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OT; Investments

Discussion in 'Uncategorized Threads' started by parrot man, Jan 7, 2008.

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  1. parrot man

    parrot man TS Member

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    Hi Guys, Haven't posted in a long time but got a question maybe some of you could help me with, Advice!

    I will be getting some money from a law suit in which I got hurt, broken leg.
    Anyway you guys got any ideas on where I could invest some of this money to make money. Moderate, to medium risk! Any Suggestions?

    Thanks in Advance to All who Awnser!
    beakman3@aol.com
     
  2. Capt. Morgan

    Capt. Morgan TS Member

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    If the amount you have to invest is larger than you would risk losing, seek out a certified financial planner. Don't ask do-it-themselfers. Many, many investment options carry no cost to the investor (the planner is paid by the brokerage) and a planner can adjust your portfolio as the market changes. This is especially important if you are looking for growth rather than profit as you indicate you are (moderate risk).

    Morgan
     
  3. halfmile

    halfmile Well-Known Member

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    Your age is important. So also is your tolerance for risk. A planner is a good idea if you have a significant amount to invest. Like 50K after taxes. At that point you need to decide if income or growth is your objective. (that is an age related choice.)

    Watch out for hot button issues, they have a habit of being last years fun and this year's sorrow. (China, dotcom, REIT,etc.)

    No one out there is looking for a friend. You need someone who is on the same page as you regarding risk and type of investment.

    Do about twice as much research as you think necessary.

    HM
     
  4. hmb

    hmb Well-Known Member

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    The surest path to wealth is through real estate," Baron de Rothchild said this in October of 1929. With the recent and on going crash of the housing market find a bargain and invest. HMB
     
  5. pdq

    pdq Member

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    Two suggestions. If the amount you have to invest is significant ($100k or more), ask the attorney who's representing you in the law suit for a referral. Since he just made money on your case, he should be in a good mood. Be prepared that the financial planner expects to be paid each year, and it's not uncommon for them to charge 1 to 2% per year, which can really eat into the returns you see.

    If you have less, it probably makes sense to check out the Vanguard funds -- very low annual fees compared to a financial planner, and the lowest fees around in the mutual fund world. They have "aged-based" mutual funds, free advice, and are a family of very good quality funds, very well managed.

    I have no connection with Vanguard -- actually I work for a competitor -- but in cases like yours, I think they are an excellent firm.

    Whatever you do, don't buy any individual stocks or invest in hot tips that people will surely want to tell you -- great way to turn a large amount of money into a small amount of money.

    Pete
     
  6. Bridger

    Bridger Member

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    There are many who call themselves "Financial Planners" who don't have any experience. I don't trust any financial advisor who is going to make a commission off of the products he/she suggests I buy. Use a fee based experienced planner who does not profit from what you buy. Annuities are a poor investment for most, very high fees. The suggestion to go to Vanguard is a good one. A large company with good products. Charles Schwab can be good if you get the right advisor. There are others as most of the big brokerage houses have good client services. Determining your risk tolerance is one of the first things you need to do.
     
  7. BDodd

    BDodd TS Member

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    Go in and talk to several. Ask that they turn their computer monitor around so you can see how their money is invested. I prefer mutual funds and any sensible advisor should be able to direct you to high, medium, or low risk funds. Once set up, be sure to drop $50, $100, or any more as often as you can into the account as well to make it grow. Then, be sure you understand that you are not losing anything unless you sell it off for less than you purchased it. Be in it for the long run and ignore the bad weeks, bad months, even a couple of bad years. When you look at the pattern of the market from 1929 to now, it's always risen in value if you just don't panic in bearish periods and consider them opportunities to buy rather than to cut and run. Don't be afraid to talk to the big houses like Morgan Stanley and whoever may have an office close to home....breakemall....Bob Dodd
     
  8. gbatch

    gbatch TS Member

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    First, put the money into CDs at your bank or a money market account for as long as it takes you to feel comfortable either investing it yourself or retaining a financial advisor to help you do so. Take your time accumulating the knowledge to make a decision either way. While you do that, your $ is safely invested in a conservative manner.

