Investing Poll

[Seakony]

Slim and I have been pretty much doing it on our own through mutual funds and 401k's. We talked to a financial planner and promised to get with them as soon as we got 2 houses sold and bought our new one. We need to get on the ball..got way to much money just sitting in the bank.

[ryberg]

Originally Posted by jx2

What i was trying to say was.... Some mutual funds have a certain portfolio of stocks that they have money invested in and there is no one that is constantly watching the invested stocks. So, if some stocks in the portfolio go bad or news of such happenings in the near future, there is nobody there to get rid of it, and vice versa. All mutual funds are distributed, but not necessarely sp? managed on a day to day basis by a real person. This seems scary to me, but they are out there. Not sure about the indexed thing

That link I posted is a good one to read through, and others on that site. But the idea is that you simply get your investment shared out proportionately over all the companies in the index, according to their relative size in that index. It's a great example of diversity, for one thing: an investment in the Vanguard 500 Index Fund does give you a piece of all those companies (not exactly 500) in the S&P 500. So again you sort of eliminate from the get-go worrying about which company you've got your money in that might go bad, because you've simultaneously got your money spread over all the other companies there, and proportionately so (a much larger percentage of it in Microsoft, say, than in Snyders of Hanover Sourdough Pretzels, though you may personally well consider the latter more valuable than many things that come out of the former, as I do ).

Now mind you, you probably won't make a killing, unless the whole stock market makes a killing. But you will go up as the entire market does, basically, and won't go down unless the entire market does (and again only at the rate it does), so they're especially great for the long haul. And also especially great, again, if you don't want to do all the research but are at the same time wary of giving those mutual funds managers your money to play around with and paying them to do so. The stats keep arguing that such an index fund will beat those managers and their mutual funds in 8-9 out of 10 cases, which is reassuring. Then you got the icing on the cake: because there are essentially no managers doing all that, once the program is written, you factor out the fees associated with mutual funds to a great extent, as well.

I like 'em. Course you can just start the research process all over again now, though, because there are a gazillion indexes out there these days to choose from, too. I tend to just stick to that one, given it's tie to more or less the whole market more clearly through the S&P 500...

Steve

[roni]

Originally Posted by ryberg

That link I posted is a good one to read through, and others on that site. But the idea is that you simply get your investment shared out proportionately over all the companies in the index, according to their relative size in that index. It's a great example of diversity, for one thing: an investment in the Vanguard 500 Index Fund does give you a piece of all those companies (not exactly 500) in the S&P 500. So again you sort of eliminate from the get-go worrying about which company you've got your money in that might go bad, because you've simultaneously got your money spread over all the other companies there, and proportionately so (a much larger percentage of it in Microsoft, say, than in Synders of Hanover Sourdough Pretzels (though you may personally well consider the latter more valuable than many things that come out of the former, as I do ).

Now mind you, you probably won't make a killing, unless the whole stock market makes a killing. But you will go up as the entire market does, basically, and won't go down unless the entire market does (and again only at the rate it does), so they're especially great for the long haul. And also especially great, again, if you don't want to do all the research but are at the same time wary of giving those mutual funds managers your money to play around with and paying them to do so. The stats keep arguing that such an index fund will beat those managers and their mutual funds in 8-9 out of 10 cases, which is reassuring. Then you got the icing on the cake: because there are essentially no managers doing all that, once the program is written, you factor the fees associated with mutual funds to a great extent, as well.

I like 'em. Course you can just start the research process all over again now, though, because there are a gazillion indexes out there these days to choose from, too. I tend to just stick to that one, given it's tie to more or less the whole market more clearly through the S&P 500...

Steve

International indices have beat the pants of the S&P 500 over the past 5 years, but it is likely that the large cap stocks in the 500 will finally have their turn - but if the dollar keeps declining, and I think it will, it will be an uphill battle for US equities.

[roni]

The Dow is up 8.7% this year, and the
S&P 500 is up 7.5%, while the
Nasdaq has risen 6.8%.

[Dale]

Originally Posted by roni

If any of you should happen to invest in a particular company or fund solely because it was mentioned here - that is your decision.

If that decision does not turn out well - it was still your decision. Do your own research, go to your ouija board, consult the tea leaves, talk to your financial advisor, read entrails - do whatever you would normally do - but do not come back here whining cause something you invested in that you read about here did not turn out so well.

Well said Roni.
Thank you!

[IslandBob]

We both have 403b's (Teacher retirement accounts) and Roth IRA's. Last year we started buying individual stocks as a buffer in case we want out early from teaching. Here we have been buying mostly precious metal mining and energy related speculation stocks. A couple have really hit but we do not have much in them so we won't be retiring on them anytime soon. Nothing have earned us as much as real estate and sweat equity have.

Any body else think Gold will hit $2000 an ounce in the next 10 years?

[roni]

Originally Posted by IslandBob

We both have 403b's (Teacher retirement accounts) and Roth IRA's. Last year we started buying individual stocks as a buffer in case we want out early from teaching. Here we have been buying mostly precious metal mining and energy related speculation stocks. A couple have really hit but we do not have much in them so we won't be retiring on them anytime soon. Nothing have earned us as much as real estate and sweat equity have.

