Rhymer?
 

You are a poet and don't know it, but your feet show it...they are Longfellows

Back to our regular program.

Greg...

You are too funny..:thumbsup:

The sell in May and go away is crazy too...I don't sell anything unless I want to..And I am not selling...

It is more like Buy more ..At cheaper prices....Soon I will.

Getting in and getting out is NOT part of Investing or this Thread..

Again I have friends that try to time everything..The same people sold in 2008 and "waited" to get back in...Even funnier, the same people tried "penny stocks"...Some are still waiting....:willy: :willy: :wow:

Sure May and a few months after are historically down months..But Buying and selling and buying and selling is just madness..

I know things may get rough, but it is never a smooth ride...And as you say, the Dividends keep coming in...Not like yours, but they still keep coming in..:thumbsup: :cheers: :lateral:

Ok... long overdue.. but i *think* i got my 401k figured out...

According to Schwab's calculator.. i should do 50% large cap stocks, 20% small/mid, 25% international, and 5% cash (<--WTF does cash mean? lol)

Anywho.... I found what seem to be the two best large caps, FCNTX (0.05% div, but has some larger long term cap growth payouts, 9/22/5/8 on the 1/3/5/10 yr returns. Growth of 10k over 10yr = 22k) and RWMFX (pays 2.55% div, 8/21/2 on the yearly returns (growth on 10k/10yr = 16k). Both holding a bunch of dividend champs.

Not sure if i should dump all 50% in one or the other, or split that 50/50...

Unfortunately, same question for the international group.. found 2 that I'm not sure to go with: RIRFX and FWIFX. Both full of div champs...

almost there.. just need to pinpoint the final touches...

And then, whats this 5% cash investments group? lol

If any of ya want to PM me to offer some advice, please feel free. I'll take any i can get. lol

I own the Fidelity Contra Fund (FCNTX) and over the years it's done very decently...

The American Fund (RWMFX) looks decent and has good names in the bag...

I would NEVER put too many eggs in one basket -- so if you're going to go -- at least split the investment between these two. They don't overlap much so that's good!

Personally -- I think you'd do better over time with just one International fund - Take a real good look at the overlap of these three (you picked 4) funds... and you'll see some crossover of the investments. Another reason I don't like MF's but you're stuck with what you're stuck with.

So I'd pick THREE of these MF's and split your investment into thirds and go with it.

There is ABSOLUTELY NO REASON TO HOLD CASH of any kind in a 401K.... that's such a dumb recommendation! You can't withdraw without major penalties and taxes due so why hold cash? It's not a friggin' bank account! Put 100% of those workers to work!!!

Facey Book IPO
 

Just to "relate" the Facebook IPO (initial public offering) in this thread... My brokerage called yesterday to remind me that I must "reaffirm" my COTP (conditional offer to purchase) shares in the IPO. It will "price" after the market close TODAY. Then I must finish the paperwork (on line) that I understand the price AND still want to buy.

Okay --- I'm not a Facebook user. Never been to the site. NO I'm not excited by it. I am not above profiting from it however.

Let's put this COTP in perspective. IF I got the 2000 shares I asked for -- it's less than 1% (in dollar amount) of what is just in that one brokerage. I think it's GAMBLING..... but I want to put the perspective of what I'm willing to risk. LESS THAN 1% which overall is about .25% - That's POINT TWO FIVE PERCENT not a quarter of a percent - and not a quarter of what I have to invest.

I've had so many inquiries about how all this works and whether or not "they" should invest etc. THAT HERE IS WHY I'M POSTING THIS....

The number of people that have filled out COTP and have been DENIED is over 70%! According to my broker. The reason for denial??? They are NOT QUALIFIED... Either by "experience" or by percentage of net worth... or various other reasons. The brokerage reviews these COTP's and they will and do refuse to sell to people that are not qualified.

My guess is -- that the people that get turned down for the IPO price -- will turn right around and pay double on the retail market.... making this an even dumber "investment" for them. :willy: :faint:

Just doing some math since you pointed this out. If the IPO goes for ~$40 x 2000 shares is 80k, and .25% of your entire acct we are talking $32million.....:hail: :hail:

You're light.....

ha ha nice.....:thumbsup:

Ah che wah wah...

Ah carumba..

Holy moly...

yee haa..

:thumbsup: :hail:

BTW - I don't use these numbers to let you know what my net worth is....
I use them (and pull them out of my arse) to make examples. The thread isn't about me... It's about YOU!

Another newbie question about being diversified.

Lets say you have $50k to invest. Are you diversified enough with 3 stocks, 5 or 10?
At what point are you spread out to thin?

