Investing 102

[GregWeld]

Albert -- holding "CASH" in a retirement account is not a good thing to do..... for a number of reasons -- but it's not "accessible" cash when it's in a retirement account. There would be early withdrawal penalties etc -- and if you ever really need "cash" -- a brokerage will loan you money against your account -- There's many rules and tax items to deal with but you get the drift.

The reason you don't want "cash" in a retirement account is that the account should be considered your more "LONG TERM" account -- it's there to grow before retirement -- and it's there to spin off income etc for long after you retire.

Most of the stock markets gains are on VERY few days.... if you're not invested on those days... you miss the years gains! SO trying to "time the market" with holding cash -- and waiting.... well --- do that with your non retirement accounts if it makes you feel good.

If you don't know where to put the cash - just stick it in the SPY or QQQ or something similar.

[captainofiron]

Originally Posted by GregWeld

It all "depends" ---- and I know that's a big non answer.

Depends on goals - age - what other investments you have.... and it really gets down to -- What you're comfortable with. If you're an investor that buys and forgets.... then index funds work to cover that.

But make sure you actually know what you're buying ---- and remember -- a rising tide floats all boats -- so your index fund will look like a hero in an up market -- but don't expect it to magically save your ass when the market drops -- so will your fund.

I prefer (personally) knowing what I own -- and this is even more important when the market sucks....

Thanks!

so I'm 35, the majority of my IRA is in specific names that I did a ton of research on and I am comfortable with. For the most part I am a buy and hold/forget investor

I recently rolled over a big chunk and it had been sitting for a month or 2 and I didnt want it to just sit, but I dont have enough time to do extensive research, so I figured the index fund would fit my needs at this time

from what I read it seems like alot of people like these index funds, but it kind of goes against everything I've read here

Yea I am not expecting it to be this magic fund that will never go down, just dont want dead money in an interest only position

[toy71camaro]

Originally Posted by captainofiron

Thanks!

so I'm 35, the majority of my IRA is in specific names that I did a ton of research on and I am comfortable with. For the most part I am a buy and hold/forget investor

I recently rolled over a big chunk and it had been sitting for a month or 2 and I didnt want it to just sit, but I dont have enough time to do extensive research, so I figured the index fund would fit my needs at this time

from what I read it seems like alot of people like these index funds, but it kind of goes against everything I've read here

Yea I am not expecting it to be this magic fund that will never go down, just dont want dead money in an interest only position

Sounds like we're in darn near the same boat. Almost same age, and similar situation. All my investments are researched single stocks, except for the large chunk i just rolled into my IRA, and i havent had the time to research anything yet.

[Vegas69]

I personally like the index fund route after Roth IRA or IRA to Roth Conversion. You beat 96% of the mutual funds out there and it's very low maintenance. Even Buffett states that's what the majority should do. I'd like to pretend I'm going to spend the time watching and researching companies, but it's not reality long term. I think you need to be passionate about it like Greg. There are other things I'd rather be doing with my time.

I'm certainly not saying I'm done buying stocks, I'm just not betting the farm on it either.

[captainofiron]

AAAAAND just as I bought into VTI Fidelity emails me about FZROX and FZILX

LOL

[JKnight]

The zero expense thing? Yeah...I’m sure the expenses on your ETF are nearly nothing, but not quiiiite zero.

[captainofiron]

Originally Posted by JKnight

The zero expense thing? Yeah...I’m sure the expenses on your ETF are nearly nothing, but not quiiiite zero.

True

I didn't read it 100% but it seems like there is no commission to but those ETFs

If so that might be a good position until I can do more research

[glassman]

Who do you all read/watch for business/trading news

Morningstar?
Motley Fool?(fee based i believe)
CNBC?
Bloomberg?
Seeking Alpha?
Cramer? (Mad Money)

suggestions? experiences with reliability....

[Ns RS]

Originally Posted by glassman

Who do you all read/watch for business/trading news

Morningstar?
Motley Fool?(fee based i believe)
CNBC?
Bloomberg?
Seeking Alpha?
Cramer? (Mad Money)

suggestions? experiences with reliability....

My morning routine is to read wsj on my days off at a starbucks -they usually have one or two available - it has been helpful in getting an economic vibe on where things are going and certain companies to pay attention to - has been a great resource for me

[GregWeld]

I watch CNBC from 6AM to 3 or 4..... it's "on" but it's background noise. If you listened to the talking heads -- you'd sell one minute and be buying the next.... ditto the "papers" and subscription "services".

This is why I have pounded the table to ignore all that noise -- it's trader talk!

Buy what you know -- collect a dividend -- watch it grow over time..... if you own 10 stocks 3 may be winners.... and they'll change places like a good horse race.

Calm down and think longer term.