Investing 102 - Page 529 - Lateral-g Forums

**GregWeld** · #**5281** 12-21-2015, 08:22 AM

All the discussion about "oil and related".... most of them in the dumper... there are a couple that aren't, but basically this "group" is horrendous...

This is EXACTLY why I love and would remind you all - to keep a decent portion of your investments in the steady eddies. Build your base around them. Once you have your good base - then you stretch your wings and grab a couple high fliers. While they're never the hot darlings - or the water cooler bragging rights... they - for the most part - pay decent percentage of dividends and, while they don't go up quickly - they don't go south quickly either. Do they go up and down -- sure! But they generally do so with the market.

**glassman** · #**5282** 12-21-2015, 07:59 PM

Man, soo true. My gut wants me to keep "putting in" oil, but "catching the falling knife" is the analogy that keeps coming too mind....

Since i don't know much (at all) about tech, what about an ETF for tech stocks? and opinions? and is ETF the right "term"...?

**GregWeld** · #**5283** 12-21-2015, 09:52 PM

Quote:

Originally Posted by glassman

Man, soo true. My gut wants me to keep "putting in" oil, but "catching the falling knife" is the analogy that keeps coming too mind....

Since i don't know much (at all) about tech, what about an ETF for tech stocks? and opinions? and is ETF the right "term"...?

ETF is "Exchange Traded Fund" -- so any ETF is basically a basket of stocks that represent whatever the ETF purports to represent. There's a zillion ETF's representing just about every and any segment you'd want to buy "blindly". I say blindly - because just like Mutual Funds - these ETF's own so many names in the funds that you're results get pretty diluted. I don't do ETF's.... I'd rather just look around and pick one or two good names and invested in them.

Tech to me is a wide cross of "things" to invest in... there's software names - hardware names - hybrids.... and then - while it's "tech" what is it really? Names like FaceBook? Is it "tech" or what?

For me - I'd stick to the biggest of the big. Apple - Microsoft - FaceBook - Alphabet (Google) - NetFlix etc. The reason for that is personal -- I can't keep up with all that is happening in the space that is "tech". I'm too dumb to spot the up and comers -- and it's such a broad field with just way too much information.

Speaking of Tech -- is Amazon "tech" or is it "retail"?? I lump this in the hybrid class --- because it's some of both. It's another one I'd own if I didn't rely so heavily on dividends. Personally I buy EVERYTHING from Amazon that I can.... but I don't own the stock.

If you want an ETF --- you could start poking around here --- because there's so many and they're all different!! OMG!! You want an internet ETF - bingo! You want a social media ETF - oh sure - got it! LOL

http://etfdb.com/etfdb-category/technology-equities/

SSLance · #**5284** 12-23-2015, 09:58 AM

I think that some of you reading this own Chipotle...and we've discussed the store here several times. I read this next story this morning and laughed out load at first...then started to think about it and how things like this I guess are possible and it is just another indication of no matter how well things may be thought out or are going, something can come completely out of left field and screw up ones investing plans...

http://www.naturalnews.com/052405_Ch...terrorism.html

ANALYSIS: Chipotle is a victim of corporate sabotage... biotech industry food terrorists are planting e.coli in retaliation for restaurant's anti-GMO menu

**GregWeld** · #**5285** 12-23-2015, 12:13 PM

Quote:

Originally Posted by SSLance

I think that some of you reading this own Chipotle...and we've discussed the store here several times. I read this next story this morning and laughed out load at first...then started to think about it and how things like this I guess are possible and it is just another indication of no matter how well things may be thought out or are going, something can come completely out of left field and screw up ones investing plans...

http://www.naturalnews.com/052405_Ch...terrorism.html

ANALYSIS: Chipotle is a victim of corporate sabotage... biotech industry food terrorists are planting e.coli in retaliation for restaurant's anti-GMO menu

Too funny!

The key to investing and staying invested - is not to own too large of a position in anything - because things DO and WILL happened from time to time that come from out of nowhere. This is why diversity is always preached - and not to get too piggish.... and all the other little "wisdom" sayings are created over the years. Just when you think you have it all figured out.... BAM! You feel like a fly under a fly swatter. LOL

LuxurySportCoupe · #**5286** 12-24-2015, 06:46 PM

Hey guys, I found this forum a while back because I want to learn as much as possible about making cars handle (I'm realizing there's more to life than a straight line.) And this forum rocks, especially this thread.

