Money people - need advice
- Thread starter vraiblonde
- Start date
Ummm...itsbob said:
Well, my contributions get taken out of my paycheck and aren't taxed until I withdraw them (which I can do right now with a penalty, or upon retirement with no penalty). So I think it's a Traditional IRA.
vraiblonde said:Ummm...
Well, my contributions get taken out of my paycheck and aren't taxed until I withdraw them (which I can do right now with a penalty, or upon retirement with no penalty). So I think it's a Traditional IRA.
Vrai, please order the books ASAP with overnight shipping.
Investing web site
I used to read the The Motley Fool to get some informative investment ideas. They gave the information in a humorous and easy to understand format. Haven't had the chance to check them out lately, so not sure how they have handled all the media attention they had past years.
I used to read the The Motley Fool to get some informative investment ideas. They gave the information in a humorous and easy to understand format. Haven't had the chance to check them out lately, so not sure how they have handled all the media attention they had past years.
Makavide said:
That is an excellent site.
Although they've had their troubles over the years, they're still one of the best resources for financial information. Just be aware that some of the content is now subscription only.Other good sites are The Wall Street Journal, Forbes, Kiplinger, Bloomberg and CNNMoney. Again, some information on each site is subscription only.
moon5leg
It's not easy being green
Truth About Money
The Truth About Money by Ric Edelman is an excellent resource for all things personal finance for those of us that aren't CPA's. I read the first edition 5 or 6 years ago, and have used many of his ideas. My family and I have been very happy with the results. Good luck.
The Truth About Money by Ric Edelman is an excellent resource for all things personal finance for those of us that aren't CPA's. I read the first edition 5 or 6 years ago, and have used many of his ideas. My family and I have been very happy with the results. Good luck.
FromTexas
This Space for Rent
itsbob said:
Bad, bad, bad. Beware the aggressive fund averaging. It is not what it seems. Let me give some examples.
Lets say you invest for six years. We have one fund with a 10.8% average for that time period and another with a 13% average for that time period. Now, you also have a annually compounding fixed investment for 6% for that time period. Whose the winner? Well, without the details you can not know. So, don't rush.
10.8% fund lost 50% the first year, then proceeded to get 20%, 30%, 20%, 15%, and 30% for the next five years after that. The way those averages work, that comes up to the 10.8%. However, your compounded average dollars should have given you $185 for every $100 dollars invested if you took it at its face value of 10.8% average. Yet, if you compute out starting with $100 and put it through the years, you will end with about $140. Yikes!
13% fund lost 50% the first year (they liked what the other guys invested in), then proceeded to get 100%, 7%, 7%, 7%, and 7% for the next five years after that. The way those averages work, that comes up to the 13%. However, your compounded average dollars should have given you $208 for every $100 dollars invested if you took it at its face value of 13% average. Yet, if you compute out starting with $100 and put it through the years, you will end with about $131. Double Yikes! You just got beat by the 10.8% average fund!
Finally, if you compound 6% fixed for 6 years on $100 you would have about $142! The 6% is the winner!
The reason for this is simple. Fund averages are based year to year but don't account for the change in value (capital) of the fund. They are just a percentage metric. So, if you lose 50%, you can make 100% the next year. If you invested right before that, more power to you, but the fund it still just 0% change over 2 years. However, take 100 minus 50 and divide by 2 and you just got an average annual return of 25%!
So, a stable, conservative growth and income fund will outweight most aggressive funds in the end. Why? They average 8-12% but don't have monumental swings in either direction that will confuse your numbers. They tend to play slow and steady.. and guess what? The turtle had it and he won the race.
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moon5leg
It's not easy being green
jazz lady said:I've heard of him but not read any of his books. It sounds interesting.
Suze Orman has a great series of books out as well as some very informative shows that are aired on PBS.
If you're interested in checking out some of his ideas, without having to go buy a book, check out his web page. It has many good articles and can give you an idea of his philosophy on personal finance. He discusses taxes, investing, college savings, mortgages, debt payoff, etc. etc.
http://www.ricedelman.com/
I've seen Suze's show a few times, she really has some good tips too.
Richard Cranium
New Member
I belong to http://www.cramersmadmoney.com and we have a pretty good track record with lots of great posters, very little flametards, always willing to help out people who may not understand the market so much or where to put their money.
Mikeinsmd
New Member
If you're looking to stash some cash to be accessable & make a lil interest to boot, I recommend an ING account. http://www.ingdirect.com/osa_work/ Currently paying 4.5% on Orange savings.
Definately get more aggressive with your 401K. Mine avg. 16% this (last) year.
Definately get more aggressive with your 401K. Mine avg. 16% this (last) year.
johnjrval424
New Member
Mikeinsmd said:
I 2nd this advice - and 3rd and 4th! ING Direct is awesome when it comes to saving money. I have an automatic withdrawal from my checking account twice a month as well as a few CD's with them. They have a lot of products, including IRA's, that pay unbelievable rates. They are internet-based but you can transfer money very easily so it is accessible.
Definitely check them out for your "slush" fund. My DH didn't believe me when I told him that we were wasting our time with our savings account at the bank. It wasn't until I showed him on paper that he woke up and got on board. We keep just enough in the bank savings for the occasional (translation="rare") overdraft so we don't pay those exorbitant fees.
Richard Cranium
New Member
itsbob
I bowl overhand
BUT you are not taking into account the normal investor that doesn't invest 100k today, but invests a couple hundred a month. During the down times of an agressive fund, say when it lost 50%, you would be buying twice as many shares then at the beginning of the year, when the fund recovers, those new shares you bought are worth double or more of their original value. That is Dollar Cost Averaging, for the 'average' investor. You'll make more money in an account that averages 10% over 20 years, then you will with an account that makes 10% a year for 20 years.FromTexas said: