Author Topic: Anyone else invest? (Read 2672 times)

Cuda Cody · « **Reply #15 on:** June 05, 2007 - 11:14:28 PM »

Real Estate.... COMMERCIAL REAL ESTATE. Get a Post Office or Dentist to pay you each month. That's as good as it gets.

Another thought. I've seen and meet a lot of people with money. One thing in common....... most work for themselfs. Start a business.

Just a few thoughts. Good luck.

Lunchbox · « **Reply #16 on:** June 05, 2007 - 11:18:28 PM »

Buy some land and let a cell phone company put a tower up there

Lunch

Bearcuda · « **Reply #17 on:** June 06, 2007 - 01:30:31 AM »

Quote from: C O D Y on June 05, 2007 - 11:14:28 PM

Real Estate.... COMMERCIAL REAL ESTATE. Get a Post Office or Dentist to pay you each month. That's as good as it gets.

Another thought. I've seen and meet a lot of people with money. One thing in common....... most work for themselfs. Start a business.

Just a few thoughts. Good luck.

The people with the most money though usually don't run their own businesses, unless you're CEO of a big company. They buy businesses and let someone else run them. Diversification through many sources is the key. I do have my own business dealing in classic cars with my best friend/business partner. That is part of my diversification that I will be putting a lot of time into when I get back. I haven't decided what type of real estate I am going to start out with. I may start with a duplex where I live. They are abundant. Get one with mortgage at $1000 a month, 2 tenants, charge $1000 per month rent each = $1000 cash flow per month after mortgage.

willhaven · « **Reply #18 on:** June 06, 2007 - 04:16:32 PM »

Quote from: Lunchbox on June 05, 2007 - 10:58:20 PM

IRA's are a good stable investment for the most part.

Lunch

I'd make sure to contribute to a regular AND a roth IRA if you can. They're taxed differently and I believe you pay no taxes when you take money from the roth IRA. One of the downsides is that the contribution isn't tax deductible.

Something like that anyway, I don't pay too close attention to my investments. I just look at my quarterly statements to see what I made.

I'm glad I got started young though. I started contributing to IRAs and my 401k when I was 22.

Challenger6pak · « **Reply #19 on:** June 06, 2007 - 06:09:14 PM »

No matter what you do you will have to keep an eye on Real Estate. Real Estate and money go together. If you have Real Estate you will have money. If you have money you MUST have Real Estate to keep your money. Land is the one thing they don't make anymore.

Cuda Cody · « **Reply #20 on:** June 06, 2007 - 07:04:24 PM »

There are so many issues with that statement.....

Forget it, I wrote a big long reply, but you're right. You've got it figured out.

Go buy a house with a mortgage of $500 and rent it for $5,000 and you've got it made!

(On a side note. Neil please let me know how that Cuda's coming along. The money I re-invested in to my small business is paying out fast. I bought a 3rd viper and I think I might be looking for another e-body soon.... or maybe a Ford GT.

Jeni thinks we should buy a 4th property.)

Back to the topic..... ALWAYS own your home and never go it to business with anyone. Hire, pay, sub-out and manage people, but don't let someone have 1/2 of it..... unless you're married, then they 3/4 of it.

Quote from: Bearcuda on June 06, 2007 - 01:30:31 AM

The people with the most money though usually don't run their own businesses, unless you're CEO of a big company. They buy businesses and let someone else run them. Diversification through many sources is the key. I do have my own business dealing in classic cars with my best friend/business partner. That is part of my diversification that I will be putting a lot of time into when I get back. I haven't decided what type of real estate I am going to start out with. I may start with a duplex where I live. They are abundant. Get one with mortgage at $1000 a month, 2 tenants, charge $1000 per month rent each = $1000 cash flow per month after mortgage.

1BADFISH� · « **Reply #21 on:** June 06, 2007 - 07:41:48 PM »

I have faith in Real estate....I am 26, bought my house for $289,000, mortgaged $250,000 and it was appraised at approx. $469,000 last week by a real estate agent selling my neighbors house. I moved in a year ago June 1.
The market here is pretty crazy and I was lucky to get in when I did. Now if a business opportunity comes up, I have equity to allow me to invest in....I am also self employed.

