investing????

cotyp

cotyp

91 cherokee
Joined
Dec 5, 2012
Location
lincolnton
I was just thinking about how my tax money will be coming in soon and i had a few thoughts about doing some investing wile i am young and have extra money to do it and not be stuck if i lose some.

Do any of you guys invest?what do you invest in?what do you recommend?
 
Good for you for thinking ahead! I've done fairly well with a Vanguard IRA invested in the S & P 500 Index Fund. It is a rollover from a previous job, so the money will be taxed when I withdraw it (when I retire). If I were you, I would look into a Roth IRA, which will grow tax free. Index funds are a good place to start and are pretty stable, as far s going up predictably. You can read up on trading actual stocks, if you are interested, since the online brokerages make it pretty easy to do.
 
Roth, max out $6K per year per husband/wife, $500/month. I too prefer Vanguard due to expense ratios under 1%. But I would split between VGENX Energy, small cap growth and large cap value and Morgan Growth. Stay away from gov bonds for now as interest rates will go up at some time. Bonds suck during rising interest rates. But in 10-15 years when rates have risen over time ride the wave as they fall. Invest for a 30.40 year window, reallocate every year.

You are welcome ;)
 
Duke Energy has done well for me. Just go to their site and open an account. Its after tax but it makes money and it's all yours except for the tax on the profit.
 
Been a long time, & not sure if it still works, but at one time, if for example, you put $900, in a IRA, you would get a $300 tax credit! Tried telling a young man that 1 year, no luck. Next year I made sure I asked him how his "refund" had done! He admitted, he blew it in the 1st month, he had it!:shaking:
 
cotyp said:
Do any of you guys invest?what do you invest in?what do you recommend?
Click to expand...

I invest in gold and silver in the form of physical bars and coins, no ETFs with banker counter-parties or mining shares. Given the precarious state of the financial system, one would be a fool to trust the banks, or the purchase power of the paper US dollar that has lost 98% of its value since 1913.

Putting one's money in IRAs and other tax accounts is akin to having the government hold the money hostage. It's like letting Don Corleone hold on to the money in exchange for not taking some of it; he'll find a way to take it.

For a beginner, I recommend 10troz silver bars; silver took a beating recently because some hedge fund went under. Some people like US 90% coinage (pre-65) because of the low premium; I think it's cumbersome . For gold, 1oz krugerrands are the standard, though I have quite a few Swiss 20fr coins that are popular in Europe.

Some common terms you may see:
-Spot - the price of gold, silver, or platinum as the case may be. In the US, this is quoted in paper dollars per troy ounce.
-Troy ounce - 31,104 grams; often shortened to 'ounce' The best place to look up the spot prices are on http://www.kitco.com/charts/
-Premium - the amount above the spot one pays for a coin. Example - gold spot is 1600, a 1/4 troy oz. gold coin is for sale for 450, premium is 450/(1600*(1/4))-1 = 0,125 = 12,5% This is not a good deal; I'd shoot closer to 7% for fractional.
 
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I currently own several Vanguard mutual funds. Some of them are index funds and some are actively managed funds. Take note that many actively managed mutual funds fail to perform as well as index funds.

My wife and I both have E-trade accounts. I only own one stock at this moment, and that is Navistar. I bought it for $20/share last fall. It is currently at $25/share and I think it could return to $40/share in 1-2 yrs (I can explain more if interested in my thoughts). My wife also owns some Navistar, plus some Bank of America. She bought the BAC for $8/share then bought it again for $10/share and recently sold all of it at $12/share, so she made a nice profit.

I was watching Cummins and IBM last fall, but they never dropped quite low enough for me to buy. I was hoping for Cummins to dip below $90/share again after doing so twice during 2012, then I was going to buy, but that didn’t happen. Now it is $113/share, and hit $120/share earlier this month. Waiting was obviously a mistake.

I also usually keep my 401k in a mix of mutual funds.

I do not own any bonds or metals right now.
 
I mentioned the IRA rollover account, but those online brokerages also have cash brokerage accounts... but any profit is subject to capital gains tax, so just keep all that in mind as you look into investing and trading.

I'm reading this book right now...
 
I invested in an education.
Generally speaking it paid off pretty well - but it's a little dicy now that getting that payback is dependent on a bunch of yahoos in DC who aren't doing their job!
 
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