I have $20k sitting in a checking account (I know, I know-bad). I have invested in stocks for about 3 years, but nothing hardcore. I have a wife, no kids. Early 30s. Not much debt except student loans which are at like 3.5% interest. What should I do? My goals are to: 1. Grow the money (of course) and 2. My timeframe is 1-2 years at which time we hopefully use the money as down on a house. 3. I have a fairly high tolerance for risk. But I want to be smart. But if the money shrinks to $15k, I'm not going to cry (too hard). But I'd like to aim for $30k. (which is really only 10% down nowadays) I am thinking: 1. $5k in the Money Market (just in case) 2. $5k in Mutual Funds 3. $10k in 5 stocks (which I'd trade in and out of) These are things I'm comfortable with doing. But any option is open. Any ideas/suggestions?
I'd be careful doing the latter (#3). You better have a plan b/c very few people are successfull trading in and out of stocks.. How savvy are you when it comes to this? If youreally want to give it a shot, I suggest you read William O'Neils "How to make money in stocks." It gives you a good fundamental understanding of what causes stocks to move, and gives you diff criteria to ponder when selecting stocks. The good news is that all the evaluatiion is done for you in Investors Business daily (list updated every friday after theclose)that fall into this universe. From there, it is simply using technical analysis to pick your best times to enter and exit... It still isnt easy by any stretch, but these stocks are good growth companies that have strong institutional interest. The idea behind this approach is that you are picking companies that have multiple of variable in their favor, and by default are positioned (based on historical characteristics) to make upwards moves..
off topic. Weird, why are certain words linked to advertisments? For instance stocks if clicked takes me to Ameritrade.
Re: off topic. I thought at first that it may have been spyware or something on my home computer, but when it happened on my work computer I knew that wasn't the case. Must be something BS makes money off of.
Living in the Midwest in your position, I'd be thinking why wait 2-3 years for the house; buy now. I have no idea where in Mickey Land you live and/or work, but a house is probably the safest investment you can make - with the opportunity for growth. Good luck.
I'm in Orlando (hence teh Mickey Mouse thing) but prices here have skyrocketed so bad...I don't want to buy now. Also, there are other concerns but... I actually read an article that compared home price growth v. stock growth and it said stocks have done better over the last 50 years. But, there are other things to take into account of course (like the fact that you HAVE to live somewhere). BTW, has anyone heard of this "Stars of the Dow" fund? It basically invests in like all the Blue Chips and is supposed to have doubled the DJIA for the last ten years. (or something like that)
Prices will continue to skyrocket because of the increase in cost of constuction materals. We were expecting, what 20% increase due to Katrina? How much more due to Rita? It would seem that material cost will push the cost of existing homes up as well. Buy the most home you can, in the best school district you can. It's the best move from a home perspective.
Re: off topic. Advertising trial. I didn't see it because I'm a full premie. https://www.bigsoccer.com/forum/showthread.php?p=6217565#post6217565
I would try to find a no load mutual index fund. Go to vanguard's website. As for a house, that depends on where you live and how long you expect to be there. I would be more inclined to start a Roth IRA for you and your wife. You would be using after tax money, but the account grows tax free and when you withdraw it, you will not be taxed. The best book I ever read on investing was "The Only Investment Guide You'll Ever Need" by Andrew Tobias. It is quite informative and very easy to read. Best of luck. It is tough investing out there.
Nope, max contribution this year is 3,000 I believe. I heard that might be going up to 4k soon though.
Pfizer? growth?.... not so sure about that. My dad worked for Pfizer for 30 years and retired a few back. That company is a shadow of what it used ot be. That stock has done nothig but stagnate, and also has well known problems with patents luming in the courts.... They have a good dividend but I wouldnt put my $$ in PFE... Ithink Pfizer has had its run and the glory days are behind them..
Ok guys. Mark my words: EBay, Exxon, Citigroup & Pfizer 38.54 , 64.52 , 45.11 , 24.96 Let's watch it again in January
I am not really sure that we agree on what "growth" means. Check out a post I made earlier in the thread re: the "CANSLIM" method and the Investors Business Daily top 100 ranking (based mainly on consecutive quarterly increase in earnings growth.) It also includes other criteria, but it is worth looking at, IMO.
I'm helping the guy for an investment with earnings, not a gamble. Ok, he won't double his investment. But he can expect good earnings, above average. Now, only time will tell