The BIG investing thread
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» 2012 S&P Dividend Aristocrats - Bargaineering
dividend aristocrats keeps a list of companies which have both increased in value and paid a dividend each year for the last 30 yrs. This is a pretty solid stable of investments.
I'm invested in a couple other companies who are well established in their particular niche and are taking steps to address future demands. (SANW, YUM!)
I'm also tracking the companies which create 3D printers, but they are really volatile. (DDD, SSYS, XONE)
The best tip is to not try to game the market. Find solid companies, set your regular investment amount, and keep investing. If you worry about timing the market, odds are you will lose big. If you invest on a regular schedule, you'll buy more when the stock is at a discount and buy less when it is over priced. (paraphrased from my thesis)
If you do not have a retirement account, start a ROTH IRA before you start an investment account on your own. If you're over 50 then you'll want to take a close look at the impact a traditional IRA will have on your taxes.
dividend aristocrats keeps a list of companies which have both increased in value and paid a dividend each year for the last 30 yrs. This is a pretty solid stable of investments.
I'm invested in a couple other companies who are well established in their particular niche and are taking steps to address future demands. (SANW, YUM!)
I'm also tracking the companies which create 3D printers, but they are really volatile. (DDD, SSYS, XONE)
The best tip is to not try to game the market. Find solid companies, set your regular investment amount, and keep investing. If you worry about timing the market, odds are you will lose big. If you invest on a regular schedule, you'll buy more when the stock is at a discount and buy less when it is over priced. (paraphrased from my thesis)
If you do not have a retirement account, start a ROTH IRA before you start an investment account on your own. If you're over 50 then you'll want to take a close look at the impact a traditional IRA will have on your taxes.
I buy houses and rent them out. 15-20% annual ROI on rents alone, if you buy all cash. These are conservative strategy numbers. Can easily make 100-200% ROI if you take greater risks.
Sure beats the hell out of stocks, where a really good year yields 10-12%.
Sure beats the hell out of stocks, where a really good year yields 10-12%.
PLUS: real estate is inflation proof: as the dollar devalues, the value of the property increases to reflect this. Also cost-of-living proof for the same reason. And there are insane tax incentives for real estate companies.
There is also no need to save for retirement if you invest in real estate: the rental income will never stop, unless the house is destroyed (that's why I have insurance, so I can rebuild it) or the region becomes abandoned (that's why I research the industry in the area).
There is also no need to save for retirement if you invest in real estate: the rental income will never stop, unless the house is destroyed (that's why I have insurance, so I can rebuild it) or the region becomes abandoned (that's why I research the industry in the area).
I bought a house in Phoenix for my son and paid $157,000 in 2007. When I tried to refinance it in 2010, it was appraised for $95,000. Thankfully, my son pays enough rent to cover the mortgage. According to Zillo, it is now worth about $125,000.
I like the S&P Aristocrat list. If the company offers a divided reinvest plan, you can buy one share of the stock and buy future shares at little or no fee and have the dividend automatically reinvested into shares of the stock.
I bought 100 shares of a utility about 25 years ago and signed up for the divend reinvestment program. I now own about 1000 shares but never laid out any more money.
I like the S&P Aristocrat list. If the company offers a divided reinvest plan, you can buy one share of the stock and buy future shares at little or no fee and have the dividend automatically reinvested into shares of the stock.
I bought 100 shares of a utility about 25 years ago and signed up for the divend reinvestment program. I now own about 1000 shares but never laid out any more money.
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I bought in california in dec '06...didn't go well.
buying real-estate and renting is like having another job or paying someone else to do that job. There are some benefits, but if you don't have the capital to purchase rental properties, then dividend aristocrats will be a good place to start.
Just to review the order:
1. Employer matched 401K up to the maximum matched amount (if it is available)
2. ROTH IRA (unless you really, really need the tax breaks from a traditional IRA
3. ROTH 401K (if it is available and the tax breaks are not essential)
4. Direct investment into companies from the Dividend Aristocrats (build up a diversified folder then maintain investment ratios)
5. Brokerage investment into companies from the dividend aristocrats
6. Diversify, this could include precious metals, real-estate, bonds, T-bills.
buying real-estate and renting is like having another job or paying someone else to do that job. There are some benefits, but if you don't have the capital to purchase rental properties, then dividend aristocrats will be a good place to start.
Just to review the order:
1. Employer matched 401K up to the maximum matched amount (if it is available)
2. ROTH IRA (unless you really, really need the tax breaks from a traditional IRA
3. ROTH 401K (if it is available and the tax breaks are not essential)
4. Direct investment into companies from the Dividend Aristocrats (build up a diversified folder then maintain investment ratios)
5. Brokerage investment into companies from the dividend aristocrats
6. Diversify, this could include precious metals, real-estate, bonds, T-bills.
I can't stress enough for the younger crowd on this forum to set aside as much as you can, as early ( read young ) as you can. Put it away and don't even think about touching it! When you're young, most of us find it hard to think about 20 or 30 years down the road, but the more you put away when you're in your early years the earlier you just might be able to retire and enjoy life. Retiring at 55 or 60 beats the hell out of working until you croak.
The following is an example of two individuals who decide to invest $3000 a year in an IRA earning an average of 8% a year; however, one waits eight years before beginning the program:
Age......Investor 1 ........ Investor 2
21..........$3,000................0
25.........$17,600...............0
28.........$31,910...........$3,000
30.........$42,460...........$9,737
40........$132,286.........$64 496
50........$339,870........$182,680
60........$722,170........$437,832
65.....$1,566,517........$657,955
As you can see, it makes a big difference if you delay8 years before starting an investment program. Remember investor 1 only invested $21,000 more than investor 2 over the same time frame.
Age......Investor 1 ........ Investor 2
21..........$3,000................0
25.........$17,600...............0
28.........$31,910...........$3,000
30.........$42,460...........$9,737
40........$132,286.........$64 496
50........$339,870........$182,680
60........$722,170........$437,832
65.....$1,566,517........$657,955
As you can see, it makes a big difference if you delay8 years before starting an investment program. Remember investor 1 only invested $21,000 more than investor 2 over the same time frame.
Ahh...the magic of compounding returns. Guys in their twenties (yes, that's right) should take careful note of this illustration.
This thread is so relevant to what is going on my head for some time. Have some money but I have no idea what to do with it.
MrBigDick
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I so WISH I had done this.................I'm still aiming to retire when I'm 55-60 but I will have to watch my pennies after that point......sucks but it is what it is.....
With the current intrests here in Belgium on savings account, you are literally losing money every year .. So investing is almost a must here. Stocks or gold would be my choice today .. What do you guys think that the gold price will do the next couple of weeks, go further down or back up again?
It's probably the same in America because of the FED with his zero intrest policy?
It's probably the same in America because of the FED with his zero intrest policy?
Gold will drop further it seems.US bonds are doing well all of a sudden.Emerging economies are seeing weakening currencies.
Gold is likely to remain kinda inelastic for a bit.In fact, the demand may soar as people look for security from the devaluing currencies.
Gold is likely to remain kinda inelastic for a bit.In fact, the demand may soar as people look for security from the devaluing currencies.
I believe investing in gold in the long run is always good ..
+ anyone an expert in investing in turbos/speeders/sprinters? Such cool financial products
+ anyone an expert in investing in turbos/speeders/sprinters? Such cool financial products
Diversification is the key to investing. Once you have put aside six months worth of income in a relatively safe, conservative investment (short term high quality money fund for example) and have enough insurance if you have any dependents, look for a top rated mutual fund(s) and set up an automatic investment program. The Dividend Aristocrats might be a good next step. Once you have built up your "core" investment portfolio, you can now diversify out into gold and more "exotic" investments.
