# Investing



## Diamond (Jan 8, 2004)

If you answered yes, what do you invest in...stocks, bonds, mutual funds, real estate, retirement plans?

If you answered no...please explain.

I'd like to know what your experiences have been like. I'm not an investor but I'd like to purchase real estate within a couple of years and possibly invest in some type of a mutual fund. Oh, and a retirement plan.

Thanks a bunch.


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## WinterDave (Dec 5, 2003)

I could have been driving around in a brand new SUV with all of the money that my 401K has lost in the past 5 years..... :hide


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## ghostgurl (Sep 20, 2004)

I don't have any money and I'm not knowledgeable in that stuff.


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## Kelly (Dec 12, 2003)

I said "yes" because I have one share of stock that I got because I took $5 a pay period and put it in the employee stock plan at my old job at a bank.

I'm also going to get a savings account as soon as I pay off my credit card debt - only $949 to go!

Have a nice day,
Kelly


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## UltraShy (Nov 8, 2003)

Yes, I'm an investor. I have a degree in finance and investing is definitely one of my favorite subjects.

Virtually all of my money is in Vanguard mutual funds. I chose Vanguard because they are by far the lowest cost fund company around, and low costs are the most important factor in investing. I also like Vanguard for their wide selection of index funds -- I like indexing for its ultra-low costs and because it's clear that you're unlikely to beat the market with active management.

I've never owned any individual stocks and I never want to. I think trying to pick stocks is a pointless and very risky game. I hold stocks through mutual funds only.

At this point I can't really think of anything compelling to invest in. Stocks are still too expensive and bond yields are pathetic. I wish there was some asset cheap enough to get me excited.

If you're looking for a place to discuss investing take a look at http://www.diehards.org -- it's mainly focused on Vanguard, but just about every investment topic gets discussed. It's a great place to learn more and ask questions.


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## LilyFair (Nov 8, 2003)

I would think about it if I had money


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## Woody (Nov 16, 2003)

I saved and invested for the whole 25 years that I worked full time. I'm currently living off the income from my investments. It's not a lot. But it's all I need. I also have a retirement account which I no longer make contributions to.


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## meggiehamilton (Nov 12, 2003)

I have a retirement plan.


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## Diamond (Jan 8, 2004)

> www.diehards.org


The author of the book that I've been reading also recommends Vanguard for the same reasons you mentioned. Thanks.


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## WinterDave (Dec 5, 2003)

I am not very knowledgeable in investing but paying off credit card debt, and maxing out your 401K contribution is advice that I have heard everywhere....14 percent (the maximum allowed) of my paycheck goes into my 401K plan, my company donates another 5% in matching funds, and I pay off my credit card bill in its entirety every month....Those are the first two steps that I would recommend for anyone thinking of investing....


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## LoneLioness (Nov 16, 2003)

I don't invest, might be something I want to learn more about and do one day though.


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## Pip (Jan 14, 2004)

I'm going to start investing as soon as I rebuild my savings account. It is mostly gone right now, b/c I bought a condo.


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## Diamond (Jan 8, 2004)

> I am not very knowledgeable in investing but paying off credit card debt, and maxing out your 401K contribution is advice that I have heard everywhere....14 percent (the maximum allowed) of my paycheck goes into my 401K plan, my company donates another 5% in matching funds, and I pay off my credit card bill in its entirety every month....Those are the first two steps that I would recommend for anyone thinking of investing....


I don't owe any money in consumer debt, I prefer to use my debit card. I also recently paid off the outstanding balance on my student loan.

Contributing to an IRA is something I'd like to do a few years down the road.

Right now I'm interested in investing in a money market fund. I may invest in other mutual funds later on.



> I bought a condo.


Congratulations.


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## rocknroll (Nov 11, 2003)

WinterDave said:


> I am not very knowledgeable in investing but paying off credit card debt, and maxing out your 401K contribution is advice that I have heard everywhere....14 percent (the maximum allowed) of my paycheck goes into my 401K plan, my company donates another 5% in matching funds, and I pay off my credit card bill in its entirety every month....Those are the first two steps that I would recommend for anyone thinking of investing....


Very smart strategy, Winterdave. :yes

I got some retirement and college funds set up. The market is awfully stagnant now. I've focused more on paying off debt, refinancing our mortgage, and buying autographed balls as a hobby and investment.


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## SebFontain (Jan 27, 2004)

U know what. Im glad i read this because that is definetly something i need to start looking into


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## READFIN (Nov 6, 2004)

Diamond

I invest in stock.

I don't believe all the doom & gloom. There
are always good stock out there to invest in.

