Investing 102

[Payton King]

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

Back to our regular program.

[Bucketlist2012]

Greg...

You are too funny..

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....

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..

[toy71camaro]

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

[GregWeld]

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!!!

[GregWeld]

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.

[strtcar]

Originally Posted by GregWeld

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.

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.....

[GregWeld]

Originally Posted by strtcar

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.....

You're light.....

[strtcar]

Originally Posted by GregWeld

You're light.....

ha ha nice.....

[Bucketlist2012]

Originally Posted by GregWeld

You're light.....

Ah che wah wah...

Ah carumba..

Holy moly...

yee haa..

[GregWeld]

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!