Investment plan???
Page 1 of 2 12 LastLast
Results 1 to 15 of 16
  1. #1
    Registered User TheRootedNomad's Avatar
    Join Date
    Oct 2006
    Location
    Lost in thought
    Age
    43
    Posts
    3,341
    Post Thanks / WTG / Hug
    Blog Entries
    10
    Rep Power
    18

    Default Investment plan???

    DH and I have the ultimate goal of FI. We've become comfortably aquainted with how to pay off debt and are plugging along on our 401k/403bs and paying down the morgage. Where to invest/what to invest in though are like the twighlight zones for us. I've read the occasional investment/make your money grow kind of books and still feel completely confused. Treasury bonds, stocks, mutual funds, regular bonds, and so on make not much sense to me. I also don't want to blindly follow the salesman working under the alias financial advisor. i do think one of the things we will probably do is buy a piece of property and hold it for awile to either build on and sell our current home which would then be paid off, or hold it just to sell. Real estate over the long term always seems to be a safe bet, just not a necessarily quickly liquid one.

    Does anyone have a plan for when they get to this point????
    GG


    Groc. December: $239/$300
    Investments 2014: $/$12,000
    Mort. Prin. : $1358/$8,456
    Christmas '14: $/$1,000
    Vacation '14: $/$1,500

  2. #2
    Registered User Early Bird's Avatar
    Join Date
    May 2004
    Posts
    2,664
    Post Thanks / WTG / Hug
    Blog Entries
    22
    Rep Power
    15

    Default

    Start reading Jane Bryant Quinn in Newsweek. She talks about the common sense of a 'plain vanilla' index fund.

    I think that reading Money magazine is also a good starting point.

    And I have read a few articles on msn money and the Motley Fool.

  3. #3
    Registered User ecgsmama's Avatar
    Join Date
    Aug 2005
    Location
    Potter County, PA
    Age
    37
    Posts
    217
    Post Thanks / WTG / Hug
    Rep Power
    9

    Default

    Ditto the Money Magazine suggestion. They have a Top 70 list of mutual funds.

    I have also read Personal Finance for Dummies which was easy to read and simple to put into action.

    I am one who believes I should understand what my money is doing, not just blindly go along with what someone else tells me.

    Good luck on your plan!
    May today there be peace within...

    May you trust your highest power that you are exactly where you are meant to be...

    Loving wife to dh for 15 years
    Loving mother to...
    ds, 12
    ds, 10
    ds, 8

  4. #4
    Registered User always2busy's Avatar
    Join Date
    Aug 2007
    Location
    AZ
    Posts
    165
    Post Thanks / WTG / Hug
    Rep Power
    7

    Default

    Before I was a SAHM I was a financial advisor. Not all of us were bad. The key to investing is being diversified, or not putting all of your eggs in one basket.

    Here are a few tips:
    -put as much as you can afford into a 401k or other employer sponsored plan. Whatever they match is free money. Also the money you put in is before taxes and lowers your taxable income. I once increased my 401k contribution and actually brought home more money. Usually you can only change the amount you put in a few times a year so check with your benefits person.

    -Put money in a Roth IRA or traditional IRA if possible. They have different advantages and depending on your income. Ask questions before you decide on one.

    -Diversify. Allocate money to different investments the same way you allocate money in your budget. If you don't allocate money in your budget properly you may not have enough money for something you need. It is a bad idea to invest all your money in one stock, no matter which company it is.

    -Mutual Funds. An easy way to get started is to invest in mutual funds. There are many different kids. Some funds invest in all growth stocks. There is a higher risk associate with these but they have the potential to grow higher faster. There are also value stocks. These are more likely to grow a little every year.

    -CDs and Money Markets. If you can't afford to have your money tied up for a long time you may want to invest in CDs or money markets. They are more liquid and there is less votility.

    -Invest for the long term. Don't try to invest for 1 year only. If you buy something you need to be willing to keep that investment whether it does good or bad.

    Don't be afraid to talk to a financial professional. If they don't explain everything to you then walk away. Don't make any decisions on the first visit. Depending on how much money you have some firms probabally wont even talk to you. Talk to several advisors from different companys before you pick one. Some banks also have people you can talk to.

    I hope this helps someone out there. If you have questions let me know.

  5. #5
    Ani
    Ani is offline
    Registered User Ani's Avatar
    Join Date
    Nov 2006
    Location
    Sandy, Utah
    Age
    31
    Posts
    491
    Post Thanks / WTG / Hug
    Rep Power
    8

    Default

    We invest in high yield index funds, as we're going to have our money there for quite some time and we will be able to ride the market waves.

    We are also planning on buying some property (with cash) at some point, but we'd like to get the mortgage taken care of first. That's just us though, I'm sure financial advisors would say we were crazy for wanting to pay the mortgage first.