You can start with a modest amount, about $100.
and go thru a stock DRIP plan. This bypasses
brokers fees and allows you to make nonial
investments monthly. Most banks are paying 
around 3 1/2 % now.

If, you want additional info let me know.

Take care.

Jim


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## UltraShy (Nov 8, 2003)

READFIN said:


> You can start with a modest amount, about $100.
> and go thru a stock DRIP plan. This bypasses
> brokers fees and allows you to make nonial
> investments monthly.


DRIPs (Dividend ReInvestment Plans) are often a low cost way to invest (though some do have fees that make then not-so-economical).

I personally have never owned an individual stock and I never intend to. Individual stocks expose you to additional risk that the market does not compensate you for. The market isn't going to compensate you for risk that can be diversified away by owing large numbers of stocks, something which is very easy to do with mutual funds. (Of course, you still have market risk, which is substantial.)

Back when I was in college taking finance classes they lied to us and said that 12-15 stocks was adequate diversification. More recent studies I've read put the number at more like 200. I'd rather not have a couple hundred DRIPS, so I'll go with low cost index funds instead.


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## Amocholes (Nov 5, 2003)

We have an excellent 401k at work that I use.


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## Khyle785 (Nov 5, 2004)

Dont worry bout this stuff yet : P


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## ShyLight (Jun 19, 2004)

I don't invest and because i have no clue about investing


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## raalka (Nov 14, 2004)

UltraShy said:


> Virtually all of my money is in Vanguard mutual funds. I chose Vanguard because they are by far the lowest cost fund company around, and low costs are the most important factor in investing. I also like Vanguard for their wide selection of index funds -- I like indexing for its ultra-low costs and because it's clear that you're unlikely to beat the market with active management.


I have a Roth IRA in which I invest in Vanguard index funds.

My 401k from my old employer amounted to a nice sum over the years. My company was insane, though, and matched dollar-for-dollar up to 6%, which is pretty unheard of.

I think money and investing are fun. You can find me tuned in to Clark Howard M-F between 2 and 3 o'clock, lol.


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## Jnmcda0 (Nov 28, 2003)

I invest in stocks, mutual funds, and retirement accounts. 

Here's my advice for novice investors:

1) If you're young (under 45 for investing purposes), put your money in the stock market. Bonds, CDs, savings accounts, etc. don't pay much right now. In a few years, if interest rates continue to rise, then maybe invest between 20-30% in bonds or CDs. As you near retirement, gradually move more of your money to bonds and CDs. Even in retirement, you should have at least 30% invested in the stock market.

2) Set aside money for emergencies. Don't take every dime you have and invest it in things that could lose money or that you can't get out of in a short period of time (like long-term CDs).

3) Balance your portfolio. Don't invest all your money in one thing. If you buy stock in the company you work for, sell some on occasion and put it in mutual funds or a variety of individual stocks. If you have a lot of money saved up, NEVER put it all in one stock.

4) If your company has a 401(k) and matches a percentage of your contribution, I highly recommend contributing at least up to the level that they will match...it's free money.

5) Invest in 401(k)s and IRAs before other investments. Why? You save a ton of money on taxes by doing this. 

6) If you have a lot of money to invest (like an inheritance), don't invest everything at once...invest a little at a time at specific intervals. This is called dollar-cost averaging. This way, you avoid buying stock at a high price. You might buy some at a high price, but you will also buy some at a low price...thus guaranteeing that your average price won't be too high. There's nothing worse in investing than buying at a high price and then seeing it drop 30% the next few weeks.

7) 1st things first: Pay off debt. If you have credit cards that aren't paid off or high interest car payments, take care of those first. Think of it this way: if you are paying 11% APR on a credit card, when you pay that off you will have 11% more money than if you didn't. If you make 10% in the stock market, but are paying 11% on a credit card, you are still getting a -1% return on your money.

As Suze Orman says, people first, then money, then things.

BTW, a lot of banks will give you free financial advice if you have an account there. Remember though, they are getting paid to sell you certain things...don't buy anything you don't want or understand.


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## raalka (Nov 14, 2004)

Jnmcda0 said:


> As Suze Orman says, people first, then money, then things.


I'm an avid Suze-watcher


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## Fighter86 (Jun 3, 2005)

I don't invest and don't have the money to do so presently but I would want to do so in the future. I've actually tried reading a financial book, its not one of those very complicated ones that take alot of understanding, its just one of those simplified ones that even teenagers can read. But yes, if I'm serious about investing, I think I would go about reading more about it before hand. I just hope I can understand what I'm reading :lol


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## Noca (Jun 24, 2005)

If I had money to invest I would.


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