Investing Thread

[southsider2k5]

you should be able to appeal the assessments.

 

But only during a specified period of time after the assessment takes place.

[lord chas]

looking to start a roth 401k any broker sites out there better than others?

[Y2HH]

looking to start a roth 401k any broker sites out there better than others?

 

Go with whatever "stable" company gives you the best trading rates, because no...they're basically all the same at this point. Be it E*Trade, Ameritrade, Schwab, etc...

Edited July 11, 2011 by Y2HH

[NorthSideSox72]

Didn't know where to put this, but I figure it's "investment" related.

 

So has anyone else been screwed by an escrow fund review? My wife and I bought a place last year. For some unknown reason (which i'm investigating) our property taxes went up by $500/installment (2nd of last year, and first of this year), and our house insurance went up by $500. My bank sees this and "projecting" into the future tells me that the escrow fund is gonna be like 800 bucks short next year. Thus, they're asking me for that plus an amount near double that so they can set up a "reserve" account. So at the end of the day my monthly payments are going up about $300 a month.

 

For you long time home owners out there - do property taxes and insurance go up like that every year? I mean, i figured they'd go up some, but that seems a bit excessive.

At our last place, I was able to turn off escrow entirely, which I much preferred. Why give the bank a free loan if you don't have to? Had our homeowners and other insurance billed monthly to the credit card, and pushed money each month to savings in anticipation of property taxes. Adjusted the amounts as necessary. A little more work, but very little.

 

But on the new house, this mortgager won't allow turning off escrow until I have both 40% equity and at least 5 years in. Irritating.

 

[StrangeSox]

hope you didn't invest in bskyb!

 

http://twitpic.com/5pio7m

[southsider2k5]

At our last place, I was able to turn off escrow entirely, which I much preferred. Why give the bank a free loan if you don't have to? Had our homeowners and other insurance billed monthly to the credit card, and pushed money each month to savings in anticipation of property taxes. Adjusted the amounts as necessary. A little more work, but very little.

 

But on the new house, this mortgager won't allow turning off escrow until I have both 40% equity and at least 5 years in. Irritating.

 

That 40% part could take forever with the way things are going.

[bmags]

y2hh what do you think of airbnb?

[Y2HH]

y2hh what do you think of airbnb?

 

Are you talking about the .com where you seek cheap places to stay?

 

The idea seems sort of faddish/hyper modern to me...and potentially dangerous. I'm not sure what I think of services like this, it's basically a more evolved version of CouchSurfing, which is/was "free", and I put that free in quotations because nothings free. I've read some oddball stories of people that have done this, and "paid" in other ways.

 

I can't speak for everyone on this, but I personally wouldn't use a service like this, because frankly the idea scares me. The risk/potential for meeting some wackado would weigh too heavily on my mind and I'd never get any sleep.

 

If I were to ever do something like this I'd probably roam the countryside camping on my own...I know I should trust people more, but I don't...and the world around me gives me plenty of reasons why.

[bmags]

Are you talking about the .com where you seek cheap places to stay?

 

The idea seems sort of faddish/hyper modern to me...and potentially dangerous. I'm not sure what I think of services like this, it's basically a more evolved version of CouchSurfing, which is/was "free", and I put that free in quotations because nothings free. I've read some oddball stories of people that have done this, and "paid" in other ways.

 

I can't speak for everyone on this, but I personally wouldn't use a service like this, because frankly the idea scares me. The risk/potential for meeting some wackado would weigh too heavily on my mind and I'd never get any sleep.

 

If I were to ever do something like this I'd probably roam the countryside camping on my own...I know I should trust people more, but I don't...and the world around me gives me plenty of reasons why.

 

I don't know. I did couchsurfing when I was in Brazil and it was fine. The ratings system allow people to regulate pretty well and most won't stay with someone who isn't rated. Renting apts for short terms is something pretty common elsewhere that often isn't an option here.

[caulfield12]

Pfizer

Cisco

Texas Instruments

 

Realized I was holding these three stocks (all underwater)...anyone have a compelling reason not to sell and write them off against taxes?

[southsider2k5]

Pfizer

Cisco

Texas Instruments

 

Realized I was holding these three stocks (all underwater)...anyone have a compelling reason not to sell and write them off against taxes?

 

Have you held long term or short term? Do you need a loss for any reason?

 

Selling on the downside is a bad way to trade if you don't have to do so. If you have held for any amount of time, sit on it. They will be back. Maybe not tomorrow, but history always has the blue chips leading us back eventually.

[caulfield12]

No reason to sell, actually.

 

My mom likes to write off losses every once in a while against her taxes.

 

Personally, CISCO is the only one I don't think has much of a shot to recover...it has been parked in that same range for a decade.

 

 

Trying to figure out where to invest about $20,000-30,000 where she'll get a good rate of return, some type of bond fund....6-8% or so. Right now it's getting 0.01%!!!

 

Was just researching OHYAX, DVHYX, DHOAX, JIHDX and RYHDX.

 

Most of her money is at Vanguard, American Century, Legg Mason and Oakmark Funds.

 

 

 

Alcatel, AIG, LSI Logic, Cisco, Nortel....those stocks are pretty much buried forever. Just sitting there at massive losses. Cisco at $74.59 per share, and that's the best of these former high-flying tech stocks (well, AIG's another story).

Edited August 10, 2011 by caulfield12

[Balta1701]

I've got to agree with 2k5 here (why did I feel sick after typing that?). Corporate profits are through the roof right now, all 3 of those companies are dividend paying companies, they've probably already taken the biggest hit that they'll take in terms of consumer spending and weathered it. Stocks are pretty likely oversold already, but they're oversold based on the assumption of decreasing profitability if the economic conditions worsen...which means that there's room for upwards recovery if things stabilize.

[Soxbadger]

Anyone have some cheaper stocks (less than $20 per share) they have ideas about? Im thinking over the next week or so their may be some value in buying.

[caulfield12]

I'm leaning towards holding onto Pfizer and TI.

 

Cisco, MEHHHHHH.

 

They're going to have to completely reinvent that company and the router business to ever be a growth stock again.

[Jenksismyhero]

Anyone have some cheaper stocks (less than $20 per share) they have ideas about? Im thinking over the next week or so their may be some value in buying.

 

I'm in the same boat.

 

For the real investors in here, assume the markets continue to drop and hit like 10k or under. Smart to buy into an index fund? Or is the all-equity position not a good one?

[Balta1701]

I'm in the same boat.

 

For the real investors in here, assume the markets continue to drop and hit like 10k or under. Smart to buy into an index fund? Or is the all-equity position not a good one?

Aren't there 2 distinct statements here, buying into a index fund doesn't have to equal an all-equities position does it?

[Jenksismyhero]

Aren't there 2 distinct statements here, buying into a index fund doesn't have to equal an all-equities position does it?

 

I was looking at the Vanguard 500 which is like 99% equities. I assumed all the index funds were like that.

Edited August 11, 2011 by Jenksismybitch

[Balta1701]

I was looking at the Vanguard 500 which is like 99% equities. I assumed all the index funds were like that.

Let me say it a different way. Nothing wrong with putting some money in a fund like that, but I wouldn't put 100% of my assets into it, any more than id put them all into selected stocks. That whole diversification thing. If an index fund reaches a level where a 20% increase in a year is plausible then put some money in it, just make sure you don't risk everything on a bet that things won't collapse.

[Cknolls]

No reason to sell, actually.

 

My mom likes to write off losses every once in a while against her taxes.

 

Personally, CISCO is the only one I don't think has much of a shot to recover...it has been parked in that same range for a decade.

 

 

Trying to figure out where to invest about $20,000-30,000 where she'll get a good rate of return, some type of bond fund....6-8% or so. Right now it's getting 0.01%!!!

 

Was just researching OHYAX, DVHYX, DHOAX, JIHDX and RYHDX.

 

Most of her money is at Vanguard, American Century, Legg Mason and Oakmark Funds.

 

 

 

Alcatel, AIG, LSI Logic, Cisco, Nortel....those stocks are pretty much buried forever. Just sitting there at massive losses. Cisco at $74.59 per share, and that's the best of these former high-flying tech stocks (well, AIG's another story).

 

 

Keep Pfizer for nothing but the dividend. Also think anout Vodaphone. Not a stock, but you can buy the ADR and reap the same benefits. They will start to realize the huge benefits of owning a huge stake in Verizon Wireless very shortly. I believe the yield on it is in the neighboorhood of 5.6% or so. Verizon said they will pay them a 3.5 billion dollar dividend that they owe them but it may not occur until 2012. But the stock is very cheap, IMO, $22 and change, and seeing as they own 45% of verizon wireless it is a screaming bargain.

[southsider2k5]

I was looking at the Vanguard 500 which is like 99% equities. I assumed all the index funds were like that.

 

No. Not at all. You can buy index funds based on just about anything you can imagine. Gold, oil, etc.

[southsider2k5]

I'm in the same boat.

 

For the real investors in here, assume the markets continue to drop and hit like 10k or under. Smart to buy into an index fund? Or is the all-equity position not a good one?

 

In general, broadbased index funds such as the SP 500 out perform pretty much all equity position and funds in the long term. If you don't have a lot of money, that is the best thing you can do, until you can really afford true diversification\.

[caulfield12]

Plus, there's no "load" to buy a Vanguard fund and there's not that 1-2% loss from your ROI on capital gains every year from an active manager chasing higher performance at the end of every quarter by "churning" the portfolio.

 

If you want to go conservative, you can add a value or growth & income element. Although there's still a lot of duplication of portfolios.

 

Maybe you should also thinking of mixing in different sizes, small, mid-cap and also international.

 

You need to have at least one good international fund.

 

And never have more than 10% of your money invested in one specific stock. That's what I have always gone with.

 

 

[caulfield12]

In general, broadbased index funds such as the SP 500 out perform pretty much all equity position and funds in the long term. If you don't have a lot of money, that is the best thing you can do, until you can really afford true diversification\.

 

I think it's about an 85% rate of the market beating managers....something like that. Or 15% odds you can pick a fund that will beat the index.

 

Perfect example, 10 years ago Bill Miller from Legg Mason funds had beaten the market 13 or 14 consecutive years with his Value Index over there.

 

Ever since I acquired it, it has been the worst-performing (by far) of all my mutual funds.

 

The law of averages and things "returning to mean" will always get you. Statistical anomalies always have a way of correcting themselves.

 

That's why Vanguard or Index Funds or the ones that mature based on your retirement age are usually better for small investors than trying to actively beat the market.

 

It's like the movie PI, everyone imagines they can do it or develop the computer model (Long Term Capital Management) but no computer is smart enough to correct for human fear, motivativation, counter-intuitive selling and panic.

 

 

[caulfield12]

Keep Pfizer for nothing but the dividend. Also think anout Vodaphone. Not a stock, but you can buy the ADR and reap the same benefits. They will start to realize the huge benefits of owning a huge stake in Verizon Wireless very shortly. I believe the yield on it is in the neighboorhood of 5.6% or so. Verizon said they will pay them a 3.5 billion dollar dividend that they owe them but it may not occur until 2012. But the stock is very cheap, IMO, $22 and change, and seeing as they own 45% of verizon wireless it is a screaming bargain.

 

 

Thanks for that tip, cknolls!

 

My mom's 82, so that's a good rate of return in the dividend. Over the last 10-12 years, I've tried to get away from the tech stocks and replace them with dividend-bearing stocks.

 

One of my best picks was OGE Energy. That one has gone up 2.5X since I bought it and the dividend is pretty decent as well.

 

 

It's at $25 now and 5.75% yield....but buying it long-term, not so concerned about $2-3 price shifts.

Edited August 11, 2011 by caulfield12