Investing 102

[Tony_SS]

Anyone invested in health insurance stocks? :/

http://www.infowars.com/insurance-gi...h-law-cash-in/

[MattO]

This whole thread has inspired me to start taking a deeper look at my finances and spending. I'm laying out a plan to get out of debt and then take that money that WAS going into CC's and toys and starting an investment fund (after I have my emergency account setup.) Figure I'm young and dumb and it's time to wise up. Retiring when I'm my dad's age sounds like fun and if it means not building another car right now, I'm OK with that.

[toy71camaro]

Originally Posted by MattO

This whole thread has inspired me to start taking a deeper look at my finances and spending. I'm laying out a plan to get out of debt and then take that money that WAS going into CC's and toys and starting an investment fund (after I have my emergency account setup.) Figure I'm young and dumb and it's time to wise up. Retiring when I'm my dad's age sounds like fun and if it means not building another car right now, I'm OK with that.

GREAT!!!!!!

If you need a little extra motivation, check out Dave Ramsey's book "Total Money Makeover". It's a little helpful "guide" to setting up your plan of attack to get out of debt and become money successful. I also listen to his free daily "radio show" over the internet, in the form of a "Pod Cast". You can do it from his website or from your mobile device and such. Hearing other people's pain/issues lets you know your not alone, and giving you hope that there's light at the end of that tunnel. Good luck man. its tough, but SO worth it!

[GregWeld]

Originally Posted by MattO

This whole thread has inspired me to start taking a deeper look at my finances and spending. I'm laying out a plan to get out of debt and then take that money that WAS going into CC's and toys and starting an investment fund (after I have my emergency account setup.) Figure I'm young and dumb and it's time to wise up. Retiring when I'm my dad's age sounds like fun and if it means not building another car right now, I'm OK with that.

Just living stingy and not having anything will never work.... it's like dieting and having to only eat tomatoes for weeks on end. You'll just go right back to steak and potatoes.


So re: not building another car


Building a car is a HOBBY... but the hobby doesn't dictate you have to have a 416 Mast motor and the latest greatest suspension ever made.

Build a car - over time - maintaining the hobby aspect of the build with parts that are within YOUR budget.

Retirement isn't about having to save 60% of your annual salary.... particularly if you're relatively young. Set your savings rate with a GOAL in mind.... factoring in TIME.... and factoring in what you really think you'll need to retire in a reasonably comfortable lifestyle.

Most people don't need 100k annually to retire (just tossing a number out there - because that number needs to factor in inflation). If you strip out the things you should NOT have to pay when you're retired - house payments - new car payments - etc.... You should really just have utilities/basic living expenses/health insurance/property taxes etc.

You'll get the AARP special at Denny's when going out for dinner (just kidding here!).


My point is that retirement should not be such a daunting exercise that you need to live like a hermit for 30 years to obtain.

People that live in high cost urban areas might need to plan to sell their largest asset (the house) and move to a lower cost. If you sell a house that's paid for for 350 grand and move to a city where you can get a nicer house for half that --- that goes a long way in boosting the net cash to invest to make retirement income etc.

[MattO]

Thanks Greg

What I meant was that I'm going to take what I was going to spend building the next one and put it into investments. I have a couple cool cars now that should hold me over, but I'm going to hold off on any major builds for a while. I'm going to keep tweaking on the cars I have now though and I'm learning to do more fabrication and engineering on my own as well.

I think part of it is just proving to myself that I can. Since I was 14 I've gone from one car to the next, pouring my heart, soul, and wallet into each one and it's time to take a little break and setup my future, so I can build the cars I want the way I want.

My plans after I retire (in like 40yrs) aren't like most people's. I just want enough to be able to spend time with my family, and build some cars. If I won the lotto tomorrow, I'd put in my 2 weeks, and then build cars with my dad for the rest of my life. I don't want anything more than that.

I'm only 26 and have (hopefully) a long life ahead of me. Taking a few years off from major work on the toys might be just what I need right now.

[Vegas69]

Smart move Matt. I agree with Greg, set some financial goals and make a real plan to achieve them by a certain age. Put it in writing and make a spreadsheet. At 26, you can set yourself up BIG TIME if you start now. The only way there will come a day when you can be with family and build cars is to be financially independent vs. blowing all your money on cars for the next 30 years. I also agree with Greg that you don't have to be a hermit, invest first, spend 2nd.

I'd start with a Roth IRA and build from there.

[Tony_SS]

Originally Posted by MattO

This whole thread has inspired me to start taking a deeper look at my finances and spending. I'm laying out a plan to get out of debt and then take that money that WAS going into CC's and toys and starting an investment fund (after I have my emergency account setup.) Figure I'm young and dumb and it's time to wise up. Retiring when I'm my dad's age sounds like fun and if it means not building another car right now, I'm OK with that.

Exactly my situation here too Matt.

[GregWeld]

This thread has never been about what stock to own --- and rarely mentions specific stocks except to use them as an example. We have to have examples occasionally... but it's a real trap === and completely defeats the thread === when it turns into a "pump and dump" or stock recommendation thread -- vs -- a discussion of just general terms and more about how to think etc.

