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an investing question
https://forum.costaricaticas.com/viewtopic.php?f=20&t=30211		 Page 1 of 3
Author:  Miles Finch [ Thu Aug 20, 2009 3:56 pm ]
Post subject:  an investing question
Guys,

I come with this post very wet behind the ears. Situation is I have some cash that I have just sitting in a money market account making a nifty 1% interest. Man, that sucks. I would love to have better returns than that. Thing is, even though I know what stocks, mutual funds, EFTs, bonds, options, etc. are, I have no idea *which* to choose. I am not asking for a book on how to invest or for some illegal inside information, but if anybody has any sound advice I would very much appreciate it. I'm in my late 30's, no K*ds or debt, paying low rent - what would you do?

Of course, I need to fund my trips to CR and whatnot.

Many thanks.
Author:  Orange [ Thu Aug 20, 2009 4:10 pm ]
Post subject:  Re: an investing question
Bigbossman72 wrote:
Guys,

I come with this post very wet behind the ears. Situation is I have some cash that I have just sitting in a money market account making a nifty 1% interest. Man, that sucks. I would love to have better returns than that. Thing is, even though I know what stocks, mutual funds, EFTs, bonds, options, etc. are, I have no idea *which* to choose. I am not asking for a book on how to invest or for some illegal inside information, but if anybody has any sound advice I would very much appreciate it. I'm in my late 30's, no K*ds or debt, paying low rent - what would you do?

Of course, I need to fund my trips to CR and whatnot.

Many thanks.

I haven't really looked at them lately, but I imagine index funds are doing well. SP index fund is probably a good choice since it's been climbing since March. This would have been a good move about 5 months ago. SP500 has risen 48% since then. It has only recovered a little more than half the losses from 4Q last year and 1Q this. It has another 300 pts to go, there's money to be made there.

Another option is a mutual fund. Vanguard has always had well performing funds.
Author:  JazzboCR [ Fri Aug 21, 2009 1:19 am ]
Post subject: 
To further Brother Orange's last option, Vanguard has also been the fund group with the lowest costs so more of your money works for you. Absolutely the first place I'd look--stock funds, ETFs, Treasuries, it doesn't matter. There are also independent observers/ commentators on the Vanguard funds. Google for info. But 1% taxable is bullshit--you absolutely can do better safely.
Author:  Mr.Black [ Fri Aug 21, 2009 7:44 am ]
Post subject: 
buy a house :?
Author:  LocoHombre [ Fri Aug 21, 2009 8:48 am ]
Post subject: 
Mr.Black wrote:
buy a house :?

:shock: :shock: i heard there is a house for sale in Atlanta and Tampa...great neighbors in Tampa :roll: :roll: :roll:
Author:  KenLee [ Fri Aug 21, 2009 12:12 pm ]
Post subject:  MrBlack may be on to something
My much better half is an investment banker. The market has been, as Orange said, recovering nicely over the last 4 or 5 months. In fact over that period we almost doubled but we still haven't recovered the losses from last year yet. As of about two weeks ago we've begun investigating the housing market. Real estate prices in South Florida have dropped to, in some cases, nearly 50% off their high. Fannie Mae has a website called [url]Homepath.com[/url]. What you will find are homes that have already gone through the foreclosure process. Fannie Mae owns them and they are willing to DEAL. They want them off their books and they are willing to finance, if need be. I don't know about you guys but real estate is beginning to look very attractive to me.

KenL
Author:  El Viejo [ Sun Aug 23, 2009 8:13 am ]
Post subject: 
I've put my eggs into the S&P Index for many years and never messed with it even during the violent financial downturns. At your age, I think you should pick a sound fund and stick with it for a very long time. Returns over time will probably reward you. At your age you should leave your money there for about 30 years or so before you think about moving to more conservative funds.
Author:  BondTrader [ Sun Aug 23, 2009 4:06 pm ]
Post subject: 
Squidface wrote:
i heard there is a house for sale in Atlanta and Tampa...great neighbors in Tampa :roll: :roll: :roll:


There are even Cheaper houses available in Michigan. :lol: :lol:
Author:  Orange [ Sun Aug 23, 2009 4:18 pm ]
Post subject: 
One more thing... Forget muni bonds. I work in the bond market. Yes, they are double or triple tax-exempt (depending on where you live), but they aren't paying shit. Junk bonds still pay a decent rate, but the default risk is even higher these days.
Author:  Witling [ Sun Aug 23, 2009 4:38 pm ]
Post subject: 
Orange,
I have a book you might enjoy reading: "Liar's Poker: Rising Through the Wreckage on Wall Street" by Michael Lewis. It was written in 1989 after he had spent a few years as a bond salesman for Soloman Brothers. Even then he saw the way things were heading.
http://www.amazon.com/Liars-Poker-Risin ... 601&sr=1-1

He also wrote "Money Ball: The Art of Winning an Unfair Game" (baseball) and "The Blind Side: Evolution of a Game" (football). "The Blind Side" I can also recommend. I haven't read "Money Ball" yet, but I will.

As for general investing information I would suggest subscribing to "Money" magazine. Very insightful and easy to read articles.

Wit
Author:  BondTrader [ Sun Aug 23, 2009 10:04 pm ]
Post subject: 
Orange wrote:
One more thing... Forget muni bonds. I work in the bond market. Yes, they are double or triple tax-exempt (depending on where you live), but they aren't paying shit. Junk bonds still pay a decent rate, but the default risk is even higher these days.


Muni's aren't paying crap in the short maturities. Once you get beyond 10 - 12 years it's a different story. There's some pretty decent value relative to taxable alternatives. I just sold some 3 year Ford bonds to clients last week (Ford is rated JUNK by the way) at 10.85%. Investment grade corporates, like muni's, are not paying much at all.
Author:  Hank [ Mon Sep 21, 2009 9:19 pm ]
Post subject: 
buy C at 4.4 and then sell at 6
Author:  Vacationbound [ Mon Sep 21, 2009 9:37 pm ]
Post subject: 
For gods sake let that money sit in the money market account--or buy something that when you drop it on your foot, it hurts--commodity fund. The market is in a very dangerous position and insiders are selling like crazy.

I for one am not putting dollar 1 in the market for a while--the US economy has not even come close to reaching bottom as we will see massive inflation and the commercial real estate market taking a big shit soon.

Just my 2 cents--I am sure most will disagre but I follow my own advice. Today is a different day that it used to be--there are many countries and entities tha are focused on destroying the US economy and so far they are succeeding.
Author:  Boynton [ Mon Sep 21, 2009 10:11 pm ]
Post subject: 
.
Author:  JazzboCR [ Mon Sep 21, 2009 10:42 pm ]
Post subject: 
To re-post Brother KenLee's Fannie Mae Website as a clickable www.homepath.com It may be that Freddie Mac, FHA, etc have similar Websites--I know I'll be checkining in 1-1/2 years.
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