    If you decide to invest it yourself, and you can do it, I suggest you go to this website and check the reading list. www.bobbrinker.com. He also has a newsletter which you can subscribe to if you wish. He also has a weekly radio show so check your area for time and station. Bob believes anyone can manage their own investments, assuming they have the knowledge to do so. He believes in investing primarily in no load mutual funds and his newsletter even has some recommendations. You don't have to invest the $ until you have done enough reading to feel comfortable doing so. And, the real benefit to you is that you can trust yourself.

    As an alternative, if you decide to go to a financial advisor, find one who charges a flat fee, not a %. DO NOT go to your bank's investment officer. DO NOT go to your friendly life insurance agent. DO NOT go to a brokerage house. DO NOT go to your brother in law or sister in law who happens to be somehow in the investment business. BEWARE of sharks who want your money. If you are talking to someone and they drive a $100k car, find someone else. I say again, find an advisor who will charge you a flat fee. Make sure they are qualified - CFA is a good designation to look for. So is CFP (Certified Financial Planer) and member of NAPFA (National Association of Financial Planners). The benefit of a fee only planner is they will usually work for you as much or as little as you want them to - from a few hours to setting up a suggested portfolio for you on paper. It's then up to you to do the mechanics of investing the $. A year or 2 later, or as often as you like, you can go back to them for a review. The real advantage to you is no one is getting paid based on how much they trade or how much they make.

    A good place to start would be a money market account at Vanguard while you do some reading and accumulate some knowledge.
    www.vanguard.com

    Good luck.

    Gene Batchelar
    Wheaton, IL
     
  9. Capt. Morgan

    Capt. Morgan TS Member

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    "The surest path to wealth is through real estate," Baron de Rothchild said this in October of 1929. With the recent and on going crash of the housing market find a bargain and invest."

    Real estate can be a dangerous investment unless you can turn it around quickly at a profit. Subdivision and development regulations are changing rapidly all over the country, and in six months you may not be able to do with a property what you wanted to (and could) do with it when you bought it.

    Morgan
     
  10. Earl4140

    Earl4140 TS Member

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    Deleted Too Confused.
     
  11. Chip

    Chip TS Member

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    Most of all take all advice and then think about for yourself. As an example had I stayed well clear of mutual funds over the last 24 years I would have not been able to retire at the age of 51.
     
  12. oleolliedawg

    oleolliedawg Banned User Banned TS Supporters

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    My financial advisor got me a 12 3/4% return on my 401K last year. I got a 13 1/2% return on my wife's 401K using my limited knowledge of investment options. I remind my financial advisor regularly of my financial prowess. The time to invest is when the market is heading South and the mood is gloomy-the exact time when bottom is hit is a mystery to all.

    Just find some highly rated mutual funds and mix a percentage among large and mid-caps, some international exposure and maybe commodities and you'll be fine. Watch those financial stocks as there should be some bargains soon. Retirement can last a long time and if the market collapses we'll all be standing in a bread line so put your money to work!!
     
  13. gbatch

    gbatch TS Member

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    earl4140:
    Your ststement :
    "Forget the financial advisers. If you have a substantial amount of money, Banks will provide advice and have less conflict of interest."

    I must disagree. First, for some people a fee-only financial advisor can be a God-send. Before retaining one, a person needs to check credentials, track record etc. IMO, a fee-only financial advisor has less potential for conflict than a bank investment person.

    Second, to suggest that banks have less conflict of interest when providing advice is, well, misleading and potentially just wrong. In my experience, bank investment advisors are the first ones to recommend annuities, load mutual funds, and other investments that the bank (or bank employee) has a potential interest in selling. In most, if not all cases, whatever the bank investment advisor recommends, the bank gets a commission for recommending.

    I once had a bank investment advisor recommend I put my IRA money into an annuity. What was his reasoning? He said that the annuity was a tax free investment vehicle. When I asked him what added tax advantage an annuity had over my already tax advantaged IRA, he stared at me blankly. I also asked him how much of a commission the bank would get. How absurd would it be for anyone to transfer IRA money (which by law is already a tax free investment) into an annuity? The only reason to do this is if you are the annuity salesperson (or bank) - because the issuer of the annuity pays some of the largest commissions you could ever imagine.

    Gene Batchelar
    Wheaton, IL
     
  14. Earl4140

    Earl4140 TS Member

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    Deleted Too confused.
     
  15. gbatch

    gbatch TS Member

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    earl4140:
    Now I'm really confused. You seem to be saying that you totally disagree with a statement you originally posted, telling parrot man to go to his bank for financial advice. Now you say you agree with me telling you that you were wrong. Which is it? parrot man might want some clarity.

    Gene Batchelar
    Wheaton, IL
     
  16. Capt. Morgan

    Capt. Morgan TS Member

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    My opinion, my experience...

    Gold is an excellent investment prior to times of economic depression, only marginally so if the economy is going into recession. It has historically been a rather long-term hedge otherwise and best if you're young or want to leave it as a growth vehicle in your estate.

    Morgan
     
  17. code5coupe

    code5coupe Member

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    Can someone explain how gold, as a hedge against recession?
    Wouldn't gold only have value if someone is willing to buy it, and anyone buying it will buy it with cash, but if no one has any cash.......????
    What will they buy your gold with? More gold? :(

    A finance wizard I'm not.
     
  18. Earl4140

    Earl4140 TS Member

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    gbatch "earl4140: Now I'm really confused. You seem to be saying that you totally disagree with a statement you originally posted, telling parrot man to go to his bank for financial advice. Now you say you agree with me telling you that you were wrong. Which is it? parrot man might want some clarity".

    FWIW IMHO I'm too confused. It is about time I deleleted my post. IMHO Stay away from Google.

    Ive been retired since 1992 and can afford to shoot 20,000 Targets per year and buy a Carry Gun each year for at least 5 years. I'm 75. My Shooter is a BT-99 circa 1970's. Earl (Caveat: I know not what I do.)
     
  19. Earl4140

    Earl4140 TS Member

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    FWIW: (USA Today 1/12/08) "NEW YORK — Gold futures briefly rose above $900 an ounce before pulling back Friday as growing worries of a U.S. recession prompted uneasy investors to keep buying the precious metal.
    An ounce of gold for February delivery on the New York Mercantile Exchange jumped $6.50 to $900.10 in morning trading, an all-time high and a psychologically important milestone. The precious metal later fell on profit taking but still ended $4.10 higher to settle at $897.70 an ounce, a new closing record.

    "It's a reflection of market sentiment: Gold is a hedge against uncertainty and right now it's the best bet," said Carlos Sanchez, a precious metals analyst at CPM Group in New York. "None of the other investment options look that great and gold does."

    Still, when adjusted for inflation, gold remains well below its all-time high. An ounce of gold at $875 in 1980 would be worth $2,115 to $2,200 today.

    Gold has had a meteoric rise the past year — rising nearly 32% in 2007 — boosted by a falling dollar, rising prices for oil and other commodities and increased Middle East instability. Those trends have lifted the metal's appeal as a haven; gold is seen as a safe investment in times of political and economic uncertainty around the world.

    Also driving gold higher was Federal Reserve Chairman Ben Bernanke's pledge Thursday to cut interest rates to boost the economy, which some fear may be sliding toward recession amid turmoil in the housing and credit markets.

    Lower interest rates tend to depress a country's currency and drive investors to shift funds to hard assets, like gold. A cheap dollar can make commodities more attractive as an alternative investment, and can also raise demand from foreign buyers as their currencies gain strength.

    "Concerns of a recession will keep pushing up gold prices," Sanchez said. "Depending upon what happens in the economy and in the Middle East, we could see gold testing $1,000 an ounce, maybe even this quarter."

    Hedge and pension funds, along with other long-term investors, also flocked to gold as the mortgage and credit crisis in the U.S. intensified.

    "The funds are really heavily at play ... The momentum with gold is almost like mania. We keep wondering how high it will go," said Jon Nadler, an analyst with Kitco Bullion Dealers in Montreal.

    Investors looking to get in on the gold rush can expect continued volatility for the rest of the year, said Nadler, whose firm forecasts a trading range of $750 to $950 an ounce.

    The steep rise in precious metals will also mean consumers in the United States — the biggest buyer of gold after India — can expect to pay higher prices for gold earrings, bracelets and other jewelry.

    "People are going to feel that sticker shock when they go down Fifth Avenue," Nadler said. "You'll start seeing the increase reflected as early as Valentine's Day." Earl4140
     
  20. smartass

    smartass TS Member

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    Historically, gold has been a lousy long-term investment easily beaten by stocks, real estate, and even bonds.
     
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