Money people - need advice

vraiblonde

vraiblonde

Board Mommy
PREMO Member
Patron
Where do you guys put your money (you know, all that cash you save by implementing Kwillia's suggestions :lol:)?

I have a 401K that I fund the maximum every year. I *think* the money is just in their (Fidelity's) own mutual fund, which is averaging a 3-5% return.

I have a savings account that probably has too much money in it because it earns very little interest, but I can also get my hands on it right away if I need it.

Last, but not least, I have a stock account with Scottrade that's doing pretty well - as of today I'm up 20% on my investment.

Looking at the percentage of return, it would appear that I should build my stock portfolio. But I'm scared of investing too much in the market. I should also probably diversify my 401K dough but I don't want to get too aggressive and risk it.

But I'm a financial idiot, so any advice would be appreciated. :flowers:
 
Lugnut

Lugnut

I'm Rick James #####!
FWIW, I keep my money in an index fund (Vanguard) until I decide what to do with it.
 
jazz lady

jazz lady

~*~ Rara Avis ~*~
PREMO Member
vraiblonde said:
I love For Dummies books :yay: Thanks!
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You're welcome. They give great information and advice in plain English. I learned more from reading those books than I did the financial courses I took in college. :yay:
 
M

Mousebaby

Guest
We have Janus funds, :shrug: you can check them out. :howdy:
 
jazz lady

jazz lady

~*~ Rara Avis ~*~
PREMO Member
vraiblonde said:
What's that? (Told you I was a financial idiot :lol:)
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Money market/mutual funds you invest in to hopefully get a return on your money. Janus is one of the better known ones, as is T. Rowe Price and Vanguard. Both of those are the investment options for a couple of my 401k plans.
 
Pete

Pete

Repete
vraiblonde said:
What's that? (Told you I was a financial idiot :lol:)
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Mutual fund company. It was originally part of a railroad company I believe and it branched out into financial services. The Janus part was spun off and sold. It did really well in the 90's.

I bought Janus 20 at about $18 a share and rode it all the way to $59 and sold it just before it dropped back to $20. Janus used to be one of the darlings in the mutual fund world.
 
itsbob

itsbob

I bowl overhand
A 401(k) can be set up for any of their mutual funds, it doesn't have to be of their choosing. At 3 - 5% you are making what a bank would give you, that the bank invests and gets 15 - 20% on. You're way to conservative for someone your age.

Again, rule of 72.. at 5% interest it will take 14 years for your money to double.

At 10% (which is a normal take on a conservative fund) it will be 7.. which does NOT mean twice the money in thrity years.. but EIGHT times the money in 30 years.

An aggressive fund you can expect to make between 15% - 25% AVERAGE over the thirty years.. WHen you talk about chancing your money on an agressive fund you should be thinking Will I be taking any money out of my IRA in the next five years??? If not, go aggressive, if it dumps today, in 5 - 10 years it will have recovered, and if you are putting money in regularly you'll actually make MORE money in a fund that roller coasters around a bit.. (Dollar Cost Averaging).

My agressive funds in the past have lost 10 - 15% in a given year (like every 8 - 10 years) but the following year they usually gain in the neighborhood of 25 - 30%. Anyway you look at it, an average well above the 5% conservative fund.

I was in a comon sense fund that made 8 - 10% a year and never had a negative year. THAT is what is considered conservative.

THEN you have to look at the individual funds you want to fund your IRA in.

How much do these funds coust you a year.

For example, you mentioned your fund made 3 - 5% a year, do you also know how much they charge in maintenance fees? Or Commission?

Fidelity is a good company so I would guess minimum, but some Mutual FUnds pay out 3% interest a year, then charge you 1.5% in yearly maintenance fees. You net 1.5% on your money.

You need to look see if it's 'no load', 'front load', or 'back load', then look to see what they charge for yearly fees. Management fees, maintenance fees.. etc..
 
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itsbob

itsbob

I bowl overhand
Mousebaby said:
We have Janus funds, :shrug: you can check them out. :howdy:
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Check out my above post regarding cost.. do some research.

Again I think Janus has a good reputation, but it doesn't hurt to ask questions, and find out the details.

I had a life insurance/ investment through NCOA for five years, found out the hard way not to belive what they say.

They quoted me numbers on my 'investment' (no life insurance is not an investment) and at the five year mark I should have had $8500, when I called to get an account balance I had less then a thousand. Come to find out the numbers they show you are a "dream sheet". If your account made 12% interest this is how much money you will have.. well needless to say the account never made anywhere near 12%.. and I was paying almost 100 a month for 35k in life insurance back in the 80's!
 
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Agee

Agee

Well-Known Member
Consider pulling a protion of the funds in your saving account and dump it into CD's. The returns are the best they been in a while, astep above what your earning on the savings account.

Diversity is the key, so try to avoid lumping everything into traditional stocks. Look into overseas growth funds, decent returns over the last five years.

Always nice to have a slush fund, filled mason jars buried about the yard :yay:
 
vraiblonde

vraiblonde

Board Mommy
PREMO Member
Patron
Airgasm said:
Always nice to have a slush fund, filled mason jars buried about the yard :yay:
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Now THAT I have! Larry thinks I'm a kook with all my change cans all over the place. :lol:
 
itsbob

itsbob

I bowl overhand
vraiblonde said:
:jameo: at Bob :lol:

Am I a candidate to enlist the services of a financial advisor?
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Just read up, do some research, financial advisors cost you money.. Its not rocket science.

And yes, this is another job I've done in the past. I have sold life insurance, mutual funds and annuities.

Oh, and what kind of IRA are you in? A Roth or Traditional??
 
itsbob

itsbob

I bowl overhand
I will say this, if you are gov't (Vrai I know you aren't) you should max out your matching TSP if there is any way you can. There is no other investment that I know of in the world that guranatees 100% return on your money overnight!!
 
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