LOL! I accidentally bought 100 shares of TEVA @ $37.30 (No I won't go into the details)
I started watching and reading up on it and thought hmmm this CEO deal might not be terrible. Being a Euro trade I couldn't reinvest the dividend (at least that's what I think) I couldn't get comfy with the risk and sold it @ 39.80 and also picked up a $32 dividend deposit.

Is that like "she accidentally got pregnant" ? LOL

hahahahaha is this really the name of the firm? Gatti, Gatti, Mayer, Sayer, Thayer and Associates Say it three times fast and try not to chuckle.


Greg, do you feel the same way about fee only financial planners/advisers? You know, it may just be me hoping and wishing for the best in the world but I've got to think there has to be people out there who truly and honestly want to help people with their investments while also making a living not a killing like this guy was. I've always heard that fee only people are safest because they only make money upfront when you meet with them. They don't get any percentage of your gains so there's no ulterior motive to their advice.

I have used fee only financial advisors... and as long as they're FEE ONLY --- I think using them to take a long hard look at your finances is fine. I will say though -- that mostly they are only going to tell you what you already know. I.E., You need to cut expenses -- make more money - save more money - pay off debt.

See -- that's the thing --- it's MATH. Everyone can add and subtract. It's not even algebra. You earn X -- you spend X... there's X left over or not.

So a financial planner/advisor can't change your habits. That's what has to change -- unless you're just making way more money than you need -- and then that's SUPER EASY -- you take what's left over and invest it in SOMETHING - ANYTHING.

They will help you think about "stuff" in a different way -- so that's usually worth the 2K or so fee. Stuff like life insurance... whole life vs term life --- get you to think about how much you need --- or don't need. If you're single - no kids - etc - who needs life insurance -- so what if you croak? That type of thing.
But they can't change your mortgage.. or your car payment... or pay down the VISA.

To me it's kinda like going on a diet --- you do well for a few weeks -- or even 6 months or so... and now you've spent 2K "extra" to find out what you already should know.

That's "plain english".

For some folks it may have them turning over a whole new leaf. Maybe they don't think about paying down a 20% credit card FIRST vs paying the 6% Card and so on. So it can be a really good thing.

Like most "advice" --- you really really have to be willing to take the advice and stick with it.

Greg, the series of posts you made above are in invaluable. It will be read many times along my investing career in moments of weakness when I doubt my ability to think for myself.

Got my annual SEP IRA check deposited today, it's time to do some investing!

Trey ---


One night (after all his troubles were aired on TV and in the news) -- Rhodes got seriously plastered - he went for a walk and fell down and hit his head on a manhole cover... he stumbled to a random neighbor and reported that he'd been shot. He said "Greg Weld drove by and shot me". I hated him -- he and everyone else in his world knew I hated him - he was not only a schmuck stealing lying POS -- he didn't know anything about cars or Corvettes and the NCRS made the bastard President of the local chapter (I quit that day!). I'm not joking here!! That (that he'd been shot) was, of course, reported to the police - he was taken to the hospital to get stitches --- and oh hell yeah -- the cops were calling me!

So the detective calls and starts to tell me why he's calling and that I'm a "suspect" in the case. So when he was finished... I said to him (not joking here either) that had I shot Wesley C. Rhodes that he'd be deader than a effin' doornail! And that yes - absolutely I'd love to kill the lying sniveling bastard - but I was in Seattle - as the detective knew since he'd called me... and I didn't shoot him even though I'd love to, given half a chance!

The cop started to laugh at this -- because - as usual, I was rather "direct".... and he says --- "well... we're well aware of Mr. Rhodes "issues" and I've seen lots of bullet wounds and this was no bullet wound... that it was pretty obvious that he fell and hit his head on something". He said he had to call me as part of the case but that I needn't worry about being arrested any time soon. LOL

OKAY THAT'S IT!! ---- Oh wait! I can't feed you thru your carburetor... you've already had that fire once!! LOL

^^^^Oh that was COLD, but funny,,,,

Good to hear and thank you Steven. I'm happy to hear you're about to take the big plunge! I appreciate the warning too... because now we'll all know why the market takes a giant dive - you know - the hour after you get in! LOL


What I'm talking about in this thread isn't GOSPEL.... rather... it's simply food for thought! Like most things -- there's 50 ways to do "X"... my way of looking at things is just that, "my way". Nobody has to do what I say, or think the way I think.... I just want PEOPLE TO THINK. Period!