I think real estate is a safe bet in most areas, I have a great accountant that told me if I want to invest extra money I have, dump it on my mortgage. You will pay more intrest on say $30K over your 25 year mortgage, then you would make in most investments. (unless you use it to buy another house or start a potentially successfull business) If your house is payed for, then you're laughing.

I'm definately no investment expert, but it seemed to make sence to me.

Bearcuda · « **Reply #22 on:** June 06, 2007 - 10:20:49 PM »

Cody, please tell me what you see wrong with my reasoning. I'm teachable. If you have 3 vipers, you definitely know SOMETHING about money. I'm in business with my best friend because for one, we couldn't have started the business without pulling both of our resources. Second, unlike most partnerships, I can trust him with my life. He's been my best friend for 20 years and is extremely scrupulous and has great business ethics. We both love musclecars and love looking for them together. The partnership is a natural extension of our friendship. This is the only thing we invest in together though. I will take extra earnings from that venture and put them towards real estate and other investments on my own. Other than that, what flaws do you see in my reasoning?

MJS73 · « **Reply #23 on:** June 07, 2007 - 04:04:24 AM »

Quote

IRA's are a good stable investment for the most part.

An IRAs is a type of account, not something you invest in. And not everyone qualifies to have an IRA (if your employer offers a 401k, you probably don't qualify to have an IRA).

I've been very happy listening to a guy named Bob Brinker. Subscribe to his newsletter ($185/year) and listen to his Moneytalk show on the radio on Saturdays and Sundays, if you can. I think he's on XM, too. His website is www.moneytalk.com. I have invested my retirement account according to his Plan #1 since 2003 and have not regretted it once. There's another guy on the radio I like, Adam Bold. His show is The Mutual Fund Show. His website is at www.mutualfundshow.com. Adam turned me on to the Excelsior Value & Restructuring Fund (UMBIX), which has been a very solid investment. Both of my kids' college savings accounts are 100% invested in this fund.

Here are a couple of things I've picked up:

� The individual investor should stick to mutual funds, not individual stocks. Mutual funds spread out your investment across several companies to minimize exposure.

� Buy funds directly from the fund company, not through an agent like Oppenheimer, Edward Jones, etc. These agencies take a commission from your investment, so you have to make back their commission before you make a dime. Only invest in no-load funds for the same reason.

� Diversify. Bob's plans spread your investment across different types of companies. Someone else mentioned to invest 40-50% in international funds. The international markets have been played out and Bob only has 10% in international. He feels there is more to come in the US market.

� Real estate, gold, real assets (antiques, cars, etc.) are things the beginning investor should steer clear of, because all of these things take special skills and knowledge to invest in. Invest in mutual funds until you grow your portfolio enough to invest in these other things (if you care to) and keep your investment in these things to 5% of your total portfolio.

� Limit your investment in the company you work for to 5%. The rest of your money goes elsewhere. Too many people have lost their retirement accounts when the company they work for goes belly-up.

� Don't listen to advice you get in chat rooms and on the internet (should go without saying).

Hope this helps you.

Mike

moparmaniac59 · « **Reply #24 on:** June 07, 2007 - 04:40:28 AM »

Bear:
Mutual funds are a wise investment and fairly safe and less shakey than other investments. I lost 20K to Pinnacle Development, a real estate investment group based out of Atlanta Georgia. They bilked thousands of investors out of millions of dollars running a Ponzi scheme. The compancy CEO goes before a federal judge this month.

If it sounds too good to be true......it most likely IS!!! Be careful, wise & start off conservative!! You'll do just fine!!

Matt B.

Bearcuda · « **Reply #25 on:** June 07, 2007 - 05:37:00 AM »

Thanks for the advice everyone. Yeah, I've already decided that mutual funds were a fairly safe bet, but there are so many types that it's hard to decide which type to go with. Does anyone else deal with Fidelity? I was thinking of starting my account there. As far as steering away from musclecars as an investment, too late. I'm already deep into that but its ok because that IS one of my specialties. We're doing just fine with that. I'm just learning as much as I can about other types of investing and reading about other people's mistakes so that I can try and avoid making the same ones. Anyone deal in the currency trade market or options? After reading, I'm still confused as to what options actually are, but I see they are for the advanced investor anyway.

