Investing 102

[toy71camaro]

Originally Posted by solarguy09

Greg's long post about money management a few post ago was beautiful..



I recently bought the Wife a newer car...Paid cash for most of it, but was going to pull the money out and pay for all of it.

But I can leave that money making three times the loan rate...So the loan gets paid and I have two thirds left... But I do hate loans..


Next is the "warren Buffett" truck..I have proven my point at 200K miles on it and 2000 dollars maintinence in the last 5 years ...Only gas, reg, and insurance...

But I have decided to splurge.. But I can, or i would drive the truck forever if I had to...

Want to give away the old truck? hahaha


All kidding aside. I do hope the questions i do ask here are seen as me trying to learn, not just for quick answers, but insight as to "why" you came up the the answer you did....

Im a quick learner, I soak things in, and absorb a good portion of it. I'm analytical, and simplistic. The fastest/easiest approach is my goal (not just talking about investing)... Thats what makes me pretty good at my normal job (Q/A Supervisor for a small software firm.. but started out in tech support, and still do a good portion of it).

[Sieg]

Originally Posted by GregWeld

Drive to the nearest Casino -- put it all on Black....





You're in good shape... well... not physically... but you have a while longer to live... I'd put it into a good high dividend payer... PM - MO - CHKR - NNN - T - VZ - KMP

They're all 6% and growth (well not so much on T and VZ)...

The dividend will help you compound while you're busy sleeping... and there should be enough growth over 10+ years to bag you near a triple. Then you'll be like Warren Buffet and you'll be getting paid dividends more than you're initial investment!

Not on maple leaf red?

I won't ever over-estimate my longevity, lost too many too soon. The next breath is a gift, not an entitlement.

The stock account already has MO - T - VZ........PM is naughty........I like it. But I'll research the others and see if they push the fun button.

Again, thank you for your enthusiastic, educational, real-world contributions to the cause.

[GregWeld]

Originally Posted by Sieg

Not on maple leaf red?

I won't ever over-estimate my longevity, lost too many too soon. The next breath is a gift, not an entitlement.

The stock account already has MO - T - VZ........PM is naughty........I like it. But I'll research the others and see if they push the fun button.

Again, thank you for your enthusiastic, educational, real-world contributions to the cause.

Seriously I don't like to recommend names... It makes me uncomfortable and just is not my gig. I'm better at the "thinking" part.. and then you get to choose on your own. I actually like the comparison conversation where we can just drill down on a couple names, over the "what should I do" kinda conversations.

Glad to see you have some good names going already

[mdprovee]

Hey Greg,

I wanted to say thanks for all this info. I have been thinking about what you are saying, or typing. I met with my advisor, and I have made alot of changes. I have showed him the very little info I have learned, and some of yours, We have made the changes and now no looking back.

[GregWeld]

Originally Posted by mdprovee

Hey Greg,

I wanted to say thanks for all this info. I have been thinking about what you are saying, or typing. I met with my advisor, and I have made alot of changes. I have showed him the very little info I have learned, and some of yours, We have made the changes and now no looking back.

Now we're talking!! Good to hear Mike... Hope your broker didn't think that I'm a total a hole fool!

Laura needs to retire rich so we can all go racing off into the wild blue yonder!

EEEEEEEEEEEEEEEEEHHHHHHHHAAAAAAAA!


Hey -- you going to be at RTTC?? Bobby B - and Tim "the tool" Bruning and I are headed down Wednesday -- be in San Fran to pick up the roadster from Brizio -- and then off to Bakertucky fo' some finger lickin' BBQ at Ironworks on Thursday.

[GregWeld]

Originally Posted by toy71camaro

All kidding aside. I do hope the questions i do ask here are seen as me trying to learn, not just for quick answers, but insight as to "why" you came up the the answer you did....

You're questions are GREAT!

Keep 'em comin' --- they make me have to think! I don't do that much of it....

[Bucketlist2012]

Originally Posted by Sieg

Not on maple leaf red?

I won't ever over-estimate my longevity, lost too many too soon. The next breath is a gift, not an entitlement.

The stock account already has MO - T - VZ........PM is naughty........I like it. But I'll research the others and see if they push the fun button.

Again, thank you for your enthusiastic, educational, real-world contributions to the cause.

I have planned a lifetime for a long and wealthy lifetime..

Two years ago, I almost died twice....We are all on borrowed Time..

I am working on the "Balance' now... I have enough, how much do I spend and not worry ?

Tough call, but Compound Interest and TIME, have given me the tools and the money to at 52, to be able to walk away from working, and to start Living.. Slightly less healthy(brain and heart), but still healthy enough to start using this wealth before I end up dying...

Well not all of It....I am wired to always have buckets of assets somewhere..

But I love this crazy thread...

[GregWeld]

Here's why I love dividends.... the market is off a bit --- so what?!?!

I check the Schwab account used for examples here.... and bada bing bada boom... I'm a happy guy today!


03/01/2012 KFN KKR FINANCIAL HLDGS LLC REIT
type: ORD DIV - CASH
$2,700.00

03/01/2012 JPM+I JPMORGAN CHASE 8.625%PFDDEP SHS REPSTG 1/400 NON
type: QUALIFIED DIV
$4,042.97

03/01/2012 CHKR CHESAPEAKE GRANITE WASH
type: QUALIFIED DIV
$7,277.00


NOTE THE DIFFERENCE IN DIVIDENDS --- KFN -- "ORD DIV" (Ordinary Dividend) that's normal income tax rates! The other two are QUALIFIED DIV -- QUALIFIED DIVIDENDS are taxed at 15% !! Make sure you know the difference in these and check BEFORE YOU BUY -- if the names are held in an ordinary account.

SOME REITS (Real Estate Investment Trusts) are considered a "return of capital" so aren't taxed until they've returned all of your capital -- and after that the "dividend" would then be income... So my point here is -- you need to know these differences BEFORE you end up with an income event you didn't plan for.

[toy71camaro]

Sweet!

I just sold off one of my ETF's in my roth, since it consisted of a bunch of companies i was planning to buy anyway. lol. Then i could take full advantage of their dividends. also transferred the remaining amount i needed to max out the ROTH for 2011 contributions.

So, i'll have about $4500 to work with... and 35yrs for ROI

Thinking of going $1k/each with: MO, T, CVX, PEP. that going to be diversified enough to start? (have about $1k in MCD already, and a few hundred in tech stuff, CSCO, AAPL, MSFT).

Also found out Sharebuilder doesnt allow LP stocks.. so no KMP for me.

Note: I am doing all this under my ROTH IRA.

I still have a little left over, any certain industry/sector/area i should work on for more balance?

[toy71camaro]

Funny..... just noticed SeekingAlpha published a report/article today on 5 stocks to "buy and hold"... MCD, PEP and MO were all on there... now I feel I'm following "the masses". lol

But, I didn't let the article persuade me. That's the key diff.