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Discussion in 'The Okie Corral' started by Zonny, Apr 9, 2010.
If you had $1000.00 per month available for investment, where would you put it?
How long of an investment? a year, a couple of years, long term?
CD or a Mutual Fund from a FDIC insured bank.
Do you have a 401k? Are you maxxing it out?
Not eligible with new employer for 1 year.
They won't even let you put money in? A lot of them will, but just won't match for a year.
Are you saying you have that amount extra per month and are looking for ways to invest it?
If so, feel free to invest it into my savings account. It has a negative 100% return rate garunteed!
Kidding aside, I'd like similar advice on investing.
It was the same for me, I wasn't eligible at all for a year, at least that I know of.
Max IRA. If this is something you want in the next 5 or so years I might stick it in a bond fund or three, possibly split it between bond funds and some sort of insured savings (CD, savings account, whatever).
If more than than 5 or 10 years and I got all bills paid, etc., I would try to match this chart for Tax Managed Vanguard equity funds:
It's all about the risk factor, too many people can't stand the thought of losing money and therefore can't sleep.
There are low fee mutual funds for investing in stocks and bonds and there are funds that follow the major indexes.
Remember, most people panic and buy high and sell low, if you can't handle it put your money in a bank or under the mattress.
two glocks per month.
gov't isn't making them worthless like they are US$...in fact, gov't behavior make make the glocks invaluable.
Investing is determinate of many factors but the primary consideration must always be risk aversion level. This is not based on one's subjective aversion to losing the corpus but rather the realistic time frame before capital must be withdrawn.
As an example, a thirty year old has a roughly thirty-five year investment window before withdrawing funds for retirement. This time frame allows for a higher percentage of potentially higher yielding, higher risk investments such as equities where capital gain is the goal as opposed to dividend yield. The longer time frame allows for the advantage of cost averaging investment corpus as well as a broader diversity of investment vehicles. Should there be a major correction in the market, (which there will be), the time frame allows paper losses to recover as well as the advantage of continuing to cost average at a lower price.
An investor in the fifty year old bracket has but a fifteen year investment horizon and is therefore at a higher risk aversion level. Capital gain, although still an obvious goal must be tempered with more conservative investment vehicles that are not as adverse to sudden market downturns.
An investor who is near, or at retirement age has the highest risk aversion level and must be concerned with corpus protection and is usually geared more toward income producing dividend investments.
Think of it as a pyramid, the younger an investor is the closer they are to the base of the pyramid... the broader the foundation the more weight of risk it can withstand. The higher the age the closer to the top of the pyramid and the more balanced the investment must become.
Qualified plans, if one is eligible to enroll are a very bid part of an investment plan since most now conform with rule 404(c) thereby offering at least four investment choices plus a safe harbor but also offer tax deferral. Plans differ greatly depending on their documentation, number of participants in the plan and key employees means testing. A plan with matching contributions, (up to a certain percentage allowed by IRS regulations) is certainly a vehicle worth investing. Different places of employment have different vesting schedules.
Before your question can be answered you, and you alone must truthfully decide on what your investment time frame will be and where you fall on the investment pyramid. (Most people lie to themselves... that's just the way it is.) Everyone wants to double their money every month with absolutely no risk... unless you're a hooker in Nevada where it's legal that kind of return is a fairy tale. There is always risk. U.S. paper is backed by the 'full faith and credit' of the U'S' Government... look how well that's working out.
Your best bet is to spend an hour or two with a financial advisor from a major investment house... better yet, two or three. There is no consultation fee involved and you will come away with a much better understanding of what your actual needs and goals are and how to achieve those goals.
(If you decide to place your investment through a major wire house don't invest in their proprietary products, the broker makes a much higher commission and the investments normally don't perform as well as standalone products.
There's a lot to learn if you want to do it right but it by no means overwhelming.
In land or CD's at the local bank.
Exactly where I do - into my house. (upgrades, repairs)
Save up $3000-$5000
Then move it into a CD
Repeat as much as you can afford
Invest in any no-load Balanced mutual fund. I. E. Vanguard Wellington
Anything leftover, quality Smith and Wesson revolvers.
Me, I'd stay away from traditional 401k plans. In most cases, you have to wait a long time before you're vested, but the biggest weakness is that employer-based plans have very limited choice of investment vehicles.
I prefer the Roth IRA. One may choose any investment or combination, the gain (not the capital) accumulates tax free ... for now.
I have little faith in professional investment folk. They will mostly sell you whatever makes them the largest commission. You do not have to pay a load and fees to get a good return from a mutual fund. If you aren't going to put some work into your investments, there are plenty of folk more than willing to take your money and put it in their pocket.
If you must consult, try your bank. The service should be free.
Good luck, ma'am.
Roth Ira to the limit.
Treasury Bonds Series EE. You can purchase them at half price. So after a year you could sell a $2000 bond you purchased for $1000.