JH27N0B · « **Reply #26 on:** June 07, 2007 - 04:46:19 PM »

Good choice to stick with mutual funds. Fidelity is a good fund family, other good ones include Vanguard and T Rowe Price. I have been investing in the market since I was in college in the early 80's (my first stock was Chrysler and I sold it 3 years later after it tripled!). But I took a big interest in the market, I remember my room mate in college giving me a hard time when he saw me glued to the old PBS show "Wall Street Week" and saying "I don't think a guy who got a "C" in economics should be investing in the stock market". Fortunately I ignored his "advice"!
For 20 years I have read the business section with more interest than the sports page. I watch investment shows, and spend time on MSN's money and markets section and Market watch every day. I have bought some real winners but I have owned some dogs and made some bad buys too. Even after doing a lot of homework, you still find luck to be a big part of the equation. Unless you want to develop a passion for investing, stick with mutual funds.
Interesting factoid that the investment companies don't advertise. Over time index funds beat the vast majority of actively managed funds! So rather than agonizing over the thousands of different mutual funds in the market, you will almost certainly come out ahead just buying a few index funds! Maybe a total market index fund, an international stock market index fund, a corporate bond index fund, and that is it. Just decide what percentage to invest in each, maybe 50% in the total market index fund, 20% in the foreign market index fund, and 30% in bonds for example. Then you can more or less forget about it and spend your time enjoying your cars!
Last bit of advice is to consider investing some money on a regular basis. Maybe make an equal investment every month. You end up making purchases when the prices are high, and when the market is down too. This is called "dollar cost averaging" and it is a very successful long term investment strategy.

DAYTONA · « **Reply #27 on:** June 07, 2007 - 05:48:40 PM »

...I've made way more $$$ on MOPARS than the stock market, and enjoy them at the same time....but business is where I get my best ROI...

MJS73 · « **Reply #28 on:** June 07, 2007 - 06:08:25 PM »

The Fidelity Advisor Funds are load funds, which means they take 7.5 cents from every dollar that you invest. You need to make up 7.5% before you see a penny.

No fund company or fund family is worth investing in across the board. Vanguard has some great funds and some real dogs, as do T. Rowe Price, Baron, et al.

What you want to do is invest in the fund manager. You want the the fund to have beaten the market in the 1-, 3- and 5-year periods and have had the same fund manager throughout and currently. Avoid a fund that is managed by committee, beacause you can't get a committee to agree on what color the sky is.

Index funds are fine if you're satisfied with mediocre returns. If you're going to assume the risk of the market, you might as well go for something that does better than an an index fund.

AND AVOID ANNUITIES!

Mike

JH27N0B · « **Reply #29 on:** June 07, 2007 - 07:36:37 PM »

Quote from: MJS73 on June 07, 2007 - 06:08:25 PM

Index funds are fine if you're satisfied with mediocre returns. If you're going to assume the risk of the market, you might as well go for something that does better than an an index fund.

AND AVOID ANNUITIES!

Mike

I think you mean "boring", not "mediocre". I was shocked recently when I read that over time only 4% of actively managed funds "beat" the market over long term periods. With the money and bonuses they pay the managers of these actively managed funds, I would certainly expect over 4% to consistently beat the market averages. They don't, and that to me is the definition of the word "Mediocre"!

The biggest enemy of individual investors is our egos. Surveys show that way over 50% of investors consider themselves to be smarter and more astute than other investors. Of course only 49% could can really be smarter. We really think that we can "beat the market" when we in fact only 4% of professional money managers do, what are the chances of the average joe of beating the market? Better than the odds of winning lotto or the slots at the local indian emporium, but still, not that much.
That is why, even though I have been an investor in individual stocks and actively managed mutual funds for 25 years, and built up a nice chunk of change in the process, I am coming to the conclusion that a diversified portfolio of index funds is the best choice for most folks, and the other investments are best left to those with inflated views of their own investment prowness.

Author Topic: Anyone else invest? (Read 2672 times)

Cuda Cody

Re: Anyone else invest?

Lunchbox

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Bearcuda

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willhaven

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Challenger6pak

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Cuda Cody

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1BADFISH�

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Bearcuda

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MJS73

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moparmaniac59

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Bearcuda

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JH27N0B

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DAYTONA

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MJS73

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JH27N0B

Re: Anyone else invest?