Re: For those who invest-
I would invest in dividend paying stocks right now.
I think the market is really overpriced.
Half of me says to go to europe, buy a shit load of Euro's and drag em back to the US over the Rio Grande.
Re: For those who invest-
Quote:
Originally Posted by Katherine
My question is for 'those who invest' is:
Do you do your own research and invest in stocks?
Or,
Do you prefer to let someone else handle the reins and play it a bit safer with a mutual fund?
A little of both as well as real estate.
Re: For those who invest-
90% of the time I rely on my own research to select individual stocks. I also trade ETF's as a means of 'getting in the door' on certain types of investments which typically have a very expensive 'minimum buy-in' price to invest in directly or carry a high degree of risk (like commodity / index futures or derivative contracts). I do own one mutual fund in my IRA (Janus JIGRX foreign stock fund).
Also, I happen to agree with Deo on all counts. I just loaded up on shares of SDS (2 * inverse S&P ETF) in expectation of a major market price decline, and I also just bought some more shares of WTU on the recent natural gas price pullback (currently paying 12.6% dividends). Deo and I also apparently agree on the future direction of the US dollar versus the Euro ... however if I get to europe I'll have a tough time convincing myself to ever return (sees her retirement beachfront house in 17% maximum tax rate Malta looming on the horizon ...)
Just my own opinion, but I would be extremely leery of speculative real estate investments at this point in time.
Re: For those who invest-
Are dividend paying stocks the ones that send out a check each quarter if they've done better than expected? That would be great extra cash to get excited about putting right back into investing!!!
How do you find out if it is a div. paying stock or not?
Re: For those who invest-
Many large cap stocks pay dividends. Remember, even if you are reinvesting the dividend, you still have to pay taxes on it in a non-qualified investment.
Have you planned your stock-picking strategy? Are you ready to devote hours a day to technical and fundamental research that mutual fund analysts have already done?
Re: individual stocks, I have no specific recommendations no knowing your individual situation, but the healthcare services industry is a good bet to start research. NOT biotech or pharmaceuticals per say. I believe you work in that field already, correct?
Re: For those who invest-
all of the financial sites will list the dividend (in terms of cents or dollars) and yield (in terms of percentage of current share price) for any stock symbol you enter.
Re: For those who invest-
We have a financial analyst who will recommend stuff to us...from there we do our own research. Sometimes we go with what he gives us and sometimes we go with something else. Although, we've come to trust him implicitly, its always important to know where/how your money is being spent/invested...so I really encourage people to research their own stuff BEFORE blindly investing in anything.
Re: For those who invest-
If you are new to the game, you really should start with funds.
When I was a kid (18 or so) I got into so much trouble by investing in the things I thought I understood. The reality is that that most people simply don't understand the risks involved and wildly gamble with the money whilst kidding themselves that they are investing safely.
What I purchased were not investments. I purchased prudence. It will serve me well for years to come!
Heres what i do for clients. Firstly, I ought to point out that almost all my clients are civil servants of some kind so are pretty low risk people.
Find 4 or 5 funds to split money between (either lump sum or monthly savings). Between 30 and 50% goes into bond funds. 10 to 20% into commercial property funds. 20 to 40% into more than one equity / stock market fund and maybe 5 to 10% into a higher risk metals / mining fund though this last part is pretty unusual for my clients.
It would be a very long post to explain the full reasons behind this, but the various asset classes move in different directions and have different risk profiles. This means that you'll need to do very little over the years to keep a steady ship and reasonable returns. As the economy rises and falls, part of your portfolio will be doing ok. In other words, you won't wake up broke one day.
Re the comments about the euro above, it is hard to disagree. The US dollar looks to be headed for tough times and some diversification out of the $ will probably be wise / sensible / profitable / fortuitous / heaven sent.
My clients are all based in Europe and I have forced them to sell all their US holdings where possible and reduce their other non US holdings that are dollar denominated. I did this some months ago, so they are benefitting a little though probably don't realise it.
Make sure you start with a cusion of cash first too. If you need access to the money and need to take a loss, you'll wish you'd set a few thousand aside, just in case.
Good luck.
Re: For those who invest-
Quote:
Originally Posted by Katherine
Are dividend paying stocks the ones that send out a check each quarter if they've done better than expected?
Some pay out each quarter regardless of how they're doing, although the amount may vary. Mutual funds pay dividends too, although in many cases an annual dividend is more likely.
For example, here is the dividend/split share history for General Electric. Notice they're paying 25 cents a share now, but were only paying 8 or 9 cents a share a decade ago.
http://finance.yahoo.com/q/hp?s=GE&a...=26&f=2006&g=v
Quote:
How do you find out if it is a div. paying stock or not?
Lots of financial sites like the one linked will have the above info. Just plug in the stock symbol and go to Historical Prices.
Re: For those who invest-
Thanks everybody for the advice.
StuartL- I do already have about four months living expenses stashed in a money market bank account yielding me 4%. I also started (but only this year) both a Roth and SEP IRA with automatic monthly contributions.
I like the idea of keeping myself diversified within mutual funds. As I mentioned, I'm nervous about devoting my own time and energy into picking the 'right' stocks. I'm much more partial to the idea of funds. I think that owning funds that specialize in different sectors are the way to go for me for now, until I get more comfortable in investing as my knowledge grows.
Katrine- Kind of. I work for a financial insitution that consults for and structures leasing deals for the medical community. So my clients work in health services as they are hospitals and doctors...