If you own stocks that pay a dividend, when they pay out, your dividend is only enough that reinvesting it get you only 1 share, or 4 shares a year.
Are you diversified too much. And holding more shares would compound quicker.

I'll venture out, and offer my opinion on this...

I would say it depends on what stocks you've picked.. if you pick 5 stocks all in the "Tech" sector, your not diversified at all.

If you pick the "best of breeds" in 3, or 5, or 10 different sectors, NOW your diversified.

It was mentioned before, that it wouldnt be wise to invest more than 5% of your total investment money into a single stock. With that guideline, If *I* had 50k to work with, i'd probably choose between 7-10 Dividend Champs across multiple sectors, and feel "comfortable" about being diversified.

As for the "not enough to buy one share a year".. who cares. Its a % game 2.5% divided on 1 share gets you the same 2.5% dividend on 0.1 share, or 1,000 shares. You dont gain any extra for more shares at a time.. Thus id rather spread my 50k across a few sectors as previously mentioned, even if it means i only buy 1 share a year of that stock.

Just my 2c anyhow.

I thought this was interesting and fitting since we were talking about the FB IPO.

http://news.yahoo.com/saverin-dumps-...VPPTAAP7XQtDMD

I'm curious if any of you own the same stock in different accounts (IRA, ROTH, INVESTMENT ACCOUNT)? I have what I consider a good selection of stocks in my IRA but would like some of the same stocks in a regular investment account as well. My thinking is that the IRA is on a "set it & forget it" long term mode (I won't really forget it of course), but I would also like a regular investment account so that I can be active. Not in the form of day trading, more in the sense that I can move things around and possibly enjoy the investments sooner if need be.

I dont personally. As i dont have the funds, nor does my 401k allow individual stocks.

BUT, if they did, then i probably would! If they are "great" stocks, then why not? Your limited in your ROTH contributions, so once you have that maxed out, put up the extra in the Investment Account. Buy the same "Great" stocks, or mix it up a bit. (Like, my roth account wont let me buy MLP stocks, so no KMP for my ROTH). So i could only get in one or the other. But as long as your diversified, i dont see no harm in it.

MAN YOU GUYS ARE LEARNING!! I'M SO PROUD OF YOU!!


YES --- What he said!

:cheers:

I would NOT do that.... the key to being diversified has little to do with what account what is in... it has more to do with TOTAL INVESTABLE FUNDS -- and then keeping each investment (per name) to 5% or less....


Don't ever get complacent with a set and forget.... it's more like set - REVIEW - ADJUST - and keep them employees WORKING at all times.

:cheers:

What I meant by set it & forget it is that my choices are for the long term. I don't plan on changing them often by buying and selling. I'm constantly reviewing and checking the status.

The investment account would be more for making some money for "luxury" expenses (play money, car money) not "neccessitiies". However, I would approach it with the same seriousness as the other accounts. I would approach it with the same long term mindset.

Good!


Remember that MANY people read these things and may never comment etc... and they may never go back and read 8 ZILLION pages to get to this point...

So what I was doing was to say -- don't set it and forget!

Many people on here have an entire LOST DECADE of set and forget 401K's and they're just now realizing what a huge cost that has come with!

:thumbsup:

yep! I never looked at it. 1996 til 2012. Thanks to original poster, Greg and all other seasoned investors for opening my eyes. Im still new to this and learning.

I would just like to keep business, pleasure & retirement seperate. I have no intentions of trying to get rich quick but I would like to someday be able to play with some money without feeling guilty for blowing it on car parts.

Of all the forums I've frequented over the years, this single thread right here has to be that needle in the haystack. I'm very glad it has grown and educated us to the point that we've all had an awakening of sorts. If this was the last and only thread on earth to read, I would have it memorized word for word.

It's been a very fun thread for me and REWARDING seeing everyone "get it"... Hopefully it improves a whole lot of peoples retirement as well as their current lifestyles!

Money isn't everything - but it beats the hell out of whatever is in second place!

:woot:


BTW -- Whomever said money can't buy happiness, was an idiot or broke - or both.:rofl:

As I have said before, thanks to all of you and especially Greg for taking the time to give his opinions on investing.

Most people never, ever take the time to help people, and I feel it is a "paying it forward" action...I try to do it with people in my life and most don't listen, and want a "magic Potion"..Then they are angry that I don't have a get rich scheme...Mine took 30 years..

Again thanks to all of you posting your thought and Ideas, especially Greg..

Greg- Your post reminded me of HBO's 24/7 special for the Mayweather v. Cotto fight. :rofl: They were interviewing Mayweather in episode 3 when he piped off...

"Like I always say, money don't make me. I make money. When someone say 'I'm not materialistic,' you gotta realize, somebody broke made that up. Somebody who don't want to strive for sh** made that up. You know, beauty is only skin deep. An ugly person made that up. I tell you this: I'm a well groomed individual and I like money."

You guys are quite funny..:hail: :rofl:

My Wife and I are always striving for the next level...It keeps you motivated and hungry, and excited about life..

Sitting on your arse and waiting for things to happen , is going to be along wait for some people...

I enjoy what I have, but I want so much more, and I will make it happen...

It is my Manifesting of my Destiny.. Not waiting for a knock on my door from the Rich fairy..That knock will never come.

I am pretty handsome, but not pretty rich, but I ain't done yet...:cheers:

I agree with this 100% Thanks guys for helping us out with info, Not many places you can go to have this going on.

Facey Book IPO
 

I got 400 of the 2000 shares I put in for the COTP.


In a few minutes we'll see what happens next. My guess is -- not as much as everyone thinks. That's usually the way things go -- the opposite of expectations.

I'm surprised you're buying Facebook. A 50X PE just doesn't do it for me. There seems to be better places to put your money.

James -- Apparently you don't read all the posts. I explained the FB IPO purchase reasoning earlier... It's just "because I can". It's a gamble. A VERY VERY VERY teeny tiny gamble. One that is just "fun" to see what happens.

I'm not trying to get rich quick. :lol:

BTW ---- There is a LOT more to investing than P/E.... One criteria limiting factor won't get you very far as an investor.

Sweet! sure hope it goes UP UP UP for ya!!!

Im staying far and away from that one. LOL.

Ya know -- this stuff -- and I've done A LOT of 'em -- is pure gambling. You'll have just as much luck playing craps in Vegas. If you can afford to blow money playing craps... fine. If that's money you need for REAL INVESTING... then SMART people will stay away and put money into Coke or McDonalds.

I will be sitting the facebook one out..

I have a portion of my portfolio in Higher risk assets, but they are one's that I understand, and I have a reason for gambling on them, and so far, I am right.

I have never been on Facebook, and I never will. I don't understand it, and if I don't understand it, I am not buying it.

I told my Wife the other day about some of our assets, and I told her that it is " Calculated Gambling". But I explain to her why we are in the higher risk assets..

People will make money, and people will lose money on Facebook , and again, since I don't understand it, I just cannot throw my money at it.. But that is just My opinion.

I need to understand everything my employees are doing.. :thumbsup:

Agreed, picked up more of each MCD and KO, plus a few other choice Drips leading up to this... I don't gamble in casinos, in fact I don't see why anyone does... losing money a gaming is PAINFUL!...
I also agree 100% with the thinking, invest in products and companies you know and the products you use. When my 90 YO mother Friend-ed me on FB, I knew it was time to pony up... Hope I am right but even if I am wrong I am OK with it because I went for it with Money I could afford to lose..


Good luck to everyone!

Hmmm....

With the market down like it is... Im now debating if I purchase more stock of what I have, while its on sale (CVX -10.5%, MCD -4.9%) or continue on to buy two new ones i had planned for soon (T, KO or KMB)...

Decisions, decisions...



By the way, Sorry Greg about the FB IPO. It didnt shoot to the moon like "they all said it would"... lol. But, at least it didnt go belly up either. ;)

CVX down 10% would be okay -- I wouldn't average down on MCD it's not down enough.

Buying any time the market is down is good. You'll never catch the bottom - and will almost ALWAYS kick yourself for buying when you did. As far as I'm concerned -- there's almost never a right time to have bought UNTIL a couple years go by and you're up 25% and then you're thinking you're pretty dang smart to have paid such a high price.

I heard a rumor that when Facebook started to slide, shares were bought by Insiders to keep it from falling off the charts..

But I guess that time will tell..

I hear it was the Banks , ect.., buying the Stock mid-day to avoid ending the day below the opening price...

Fizzle....For Shizzle...

Greg oh mighty Greg. Should I buy Facebook stock?

Yes but hedge funds i believe, not insiders.

Actually it would be the UNDERWRITERS that would step up to buy to bolster the market.


John ---- Facebook (or any IPO) is a GAMBLE... buy at your own risk. Very few IPO's are successful -- the few that are, make up for the many that aren't. Which is why people get excited - because they THINK they're buying the next Microsoft or Google...

The lock up period expires in 90 days -- and another lock up period after that at 180 days which will TRIPLE the amount of shares possibly coming to market. There's plenty of time to see what happens between now and then.

:cheers: