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View Poll Results: Do u invest in Stocks/Bonds etc!
Yes I invest 93 91.18%
NO I hate RISK. 9 8.82%
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      06-12-2006, 05:26 PM   #45
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Quote:
Originally Posted by sharp1183
Ha ha, until there's another government gold confiscation!

I've invested in some American Eagle coins, but I don't know what's worse...investing in something sure like gold and then have it taken from you in a crisis by the government, or invest in stocks and bonds and have your shares and dollars devalue in a crisis because of the economy.

You just can't win. Of course, they say the government wouldn't confiscate gold jewelery or even gold coins with numismatic value. So if you invest in gold, invest in rare coins or at least ones with numismatic value!

You guys with mutual funds, what do you think about Vanguard mutual funds? If I'm reading it right, their expense ratio is only about .23%.
The thing with actually buying gold,physically, is who are you going to sell it to and what are they going to charge. You can always stick with watching the $XAU and trading gold mining companies or a gold index like GLD, for example.

When looking at mutual funds, expenses are important but not everything. When expenses are that low you are generally getting an unmanaged index, therefore they shouldn't charge much because they are not really doing anything. Try comparing net returns (returns net of expenses) and after tax returns to get a better idea of quality management.

Morningstar.com will tell you a lot about mutual funds and it will be time well spent to do some research on there. You get a lot for free but the $13/month service is actually pretty informative and worth the money for beginners.

Good luck!
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      06-12-2006, 07:19 PM   #46
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Thanks for the insight, lumbergh. Just one question, are you Bill or Ron?

Ahhhhhh, yeahhhhhhhh

Anyways, yeah, I'm still shopping for a decent mutual fund and I've been using morningstar as a guide...definitely a great resource!

I've got an IRA with Franklin templeton and the expense ratio is about .7%...a little high, but I've checked out ING's mutual funds and some of theirs are like 1-1.3% and I'm like

Plus, I think they were in a lot of trouble a few years back over some kind of unethical practices, so I'll keep my savings account, but that's it.

Basically, right now I'm looking to invest the majority of my paycheck over the next 4-5 years. I want to save a decent amount and get a good return to go towards a downpayment on a house and I'd like a return (before it goes to the house) a little better than a high-yield savings or money market account, and I think mutual funds are the way to go.

That's not saying I won't keep investing when I've got mortgage payments, but definitely on a lesser scale then.
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      06-12-2006, 08:53 PM   #47
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Quote:
Originally Posted by sharp1183
Thanks for the insight, lumbergh. Just one question, are you Bill or Ron?

Ahhhhhh, yeahhhhhhhh

Anyways, yeah, I'm still shopping for a decent mutual fund and I've been using morningstar as a guide...definitely a great resource!

I've got an IRA with Franklin templeton and the expense ratio is about .7%...a little high, but I've checked out ING's mutual funds and some of theirs are like 1-1.3% and I'm like

Plus, I think they were in a lot of trouble a few years back over some kind of unethical practices, so I'll keep my savings account, but that's it.

Basically, right now I'm looking to invest the majority of my paycheck over the next 4-5 years. I want to save a decent amount and get a good return to go towards a downpayment on a house and I'd like a return (before it goes to the house) a little better than a high-yield savings or money market account, and I think mutual funds are the way to go.

That's not saying I won't keep investing when I've got mortgage payments, but definitely on a lesser scale then.
Of course I like Peter the best but Lumbergh sounded better.

Franklin Templeton has some good stuff and considering they are actively managed .7% is cheap. You got the right idea though, investing the majority of your paycheck. You've got to have money invested in order to have returns, just think of it as rolling a snow ball getting bigger and bigger.

When you buy a house also look into insurance if you have a family.
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      06-12-2006, 09:37 PM   #48
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Quote:
Originally Posted by ward
that would never work out here though KC, purchase prices are so high (out of base with rentals) that you would be incredibly lucky if you could even get rentals to break even, most likely even with both sides rented you'd still have to pay some additional monthlies....

when you can't rent the thing out for enough money, the plan falls apart
That's the problem here even. A friend of mine bought one and is basically out of pocket each month even with both sides rented. Factor in that he has problematic tenants (pay late, complain, etc...)... one side is also vacant now so he's carrying that while he tries to find a new person to rent it (more money out for ads, time spent showing it, etc...). Not my cup of tea, I don't even know if it would be worth the hassle even if it was making a few bucks month after month.
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      06-12-2006, 10:26 PM   #49
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Quote:
Originally Posted by findtom
That's the problem here even. A friend of mine bought one and is basically out of pocket each month even with both sides rented. Factor in that he has problematic tenants (pay late, complain, etc...)... one side is also vacant now so he's carrying that while he tries to find a new person to rent it (more money out for ads, time spent showing it, etc...). Not my cup of tea, I don't even know if it would be worth the hassle even if it was making a few bucks month after month.
Landlording can suck. I personally can't stand it but that is why they invented management companies and REITs.
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      06-13-2006, 09:51 AM   #50
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I can see you point about it being more difficult in higher appreciating areas (ie California); however, the appreciation of the home is where the real money lies.

Being a landord can suck. I've had my fair share of horrible tennents and will use a management company in the future.
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      06-13-2006, 11:38 AM   #51
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Wow Im amazed to see all these results! I like to see an educated chat take place I need to read back through the thread and ill compliment later..
THanks everyone for your responses..
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      06-13-2006, 11:57 AM   #52
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Quote:
Originally Posted by lumbergh
Landlording can suck. I personally can't stand it but that is why they invented management companies and REITs.
They must take a big cut though? If you're already out of pocket doing the work yourself I would think bringing a company in would really kill you.
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      06-13-2006, 01:58 PM   #53
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Quote:
Originally Posted by findtom
They must take a big cut though? If you're already out of pocket doing the work yourself I would think bringing a company in would really kill you.
Where I live, it usually runs 5-10% of the monthly rent. For that amount though, you NEVER have to deal with tennents. The management company is also responsible for finding new renters and typically receives a bonus fee that is tiered and pays more the quicker they can fill the vacancy.
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      06-13-2006, 09:11 PM   #54
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Quote:
Originally Posted by findtom
They must take a big cut though? If you're already out of pocket doing the work yourself I would think bringing a company in would really kill you.
You just have to buy something for the right price unless you are looking for capital appreciation, which can be dangerous.

I look for properties with a cash on cash return of at least 25%. They are out there but just have been hard to find lately.
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      06-14-2006, 04:04 AM   #55
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Quote:
Originally Posted by findtom
That's the problem here even. A friend of mine bought one and is basically out of pocket each month even with both sides rented. Factor in that he has problematic tenants (pay late, complain, etc...)... one side is also vacant now so he's carrying that while he tries to find a new person to rent it (more money out for ads, time spent showing it, etc...). Not my cup of tea, I don't even know if it would be worth the hassle even if it was making a few bucks month after month.
Any investment can fall apart if someone purchases in the wrong area, rents to the wrong people etc. Just like buying stocks when they are on the high. Buy a shithole in a slum and try to get good tenants? Probably not going to happen. We always purchase away from the "slums", so to speak, screen tenants carefully, and it usually works out. I don't think I would rent out a house/apt in Montreal if you gave it to me. That is probably the worst market in Canada you could "invest"
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      06-14-2006, 04:08 AM   #56
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Quote:
Originally Posted by findtom
They must take a big cut though? If you're already out of pocket doing the work yourself I would think bringing a company in would really kill you.
Here in Ft Myers most companies take 10% and half the first months rent. The mgmt company is also responsible for any damage the tenant does. Many armchair landlords here.
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      06-15-2006, 11:19 PM   #57
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Quote:
Originally Posted by spots
Here in Ft Myers most companies take 10% and half the first months rent. The mgmt company is also responsible for any damage the tenant does. Many armchair landlords here.
Asking questions makes me an armchair landlord? What do you know about Montreal anyway?

I'm my own landlord, and I've done pretty well with my place so far thanks.
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      06-19-2006, 01:27 AM   #58
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This is a great thread. Keep up the comments guys! And now my question...can someone recommend a good online service to purchase individual stocks?
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      06-19-2006, 01:43 AM   #59
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      06-19-2006, 06:09 PM   #60
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Quote:
Originally Posted by KennyVendetta
This is a great thread. Keep up the comments guys! And now my question...can someone recommend a good online service to purchase individual stocks?

TD Ameritrade is pretty ok. I've been with Ameritrade for about 5 years now and I wouldn't have recommended them before, but now they don't have quarterly service fees anymore, so that's pretty cool. As far as per trade...I think it's still $10.99 a trade, but I'm not really sure since I'm not really that active with them anymore.

Check out JD Power and associates...they've got pretty good data on online trading firms.
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      06-19-2006, 07:40 PM   #61
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There are so many different ways to invest and you should probably pick up some books like Susan Orman "The Laws of Money, The Lessons of Life" really good book with helpful information. There are money mags that you can get as well. We put 10% of my wife's paycheck into a 401K. I will plan on maxing out the IRA's starting this year once I finish paying off my $5k CC debt. We have money set aside in a Capital One Savings currently at 4.55% for emergencies (6 months of living expenses). Emigrant Direct is another good one that is slightly higher in returns. We rent out our home in SC and rent here is Hawaii. We have no other bills other than the Bimmer and my SUV. It is important that you pay all of your debts off first and then work on paying off your home next. The interest you pay on your home will normally double what you paid for the house so there is your incentive. Invest smart and diversify. High risk is ok for the young but you have to chage when you get older into safe mode so that you will have something to retire with. Dn't plan on social security. 76 million baby boomers are coming of age here in a couple of years and it might not be there. Pay off your bills. Start saving on a Roth IRA. Pay off your home to have more for retirement later. Investing in Real estate is one of the best investments you ever make especially if you are looking for a primary residence. Stocks can go up or down andyou could lose money. You house is where you live and you cannot live in a stock certificate. You already have a home? Refiance your home mortgage loan from a 30 year to a 15 year to get a lower rate. You live in a high cost of living and the real estate boom for CA is pretty much flat now and over-priced. Time will fix that and many will suffer with large over inflated homes and mortgage payments. If I had more money I would put some into here in Hawaii. The median cost for a single family home is around $630,000 and condos are about $400,000. People have experienced double digit gains for appreciation for the past 4 years and it is not stopping. I almost bought a home but it was too much for me ($4k a month). Plenty of houses and condos for sale and beachfront property for many Californians used as a second residence. Just a thought! Good luck and do plenty of research before you drop tons of money. Read the book and go from there.
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      06-19-2006, 08:46 PM   #62
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you can't put into a roth IRA if you make over a certain amount of dollars,

I think it's in the mid 80 grand a year range
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      06-19-2006, 09:20 PM   #63
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As a financial advisor I invest pretty frequently..im pretty well diversified being only 23...I have done an IRA cont both Roth and Trad since I was 16 (mainly roth until recently) the max each year into mostly grandma stocks like GE,Pepco with nice dividends and then other parts into mutual funds a-shares (evergreen,franklin)...my reg brkge acct I mainly do long puts/calls and run a margin acct since I trade quite frequently i have a couple tax free muni's since i get killed at my tax bracket..in my 401k I have my 6% cont going into an assest allication fund a-share..not going to go really aggressive till I buy a house..but the housing market in south florida is at its all time worst...would love to get into hedge funds or comm real estate, but the funds arent exactly there for me at my age!
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      06-19-2006, 09:52 PM   #64
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Quote:
Originally Posted by ward
you can't put into a roth IRA if you make over a certain amount of dollars,

I think it's in the mid 80 grand a year range
For a Roth IRA you have the same contribution amount as a traditional 2005--2007 was 4000 under 50 and a $500 catchup over 50 it will be $1000 begining in 2006...For those that dont understand the diffrence a traditional you can deduct the amount on your taxes, but you pay taxes on whatever you take out when you start withdrawaling at 59 1/2 and no controbutions may be made after 70 1/2..

A Roth however you may not deduct from your taxes, but when you start taking money at say 59 1/2 you pay no taxes..which can be a huge tax break for some of us...also you may keep making controbutions after 70 1/2 if you still have a w-2...

You are correct about the if you make over a certain amount you cannot contribute to a roth and must go with a traditonal i have been restricted to this personally...the amount however depends on your Adjusted Gross Income which is found near the bottom of page 1 on your 1040...for someone
$150,000 to $160,000: Married Filing Jointly

$0 to $10,000: Married Filing Separately (and you lived with your spouse at any time during the year)

$95,000 to $110,000: Single, Head of Household or Married Filing Separately (and you did not live with your spouse)

Now you might ask what the gap means, the lower of the two numbers is the max to be able to make a full cont say for 2005 Age 35 4000 would be the max...the higher of the number is when its no longer allowed at all and you must go with a traditional..now the diffrence in between the two the IRA allows a partial cont.

So my advice to all of you that have a 401k at work contribute to that first...then your IRA..and no matter what if you have the money contribute to a IRA...if you have any specific questions feel free to ask away this is one of the main things I specialize in, but typically not Roth since most of the clients are unable to qualify...
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      06-20-2006, 08:43 PM   #65
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Good stuff! Still qualify for Roth unless I get a promotion.
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      06-20-2006, 08:45 PM   #66
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Quote:
Originally Posted by KennyVendetta
This is a great thread. Keep up the comments guys! And now my question...can someone recommend a good online service to purchase individual stocks?
Kenny, since I believe you are in the Marines, check out USAA. I believe they have a $6.99 per trade. Just call and speak to a financial advisor. They can answer questions regarding TSP, Roth, MF, stocks and so forth.
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