Greg, my counter punch is that you can't take your knowledge for granted. What is instinct for you at this point is foreign to others. Many high wage earners are not great with personal finance just like the less wealthy. They need someone to look them in the eye and say, hey, you need to wake up and smell the coffee and here's how you get there.

Me, I'll read a book, experiment, put together a budget, spreadsheet, scheme and plot. Not everybody is that driven. That's why financial advisors exist. I have two good buddies in the business.

Then there is asset protection from tax and death and the list goes on. To me they are a piece of the puzzle that makes it all click.

Let's just say it was definitely premature and leave it at that! :rules:

Usually a stupid mistake like that would cost me a couple hundred instead of producing. Ha!

That's ok, I can set up a direct transfer account. :popcorn2:

Hey! I could have said nothing! I knew what I was throwing to the lions. :D :thumbsup:

My thing is, right now with the market, it seems to be at a high point again, like before it crashed 6 years ago. Setting overall records etc. Scares me that it's about time for it to dip and dip big. Probably soon as I get in we'll have a 2008 kerrr-splat! :bigun2:

The cream of the crop isn't going to close up shop.

Which is exactly why I pointed out that they (FA's) can help some people. But I also explained that some people can also do simple math -- so if someone is looking for some miracle (in the form of a financial planner) to straighten out their finances... That's probably not going to happen. So -- like most things -- I was giving people things to think about because it all depends on what it is that they're expecting.

I'm sorry --- I hear that same thing every day. Now.... if you've read this thread at all ---- you'd see that I constantly ask that people go look at charts. The reason for that - is that they will be ASSURED that the market WILL in fact dip.... and the shorter the time frame -- those dips will be more obvious... now -- stretch that chart out and those ups and downs start to calm down... and the most important thing you'll see is the chart lower on the left and higher on the right.

I want you to personally go choose just about ANY stock and pull up it's chart PRE 2008 ---- go back to 1999 or 2000 or whenever -- just as long as it's before 2008... and have it stretch to current. Tell me what you see.

The only losers in 2008 (same with housing by the way) are the people that SOLD ---- everyone else is doing just fine.

If you were invested in Dividend paying stocks during that low period --- those dividends were buying MORE shares at lower prices -- those shares paid dividends which bought more shares and so on -- AND their price per share appreciated. This is why I repeatedly say "LONGER TERM" not tomorrow - not next week - not this month... and maybe we suck for a year or two. But if you look at HISTORY (what else can we rely on - we don't have crystal balls) - that will show you that over time - you'll be fine.

If you understand AVERAGES --- the stock market is no different than most everything else in the world... sometimes it goes up - and sometimes it goes down -- but over time it AVERAGES "X". Housing's average increase is about 4% per year. It went nuts for a couple years... then went down for a couple years --- my guess is - when you look back - that "average" number stays just about the same...

The other thing that I have repeated repeatedly is to AVERAGE IN --- I have never said someone should go take 100K and put it all in tomorrow morning. Most people save up -- put some to work -- save some more - put some to work and so on. If they do that -- which is what's NORMAL -- they will buy more shares when prices are lower (during your big kerrsplat!) and they'll buy fewer shares when prices are at higher prices... they begin to average at a lower cost even if you managed to buy your first few batches at the peak of every year. It's okay. It's INVESTING. It's long term thinking 5 - 10 - 20 - 30 years. You're never going to have anything if you're always waiting for the lowest price of the century. You'd never buy a house - you'd never buy a car - you'd never buy clothes... if you were always worried that they might go on sale the day after you bought.

By the way --- I've guaranteed everyone, many times, that the day they buy - the market WILL go down. You'd see that by reading the thread. I will guarantee the day you buy it will be lower at some point than what you paid. Get over it.

Since this thread started - there have been plenty of guys here that started to invest -- and I'll bet you every one of them has seen PAPER losses in their account at some point.... The happy ones - are the ones that stayed the course.

Oh I completely agree, just have to pull the trigger :headspin:

It comes back to personal responsibility and drive. Wisdom uninvested in labor is wasted.

