Questions about Investing... - Page 2 - U2 Feedback

Go Back   U2 Feedback > Lypton Village > Free Your Mind > Free Your Mind Archive
Click Here to Login
 
 
Thread Tools Search this Thread Display Modes
 
Old 05-01-2006, 01:22 AM   #16
ONE
love, blood, life
 
Join Date: May 2002
Location: Tempe, Az USA
Posts: 12,856
Local Time: 01:41 AM
Quote:
Originally posted by Dreadsox
You could day trade like me...hehe....my .92 Cent Gold Stock from three years ago is now a $36.00 Stock.....
its all gw's fault
__________________

__________________
diamond is offline  
Old 05-01-2006, 07:48 AM   #17
Blue Crack Addict
 
Join Date: May 2001
Location: gone
Posts: 17,891
Local Time: 03:41 AM
It may not be sexy, but an index fund is the way to go

Quote:
Buy an Index Fund

Remember the overview to this step? Here's a reminder: "Buy an index fund."

Stock index funds seek to match the returns of a specified stock benchmark or index. An index fund simply seeks to match "the market" by buying representative amounts of each stock in the index, rather than paying a manager to make bets on individual stocks, sectors, or investment strategies. Index funds do not even attempt to beat the equities market, they simply seek to come as close as possible to equaling it. The key to the unquestioned superiority of index funds is their extremely low expenses - they charge very low fees for providing the market's returns.

Sound simple? Sound like aiming too low? It isn't. Almost all actively managed equity mutual funds over time lose to the market averages. And those funds that do beat the market's return typically do so for only a very short period of time, and then quickly reverse course.

The largest and most well-known index fund is the very first index fund, the Vanguard S&P 500 Index Fund. This fund, started by the Vanguard Group, nearly matches the returns of the Standard & Poor's 500 Index, and over the last ten years it has beaten the performance of over 90% of all mutual funds. Many other mutual fund companies now offer S&P 500 index funds.
It's simple, it's smart and it's everything you want. It's completely diversified and you definitely want to set it up where you automatically put some money in it every month.

This should be the foundation of anyones investing portfolio. I have a few investing books and this is pretty much chapter one of every one of them.
__________________

__________________
Chizip is offline  
Old 05-01-2006, 07:58 AM   #18
ONE
love, blood, life
 
melon's Avatar
 
Join Date: Oct 2000
Location: Toronto, Ontario
Posts: 11,781
Local Time: 03:41 AM
Quote:
Originally posted by Dreadsox
You could day trade like me...hehe....my .92 Cent Gold Stock from three years ago is now a $36.00 Stock.....
I've thought of playing that game. But I certainly wouldn't consider this a long-term investment strategy; more like a visit to the casino. In other words, whatever I'd set aside for day trading, I'd be prepared to completely lose.

So...where/how do you do that?

Melon
__________________
melon is offline  
Old 05-01-2006, 08:16 AM   #19
Rock n' Roll Doggie
ALL ACCESS
 
hiphop's Avatar
 
Join Date: Apr 2001
Location: in the jungle
Posts: 7,410
Local Time: 10:41 AM
s. from california told me that he had just lost half a million in a day. at the time of the dotcom crash. so i´ll just say.. take care. i´d prefer real estate.
__________________
hiphop is offline  
Old 05-01-2006, 08:22 AM   #20
ONE
love, blood, life
 
melon's Avatar
 
Join Date: Oct 2000
Location: Toronto, Ontario
Posts: 11,781
Local Time: 03:41 AM
Quote:
Originally posted by whenhiphopdrovethebigcars
s. from california told me that he had just lost half a million in a day. at the time of the dotcom crash. so i´ll just say.. take care. i´d prefer real estate.
Well, that's it. I'd never put down any substantial amount of money, and if it required substantial amounts of money to even get into the game, I'd have to decline even starting.

Real estate doesn't look all that desirable these days. It's quite expensive.

But back to the index funds, I've read about those. That's probably the first step I should take beyond the 401K.

Well, I've been thinking out loud in this thread. Thanks everyone for their contributions so far.

Melon
__________________
melon is offline  
Old 05-01-2006, 09:43 AM   #21
Blue Crack Addict
 
nbcrusader's Avatar
 
Join Date: Aug 2002
Location: Southern California
Posts: 22,071
Local Time: 12:41 AM
In the long run, real estate is the better investment. But Melon is correct, the prices are too high at the moment.

Have you maxed out your 401K investments? Also, does your employer offer other savings vehicles?

It sounds like you are on the right track in terms of mutual fund research. Also get personal references for investment managers used by others at your company.
__________________
nbcrusader is offline  
Old 05-01-2006, 07:42 PM   #22
Refugee
 
AliEnvy's Avatar
 
Join Date: Jan 2001
Location: Toronto, Canada
Posts: 2,320
Local Time: 08:41 AM
Quote:
Originally posted by melon
Do you know what the fee normally runs? And if I didn't pay for financial advice in this route, what route would you suggest for the most sound and unbiased advice?
No idea since I've never been in a position to pay lol. I imagine like most professionals (i.e. lawyers or accountants), there would be an hourly fee that could range from $200-350 or maybe they have a set price for a specified financial "package" - setting up a realistic budget and savings plan etc.

Doing your own research is probably the most sound and unbiased advice you're going to get and you're doing great so far!

Quote:
Originally posted by melon

Good point. But what's considered "average" in terms of management fees?
Been a while since I've paid close attention but averages depend on the type of fund (equity vs bond etc)....but generally anywhere from 0.5% - 3.25% of the volume of a fund in a given year comes directly off the bottom line as management fees of any reported gains.
__________________
AliEnvy is offline  
Old 05-01-2006, 07:50 PM   #23
Refugee
 
Bluer White's Avatar
 
Join Date: Jul 2005
Location: Maine
Posts: 1,882
Local Time: 03:41 AM
Management fees........shoot for less than 1% for an actively-managed domestic stock fund. For an index fund, less than one quarter of one percent. Indexing may not be sexy but is probably the best way to start.
__________________
Bluer White is offline  
Old 05-01-2006, 07:54 PM   #24
Refugee
 
AliEnvy's Avatar
 
Join Date: Jan 2001
Location: Toronto, Canada
Posts: 2,320
Local Time: 08:41 AM
Quote:
Originally posted by melon

But back to the index funds, I've read about those. That's probably the first step I should take beyond the 401K.
Normally I'd say that's a good idea but I think the S&P 500 is as overheated as real estate at the moment and headed for a loooong bear cycle.
__________________
AliEnvy is offline  
Old 05-01-2006, 08:15 PM   #25
ONE
love, blood, life
 
melon's Avatar
 
Join Date: Oct 2000
Location: Toronto, Ontario
Posts: 11,781
Local Time: 03:41 AM
Well, it looks like the main thing I have taken from this is that I should probably do plenty of my own research and become very acquainted with the markets first.

Thankfully, I'm not an idiot when it comes to the current market/political climate, but I'm not as fluent as I'd like to be.

On that note, are there any publications/books that anyone would suggest? "Publications," for me, also includes magazines and newspapers. There's an awful lot out there, particularly in terms of books, and just perusing through Amazon.com, there's also a lot of bad advice out there. Any suggestions would be appreciated.

The good news about all of this is that I feel like I have more of a grip on where I should go from here. Much thanks!

Melon
__________________
melon is offline  
Old 05-01-2006, 10:06 PM   #26
Rock n' Roll Doggie
Band-aid
 
ntalwar's Avatar
 
Join Date: Feb 2004
Posts: 4,900
Local Time: 03:41 AM
Quote:
Originally posted by melon

On that note, are there any publications/books that anyone would suggest? "Publications," for me, also includes magazines and newspapers. Melon
Yeah - like you said there's an overload of information out there. The Wall Street Journal, Investor's Business Daily, Businessweek, Forbes, Fortune, etc. The list goes on and on.

Eventually you might also want to take a look into exchange-traded funds (ETS) such as ishares - www.ishares.com. These are basically funds traded like stocks, and offer a lot of variety - overseas markets as well as domestic, etc.
__________________
ntalwar is offline  
Old 05-01-2006, 10:31 PM   #27
Rock n' Roll Doggie
 
ouizy's Avatar
 
Join Date: Jan 2001
Location: s p o r a t i c
Posts: 3,788
Local Time: 03:41 AM
Melon,

You also have to factor in how long you want to keep your money wherever it is you put it.

The market is relatively unstable now (not steadily inclining, and not steadily declining) that said, you may want to look at some alternative options to stocks, bonds (yuck), and mutual funds.

You could look into Certificates of Deposit (CD's.) Most banks offer them and right now you can get very good rates on these.

Basically you buy a CD with a guaranteed return interest rate, let it sit for however long the term is, and when it matures you are paid your money back, plus the guaranteed interest.

What is nice about CD's is you know what you will get at the end of the term versus a stock that you have no idea where it will go.

I am recommending these to whomever I talk to because I think it is a good way to diversify a portfolio.

Why?

If you look at different indicies in the market today you will see varying rates of return. I think in the past couple of months the rates have been roughly 3-6%. The S&P 500 as an example is at 4.99% YTD.

Now these numbers fluctuate and could be almost anywhere at any time. There are so many factors that effect the market (oil, war, etc...) any of these, let alone a combination of them, can bring these returns way down.

But not a CD. A CD is an FDIC insured purchase that no matter what happens in the market, the bank pays you what is guaranteed as an interest rate. What makes these even more attractive is that now you can buy CD's with maturity dates anywhere from 6 months and up.

ING for example (great bank, great products) offers CDs from 6 to 60 months with rates of 4.75% to 5.25%.

Now some may say that it is not the best thing to buy because you can ONLY make what is guaranteed as your rate, but since the market has been so fluid for the past year, it sometimes makes sense to lock in a return. No risk. And the biggest idea here, I guesss, is that the returns these CD's are offering are the same the market can give you on a good day these days, and it is guaranteed with no risk.

It is worth a few calls, and no I do not sell CD's and am not in finance, but I do own some and watch my stocks very carefully. It makes me feel good that I have them there to guarantee me making money if some of the stocks do not.

On a side note, and while I am rambling, I have to recommend ING as a savings account. Not only is it very easy to use, but the rates they offer for savings accounts blow away almost all other traditional banks. Hell the interest rates they offer (currently 4.15%) rivals the market on a good day.

Call your bank and see what kind of interest they are giving you on your checking or savings acocunt. It is probably somewhere between .25 and 1.0% ING is offering 4.15%. That is a big difference.

Check them out.
__________________
ouizy is offline  
Old 05-01-2006, 10:37 PM   #28
Blue Crack Addict
 
nbcrusader's Avatar
 
Join Date: Aug 2002
Location: Southern California
Posts: 22,071
Local Time: 12:41 AM
Good call on ING - especially the savings account. A great place to hold money until you find a better investment.
__________________
nbcrusader is offline  
Old 05-05-2006, 12:26 PM   #29
The Fly
 
Join Date: Aug 2004
Posts: 77
Local Time: 08:41 AM
Agree with ING. Emigrant Direct is also a good option.
__________________
redsox04 is offline  
Old 05-05-2006, 12:52 PM   #30
Blue Crack Addict
 
joyfulgirl's Avatar
 
Join Date: Apr 2001
Posts: 16,615
Local Time: 01:41 AM
http://www.fpafunds.com/capitalfund.asp

__________________

__________________
joyfulgirl is offline  
 

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -5. The time now is 03:41 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Design, images and all things inclusive copyright © Interference.com