, picking it up at $10 is a steal.
September 12, 2012 2:37:30 AM

Okay, so a FA would not be a good idea if that is what you are saying. Concerning the FA, how can you tell if they are ethically and financially 'good' and 'bad'? Meaning at their job and how honest they are with customers? Would a CFP change anything?

Another thing: How would I go about searching for a Mutual Find that at least hedges against inflation annually, ( about 3% per annum)?

Would you recommend anything in your portfolio to a new potential investor?
September 12, 2012 8:19:13 PM

I'd go with a CFP over a FA. Get someone who is paid to do it, not someone who makes money off you. If you don't have a lot of money, they'll invest your money in a way that benefits them. If you had a lot, they gain more by you making more. This is a blanket statement and doesn't apply across the board. There are good ones out there.. figuring them out though is the issue.

I think you're too worried about losing money. You should focus on making it, not losing it. Your standard return will beat out inflation.. that's the beauty of it. Some years you might be bad, but the general return is higher than inflation...granted, inflation is going up pretty quick. Look at mutual funds and see where they are compared to where they were a month/3 months/ 6 months/a year ago. It's tough because the market fell apart and is still rebounding so the last few years is hard to read.

Honestly, I can't recommend much. I pulled my money out of the market. I'm not trusting it with everything going on in Europe, with China/Russia.. not that money will matter much if things do fall apart. People with far more knowledge of the market are still investing.. me, I don't have the time right now to research everything so I'm holding off. If I find a little gem, you bet I'll jump on it.. but until then I'm working on paying off some debt.
!