  6. #6
    Registered User ktsmama's Avatar
    Join Date
    Jun 2006
    Location
    South Carolina
    Age
    40
    Posts
    1,424
    Post Thanks / WTG / Hug
    Rep Power
    11

    Default

    Always3busy - Thanks so much for the information!!
    Robbin

    Mom to Katey

  7. #7
    Registered User TheRootedNomad's Avatar
    Join Date
    Oct 2006
    Location
    Lost in thought
    Age
    43
    Posts
    3,341
    Post Thanks / WTG / Hug
    Blog Entries
    10
    Rep Power
    18

    Default

    Always2busy-

    Before I was a SAHM I was a financial advisor. Not all of us were bad. I hope I didn't offend. There are good and bad in all professions and my key meaning in that was meant to come off as me being unknowledgable in the area (blindly). You can't know the good from the bad in a sales world if you don't understand what they're talking about. I greatly appreciate the input.The key to investing is being diversified, or not putting all of your eggs in one basket.

    Here are a few tips:
    -put as much as you can afford into a 401k or other employer sponsored plan. Whatever they match is free money. Also the money you put in is before taxes and lowers your taxable income. I once increased my 401k contribution and actually brought home more money. Usually you can only change the amount you put in a few times a year so check with your benefits person. We put in well over what our employers match. I'm not sure if we have it maxed but it is about 10 or 12% for both of us.

    -Put money in a Roth IRA or traditional IRA if possible. They have different advantages and depending on your income. Ask questions before you decide on one. We've been considering doing this but have questions about whether we could pull the money without penalties if we reitre early.?.?

    -Diversify. Allocate money to different investments the same way you allocate money in your budget. If you don't allocate money in your budget properly you may not have enough money for something you need. It is a bad idea to invest all your money in one stock, no matter which company it is.

    -Mutual Funds. An easy way to get started is to invest in mutual funds. There are many different kids. Some funds invest in all growth stocks. There is a higher risk associate with these but they have the potential to grow higher faster. There are also value stocks. These are more likely to grow a little every year. Our 401's are mutual funds. I think the IRA options are mutual funds too. So if we invest in more mutual funds is that still considered diversifing????

    -CDs and Money Markets. If you can't afford to have your money tied up for a long time you may want to invest in CDs or money markets. They are more liquid and there is less votility. Part of our EF is in laddered CD's. Does more of our long term investment need to be here???? It seems kind of low intrest.

    -Invest for the long term. Don't try to invest for 1 year only. If you buy something you need to be willing to keep that investment whether it does good or bad.

    Don't be afraid to talk to a financial professional. If they don't explain everything to you then walk away. Don't make any decisions on the first visit. Depending on how much money you have some firms probabally wont even talk to you. Talk to several advisors from different companys before you pick one. Some banks also have people you can talk to. HOw do you knowwhat rates/charges are resonable????


    To the rest of you ladies thank-you as well. It looks like I have lots of new reading sources!!!!!

    And Ani, everyone thinks we're crazy too wanting to get our morgage paid off and then pay cash for a piece of land.
    GG


    Groc. December: $239/$300
    Investments 2014: $/$12,000
    Mort. Prin. : $1358/$8,456
    Christmas '14: $/$1,000
    Vacation '14: $/$1,500

  8. #8
    Registered User always2busy's Avatar
    Join Date
    Aug 2007
    Location
    AZ
    Posts
    165
    Post Thanks / WTG / Hug
    Rep Power
    7

    Default

    No offense taken. I worked with alot of those guys. The good guys will take the time to explain what everything means, they won't push you to make a decision quickly, and they will be up front with all pricing. You may also want to get to know the assistant or receptionist. They usually don't like the jerks in the office either and they can steer you away from them. You may want to call and tell the receptionist that you are thinking of investing, but you won't be able to start with very much money. Their response will tell you alot. If they say the minimum account balance is 100,000 you may want to call somewhere else. If they refer you to an advisor ask if he/she will patiently and happily explain everything to you. If the assistant brags on them then you may have a winner. You may also want to ask how long the advisor has been with the company. If they are new they may be hungrier. That means they have to open so many new accounts or they get fired. However they will probably be more patient with you and easier to get a hold of.

    Something I just thought of, some companies charge you if your account falls below a certain dollar amount. They also charge fees to open or close an account. The fees could be in the hundreds of dollars.

    Great job on the 401k match. That puts you a step ahead of most people.

    There are almost always penalties for early withdrawls. Here is a website that might answer some of your questions. http://www.fool.com/money/allaboutir...boutiras03.htm
    Without knowing everything about your financial picture it is hard to give definate answers. Most financial advisors will give you a free financial analysis so don't pay for one.

    Mutual Funds. You can have all your investments in mutual funds and still be diversified. It depends on the type of funds. Some funds are invested in growth stocks, others in value stocks, some try to be diversified, while others invest in a specialty area such as property. If you have a diversified mix of funds your investements will be diversified. If you are only invested in growth funds, for example you will not be diversified. The free financial analysis that most advisors will offer you can tell you if your investments are diversified. Also on most 401k statements there is a pie graph that shows how your investments are distributed. My 401k is only in one mutual fund but the fund itself is diversified.

    I almost mentioned laddering CDs last time I posted. Laddering CDs is a great investment strategy. It may seem low interest now but as interest rates go up, and the will eventually, it will pay off. Ladders also continually make you money. I can't answer whether or not more of your investment should be in a ladder. That would depend on many factors such as, the amount of money in the ladders, your other investments, finanical goals and plans, to name a few.

    As far as rates go, I would check around and compare. Financial companys usually have two types of programs. One is you pay transaction fees, or commissions on everything you buy or sell. In the other program they may charge you a flat rate per year. Your investment strategy will help determine what plan is right for you. I would talk to a minimum of three people from different companies before I made a decision. Also ask people you know if they can recommend an advisor.

    I hope this helps answer your questions. If I forgot something please let me know.

  9. #9
    Registered User
    Join Date
    Sep 2007
    Location
    Phoenix, Arizona
    Posts
    2
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default Great interest rate

    I am not sure what your cds are earning you. I work at chase and I know normally our cd rates are between 2-4% we have one for 5.25%apy for 7 months on over 10k...

    But enough of chase, emigrant direct online has a LIQUID savings at 5.05%apy!!! Why tie up your money for a lower interest rate?? I have my sons savings, my christmas savings and my EF started through them, no minimums, no fees, no nothing. Check them out.
    emigrantdirect.com

  10. #10
     is offline

    Join Date
    Dec 1969
    Posts
    0
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    Honestly, I think always2many is right on the mark.

    I would also suggest reading "A Random Walk Down Wall Street" - it has a lot of good overall principles. It can get a bit heavy sometimes, but it does a good job of explain what different types of investments are and how they work.

    For us personally, we have 401K's and a Roth IRA all in mutual funds - and a DRIP. Our next goal is to add a few more DRIPs to diversify our holdings.

  11. #11
     is offline

    Join Date
    Dec 1969
    Posts
    0
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    sorry - I meant always2busy, not always2many!

  12. #12
    Registered User TheRootedNomad's Avatar
    Join Date
    Oct 2006
    Location
    Lost in thought
    Age
    43
    Posts
    3,341
    Post Thanks / WTG / Hug
    Blog Entries
    10
    Rep Power
    18

    Default

    Alright, gotta ask.... What's a DRIP???
    GG


    Groc. December: $239/$300
    Investments 2014: $/$12,000
    Mort. Prin. : $1358/$8,456
    Christmas '14: $/$1,000
    Vacation '14: $/$1,500

  13. #13
    Registered User leezza's Avatar
    Join Date
    Apr 2006
    Location
    Northern California
    Posts
    922
    Post Thanks / WTG / Hug
    Rep Power
    9

    Default

    If you are interested you may want to watch, "Mad Money" on CNBC.....this guy is wild but he really keeps your attention.......he is really trying to teach about investing......most folks I know that invest in the stock market watch his show everyday, he also has books and such.

    leezza : )

  14. #14
    Registered User
    Join Date
    Oct 2005
    Posts
    578
    Post Thanks / WTG / Hug
    Rep Power
    9

    Default

    I would also recommend fool.com - their discussion boards are great. Msn money is another good site.

    I'd pick a high APY savings account over a cd. Something like emigrant or ING.

    My ROTH is with Vanguard. They have fairly low fees, and offer a variety of mutual funds.

    I will eventually get around to buying individual stocks w/Sharebuilder, and plan to buy shares in companies I like.

    I'm not too fond of Mad Money. Jim Cramer grates on my nerves, but so does Susie Orman.

  15. #15
     is offline

    Join Date
    Dec 1969
    Posts
    0
    Post Thanks / WTG / Hug
    Rep Power
    0

    Default

    Quote Originally Posted by TheRootedNomad View Post
    Alright, gotta ask.... What's a DRIP???
    Dividend Re-investment Plan. If you own a share of stock in some companies, you can set it up so that instead of receiving a dividend check, you use it to purchase more stock. I have mine set up in ExxonMobile - I have it set up to buy $100 per month, plus re-invest the dividends. The Motley Fool has a great article explaining them.

Page 1 of 2 12 LastLast

Similar Threads

  1. 5 year plan: To turn home into investment property or not?
    By Alice in Debtland in forum Debt Reduction & Money Management
    Replies: 2
    Last Post: 07-20-2010, 06:34 PM
  2. 401k Investment Question
    By brocket in forum Dave Ramsey
    Replies: 17
    Last Post: 06-11-2010, 02:44 PM
  3. A home as an investment
    By ironmaiden in forum Frugal Living
    Replies: 7
    Last Post: 10-09-2005, 01:15 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •