How to put my money to work...
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Topic: How to put my money to work...
Posted By: *Stealth*
Subject: How to put my money to work...
Date Posted: 09 September 2010 at 12:36am
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Ok, I have a few thousand laying around in my savings account and I'm interested in advice as to what to do with it. Any information on how I can make that money earn more cash would be appreciated. ------------- |
Replies:
Posted By: DaveEllis
Date Posted: 09 September 2010 at 12:41am
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Being only a few thousand and young, I'd go with a CD. It's secured and still keeps your assets liquid should something happen.
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Posted By: StormyKnight
Date Posted: 09 September 2010 at 12:47am
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In b4 Hookers and blow... ------------- 
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Posted By: Mack
Date Posted: 09 September 2010 at 12:54am
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Send it to me. The receipt will be in the mail after I get it. You can trust me . . . I used to work for the government. ------------- 
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Posted By: Linus
Date Posted: 09 September 2010 at 5:45am
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First, do you have an emergency fund?
If yes: Put the money you don't need right away in to mutual funds. If no: Make an emergency fund. ------------- 
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Posted By: ArthurBignose
Date Posted: 09 September 2010 at 8:45am
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I've always been told that if you aren't going to need the money any time soon, a Roth IRA is the best way to go.
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Posted By: ParielIsBack
Date Posted: 09 September 2010 at 9:38am
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I've heard of a fellow named Madoff, your money would probably do well with him.
------------- BU Engineering 2012 |
Posted By: bravecoward
Date Posted: 09 September 2010 at 9:48am
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buy old bike frames, clean off the rust, and then pass it off as excellent condition on ebay
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Posted By: Tical3.0
Date Posted: 09 September 2010 at 10:18am
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Waits for the penny stocks bot to chime in. ------------- I ♣ hippies. |
Posted By: usafpilot07
Date Posted: 09 September 2010 at 10:19am
 ------------- Buffalo buffalo Buffalo buffalo buffalo buffalo Buffalo buffalo |
ParielIsBack wrote:Posted By: tallen702
Date Posted: 09 September 2010 at 1:26pm
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As someone state above, if you don't have an emergency fund, stick it in an interest earning savings account. If you do, mutual funds are a great way to go. Roth IRA is also good as, "there is no greater force in the universe than compound interest." You are never too young to start saving for retirement.
Stay away from CDs right now. If the interest rates were higher and inflation wasn't an issue, then sure, but right now, if you compare the CD rate at your bank to the inflation rate, you'd actually be LOSING money by putting your money in a CD rather than a high yield savings account (ING and other online banks give good rates) or mutual funds or an IRA. Remember IRA's aren't liquid. They're retirement funds. While you can raid it in an emergency, the tax penalties are stiff. Personally, GE looks good to me in a long-term investment strategy. They produce a wide range of products, are increasing their wind turbine production and will probably be the forefront manufacturer in big solar projects too. ------------- <Removed overly wide sig. Tsk, you know better.> |
Posted By: Linus
Date Posted: 09 September 2010 at 2:42pm
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Keep in mind that the benefit of a Roth IRA as opposed to a traditional IRA or 401(k) is that you can take out any and all contributions without being taxed/fined a penny, because that money was taxed BEFORE you put it in.
The only withdrawals that are taxed/fined are the earnings. That's why many financial specialist say your Emergency Fund should be in a Roth, as you always have access to it, but not instantaneous access, and it can earn you a crap ton of money, even if you only invest in bonds and not stocks. -------------
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Posted By: brihard
Date Posted: 09 September 2010 at 3:12pm
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I'll second Tallen's recommendation of General Electric. I listened the first time he gave that advice- they were trading betwen $10.30 and $13.00 per share when I got in. It then went up to nearly $19 a share. It's trading at $15.90/share right now, but it's been a rough summer for a lot of stocks. They're a solid company, broadly diversified, and are the largest corporation in the world. they've already largely squared away the GE Capital component of the conglomerate that was a large driving force behind their price drop during the recession. At the same time, as a major manufacturer of big ticket industrial items - AND of provision of decades of maintenance and upgrade services to same - they're well poised to continue upwards as the economy climbs back. Generally speaking, don't invest in stocks for the short term; actively trading - unless you REALLY know what you're doing and are broadly diversified - is a good way to get hurt. Picking a solid long term stop with a low current valuation, a solid track record, and a healthy dividend is a good way to see your money grow win the long term. It will rise and fall in that time, but you ought to see a net gain. And don't get scared when prices occasionally plummet. If you're willing to sock some money away over a time frame of a few years, this is a very safe bet. Tallen- In addition to their investment in wind turbine technology, they're a big player in the 'smart grid' market, and GE Health is a solid long term bet; America is one of the last developed nations without a modern system of networked and digitized patient records, and GE is constantly picking up contracts for these systems. Aviation's been hurt about as badly as it can be, so their jet engine business ought to pick up from here on too. ------------- "Abortion is not "choice" in America. It is forced and the democrats are behind it, with the goal of eugenics at its foundation." -FreeEnterprise, 21 April 2011. Yup, he actually said that. |
Posted By: tallen702
Date Posted: 10 September 2010 at 2:10pm
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It's speculated that November 18th will be the IPO date for GM. I'll be buying some stock. Not only have they successfully trimmed the fat, but they're actually starting to make cars that people want to buy. Buick is no longer a land-going boat, Cadillac continues to shed the ghetto image, and whether or not it's a decent car, the Volt promises to scoop up more than its fair share of hippies and celebrities who want to be seen in something more environmentally friendly than a hybrid. ------------- <Removed overly wide sig. Tsk, you know better.> |
Posted By: Mack
Date Posted: 10 September 2010 at 2:48pm
I don't know about that, it does nothing for me. It's not that it's revolting or anything, it just doesn't generate a spark of interest for me. (Maybe I'm just not amped about alternative vehicles in general.) Oh well, at least it's nice seeing a US company lead the charge towards improved electric vehicles. -------------
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Posted By: FreeEnterprise
Date Posted: 10 September 2010 at 4:06pm
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No way would I buy GE...
Or GM (when it is available)...
GE is up because Obama is in office (and the hope of cap and tax passing) they have sold their soul to the fake promise of unlimited energy from windmills and such... It won't pan out long term, as the cost vs the maintenance (what GE makes their money from) will prove to be a complete waste of cash compared to coal or propane, or dams, or nuclear...
(weird that Dams aren't considered "green" now isn't it... Oh wait, they don't break down all the time and run off an unlimited source like wind or the sun... ) oh wait.
Personally, I think the market is your best bet right now. But, buying the right stock is the key. Mutual funds are for suckers... Some are decent, but they are not easy to find. You have to look at their 5 year averages minimum, and if ONE person changed in management in the fund... Then don't trust it. (they change jobs like we change underwear... that is why I dislike them so much... THey show a great long term return, until you buy in, and then you get mediocre results if results at all.)
Right now, I would look at long term stocks that are low, but have good upside.
P&G is one of mine. (pg)
Also, Wal-Mart. (wmt)
I also had over 300 shares in Apple (aapl) but I sold it as I think the government is "propping up" the market right now...
Which in my tin foil filled mind means... Once the republicans take over in November, we will have a major market "correction" in the coming year as Obama will have the fed start pulling money out, to prove how dumb we all were for voting for the other party...
It is all about the blame with this guy.
Business bad. republicans bad, fox news bad, tea party bad... In my strange mind I see that as a possibility.
So, if that happens, you know what will skyrocket... Gold and silver. Or just leave it in Cash. (where mine is currently) until this stuff starts to level out.
But, get on a plan of some kind. I have been saving a minimum of $2,000 a year since I was 18. I'm 38. Plus I saved money to invest in real estate. Remember you need 20% down minimum for a house...
I have over 50% down on my house... And NONE of it came from my retirement.
When you purchase something. Buy it cheap. Always get a deal, and buy stuff that holds its value, so you can flip it later. Cars are the WORST thing you can buy with your money (in most cases, collectable is different obviously) Next worse thing you can buy is technology.
But, most Americans have the latest technology... So that is why Apple stock is such a good bet long term (although I wouldn't buy it right now, as it still is at record heights.)
anyway, that is my 2c. Just buy some P & G. They have good dividends as well... And open a 401k or roth ira.
All of you should get into some plan now, while you are young. One for retirement, and a second for a house... And a third for a car if your smart.
Then pay cash for everything. ------------- They tremble at my name... 
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Posted By: brihard
Date Posted: 10 September 2010 at 5:06pm
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Yes, Proctor & Gamble is typically held to be a very good long term stock. Dividends are solid, and they sell the kind of things that people will always buy regardless. I need to look at them again next time I'm putting some cash into stocks. I disagree with you regarding General Electric. They still make at least half their revenue from financial services through GE capital- they finance a lot of industry and research. Besides that, their manufacturing is so broadly diversified that it's far from dependent on any one thing. Additionally, GE sells worldwide. While some plans of the current administration are indeed favourable to them, they're hardly dependent on them either. Less than half of their earnings come from within the U.S. There's tremendous potential for them as developing nations such as India and China develop their major infrastructure and industry. Yes, GE aggressively pursues emergent initiatives, such as the green energy sector, network-centric healthcare, etc, but they are so broadly diversified and so entrenched in so many markets that long term they are an absolutely solid bet. I vehemently disagree that mutual funds are 'for suckers'. For people who don't have the assets to invest extensively in stocks, mutual funds are a great way to ensure diversification. Are the potential gains as high as stocks? No, absolutely not, if the rights stocks are picked. Mutuals, however, are at much lesser risk of a permanent loss of value than any individual stock is. They also allow you to gain broad exposure to a particular sector, such as funds focusing on emerging markets, or a particular geographic region, or a selection of stocks in particular parts of the economy such as energy, or finance, or resources, or what have you. Someone with a modest amount of cash - like what's being discussed in this thread - wishing to invest in the emergent markets in Brazil, Russia, India and China, for instance, is far more likely to find mutual funds of quality than to successfully pick one or two stocks that will do quite well. Many people simply don't have the time or the knowledge to properly research individual stocks for investments. It's easy to get sucked into charlatanry and to make bad investments based on some glowing articles. Mutual funds - particularly reputable ones - make it much easier to avoid this. Yes, you lose some of the potential return in the management costs of the fund, and yes, you're unlikely to 'win' a gamble and pick one of those stocks that ends up climbing and climbing. But if you're starting out investing and don't want to put all your eggs in one basket, mutual funds can be excellent if they're well picked. Also recall that we've just been through a tremendous economic slump followed by a fast but partial recovery, so looking at returns in the past few years is going to be hard make make sound investments on. Better to figure out what will be good in the future. Some prognostications that are pretty safe: China and India will continue industrializing and will consequently need vast quantities of all resources. Think currently underdeveloped or unattractive sources of resources like the oil sands in western Canada. If Pelosi wants to complain about how dirty it is, that's fine, China will buy it instead. Lots of people are going to get old and sickly. Industries that cater to the elderly should do very well in the next few decades as the early baby boomers start hitting retirement and also start having health problems. Our lifestyles will continue to be consumerist. Look at the companies making the stuff you use daily- cereal, shaving cream, soft drinks, etc, figure out who ultimately owns them, and look at what else they own. If they're consumer staples it's a solid long term bet. My personal preference for a lot of my long term stuff is natural resources, particularly the energy sector. Our government did something pretty cool a few years ago. They passed a law creating a 'tax free savings account'; essentially what it is is a registered account at any bank where each year you can contribute up to $5000 (will be indexed to inflation in $500 increments), and you can invest and trade within that account completely tax free. You can take it out at any time, and you can recontribute cash once you have it again- not just up to the $5k/a, ut up to the total value of what was in there when you took it out. So if you invest five grand, and it increases in value to $20k, you pay no tax, you can take it out whenever you want, and when you later have $20k again you can put it back in and continue to invest. Potentially some massive tax savings if the investments are successful. These accounts are in their second year of running now. One of the few things our government has done which I heartily approve of... For some reason most people are using them for low yield investments like GICs and government bonds though, which is dumb. ------------- "Abortion is not "choice" in America. It is forced and the democrats are behind it, with the goal of eugenics at its foundation." -FreeEnterprise, 21 April 2011. Yup, he actually said that. |
Posted By: tallen702
Date Posted: 11 September 2010 at 10:57am
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P&G is a no brainer for long term dividend payoff, but so is SYSCO or any other big name in consumer products. If that's what you're looking for, then you might as well buy HBI (Hanes) or Kraft-Sarah Lee while you're at it as they're going to stay stable (with the occasional dive or rebound) and pay you dividends. But when you're younger, it can pay off big time to have a bit more risk-oriented portfolio.
I stand by the GM statement and GE as well. GE is simply too diversified to be going anywhere anytime soon. I wouldn't sink anything into Walmart for the long-term btw. It's looking like their business model isn't going to be as viable in the next 5-10 years as it has been over the past decade and a half. China is running out of cheap labor and will eventually have to unpeg the Yuan to counter rising domestic costs. The next "china" for manufacturers is Thailand and the start-up costs there are still higher than they were in China 10 years ago. Walmart won't be able to bring you "cheap and cheerful" for much longer. GM's rebranding is doing wonders for their market share and I think if you get in on the IPO and hold onto it until Obama's second term, you'll be very happy indeed. ------------- <Removed overly wide sig. Tsk, you know better.> |
Posted By: FreeEnterprise
Date Posted: 11 September 2010 at 11:02am
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The exact same arguements made for GE were made for Enron... We all know how that ended. ------------- They tremble at my name...
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Posted By: tallen702
Date Posted: 11 September 2010 at 11:06am
One of these things is not like the other....  ------------- <Removed overly wide sig. Tsk, you know better.> |
Posted By: *Stealth*
Date Posted: 11 September 2010 at 4:40pm
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Sorry i'm a retard, this is my first encounter with stocks and things, which is due to: 1. a new and much better earning job, and 2. actual money management skills which have lead to a decent savings account. What's an IPO? GM does interest me greatly, and I've been following their restructuring/rebranding for awhile now. I really like what I see from them so far. Secondly, how does one go about buying stocks? ------------- |
Posted By: You Wont See Me
Date Posted: 11 September 2010 at 7:40pm
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This thread is relevant to my interests
------------- A-5 E-Grip JCS Dual Trigger DOP X-CORE 8 stage x-chamber Lapco Bigshot 14" Beadblasted Optional setup: R/T Dead on Blade trigger |
Posted By: Koolit32
Date Posted: 12 September 2010 at 2:24am
| 1/2 no limit tables |
Posted By: brihard
Date Posted: 12 September 2010 at 10:58am
An IPO is an 'initial public offering'; that is to say, the first time a company offers shares of itself publicly. In the case of GM, they were previously a publicly traded company (ie, you could buy shares of GM on the stock market), however when they went bankrupt they were purchased in majority by the U.S. Treasury, and by the federal government of Canada and the provincial government of Ontario, where many of their plants were. Now I'm simplifying this greatly, but General Motors is now once again in a position to sell fractions of ownership of itself - shares - on the public market again. The company will be heavily analyzed, and the bank administering the Initial Public Offering will figure out a share price at which most of the shares on offer ought to be purchased. GM is then fired off into the public markets, and its share prices will again sink or swim depending on how they do. As for buying stocks as a retail customer like you or I, most banks will run some sort of discount brokerage. I do all my investing through my bank. I simply log in through their website (My bank is TD Canada Trust, and they run the TD Waterhouse Discount Brokerage), and I can do market research and place orders for stock. Be aware that when purchasing or selling stock you'll almost always pay some sort of commission. It's wise to shop around a bit for brokerages and see where you'll get a cheaper commission. Usually it's either a flat rate, or a percentage of the value of the trade. I pay a higher commission by virtue of the convenience of doing it all online through my bank, which links all my accounts and assets in together. One of the others here will be able to better advise you about what is a good deal in the US. ------------- "Abortion is not "choice" in America. It is forced and the democrats are behind it, with the goal of eugenics at its foundation." -FreeEnterprise, 21 April 2011. Yup, he actually said that. |
Posted By: AltonDelmote
Date Posted: 05 October 2010 at 5:25am
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I have put my money in business sector. Thanks for sharing. http://www.pennyinvest.com/ - Penny Stocks |
Posted By: FreeEnterprise
Date Posted: 05 October 2010 at 8:01am
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The only IPO's that regular guys like us could buy into are sorry ones... (like GM). Real IPO's you can't get a sniff of, until the rich guys with the connections decide to sell. I have watched (and tried to get into) IPO's many times over the years, and have NEVER once been able to buy under the initial offering.
No matter. It is VERY rare for a stock to sell for higher than the IPO price within a week or two anyway...
I would just wait, and buy it for less within a month of its release. ------------- They tremble at my name...
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Posted By: ParielIsBack
Date Posted: 05 October 2010 at 10:09am
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If you really, for some reason, want to get in on the IPO of a company, you don't have to be rich. You just have to not be trading for yourself.
------------- BU Engineering 2012 |
Posted By: brihard
Date Posted: 05 October 2010 at 12:10pm
Bat signal!
------------- "Abortion is not "choice" in America. It is forced and the democrats are behind it, with the goal of eugenics at its foundation." -FreeEnterprise, 21 April 2011. Yup, he actually said that. |
Posted By: SSOK
Date Posted: 05 October 2010 at 12:25pm
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Penny Stock bot, woo! ------------- 
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Posted By: scotchyscotch
Date Posted: 06 October 2010 at 8:13pm
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1000 on red. If successful pick either red or black at random and repeat until you have become a millionaire or until you only enough money for a double whiskey. If the outcome is the latter then buy said whiskey find a corner of the casino, drink whiskey and cry. |
Posted By: Blacksheep
Date Posted: 07 October 2010 at 8:13pm
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Proctor and Gamble has a projected 4-year EPS Growth of an abysmal 6 percent, giving them a PEG of nearly 3 if not more (PEGs over 1 tend to be over-valued). Even if their dividend is factored in as EPS growth, that's only 9 percent and you might as well buy a fund that tracks the S&P 500 for the added security of diversification (S&P returns around 8 percent)
Their trading at $60.00 their DCF value is around $40-$50 so you'd be paying $10.00 more than fair value for the equity. Their P/B ratio supports this. Also, their curren ratio is low, hanging at .7 +/- depending on what numbers you run. For most businesses, a ratio of 1.5 is considered safe. What .7 means is that, for every $1.00 of current liabilities they have, they have $00.70 in assets--this is not a financially healthy company (this doesn't mean they're going to be filing for bankrupty, however; it indicates that their cash flow is low. A look at the balance sheet confirms this: their cash and equivilents is at it's lowest point in 5 years--1/3 of what it was in 2006. What has happened is that their current liabilities in 2006 stood at around 20 billion and now sit at 24 billion while their current assets were at 24 billion in 2006 and now stand at 18 billion. I think you could make a better investment. Proctor and Gamble will probably not fail any time soon, but for your money, you can find a better equity to invest in. The S&P 500 and indices that track it's preformance are a generally safe bet--it returns around 8.5 percent annually while ensuring that your money is diversified. The other option is to pick your own stocks--be advised that the avg investor returns 1.9 percent per year and inflation is historically 3.0 to 3.6 percent depending on what numbers you use. Edit - You can look up everything I've said, it is fact. Also note, that in the retail war, Target is projected to beat Wal-Mart (economics-if we come out of a recession, income rises and so does the demand for normal goods. Wal-Mart is considered an inferior good). This is not good for PG for whom 15 percent of their business is to WMT and affiliates... ------------- 
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Posted By: FreeEnterprise
Date Posted: 14 November 2011 at 1:32pm
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Interesting to look back at what was said in this thread... Especially when you look at what was recommended and how it has turned out.
