stock market/financial ?'s

[BobD]

This should be a good one if you can get in early, if not wait for the bounce. It will probably take off on ipo, then go down about 15-20 percent, then climb again.

I'm not sure on how long I'll hold it yet. I want to check out more info on their revenue.

Twitter files for an initial public offering

 

[palinurus]

For some reason every time I think about Roth IRA's I have this vision in my mind that this guy is managing the account.

Why, he's just a retired investor with a pension....

 

[Bobias]

This should be a good one if you can get in early, if not wait for the bounce. It will probably take off on ipo, then go down about 15-20 percent, then climb again.

I'm not sure on how long I'll hold it yet. I want to check out more info on their revenue.

Twitter files for an initial public offering

Eh, I'm not a big fan of trying to play a Twitter IPO. It obviously could end up well, but I have a strong feeling that it might play out like facebok, and we all know how much of a debacle that was. I have never been much of a fan of social networking sites both in real life and especially as an invesment, so you can take that into consideration if you want to.

I am personally invested long term in Stratasys and AMD, but I really would invest alot more in the 3D printing industry if I had the funds(broke college student). Stratasys, to me, seems like it will be the long term winner in the 3D printing race, but really most investments in 3D printing companies will yield major returns 5+ years from now.

I could go on and on about what incredible revolutionary possibilities this technology is capable of and how important it will be to the long term economic recovery of the nation, but I doubt most people want to hear page after page of my ramblings when some good Googling would do the trick. I will say this though, if anyone on here is actively investing their own money in the stock market then I would seriously look into the 3D printing industry as a whole. There is some amazing technology coming out of there (creating whole fully-functioning electronic devices in one single location using the same machine in a matter of hours based entirely on a 3D model, printing fully functioning organs of any blood type, etc), and this is something that will completely revolutionize the way the entire manufacturing industry operates so if getting in on the ground floor of something like that seems appealing to you then look no further.

Oh, and I am not a professional financial advisor, I]but I did stay at a Holdiay Inn Express last night[/I]. Couldn't resist. I am not a professional so any investment advice should be taken at your own risk.

 

[cody1smith]

If you are not willing to spend 20 hours a week "playing" the market then give your money to some smooth talking kid sitting at a computer and let them handle it.

Oh and twitter seems risky as **** to me.

 

[loomis41973]

Eh, I'm not a big fan of trying to play a Twitter IPO. It obviously could end up well, but I have a strong feeling that it might play out like facebok, and we all know how much of a debacle that was.

Debacle?


As far as 3-D printing goes...i invested about 2 years ago...VERY profitable but that ship has sailed.

 

[Wild Bill]

This should be a good one if you can get in early, if not wait for the bounce. It will probably take off on ipo, then go down about 15-20 percent, then climb again.

I'm not sure on how long I'll hold it yet. I want to check out more info on their revenue.

Twitter files for an initial public offering

Twitter's creator is a scUM grad, right? No thanks.

 

[Bobias]

Debacle?


As far as 3-D printing goes...i invested about 2 years ago...VERY profitable but that ship has sailed.

Haha, not even close. As far as quick high percentage returns for stocks (if you invested correctly you could have easily tripled or quadrupled your money in a year or two) you may be right. But in the grand scheme of things, the additive manufacturing sector has barely begun to take off. It is just one of the key aspects of the new industrial revolution that we are about to undergo here in the US, but it will be the largest sector of this whole thing. This technology is going to radically change the global manufacturing landscape and the companies who supply the equipment stand to become some of the largest and most profitable companies that the world has ever seen.

To put it into perspective, GE is saying that once this technology has evolved it will be able to run its enormous Schenectady battery production facility that can produce $1 billion in annual sales with only 450 employees! Think about that type of efficiency being applied to all manufacturing around the entire world and you start to see why the US is pushing soo hard with STEM education. While 450 jobs doesn't sound like a good net outcome when that same facility employed 5000+ in the 70's, you have to consider where all those jobs went to. While it's true that the days of having a large percentage of the uneducated US workforce employed in factories at very well paying jobs are gone. The days of everything being made in Asia(because of their ultra cheap, easily exploitable workforce) should be gone too as there will be no incentive whatsoever for companies to outsource when it's a lot cheaper, more efficient, produces far less waste, supports the US and is of far superior quality than any Asian country can produce. This means that incredible employee to sale ratio can bring back millions of extremely high paying STEM type jobs to the US, while simultaneously reducing the overall cost of all goods across the board, and increasing the overall quality to unprecedented levels. And you think the ship has sailed, haha.

