Investing 102

[GregWeld]

Originally Posted by gearheads78

Well almost three weeks ago I found this thread and am up to page 300. I have learned sooo much. I'll be back in a day or two and join you guys in the present. It was really interesting reading through the thread about "future" events that have already happened.

Okay! Just wow! That's a lot of info to take in!


Welcome! Did you find anything of any value?


Hahahaha

[ErikLS2]

Originally Posted by GregWeld

I bought 500 shares of Twitter (TWTR) today....



So here's why I post this info. Just because someone else does doesn't mean you should. I can afford to take a very small position in a name like this. Think about the relative size of what 500 shares of a name is for me - when a typical position is 10,000 or 20,000 or 50,000 shares. If you're just building up your retirement account build a nice big base FIRST, then once you have $100K plus earning some dividends... Now you could "afford" to take on a risk like this. And you keep that risk really small in relation to your overall financial health!

Tiptoe first! I expect this name to be cut in half at some point and if it gets hit like that I'll buy another 500 and then that's it. Not another single share. If it doubles I'll take out my investment and let the house money ride. Period. It's gambling. But for me it's like gambling one dollar and then walking away. Don't get caught up in trying to make the big score.

Thinking about a similar move on GOGO, they are setting up all the in-flight wi-fi, texting, electronic device usage. Something like 8 or 9 of the 10 biggest airlines are using them. Of course, no earnings yet, putting it all back in the business but I would think it's only a matter of time before you can get full internet on a plane ride and these guys seem like the ones that will bring it to you. Sounds like worth risking a SMALL portion of what I have on.

[gearheads78]

Well I'm done. I want to go back and read at lot of the links posted along the way but I just finished reading the last post here.

After reading all this I so wish I had started following this thread 2 years ago when it started. I would be in a much better position riding this wave up.

My 401Ks are all up but its time to really take control. I'm 40 (almost 41) years old and really disapointed in myself. I started learning about finances and retirement in my late 20's but never really did anything about it. Family and life got in the way and I realize i've wasted 12 years I could have been building a real retirement.

I've been thinking alot about this latley and finding this thread has really awaken me.

Thanks to all my fellow car buddies that have contributed to this thread!!

Also a really special thanks to GW for the information to share. I have listened to a lot of talk radio and finance shows for years but the (investing for dummies) way you explain things makes it so must eaisier for me to understand.

[gearheads78]

So this thread does a great job of talking about long term and I have a pretty good idea of what I am going to do but what about short to medium term. Where should I put money instead of .002% I get in my saving account. I've been paying about 2000-2500 a month on credit card debt and am down to 2 payments to zero on that balance.

Ive got about 20K in old company 401k money. I will be rolling that to a IRA "Investing 102" account but I need to start socking away as much as I can for a new house / shop and my 54 build. I was going to dive right in the the 54' but its going on hold a little while I get in a better financial position. I just don't want to wake up and be 60 and never built it. Its the build I've had in my head for years.

My current house was fine with me and the wife and my the wife and daughter but now with 2 yo twins added we are just going to run out of room in a short few years.

Where should I put money I will need 2-4 years from now?

[toy71camaro]

Welcome to the thread! lots to soak in huh? lol.


As for your question of where to put the money in short term (less than 5 years), i would just put it away in a money market/higher yield savings. You're going to need that money, and don't want to risk it being on the downside when that time comes. (Capital One pays like .75%, Ally a little more, check around. bankrate.com may help).

I'd work hard on my 3-6 month emergency fund after you get that CC Debt cleared out. That money sits in a savings/money market account. NEVER to be touched unless an emergency arises. Thats your "when Murphy calls" backup plan. then look at saving money for that next upgrade (house, 54 build, etc). Make a monthly budget and stick to it. you wont realize how much money you've been piddling away on things over the years. It'll open your eyes.

If your into reading more, check out Total Money Makeover from Dave Ramsey, and Richest Man in Babylon. Both great financial books. Once you get that process down you can focus on turning your money into working for you.

[gearheads78]

Thanks Albert,

I have read the Total Money Makeover and listened to his show for a couple years when I had a job that let me listen to the radio all day.

I was trucking along pretty good on my debt snowball for what income I had to work with and 3 and a half years ago my 2nd daughter died at birth. I had all the medical bills from that pile up and I was so down in the dumps my pays went down a lot. I work as a service writer and its 100% commission. If I'm not on my a game then pay falls off the map.

Well a year later we were blessed with a son and daughter but the girl had to stay in NICU for about 10 days. I was not even through paying for the bills the the year before when those hit. Even with insurance there was a large chunk. I did payment plans as much as I could but we also started letting the card balances go up. I was pretty under water for a while.

I got my head on strait at work and have been busting my ass so I'm down to the last $4500.00

I don't have to have new cars. I drive a beater $2000.00 car daily for the last 4 years and I have a 12 year old Dodge 2500 diesel for when I need to haul.

I do have 2 car payments but only one is a falling asset the other is a 69 Camaro I could sell any time for 10K more than I paid. The other is the wifes 12' Camaro ( Dave would scold me on that one )

[toy71camaro]

Man.. Sorry to hear about your loss. Thats a tough one. Then to have one of the twins stuck in NICU. I bet that was scary. But sounded like you handled it pretty well. You just gotta be strong during those times, and not sorry so much about the debt. That'll come back later. (always, right? lol).

Glad to hear now that your digging in your boots and hitting it hard. Knock out that list little bit and get that emergency fund stored up so you dont have to stress (man, i never realized how much of a stress relief it was to have one!!). Then you can get focused on being the best dad, and putting some money aside for the future and that build!! Looking forward to hearing your success stories!!

If there's anything I can do to help you along with your journey, let me know! This is all about learning here. I've been on this thread about a year now and have grown tremendously. Taken control of my entire finances (401k too) and its doing very well! (Granted, so has the market in total, LOL). But, learning what this is about, and how to apply it, is the important part. I'm no great investor, but I am good at managing my money, and running numbers. I'll help as best as I can!

[Tony_SS]

Anyone looked at Bitcoin lately? $762 each!

The boom came after the US govt officially gave it its blessing and said they would not be regulating it. Crazy.

Unless there is some sort of massive conspiracy going on, I think it has proven itself in the market. $100 was a bargain not long ago!

[gearheads78]

Originally Posted by Tony_SS

Anyone looked at Bitcoin lately? $762 each!

The boom came after the US govt officially gave it its blessing and said they would not be regulating it. Crazy.

Unless there is some sort of massive conspiracy going on, I think it has proven itself in the market. $100 was a bargain not long ago!

Had I known about it early on I would have tossed a few bucks in for the heck of it and let it ride. No way in hell I would touch it now.

[toy71camaro]

Originally Posted by Tony_SS

Anyone looked at Bitcoin lately? $762 each!

The boom came after the US govt officially gave it its blessing and said they would not be regulating it. Crazy.

Unless there is some sort of massive conspiracy going on, I think it has proven itself in the market. $100 was a bargain not long ago!

Did you gamble on some?

I didnt. I dont have the extra coin to be gambler, yet.