Lots of interest in GM, but just like I said, it wasn't smart to get into it in the IPO... currently trading at 22.95... Ouch.
GE, another one that was pumped up. And today it is at 16.08... it went up to 21, and down to 14... although it does pay lower dividends.
PG one of the ones I recommended is at 63.03 with good dividends along the way...
Walmart is up to 58.38 with decent dividends...
Apple has been strong as well, pushing at 379 today... It has hit 400 quite a few times lately. Course NO dividends...
Gold
Was around $1,300 an ounce today close to $1800 an ounce... good investment.
silver another one I recommended.
was around 24 an ounce in October 2010, today it is around 34 an ounce...
But, the reason I pulled this thread from the time machine is to point out my comments on IPO's and only the "special" people being able to get into those "offerings"... This was very interesting...
http://biggovernment.com/mikeflynn/2011/11/14/wait-how-did-pelosi-get-in-on-the-visa-ipo/ - http://biggovernment.com/mikeflynn/2011/11/14/wait-how-did-pelosi-get-in-on-the-visa-ipo/
Did any of you see 60 minutes last night concerning the fact that members of congress are allowed LEGALLY to do insider trading?... yeah, clearly that should stop, but since THEY write the laws, THEY get special rights.
Pelosi has been asked some difficult questions concerning her "ability" to buy huge amounts of VISA stock in the IPO...
And she isn't the only one, this is spread throughout congress in both parties, as they are lining their pockets with insider trading deals, and privledged information that they use to get rich, or short companies when they drop the legislative hammer on them...
Chrony Capitalism at its core.
Here is a link to the 60 minutes story
http://www.breitbart.tv/60-minutes-reports-on-massive-washington-corruption-exposed-by-investigative-journalist-and-breitbart-editor-peter-schweizer/ - http://www.breitbart.tv/60-minutes-reports-on-massive-washington-corruption-exposed-by-investigative-journalist-and-breitbart-editor-peter-schweizer/
Interesting that a conservative journalist had to write a book for CBS to take notice... This has been going on for years, and clearly this is something that the Tea party and the Occupy movement have in common...
We need to throw the bums out, and change the laws, members of congress should not be allowed to buy stocks.... Since they have the ability to harm or help those companies they are investing in... (solyndra anyone). ------------- They tremble at my name...
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Posted By: ammolord
Date Posted: 15 November 2011 at 8:16am
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Someone tell my why ^this^ dosnt suprise me at all. ------------- PSN Tag: AmmoLord XBL: xXAmmoLordXx ~Minister of Tinkering With Things That Go "BOOM!"(AKA Minister of Munitions)~ |
Posted By: stratoaxe
Date Posted: 15 November 2011 at 9:12am
Because we've come to expect corruption, so stories like that doesn't surprise us at all. My understanding of the stock market and its lingo is limited to my early level business classes and some amateur reading, so I could very off on my statement, but it seems to me that congressional figures are getting away with a practice that is incredibly illegal and undermines the integrity of the market. I don't know what the consequences of this as far as the market is concerned and if there are any, but it certainly seems like something that deserves a closer look (which, if my Google fu serves me well, it's getting). ------------- 
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Posted By: ammolord
Date Posted: 15 November 2011 at 9:23am
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I more ment FE bumping a year + old thread to push a point, but yeah, that too. ------------- PSN Tag: AmmoLord XBL: xXAmmoLordXx ~Minister of Tinkering With Things That Go "BOOM!"(AKA Minister of Munitions)~ |