 

[Irish Houstonian]

My take would be:

...(3) If I had to pick one relatively safe, value stock right now, I'd say Apple (AAPL) looks pretty cheap for the long-term...

When I wrote this AAPL was at about $450, and now it's $520. I'd take some profits here unless you think there will be some run-up before the holidays.

...Apples stock has lost about $300 in less than a year, try again...

And remember to be selective in choosing financial advice.

 

[Cackalacky]

Question.

Allocation funds. My adviser is suggesting consolidating my diversified mutual funds into one growth oriented allocation fund. I don't see many that have a 10 year + history so I am worried about the viability of this type financial vehicle. Any thoughts, issues I should be aware of from you financial guys? They say a conservative expected return is 6-8%.

 

[BleedBlueGold]

Question.

Allocation funds. My adviser is suggesting consolidating my diversified mutual funds into one growth oriented allocation fund. I don't see many that have a 10 year + history so I am worried about the viability of this type financial vehicle. Any thoughts, issues I should be aware of from you financial guys? They say a conservative expected return is 6-8%.

Ramsey's ELP (endorsed local providers) are a great place to start if you need a second opinion from someone you can trust.

I currently invest equally into 4 mutual fund groups: growth, growth + income, aggressive growth, and international. I try to find the best performers in each group that have a 10+ year history. I'm skeptical of ones that are too new and also skeptical of putting everything into one basket. Probably not the best idea.

Forgot to post the ELP link: https://www.daveramsey.com/elp/investing?ictid=rt.nav

 

[Cackalacky]

Ramsey's ELP (endorsed local providers) are a great place to start if you need a second opinion from someone you can trust.

I currently invest equally into 4 mutual fund groups: growth, growth + income, aggressive growth, and international. I try to find the best performers in each group that have a 10+ year history. I'm skeptical of ones that are too new and also skeptical of putting everything into one basket. Probably not the best idea.

This is where I am at right now and am doing fine. However they said the allocation fund is just a group of diversified mutual funds that are constantly monitored and adjusted based on which sector is performing the best. So if stocks are doing better, the mutual funds that are stock heavy are more represented and if something is just performing poorly, the managers move the money into better performing areas. So in the end the whole allocation fund stays diversified but is in "one" managed allocation fund. My worry is that the whole of my money will be in one "pot" but is allocated amongst a diversified mutual fund portfolio which spreads the risk.

i will check out the ELP thanks.

 

[BleedBlueGold]

This is where I am at right now and am doing fine. However they said the allocation fund is just a group of diversified mutual funds that are constantly monitored and adjusted based on which sector is performing the best. So if stocks are doing better, the mutual funds that are stock heavy are more represented and if something is just performing poorly, the managers move the money into better performing areas. So in the end the whole allocation fund stays diversified but is in "one" managed allocation fund. My worry is that the whole of my money will be in one "pot" but is allocated amongst a diversified mutual fund portfolio which spreads the risk.

i will check out the ELP thanks.

This is way out of my area of expertise, but it seems a lot like market timing to me --> chasing whichever sector is performing at the moment, only hoping to get out at the right time and move to the next better performer. Even if the fund is diversified, like you said, it's still in one area. That kind of thing isn't for me.

I pretty much put 25% into each of those four and let 'em ride. People become millionaires by having this simple plan, investing often, and letting it grow over time. I'm ok with keeping it simple. It's proven to work and that's all I'm looking for.

I posted the link to the ELP request in the above post. I forgot to do so earlier.


Note: I should add that I keep the bulk of my money invested in this manner. I do, however, like to tinker with day trading (on my own) or single stock investing (via Merrill Lynch) as well. It's just not what I'm banking my retirement on....

 

[pumpdog20]

Found this interesting: Morningstar's research concludes that looking at a fund's fees is often times better than their own star system.

Low Fees Predict Mutual-Fund Success, Study Says - WSJ.com

 

[Cackalacky]

This is way out of my area of expertise, but it seems a lot like market timing to me --> chasing whichever sector is performing at the moment, only hoping to get out at the right time and move to the next better performer. Even if the fund is diversified, like you said, it's still in one area. That kind of thing isn't for me.

I pretty much put 25% into each of those four and let 'em ride. People become millionaires by having this simple plan, investing often, and letting it grow over time. I'm ok with keeping it simple. It's proven to work and that's all I'm looking for.

I posted the link to the ELP request in the above post. I forgot to do so earlier.