However -- in the "example" use -- I have always promoted stocks of companies that you know and use -- and places or things that you personally have some familiarity with etc. You've heard me say that I bought Apple (AAPL) stock after coming home from the mall where it was the only store that had a line of people trying to buy stuff and that we had 4 or 5 of those iPod things laying around the house.... That was back when it was $85 by the way... I was out of it at $300.

Yesterday I had some errands to run -- little Metric bolts and nuts used in the Lotus (I have stock in the shop of SS SAE nuts and bolts but nothing in metric).... so off to Tacoma Screw with a shopping list. I was hungry and there was a McDonalds on the street so in I went for some quick breakfast. Full disclosure - I own 3000 shares of MCD....

Now -- the reason I have said to buy the companies you know and like is so that you AS A CONSUMER can gauge FUNDAMENTAL CHANGE.... that is -- you're around the places you actually own -- and can be Johnny on the spot to monitor how you think they're doing -- or even how the overall economy is doing etc IF you just pay attention.

I have to say that I was pretty much appalled at the SERVICE I received during my visit - and that there was nobody in the place except 3 tables of old retired people... my food sucked. I don't eat McDonalds or that kind of food unless I'm on a road trip... so don't visit these kinds of places very often. I own Coke (KO) but don't drink it.... I own Altria (MO) but don't smoke... but I own these companies because they lend stability to my account - they pay a dividend - and the great masses do drink Coke - eat at McDonalds and smoke etc (Especially in Europe!!!).

I guess my point is this -- sometimes you don't just have to know WHEN TO BUY -- Sometimes you have to KNOW WHEN TO SELL... Knowing when to sell is far harder than buying. I've been thinking of selling McDonalds since my visit. It was just horrible food - which makes me avoid another visit.... and I wonder how many other people have had a similar experience. Spotting a trend is key to investing... and a trend isn't always UP... sometimes it's down.

[toy71camaro]

Originally Posted by GregWeld

This thread has never been about what stock to own --- and rarely mentions specific stocks except to use them as an example. We have to have examples occasionally... but it's a real trap === and completely defeats the thread === when it turns into a "pump and dump" or stock recommendation thread -- vs -- a discussion of just general terms and more about how to think etc.

However -- in the "example" use -- I have always promoted stocks of companies that you know and use -- and places or things that you personally have some familiarity with etc. You've heard me say that I bought Apple (AAPL) stock after coming home from the mall where it was the only store that had a line of people trying to buy stuff and that we had 4 or 5 of those iPod things laying around the house.... That was back when it was $85 by the way... I was out of it at $300.

Yesterday I had some errands to run -- little Metric bolts and nuts used in the Lotus (I have stock in the shop of SS SAE nuts and bolts but nothing in metric).... so off to Tacoma Screw with a shopping list. I was hungry and there was a McDonalds on the street so in I went for some quick breakfast. Full disclosure - I own 3000 shares of MCD....

Now -- the reason I have said to buy the companies you know and like is so that you AS A CONSUMER can gauge FUNDAMENTAL CHANGE.... that is -- you're around the places you actually own -- and can be Johnny on the spot to monitor how you think they're doing -- or even how the overall economy is doing etc IF you just pay attention.

I have to say that I was pretty much appalled at the SERVICE I received during my visit - and that there was nobody in the place except 3 tables of old retired people... my food sucked. I don't eat McDonalds or that kind of food unless I'm on a road trip... so don't visit these kinds of places very often. I own Coke (KO) but don't drink it.... I own Altria (MO) but don't smoke... but I own these companies because they lend stability to my account - they pay a dividend - and the great masses do drink Coke - eat at McDonalds and smoke etc (Especially in Europe!!!).

I guess my point is this -- sometimes you don't just have to know WHEN TO BUY -- Sometimes you have to KNOW WHEN TO SELL... Knowing when to sell is far harder than buying. I've been thinking of selling McDonalds since my visit. It was just horrible food - which makes me avoid another visit.... and I wonder how many other people have had a similar experience. Spotting a trend is key to investing... and a trend isn't always UP... sometimes it's down.

Excellent point(s).. One thing to consider is that there are obviously tens of thousands of these places scattered across the US. The trick is to find out if your bad experience is the new "norm" or if its just that location, or just someones "off day" at that location. If its just that location, you'd obviously think twice before off loading everything. If you see it as a trend across the company, then I'd be really questioning my position in the stock.

Now, we have 3 MCD's in our town of about 70k people (4 if you include the one inside wal-mart) - Roughly 16 sq miles in size. ALL have been renovated within the past 3 years or so (except the one inside Wally, not a whole lot you can do there). Our 3 locations are generally really steadily busy. Perhaps its the "new look" that keeps people coming back? Or perhaps its the service? Not 100% sure. We eat there once or twice a month (two kids under 8, so sometimes we just need a "quick bite" on the go). And most of the time we're happy with our food/service.

Anywho, just my 2c.

[Tony_SS]

The McD's here was torn down just to build a brand new version... that tells me they are doing very well. The owner owns about 5 or 6 locations all in my area. He started out working at one...a true American success story really.

I'm rural midwest where people aren't too concerned with their diet as much...so I think they do pretty well around here. We don't go to there at all though.