That being said, without reading all 500+ pages of this post (I've read the first 7 or 8 and the most recent 3 pages or so), I have a few questions.

I'm 25 years old and just purchased my first home. I've got a 15 year mortgage on it (3.25% interest), but I've got enough money left over every month to put extra toward the principle, and get it paid off in 6 years or so. Would it be a better idea to take that chunk of money every month, and invest it in a bunch of "steady eddies" to put my money to work for me, instead of just giving it to the bank?

SSLance · #**5287** 12-24-2015, 09:06 PM

First off, for being 25 years old with a mortgage like that on your first house...I gotta give you props. Nice work!

In a general sense, I'd rather pay off debt first before investing as debt is like an anchor tied around your leg. But Mortgage debt (especially a nice note like you have) is the best kind of debt to have if you have to have any.

Do you have any other consumer debt that needs to be paid off? Student loans, car loans, credit card balances? If so, I'd work on paying those down first and foremost.

If not...how long do you plan on staying in the house you are in now? Long term or starter home? Paying that principle down quicker will make it easier to build equity to parlay forward toward your next home.

That said, it's never too early to start saving for retirement and putting money into an investment account and getting started on a couple Steady Eddies is a great way to start. Just be prepared to put that money to work for a long time, don't look to be using it as an ATM a couple years down the road.

68Cuda · #**5288** 12-24-2015, 10:51 PM

Quote:

Originally Posted by LuxurySportCoupe

I'm 25 years old and just purchased my first home. I've got a 15 year mortgage on it (3.25% interest), but I've got enough money left over every month to put extra toward the principle, and get it paid off in 6 years or so. Would it be a better idea to take that chunk of money every month, and invest it in a bunch of "steady eddies" to put my money to work for me, instead of just giving it to the bank?

The way I look at it if you have tax deferred savings, yes, otherwise no. Tax deferred, like 401k and IRA allow your money to grow without incurring taxes on the gains every year. Taxes eat into your gains. If the stock value increases you do not have tax liability until you sell. Dividends, on the other hand, are income. And, in the beginning, it is taxed like regular income. Long term gains are taxed at the capital gains rate. My brokerage account keeps track of it for me and sends me the appropriate tax documents. The taxes can get complicated, but suffice it to say it reduces your overall gains.

Long story short, I am currently paying into my 401k 1st, debt 2nd, and then when the debt is down I will put money into the brokerage account again. Reason is the taxes on the gains of the brokerage account for "steady eddie" type investments make the return not worth it compared to the cost of the debt.

If you have goals that require you to zero your debt before you move on, then at the very least add into your 401k (if you have one) at least as much as the employer matches (if this applies to you). I take issue with turning away "free" money if your employer has such a program. Assuming you are not self employed - which in that case I am mostly envious of your position.

Vegas69 · #**5289** 12-24-2015, 11:24 PM

My preference is balance. A 15 year note is a strong attack on your mortgage debt. I'd like to see you start putting money into a Roth IRA and then playing around with some good performing individual stocks.

The key to wealth: Invest your money and spend what's left, not the OPPOSITE. Put your investments on autopilot. That means auto withdrawal from you checking account. You can do that with individual stocks by allocating X amount of money a month into your trade account to invest. Have a real balance sheet. Take you monthly net income and expenses and analyze them. Where can you wittle down your expenses?

With all that said, don't forget to have fun along the way. Sometimes we need to put our nose to the grind stone, but without some fun, it will eventually fizzle out.

Good luck!

ErikLS2 · #**5290** 12-25-2015, 01:11 AM

Like the others have said, that interest rate on a 15 yr mortgage is killing it already, if you don't have any credit card debt DON'T get any and start a Roth IRA, I have accounts at both Schwab and Fidelity and both offer outstanding service. If you do have credit card debt, pay that off first and then don't acquire any more.

Another way to look at paying down your mortgage is whatever extra you pay on it you are effectively earning 3.25% interest on that money. If you aren't paying the interest it's the same as earning it really. At your age you should be taking enough risk that long term you can do much better than that.