Investing 102

[Bucketlist2012]

Originally Posted by Sieg

Please don't think I meant it in a negative way at all. You've shown, at the risk of personal exposure, those following this thread the real potential of strategic personal investing. Personally don't know many people as generous, especially in this day and age. Hopefully there are a good number of 20 and30 year olds reading and taking this thread to heart as the impact it may have on their quality of life is a wonderful thing.

Amen... too many young people think that planning ahead at 20 or 30 is crazy...

That it seems so far away...Instant gratification seems better..

Tell you what, not planning for the future is crazy.. You must plan and invest.

I was on track to retire at about 60....Well two years ago, at 50, I had a major Brain and Heart condition which forced me into early retirement.

Had I not been planning for years , and with Plan "B", and "C", I would be homeless right now..

So, I have started living on my dividends sooner than expected, but all is well.

Even someone older , 45 or so, can still make it happen, if you stay healthy.. You could still save until you are 65..20 years of investing..

The younger viewers...this stuff is Golden and you have the World at your feet...Invest now, and reap the rewards later...

[GregWeld]

Originally Posted by Sieg

Please don't think I meant it in a negative way at all. You've shown, at the risk of personal exposure, those following this thread the real potential of strategic personal investing. Personally don't know many people as generous, especially in this day and age. Hopefully there are a good number of 20 and30 year olds reading and taking this thread to heart as the impact it may have on their quality of life is a wonderful thing.

No! I didn't think you meant it negatively at all!

Sometimes in these threads it's hard to put down all you're thinking.... while watching TV and talking with the kids (they're home this weekend) and I am A.D.D. on top of that.

I just am trying to make sure that people don't get overwhelmed and that they don't start thinking "oh hell - I don't have enough so why bother".

[GregWeld]

Great article on big names you all know -- and why they're successful...

Not pitching any of the companies -- just saying that you don't always have to be in the hot thing to make a lot of money over time.



http://bottomline.msnbc.msn.com/_new...llar-companies

[Coursey]

Originally Posted by GregWeld

Well -- I didn't mean that people don't have anything or that they have zero etc --- it's all relative really -- a 20 year old with 10 grand is a hero in my book -- cause that guy can really hit a home run before retirement... but it's not enough to get all the diversity that was talked about in that article -- thus my comments. Sometimes you read this stuff and you look in the mirror and start to think you're doing something wrong because you don't have it all going on! WRONG... but it is educational and well worth the read.

I am 27 and am trying to figure out how to invest my money, since it is not making anything setting in a savings account. I got in on this thread late (page 68) so i am trying to catch up. I have in the range of 10-15,000 that i would be willing to "tie up" in investments. The rest i need to keep access to for impending life events (i.e. baby due the end of the month, and new house in the next 1-2 yrs.)

There is alot of good advice here and i look up to those that have been successful.

These is a great thread. Hope I can catch up one day.

[Bucketlist2012]

A page or two back is a recap from Greg.

Check that out, and i think most of your questions will be answered..

About Risk, Diversity, Compound Interest, Dollar cost averaging,Data about ROI.

Actually easier than it sounds.

You have time on your side, and if you are thinking short term, mid term, and long term buckets, you are so much farther than most.

Double check the thread and the recap, and take some notes..

Plenty of guys willing to give opinions that are good..Take them all in, and then make YOUR plan..

Welcome to the best Thread ever

[GregWeld]

Originally Posted by Coursey

I am 27 and am trying to figure out how to invest my money, since it is not making anything setting in a savings account. I got in on this thread late (page 68) so i am trying to catch up. I have in the range of 10-15,000 that i would be willing to "tie up" in investments. The rest i need to keep access to for impending life events (i.e. baby due the end of the month, and new house in the next 1-2 yrs.)

There is alot of good advice here and i look up to those that have been successful.

These is a great thread. Hope I can catch up one day.

Coursey -- YOU are exactly the guy we're trying to reach out to. You have that magic thing called "TIME" on your side and you have a nice amount to start with.

You could start out by buying $1000 worth of each company you choose to invest in - and this would give you diversity... or you could - depending on your savings rate - take a narrower focus to start and buy $2000 worth - and then save up and add a new name with the new savings. Either way -- you're a winner.

If you buy dividend paying stocks -- with $10,000 -- you should be able to collect 500 to 700 a year in dividends. Reinvested - in about 3 years you should be collecting $1000 a year... which buys more shares and starts to really snowball. If you're adding to your account $1000 or $2000 a year in addition - you're going to be really rich by the time you retire.

If you don't already have them -- you'll want to ask the brokerage you choose -- about ROTH IRA -- which you can fund before April 15th for 2011 AND you can fund it at the same time for 2012... Hopefully the rules will allow you to fund $8000 into the ROTH -- then put the balance into
a 401... or just a regular taxable (not tax deferred) account. The ROTH comes out at retirement totally tax free. So imagine having a million plus dollars in an account that is spinning off $50 grand a year tax free and is still growing - so by 75 or 80 years old - it's kicking out even more.

[GregWeld]

Coursey ---

Here's what I'm talking about with dividends and interest -- here's a PREFERRED STOCK I have in JP MORGAN -- and here's a snap shot of SIX STINKY LITTLE MONTHS in payments from the holding.



12/01/2011 JPM+I JPMORGAN CHASE 8.625%PFDDEP SHS REPSTG 1/400 NON
type: QUALIFIED DIV
$4,042.97

09/01/2011 JPM+I JPMORGAN CHASE 8.625%PFDDEP SHS REPSTG 1/400 NON
type: QUALIFIED DIV
$2,964.84

06/01/2011 JPM+I JPMORGAN CHASE 8.625%PFDDEP SHS REPSTG 1/400 NON
type: QUALIFIED DIV
$2,964.85

I should have added that this is a QUALIFIED DIVIDEND -- so is currently taxed at 15% -- if it was in your ROTH it would come out 100% TAX FREE

[GregWeld]

I was just curious and thought about modeling a 10,000 portfolio and seeing what kind of dividends it would spin off for reinvestment.... and then I took a look at one high yielder - ANNALY CAPITAL MANAGEMENT (NLY) and thought --- WHAT IF a guy just bought 10,000 worth of that....

$10,000 would buy 583 shares paying .57 per quarter... $332 per quarter -- so the first quarter you'd buy 19 more shares now you have 602 shares - second quarter dividend would be 602 shares @ .57 which would buy 20 more shares -- so third quarter would be 623 shares @ .57 per share and would buy 20 more shares...for a total of 643 shares -- fourth quarter would buy 21 shares for a total of 664 shares... so now you have a 10 percent increase in shares and you can see how in just one stinky year this is starting to snowball...

So without all the typing here's 2nd year

22 shares
23 shares
23 shares
24 shares

Now in year two you have 756 shares YEAR THREE you're adding 100+ shares!

Okay -- my fingers are worn out just thinking about it.

[Blake Foster]

I keep telling the Wife we should be charging her son some rent. (not to mention a food bill every month) and put it in a RRSP for him.
Still working on that lol he will thank us when we are Dead.

[Coursey]

Originally Posted by solarguy09

A page or two back is a recap from Greg.

Check that out, and i think most of your questions will be answered..

About Risk, Diversity, Compound Interest, Dollar cost averaging,Data about ROI.

I found a recap on page 76, is this the one you were talking about? or is there a differnet one as well?