I think the part that bugs me the very most -- is that people will spend all their time on finding the exact right part for their car -- and they'll spend 10 years hunting and gathering those parts and saving up for them etc.... and spend countless hours doing mock up and banging their knuckles... and LOVE IT.

Saving or investing for their f'ckin' future? Learning a minimum amount about it. Knowing how important it is to their LIFE... ZIP!

We'll pull the trigger on a $10,000 motor... or $4,000 wheels... even though by the time the car is actually running - they'll be out of date... but to imagine that we'd buy $10,000 of Altria (MO) and that it might go down to $9,500 and PAY US a 5% dividend... well that' absolutely INSANE. Who'd do that!


UGH....

Greg, I totally dig your "PASSION" about this whole investing thing. It's inspiring!!!!! :thumbsup:

THAT is one of the biggest reasons I keep coming back to this thread. Especially recently. All a guy has to do is read 40 or 50 or a 100 pages of this ginormous thread and they will hear the repetition of your message, "This is NOT difficult" "don't do it for the day, or the month, do it for the long haul"

I could have a 3:73 ring & pinion, rear disc's, 4-link and coil overs, new control arms, spindles, and coil overs....................if I sold MO. Ain't happening!

My piddly little Pro-Tinkering Camaro is your fault! :rofl: :thumbsup:

Man Greg, that guys sounds like a real twat. Guess he got what was coming to him, lol.

It's also amazing to me how blind people with money will be to the obvious. I realize that there are certain, if not arguably tremendous, perks associated with having money and wealth but legally earning inflated returns compared to your average Joe in a public market place is not one of them. How people like this guy and Bernie Madoff got away with it for so long is beyond me. I wish no ill will on anyone but it's kind of funny how dumb people can be with their money even when they have a lot of it.

Just goes to show knowledge isn't limited to those with certain titles, specific bank accounts, or with in the walls of an institution etc etc.

You can drive the Lotus all you want.

Yea, and coilovers now, will not put Filet Mignon on your plate at retirement, the MO will!!

.
.
.So I'm on the Schwab website reading about setting up a Brokerage account and I see they have Schwab Bank High Yield Investor Checking Account. There are no monthly service fees, no account minimum balance, and you earn interest on your balance, and the account is FDIC-insured.

Normally you need a $1000 minimum to open the Brokerage account, but if you direct deposit at least $100 a month they waive the minimum.

I can direct deposit whatever amount I see fit right out of my paycheck and the checking account is directly linked to a Schwab One Brokerage Account.

Even though my company matches money that I'd put into a traditional 401K, which I have pretty much NO control over. I can dump cash from every paycheck into the checking account and purchase whatever stocks I choose, whenever I choose, on my Schwab Brokerage account!! WIN - WIN

Trey ---


Here's the thing about Rhodes that kills me... and to people that don't understand how this could possibly happen! It must have been the result of greedy overzealous uncaring INVESTORS... It couldn't be more 180* out from that.


He started out working for a "FIRM" a big name firm.... was there until they cut him loose for "mishandling" clients funds - and in fact - he was fined for this... it's public record by the SEC -- but you'd have to be partly mad scientist to find out any info like that on a government website! When he left the big firm -- he talked some of his clients into letting him advise them... and over a period of time -- got more and more from then. Like most people ---- people recommend "who they're with" to others -- and so the snowball begins.

Now --- this ahole knew everything about his clients -- what the made - what they had - when they were to retire - their kids names -- everything! He went to some of the kids weddings! This was 20 plus years worth of "confidence" the investors had in this scum wad. The worst to me is that while he was spending THEIR money... and draining their accounts - HE KNEW that he was leaving retired people high and dry... he squandered their lifes savings.

These were NOT get rich quick clients -- in fact -- to the contrary -- most thought they were investing in government bonds and ultra safe annuities and that sort of thing. Funny - I later saw some of the made up names of these "holdings" --- and right then and there was a dead giveaway to me. You could not look up ANY of the so called "bonds". The names alone were made to sound ultra conservative and ultra safe but at the same time - they sounded ridiculous! Golden State Triple A Ultra Safe Government Ginnie Mae Plus Plus 4% Retirement GO Bond. Stuff like that. Just complete BS.

His problem was his EGO. When I first met him - we were at a regional NCRS event at Mt Bachelor (Sun River). He had purchased a well known local 67 BB Coupe... it was a nice 99 point car... and he was entered in the event (these are judged events). I overhead the ahole talking to someone about the car as if though HE had restored it.... When he'd just bought it the month before... Okay - so I immediately know he's a liar lowlife. By the next years event - he had half a dozen mid years... But I'd also heard about him by now --- and he was telling people that he managed about 25 million bucks. Okay - do the math -- 25 million @ 2% fixed fee... about $250 grand gross income. He has a fancy office in Lake Oswego... he has an assistant... so even if he's grossing 400K he isn't in a league that's buying 6 or 700K worth of Vettes in one year... so something stinks to me. He's also bragged about how he takes care of his mother - so you know money didn't come from his parents... 6 months later he's got a '70 Hemi Drop top Challenger and a '67 Hemi Bellvedere... and two brand new Corvettes... and he's hustling other NCRS guys to "invest" for them.

So here's the coupe d gras..... about 3 or so years into this buying spree --- he send the club invites to host a year end party at his house.... The invite begins by describing his 10 mile view - and his extensive art collection and that we are welcome to "tour" his "Crossed Flags Museum".... This is all spelled out in a simple invite. AN invite should state where - why - when - who - time - date.... it's not the place to describe your house... or your view. NOW I'm REALLY HATING THIS GUY! OMG! Who does that?!?!? DUDE -- if you have killer stuff -- and you invite them to your house --- they'll see all that when they get there! You don't need to pump yourself up in your invite. I wanted to shoot him then!

No I did not attend.

I warned people --- "there's something wrong with this guy --- 'cause I know what I have --- and I can't buy cars like he's buying cars!". This guy has bought a million dollars worth of cars in one year! I'm worth more than the amount he's "claiming" to manage and I can't afford to do that!! So WTF... something isn't right.

Next thing you know the gig is up --- the accounts are drained... and lots of people got real hurt real bad.


I will tell you now something that will guarantee you will hate this guy.... I was at my buddys place (NorthWest House of Hardtops)... and this CLOWN comes driving up in his drop top hemi Challenger.... with --- wait for it ----- a SCARF and DRIVING GLOVES on. Wearing a tweed sport coat -- top down on a colder than hell day.

Mark and I laugh about that to this very day.

See how simple most of this is?? Seriously... you don't have to have half a gazillion dollars to open accounts or invest.... you just have do to a minimum amount of searching and talking to people and make a couple phone calls...


I can tell you that I post my dividends on occasion for no other reason that to keep the interest going. You know people LOVE seeing what everyone else "has" ------ but I get a kick out of seeing people that I know two years ago didn't know a dividend from a postage stamp --- post up that they just got a dividend!! Yeah --- it might barely be enough to buy dinner -- but it comes 4 times a year --- and is buying them more shares... So the snowball has been FORMED. You guys have no idea how proud that makes me!

In total jest Gentlemen.........realistically Greg's little thread is the best thing I've ever came across on the internet. Thank you :hail: :thumbsup:

Thankfully I was programmed in a manner that's allowed me to resist the temptations and capitalize on much of the investing advice. In a very small way compared to many, but I'd guess much better than the majority. :knock:

I don't know about the Filet Mignon..........thankfully I love a good fried Spam sammich! :drool:

I think I might and you should be! The number of younger people in this thread that I've sensed have seen the light and the ones that have already taken action is something to be very proud of. Talk about making a difference in someone's life.........and their spouse and kids as well.

Then there's the number of people who I've shared in person what I've learned.......snowball!

Thanks buddy!

I personally have NEVER been able to stay within any manor of restraint. If I go to a store -- I'll ask the guy -- If you have good - better and best.... what do you have better than that?? LOL. Oh! You have Filet Mignon! Do you have PRIME Filet Mignon??

Luckily for me - our ability to generate what it takes to live that way, for the most part, outstrips my ability to find new things to have.









You're welcome!



You know --- the people - yourself included -- need to THANK THEMSELVES, not me. I'm just beating the drum.... the people actually getting off their ass and actually doing something - that's on each of you. It's one thing to read and digest -- it's quite another to follow through and do.

The reason I keep this (or try to) keep it SIMPLE --- and with DIVIDENDS --- is that it's the simplest to see some success right away. Even if you completely just missed by a day - the last dividend payment -- the next one is only 90 days away. And once people see that -- I think it lifts their spirits -- and holds their attention.

There's other ways to invest -- but they just might not be as simple and as successful for those starting on this new path.

and Greg you should be proud, it's got to be a real kick seeing people get inspired!!

NOW having said that, so I open up an account and dump a chunk of my "recent windfall" into the Brokerage account.........that's where I fall off the "edge of the flat earth" .. I mean UNCHARTED territory!! I don't have a freaking clue how to actually pull the trigger on the actual first stock purchase. I assume the easiest thing to do is to take a check with me to open an account at my local Schwab branch and let a Schwab rep guide me through it.

and then there are taxes - and I remember reading this Weld-ism I don't plan on selling any shares in year, but how do you handle dividends? I'd want to reinvest the dividends into more shares, but obviously in the beginning you'd have to bank those dividends (in the Schwab Checking account earning some interest) along with payroll deposits until there is enough $$ for more shares. Surely you're taxed on the dividends as gains right?


============================================

I love me some Spam sammich...... Comfort food going back to my childhood!!

Dividends are taxed at a flat 20%.... and you should have them REINVESTED in the stock you've bought and just pay the small tax on them out of pocket.

Now -- that's in an ordinary taxable account ---- if you're opening a ROTH or an IRA -- then those are treated differently and a Schwab rep can help you with that.

Before you actually BUY anything - build your portfolio on paper... so first things first -- get a line up of names you wish to own... make sure you have some diversity -- make sure the percentages dollar wise work out... and then depending on how much you have to invest... either take the plunge -- or scale in.

See the problem is with someone telling you what to do -- is we don't know your situation -- how much you make - how old are you - is this retirement or just investing etc. Are you investing 1,000 -- 10,000 or 100,000 and there's just so many variables. That's why reading the thread --- and I know it's long and repeats itself -- will help to guide you so you can think thru these things on your own.


You're not going to lose out if you just put the money into an account --- then take a month or two months to learn and become comfortable --- then start. We're dealing in years here -- not weeks or months.

Thanks for the back story on the guy. Makes me dislike him even more, lol.

It's why I didn't hesitate to tell the cop I'd kill him if I'd have shot him. I'd have made sure he was a goner...


One of his 20 plus year clients was a friend -- a retired doctor - ultra conservative people -- the kind of people that saved all their lives and stayed in the same house -- and drove simple cars... Henry was 70 when he got the call telling him he had NOTHING....

Think about that -- 70 years old -- happily retired enjoying life one day - the next day you're wondering if you can eat. Rhodes went to their kids college graduation -- and his wedding. He KNEW he was wiping him out.

THUS --- NEVER put your eggs in one basket -- which is why I'm not all in one brokerage even though it would be easier and cheaper. And why I invest in different stuff... real estate etc. Not just the stock market.

It makes me sick to hear stories like that. My dad taught me that nobody manages your money better than your self. Dont put all your eggs in one basket and diversify. It was good advice, too bad from 32 to 46 i "invested and forget it". I will promise to watch it like a hawk now that i'm 47. Got a nice base. I'm hopin to get at 1.5 to 2 by time i'm 62. Getting the kids done with college will be a major hurdle, two more years and that will be another 3k a month to put away. Right know were doing about 50k a year (15k for me and 15k for her from our company into its pension/401k) and another 20k into my Schwab stuff. Plus the asset's we have now, the house and business (which is "sellable", but its a specialized market so finding a buyer to "buy" a job isn't easy)...

HUGE!!!!

So the uphill battle is that everyone on TV is going to be talking about what a stellar year 2013 was. Not many years do we enjoy a 30% plus rise in just about everything we touch. Housing is snapping back in most areas... the hardest hit being the first to really come roaring back... etc.

Time and again - the question becomes so simple. Is NOW the time to put my money in the market (or elsewhere? Housing?)?

Here's the way I look at it. I think 2013 was the year that the USA finally was starting to get it's act back together. Nothing is really "great" or going gangbusters... But 2013 brought or started to bring a sense of -- it's not going down - might not be going full tilt either but things are looking up.

THE MARKET IS A FORWARD LOOKING MECHANISM. Always has been.