Note: I should add that I keep the bulk of my money invested in this manner. I do, however, like to tinker with day trading (on my own) or single stock investing (via Merrill Lynch) as well. It's just not what I'm banking my retirement on....

Appreciate the info. Since I started investing 15 years ago (thanks to my dad) I have a average annual return to date of about 14% and I tinker a little with the funds here or there. I am doing like you but a little heavier on the aggressive side (maybe 30%-35%) I will take it. Just thinking about switching it up a bit to see what happens.

The fund he wants to put me in is mirroring the aggressive index and outperforming Morningstar over the last 5 years. It is stock heavy as stocks are killing it now, but if another sector takes over the money will move to that sector. Fees are a little higher but its at 20% AAR this year and factoring in the 2008 crash it is at 13% AAR since inception. I just have not heard about these allocation funds before but they seem to be doing ok.

 

[BleedBlueGold]

Appreciate the info. Since I started investing 15 years ago (thanks to my dad) I have a average annual return to date of about 14% and I tinker a little with the funds here or there. I am doing like you but a little heavier on the aggressive side (maybe 30%-35%) I will take it. Just thinking about switching it up a bit to see what happens.

The fund he wants to put me in is mirroring the aggressive index and outperforming Morningstar over the last 5 years. It is stock heavy as stocks are killing it now, but if another sector takes over the money will move to that sector. Fees are a little higher but its at 20% AAR this year and factoring in the 2008 crash it is at 13% AAR since inception. I just have not heard about these allocation funds before but they seem to be doing ok.

Kudos to your dad for getting you on the right track early on and to you for listening to the Old Man haha. I wish I had started a lot earlier.

That's a pretty solid rate of return. Does that happen to be a gross return? Just curious how much fees and taxes knock that down. Most people complain about rates of return, saying it's "impossible" to get anything above 4-6%....I usually just laugh.

 

[Cackalacky]

Kudos to your dad for getting you on the right track early on and to you for listening to the Old Man haha. I wish I had started a lot earlier.

That's a pretty solid rate of return. Does that happen to be a gross return? Just curious how much fees and taxes knock that down. Most people complain about rates of return, saying it's "impossible" to get anything above 4-6%....I usually just laugh.

Includes fees and also accounts for the crash and it is gross for my whole investment (which is very diversified right now) and I have not paid taxes (obviously that will be a chunk). I think 4-6% is what people expect to get in the end and that is what I am planning to have. Later on when you get older most people are advised switch to something that is more secure and does not grow affecting the end AAR. I think Ramsey advises against this if you are heading into retirement and fairly healthy as you could live into your 90s.

 

[BleedBlueGold]

Includes fees and also accounts for the crash and it is gross for my whole investment (which is very diversified right now) and I have not paid taxes (obviously that will be a chunk). I think 4-6% is what people expect to get in the end and that is what I am planning to have. Later on when you get older most people are advised switch to something that is more secure and does not grow affecting the end AAR. I think Ramsey advises against this if you are heading into retirement and fairly healthy as you could live into your 90s.

Solid!

Dave isn't the only person who advises against this. I've read plenty of books that back up this mindset of staying aggressive. David Mallach, at Merrill Lynch, has a strategy for growth + income for retirees. He points out that you must always stay above inflation, your tax bracket, etc to ensure that you don't run out of money. When you start dipping into your nest egg to cover expenses...there's a problem. Then it becomes a game of out-living your depleting bank account. I prefer not to play that game of chicken...

 

[Cackalacky]

Solid!

Dave isn't the only person who advises against this. I've read plenty of books that back up this mindset of staying aggressive. David Mallach, at Merrill Lynch, has a strategy for growth + income for retirees. He points out that you must always stay above inflation, your tax bracket, etc to ensure that you don't run out of money. When you start dipping into your nest egg to cover expenses...there's a problem. Then it becomes a game of out-living your depleting bank account. I prefer not to play that game of chicken...

Very important. Things today are not what they were like when my father was my age. Back then you could get a savings account at a bank that would make a solid 6-8%. I remember opening up my own savings account and the teller saying that to me. Now typical savings accounts only generate 0.1%-0.8% (if your lucky). Then the industry later moved towards getting the retirement money involved in the markets and disincentivized savings accounts and pensions. I remember watching my savings percentage go down and down and down and....

 

[ulukinatme]

First of all get a vasectomy.

This has to be the best advice given on this thread lol.

In all honestly...sarcasm font wasn't needed. The man speaks the truth.

On the other hand, lots of money in retirement will not last as long as the torment and happiness children will bring you for a lifetime.

 

[cody1smith]

Completed Baby Step 2 today (for you Dave Ramsey fans) - My wife and I are officially DEBT FREEEEE!! Very excited.

What???!! How old are you sixty?

 

[Irishokie]

Good stuff in this thread! I'll probably be getting one of Dave Ramsey's books soon as I've bought my first house at the beginning of October. I plan to start building up my emergency savings ASAP and then start paying extra on the mortgage so I don't waste money on the PMI penalty. Any advice on anything important or that I may not know, there's quite a bit of that! I'm relatively debt free, it's just daily expenses (credit cards and cars are paid for).

 

[BGIF]

In all honestly...sarcasm font wasn't needed. The man speaks the truth.

On the other hand, lots of money in retirement will not last as long as the torment and happiness children will bring you for a lifetime.

Or the torment you'll get from your children as you spend their inheritance.

 

[BleedBlueGold]

What???!! How old are you sixty?

Not sure if serious...

I'm 30, btw. Found Dave's plan a couple years ago. Wish I had known sooner.

 

[cody1smith]

Not sure if serious...

I'm 30, btw. Found Dave's plan a couple years ago. Wish I had known sooner.

Yes i'm serious how in the world could you be debt free at 30? Unless you virtually have nothing or have a crazy good job.

 

[BleedBlueGold]

Yes i'm serious how in the world could you be debt free at 30? Unless you virtually have nothing or have a crazy good job.

If you're not familiar with Dave Ramsey or his principals, I'd strongly recommend reading his book, The Total Money Makeover.

Budgeting your money is the number one thing you have to do. When my wife and I started budgeting, we found that we wasted a ton of money by going out to eat, going out for drinks, etc. We found cheaper alternatives and in the process were able to pay a lot more than the minimum payments on our debts. We started with the lowest balance, paid it off, carried that payment over to the next lowest balance, paid it off, carried that payment over to the next lowest balance, and so forth. By the time we got to my student loans (which was our largest debt), we were throwing anywhere from 3-5 times the minimum payment at it. We stuck to the process, and it worked.

The Seven Baby Steps:

• Get a $1000 emergency fund established asap
• Pay off all your debts (from smallest to largest) asap
• Build up your emergency fund to 3-6 months expenses (this is for emergencies only)
• Begin putting 15% of your gross income into retirement
• If you have kids, begin funding 529s and ESAs
• Any extra money, pay towards the house to get it paid off
• Build wealth and Give

We sold stuff, negotiated lower cable/internet bills, cashed out our savings to pay down debt, i rented out two of my spare bedrooms to friends and put that money towards debt. We put our tax returns and bonuses towards the debt too. We basically did anything we could think of. Becoming debt free became a priority and we accomplished it faster than we planned. We don't have an extreme income, but we still paid off $66K in 19 months. 19 months of sacrifice and hard work. But it was worth it.


Another good book that helped me out with my view on money: The Millionaire Next Door

Great book. Read both of these.

 

[Ndaccountant]

If you're not familiar with Dave Ramsey or his principals, I'd strongly recommend reading his book, The Total Money Makeover.

Budgeting your money is the number one thing you have to do. When my wife and I started budgeting, we found that we wasted a ton of money by going out to eat, going out for drinks, etc. We found cheaper alternatives and in the process were able to pay a lot more than the minimum payments on our debts. We started with the lowest balance, paid it off, carried that payment over to the next lowest balance, paid it off, carried that payment over to the next lowest balance, and so forth. By the time we got to my student loans (which was our largest debt), we were throwing anywhere from 3-5 times the minimum payment. We stuck to the process, and it worked.

The Seven Baby Steps:

• Get a $1000 emergency fund established asap
• Pay off all your debts (from smallest to largest) asap (takes avg person two years)
• Build up your emergency fund to 3-6 months expenses (this is for emergencies only)
• Begin putting 15% of your gross income into retirement
• If you have kids, begin funding 529s and ESAs
• Any extra money, pay towards the house to get it paid off
• Build wealth and Give

We sold stuff, negotiated lower cable/internet bills, cashed out our savings to pay down debt, i rented out two of my spare bedrooms to friends and put that money towards debt. We put our tax returns and bonuses towards the debt too. We basically did anything we could think of. Becoming debt free became a priority and we accomplished it faster than we planned. We don't have an extreme income. It took 19 months. 19 months of sacrifice and hard work. But it was worth it.


Another good book that helped me out with my view on money: The Millionaire Next Door

Great book. Read both of these.

I applaud your effort. Well done.

I would like to point out that not all debt is bad when managed correctly. The issue comes in when people use debt to fund a lifestyle that they cannot afford.

Personally, I still have student loan debt from grad school. However, I am paying a measly 2% interest on it. I am purposefully keeping that debt around because it makes no sense for me to pay off a debt with such a low interest rate when I can invest the difference and earn a greater return on my money.

Now, you do need to have the discipline to not spend the extra money but save and invest it. Some people don't have that will power and it definitely takes a personal commitment (and your spouse/partner if in a relationship) to do it and it sounds like you do.

 

[BobD]

I applaud your effort. Well done.

I would like to point out that not all debt is bad when managed correctly. The issue comes in when people use debt to fund a lifestyle that they cannot afford.

Personally, I still have student loan debt from grad school. However, I am paying a measly 2% interest on it. I am purposefully keeping that debt around because it makes no sense for me to pay off a debt with such a low interest rate when I can invest the difference and earn a greater return on my money.

Now, you do need to have the discipline to not spend the extra money but save and invest it. Some people don't have that will power and it definitely takes a personal commitment (and your spouse/partner if in a relationship) to do it and it sounds like you do.

You make some great posts, but I always picture your avatar making the statement lol.

Says the Mexican wrestling monkey.

 

[cody1smith]

If you're not familiar with Dave Ramsey or his principals, I'd strongly recommend reading his book, The Total Money Makeover.

Budgeting your money is the number one thing you have to do. When my wife and I started budgeting, we found that we wasted a ton of money by going out to eat, going out for drinks, etc. We found cheaper alternatives and in the process were able to pay a lot more than the minimum payments on our debts. We started with the lowest balance, paid it off, carried that payment over to the next lowest balance, paid it off, carried that payment over to the next lowest balance, and so forth. By the time we got to my student loans (which was our largest debt), we were throwing anywhere from 3-5 times the minimum payment at it. We stuck to the process, and it worked.

The Seven Baby Steps:

• Get a $1000 emergency fund established asap
• Pay off all your debts (from smallest to largest) asap
• Build up your emergency fund to 3-6 months expenses (this is for emergencies only)
• Begin putting 15% of your gross income into retirement
• If you have kids, begin funding 529s and ESAs
• Any extra money, pay towards the house to get it paid off
• Build wealth and Give

We sold stuff, negotiated lower cable/internet bills, cashed out our savings to pay down debt, i rented out two of my spare bedrooms to friends and put that money towards debt. We put our tax returns and bonuses towards the debt too. We basically did anything we could think of. Becoming debt free became a priority and we accomplished it faster than we planned. We don't have an extreme income, but we still paid off $66K in 19 months. 19 months of sacrifice and hard work. But it was worth it.


Another good book that helped me out with my view on money: The Millionaire Next Door

Great book. Read both of these.

That is an awesome story. Congrats! Regardless of your income or the things you have being totally out of debt at 30 is quite the feat.
I have herd of these books and know some people that it has worked well for. Maybe not as good as you but well regardless. However I do not see any way possible asides selling assists or winning the lottery that I can become debt free in even 10 years.

I owe a incredible amount more than that. I have very very large monthly payments. I have increased debt at least twice a year since I turned 19(built my first home)

I am hoping to double my debt over the next 5 years and be debt free around 65. May not happen but its the plan.

 

[cody1smith]

My uncle (very wealthy man) told me when I was very young. There are only a few ways to get rich.

Inherit it
Win it
Get some crazy job making tons of money
Borrow it

He also told me to make sure 10 percent of my daily income (money from working at your job) made me 10 percent. He said think about it every day.
I know this seems like a very small amount of money. It took me years to realize that it was about figuring out how to create the 10 percent more than the 10 percent its self.

I took it to heart. And so far (although i'm far from rich) It has worked very well.

 

[BleedBlueGold]

I applaud your effort. Well done.

I would like to point out that not all debt is bad when managed correctly. The issue comes in when people use debt to fund a lifestyle that they cannot afford.

Personally, I still have student loan debt from grad school. However, I am paying a measly 2% interest on it. I am purposefully keeping that debt around because it makes no sense for me to pay off a debt with such a low interest rate when I can invest the difference and earn a greater return on my money.

Now, you do need to have the discipline to not spend the extra money but save and invest it. Some people don't have that will power and it definitely takes a personal commitment (and your spouse/partner if in a relationship) to do it and it sounds like you do.

Thanks. I just personally don't like having debt, so keeping any of it around just because of low interest rates wasn't an option. It feels great not having any payments...none. I get why some people do keep around the "free money," but it's just not my thing.