Thread: Investing 102
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Old 12-25-2012, 08:02 PM
XLexusTech XLexusTech is offline
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Quote:
Originally Posted by GregWeld View Post
You've stumped me because I'm not sure what you're asking.


The 5% rule just means you shouldn't have more than about 5% in any ONE single investment ---- regardless of what account they're in.


I have a buddy that would buy the same stock in his personal account - then he'd buy it in his IRA and again in his wife's IRA.... He just couldn't look at his money and think of it as all his... regardless of the names on the accounts. No amount of badgering by me could fix it. He suffered a LOT during the downturn of '08.
Forgetting the cash and other accounts.. Using a basic theoretical example..if i have a stock portfolio with 14 stocks... and 20K invested... then some HAVE to have more then 5% in them... do I buy an additional 6 and balance it out?
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