My sense is we'll see continued business and housing improvements. Not raging - but nice and steady... SO JUST BECAUSE 2013 WAS GANGBUSTERS doesn't make 2014 have to be crappy! What kind of thinking is that. OH! My business started to recover -- so next year everything ought to go to hell. That's NOT how people think! What most people do is relax just a bit... and look around at their situation and say -- well last year - sales came back to normal or almost normal -- so here we go! Let's kick some ass in 2014!

So just to say the market had a fantastic year - therefore - going forward it has to suck... well -- that's just made up bullpucky. While we can't expect 30% across the board gains... why should we just expect something to go sour -- when in my opinion we're just at the first few feet of a business rebound? THE MARKET is about business and earnings - forward looking sales and profit estimates etc.

In unison ---- Does it go straight up???


I can't hear you.....


Louder!


HELL NO!! It's like climbing stairs... and sometimes it two steps forward and three steps back - then four steps forward. What's the net result? We're 3 steps forward. Think about that -- because most of you did lousy math right there. You didn't come up with 3 steps forward did you!

The market moves in jerks. Any of you that have been in have certainly gotten accustom to that by now. Just about the time you're ready to throw in the towel - we get a 200 point day followed by a 100 point day... then a whole bunch of nothing mixed with a few poopie days.. then boom! Another big day. In the end the net result of 2013 was up about 30%.

As dividend investors --- and I'm going to get to my point here in a minute --- we're likely NOT going to see our accounts rise by the same as the market. The reason for that is that we're not invested in GROWTH. We're invested in TOTAL RETURN or DIVIDEND stocks. AND we're protecting our capital from DOWN markets by buying the best of breed companies - mixed with some steady eddies. These companies aren't the kind of companies that suddenly have a 40% sales increase. AND the fact that they yield a dividend can actually hold their prices back when things are going well. WHY? Because people look at the stock price rise -- which makes the yield comparison decline! It becomes an inverse measure... when the price falls the yield rises protecting us on the way down... but that same comparison holds us back a bit on the way up. So long term we get a better comp because we didn't loose as much as those around us - but we don't gain big time quickly either. We're the turtle not the hare. In the end we're the winners (historically dividend investing is the biggest bread winner).

What our dividend stock prices are competing with is interest rates.

What the MARKET wants (what is the market other than a group of people) is safety with a return. Those two are almost mutually exclusive - the higher the return the less safety. When "safe" rates on T-bills and the like rise -- those are super safe -- and when the return is 3 or 4% --- then they become "attractive" to the blue haired little old lady crowd (the ones with the most money!) because they're going to be compared with say COKE (KO) --- and when you factor in the tax free 3% vs the taxable 3% of a dividend... well the TBill becomes a temporary winner.

Now --- let's look at interest rates in the very most basic way.

Interest rates RISE - when what happens?

When people are WILLING to borrow rates rise. What is interest other than a sales commission on money? If nobody is buying I have to lower my prices -- if there is enough demand I'm able to raise my price a bit - but then I should see a leveling off as that demand slows a bit and adjusts to the new prices. If things go well - I might see more or continued demand --- or I might just have hit the ceiling and have to hold right here for awhile. Everything adjusts accordingly. Rates rise to quickly -- it kills housing sales -- and car sales.. and business balks... The WORLD has gotten used to damn near free money. It's going to balk at rising rates. Think about this in your own world. 4% or less money to buy a house... are you ready to look at 5% rates? NO..... that would piss you off. But over time -- 5% if you think it's going to 6% might start to be attractive enough that you take the plunge... and 3 years later -- you're the dude bragging about his cheap mortgage rate at the water cooler.

So if business is GOOD --- we'll see rising rates... and there will be some adjustments made. Rates cost business profits - they'll have to adjust (what's that? -- they raise prices! 'cause they're done cutting costs).

What's a guy to do?? Personally --- I'm looking at my lowest / slowest growth and dividend payers. And what I'm asking myself is --- OVER TIME --- not next week or next year --- am I willing to hold "X" and take "X" (low) dividend and maybe have little or no growth in capital but own a great company that has historically been just fine.... or do I trim that one just a bit --- and try to put a little more into the higher returning (dividend) stock to raise my income and compete with what I see is rising rates and perhaps rising costs...

As typical -- I'd done kind of a little middle of the road. I dumped McDonalds just because I really am average Joe and I find myself AVOIDING eating there as a choice.... and I've trimmed my Coke... because it pays a paltry but steady dividend... and I own it for BALANCE... and I've trimmed half my Wells Fargo right after the first of the year by half - because I had a HUGE gain in it... and it doesn't pay much (now) dividend -- so I took a little pocket money but I think there's still plenty of upside there... so I'm hedging my bet by holding half (10,000 shares is still a good chunk of change last time I looked)... I added a little to my Kinder Morgan Partners (KMP) because they just bought some tankers to add to their pipe business (I like that thinking) and the dividend is good or better because of the price decline in their shares.... and I'm looking for a raise in my own pocketbook this year (this new house is going to be expensive! LOL). The rest I parked temporarily until I get a clearer view or finally decide where I want to put it. I'm now holding WAY too much high yield corporate debt.. but that's just parking money and getting paid to do so.

ALL THE ABOVE JUST USED AS AN EXAMPLE.... WHAT I DO IS NOT WHAT YOU SHOULD OR COULD DO.... but we have to talk about something real and that's real. Period.

So this is a segue -- (not segway like I fell on my face with when I borrowed Charley's)... into what you should be doing this time of year.... it's called REVIEWING and trying to peer just a bit into the abyss we'll call next year and beyond. Look at everything you hold and examine it -- question it -- will you own it come hell or high water --- are you earning enough GOING FORWARD -- What's your GUESS on how your business's will do (you ARE AN OWNER YOU KNOW). This is NOT about getting scared of losing ------- this is about a simple examination or "taking stock" of where you're at.

My HOPE (and that's all it is) -- is that continued better business and housing -- offsets the rise in rates and the market goes with the thinking that better business conditions are okay countered by or tempered by rising overhead... and that maybe 2014 is a "wash" ---- and if it just holds steady -- then the 30% rise we just had -- AVERAGES out to 15% over the two years. I'll take it!!


See -- that's really where your head needs to be at. Think about that. 15% over two years in a market that has AVERAGED 10% over it's lifetime... and that 10% doubles your money every 7 years... and you're going to bitch about ONLY making 15% ?? Or maybe the chance to have just made 30% and maybe we just average 2014 and get the normal 10%.... BUT IF YOU'RE NOT IN -- THEN YOU'RE OUT and you get nothing. Brilliant strategy --- brilliant.

Like my cop buddy says --- your gun is in the nightstand and the bullets are in the basement... and the rapist is coming thru the door. Brilliant.


:>)


Ramble over and out.

Nice rant coach,..........making an appointment tomorrow to get into the Schwab office this week :unibrow:

Great post Greg.

I've got a few things I want paid off - school loans - BAHHH :hitaxeonthehead: but I should be able to knock that out by May. After that it's all about saving for the new house and investments!!!!

Time to pick a few of the ones listed here and watch them for the next few months. Interesting that you dropped McDonalds.

:gitrdun:

so let's talk Roth IRA's . . . . Good idea?

Are you married? Single? You'll have to go off of income here too.

Are you married and file jointly? Do you make more than $181k combined on the joint tax return? If so then legally, no Roth for you.

But now lets look at tax brackets. I believe by going over the $160k mark will put you into the next tax bracket. Because of this if you make over the $160 mark it's not worth doing the Roth and you should go Traditional - my opinion from my research and speaking with our Tax Accountant.

The basics between Roth and Traditional:

The money going into a Roth has already been taxed. Example, you get a paycheck, you then take the money that's already been taxed in said paycheck and place it into your Roth. When you retire and take money out you're then taxed just on the gains. You can also take the money you put into the Roth out at any time with no penalty.

Traditional comes out of your paycheck and goes into the IRA pre-taxes. So when you retire and you take this out you pay taxes on all of this.

With that being said, what is your tax bracket now? What will your tax bracket be when you retire? Higher tax bracket when you retire? Then do Roth now if you can, lower when you retire? Then do Traditional now? (with everything else said above in consideration)

If you CAN do a Roth, do it. I believe the max per year is also $5k per person for a personal Roth, if your IRA through work is a Roth there is no limit for coming out of your paycheck if not mistaking.