Any body else think Gold will hit $2000 an ounce in the next 10 years?

I do not know if gold will go that high, but I have occasionally held some mining stocks.

[Rissask]

Mutual funds only, advisor/borker chooses I approve

This.

Canadian, so we call them RRSPs (registered retirement saving program) instead of 401K.

We are both investing in the 'high risk' category still, although we should be getting less agressive in the next few years. It has served us well, especially the past couple years, though, return has been between 10 and 15%. Which is lucky, since I am retiring at 45.

At a minimum, IMO at least ALWAYS participate in a company sponsored retirement program up to the employer match percentage!

For example we have a Simple IRA program...the company matches the employee contribution dollar for dollar into their fund on the first 3% of salary contributed. 100% vested, employee owns everything...no strings...

Still hard for me to understand how some of my young employees are not signed up for this "no-brainer" investment opportunity...its pre-tax, its free money from the employer and a good start on an investment/savings program without being overly burdensome.

Ditto that.

My company matches 100% up to 10% of our pre-tax income.

Both the hubby and I work here, so we each put the max 10%. So that's 20% each of our pre tax income going into retirement investments.
Some people only put in about 3%, or 5%...which is pretty silly IMO. It's free money!

We have been thinking a lot about buying a second investment property. Although we should have done it a year or two ago, before prices here skyrocketed. At least we bought our house at the right time, whew!

We are torn between buying a cabin at a lake here....or a condo in Mexico or Panama or somewhere. I am a little nervous about the latter, and think the cabin is a safer bet. Plus we would be able to use it more, and possible use it in retirement more as well. Renting a place in Mexico is cheap, we'll just let others do the stressful, red tape part.

[Tommygurl]

Originally Posted by Rissask

This.

Canadian, so we call them RRSPs (registered retirement saving program) instead of 401K.


Both the hubby and I work here, so we each put the max 10%. So that's 20% each of our pre tax income going into retirement investments.
Some people only put in about 3%, or 5%...which is pretty silly IMO. It's free money!

I imagine some people just can't afford to put 10% a check into an RRSP. I know I can't.

[Rissask]

Originally Posted by Tommygurl

I imagine some people just can't afford to put 10% a check into an RRSP. I know I can't.

I know there are some who truly can't....but many people who say they can't, it's more like won't than can't. Too much sacrifice required, maybe. Or they don't see it as necessary or that it will be beneficial in the long term.

Believe me, if it wasn't coming directly off my paycheck, I would find a way to spend that extra few hundred a month. It's all relative, I spend what I have to spend. This way it's forced savings, I never even see that money.

[Tommygurl]

Originally Posted by Rissask

I know there are some who truly can't....but many people who say they can't, it's more like won't than can't. Too much sacrifice required, maybe. Or they don't see it as necessary or that it will be beneficial in the long term.

Believe me, if it wasn't coming directly off my paycheck, I would find a way to spend that extra few hundred a month. It's all relative, I spend what I have to spend. This way it's forced savings, I never even see that money.

I agree....Just comes down to personal choice. I like a good balance of fun $ & smart $..
We are approaching 30 & getting geared up for more investing. Our house has increased in value approx $200,000 in the last 3 years. Which was a great investment for us.
I don't need to be a millionare when I retire. I just want to be comfortable.

[roni]

Originally Posted by Tommygurl

I agree....Just comes down to personal choice. I like a good balance of fun $ & smart $..
We are approaching 30 & getting geared up for more investing. Our house has increased in value approx $200,000 in the last 3 years. Which was a great investment for us.
I don't need to be a millionare when I retire. I just want to be comfortable.

And you'll have lots of stuff you can sell on eBay

Not to mention two adoring adult children who will happily cart you off to the Home when the time comes

[Rissask]

Originally Posted by roni

And you'll have lots of stuff you can sell on eBay

Not to mention two adoring adult children who will happily cart you off to the Home when the time comes

Yeah....I will have to check myself into the Home.

I agree....Just comes down to personal choice. I like a good balance of fun $ & smart $..
We are approaching 30 & getting geared up for more investing. Our house has increased in value approx $200,000 in the last 3 years. Which was a great investment for us.
I don't need to be a millionare when I retire. I just want to be comfortable.

Oh yes, I totally agree, living for the present as well as the future is the smart thing to do. I don't feel we are lacking anything now, nor will we will be later on.

[Tommygurl]

Originally Posted by roni

And you'll have lots of stuff you can sell on eBay

Not to mention two adoring adult children who will happily cart you off to the Home when the time comes

The worst part is I work in Long Term Care...I KNOW what is ahead
The only difference in LTC with patients with $ vs without $....One is private pay & one is government funded...same care.....
I keep telling my Mom not to worry I will send her someplace (cheap) with Bingo......She threatens to get a reverse mortgage on the house....

[Tommygurl]

Originally Posted by Rissask

Yeah....I will have to check myself into the Home.


Oh yes, I totally agree, living for the present as well as the future is the smart thing to do. I don't feel we are lacking anything now, nor will we will be later on.

Do you have neices & nephews.....suck up to them now.... Most times they are more attentive to "Aunty" in the care home vs Mom...