Investing 102

[GregWeld]

Originally Posted by hifi875

I would like to thank this thread(mainly Greg) for getting me thinking more about managing my own money(or some of it anyway). My little homemade mutual fund is doing quite well. My overal return is 27% for the year. Since i brought it up, it will probly tank tomorrow. If it was only on a larger scale, I would really have something, but its a start. Thanks Greg!

Way to go! Holy cow! 27%!!!! I'll pay you to be MY money manager!!

[hifi875]

Originally Posted by GregWeld

Way to go! Holy cow! 27%!!!! I'll pay you to be MY money manager!!

My biggest 2 gainers are bank stocks. 1 is up 59% the other is up 31%. They were of course the most volatile

[WSSix]

I'm just waiting for the first of the year. Then I'll drop my annual Roth payment into the account and buy some more stocks. I'm thinking of either going with 4 or 5 stocks. It'll be a smaller amount in each stock than what I currently have per stock but I want some more diversification. I gotta do something to keep another OXY from killing me. Hopefully byt the end of January I'll have the money transferred and stocks purchased. Unless of course the Mayans are right.

[GregWeld]

Originally Posted by WSSix

I'm just waiting for the first of the year. Then I'll drop my annual Roth payment into the account and buy some more stocks. I'm thinking of either going with 4 or 5 stocks. It'll be a smaller amount in each stock than what I currently have per stock but I want some more diversification. I gotta do something to keep another OXY from killing me. Hopefully byt the end of January I'll have the money transferred and stocks purchased. Unless of course the Mayans are right.

Thus the magic "5%" rule -- that no single investment be more than 5% of your portfolio... that way it can go to ZERO and would only kick your sorry butt by 5%.

Hard to stick by - and makes you trim "winners" etc - but it's a very good rule 99% of the time.

The bad part of the rule -- there's always "something wrong", right? Is that stocks like the good old days - let's say Microsoft -- or Google -- or an Apple is going GANGBUSTERS and you follow the rule faithfully and sell every time they hit 10% of your portfolio. In hindsight - that can be very painful. As me how I know that! But it saves you on the downside... so is worth heeding. The old Pigs get fat hogs get slaughtered!

[GregWeld]

I was reminded today via CNBC about very good point to remember...


Regardless of the tax changes etc -- if any -- those of you with funds in retirement accounts are not affected. Since those funds grow Tax DEFERRED...
and those with ROTH IRAS will never pay tax on withdrawals so those accounts are looking better and better!


Mahalo!

[GregWeld]

How many of you have had retirement plans at other employers etc. Here's something I would have NEVER thought about. It's worth just giving a few minutes thought to.

With all the changes to electronic banking etc.... WOW!



http://www.bankrate.com/financing/re...ec_id=m1078090

[WSSix]

Wow is correct. However, I'm surprised he wasn't able to have her charged with fraud and theft. Or maybe he did and that's just not part of this story. I can understand how the plan might not be liable based on the info we've been given but that doesn't excuse the exwife's outright theft. Guess he also got a clear indication of the type of person she is.

I'll have to keep all this in mind as I'm trying to change jobs and have company retirement accounts. I know I'll have to look into rolling things over etc or possibly leaving them where they are. I'll cross the bridge when the time comes.