Stocks!

#31
#31
droski said:
1/4 point and the market will be down triple digits.
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The irony is that if it had been a 1/2 point then the Dow might have been down even more in the next two days on realization that further cuts unlikely. At least they arguably gave themselves room for one more once the dismal retail numbers come out.

As to your suggestion on the banking stocks, guess it depends on whether you are short or long term investor. Long term they appear to be a bargain. Short term seems like the credit crunch and the housing declines are going to shell the banks like the Allies at Normandy.
 
#34
#34
lawgator1 said:
The irony is that if it had been a 1/2 point then the Dow might have been down even more in the next two days on realization that further cuts unlikely. At least they arguably gave themselves room for one more once the dismal retail numbers come out.

As to your suggestion on the banking stocks, guess it depends on whether you are short or long term investor. Long term they appear to be a bargain. Short term seems like the credit crunch and the housing declines are going to shell the banks like the Allies at Normandy.
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i think a lot of the drop is due to the fact that people think the fed doesn't know what it is doing. a major cut would have been a sign they realize that serious help is needed.

the fed cuts help banks considerably. similar forces were working in 91 when these stocks bottomed. the write offs assume massive losses, it wouldn't be surprising to see those assets recover. also most of the banks i mentioned have significant assets not tied to the housing industry. but hey i could be wrong. :dunno:
 
#36
#36
lawgator1 said:
The irony is that if it had been a 1/2 point then the Dow might have been down even more in the next two days on realization that further cuts unlikely. At least they arguably gave themselves room for one more once the dismal retail numbers come out.

As to your suggestion on the banking stocks, guess it depends on whether you are short or long term investor. Long term they appear to be a bargain. Short term seems like the credit crunch and the housing declines are going to shell the banks like the Allies at Normandy.
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Where are you when I need you. STILL nice avatar!
 
#39
#39
Apologies if there is better thread for this. What are your thoughts on saving as a household when it comes to 401k? I currently max mine out and my wife will be eligible to contribute with her employer in April. We will at least contribute the minimum to take full advantage of the employer match, but what about beyond that?

considering:
- accessible vs non-accessible cash (we already have a 3 month safety net in cash)
- more diversity - I've always wanted to have an investment property or to buy individual stocks

Any suggestions? Best practices? Concerns with property investments? (if you can't tell this is really what I want to do with savings)
 
#40
#40
Volunteer08 said:
Apologies if there is better thread for this. What are your thoughts on saving as a household when it comes to 401k? I currently max mine out and my wife will be eligible to contribute with her employer in April. We will at least contribute the minimum to take full advantage of the employer match, but what about beyond that?

considering:
- accessible vs non-accessible cash (we already have a 3 month safety net in cash)
- more diversity - I've always wanted to have an investment property or to buy individual stocks

Any suggestions? Best practices? Concerns with property investments? (if you can't tell this is really what I want to do with savings)
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Do you know anything about rental property?
Stocks, they are close to an all time high. If you are not experinced Vanguard funds might be your best bet. Sp500 or total stock mrkt for stocks. Real Estate fund for Real Estate.
Put money in monthly if possible.
 
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#41
#41
Go aeiou said:
Do you know anything about rental property?
Stocks, they are close to an all time high. If you are not experinced Vanguard funds might be your best bet. Sp500 or total stock mrkt for stocks. Real Estate fund for Real Estate.
Put money in monthly if possible.
Click to expand...

I know nothing about rental properties, but consider myself handy. I could fix most small items myself and I have some decent resources with an a/c guy ( good friend) plumber (wife's uncle), electrician (good friend) and contractor (father in law) in the family.

We have some IRAs that were previously 401ks in Vanguard. Those are invested in target date funds. My 401k is invested in all types of funds, real estate included.

What are your thoughts on investment property vs the s&p you mentioned or total stock market funds?
 
#42
#42
Volunteer08 said:
I know nothing about rental properties, but consider myself handy. I could fix most small items myself and I have some decent resources with an a/c guy ( good friend) plumber (wife's uncle), electrician (good friend) and contractor (father in law) in the family.

We have some IRAs that were previously 401ks in Vanguard. Those are invested in target date funds. My 401k is invested in all types of funds, real estate included.

What are your thoughts on investment property vs the s&p you mentioned or total stock market funds?
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There’s a lot more to rental properties than being handy. I would study something like that thoroughly or find a mentor who’s been down that road before dropping a lot of cash on a rental.
 
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#43
#43
DancingOutlaw said:
There’s a lot more to rental properties than being handy. I would study something like that thoroughly or find a mentor who’s been down that road before dropping a lot of cash on a rental.
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Yep, although being handy is helpful.
Real estate is expensive in most areas right now. Maybe no so in some rural areas, but there is a reason for that. Especially residential real estate. If you are considering residential be aware that people will move in intending to never pay you, and cleaning up a meth lab will cost thousands. It can be a rough biz.
If you hire a management company you will likely not do very well. They want too much. DO is right. learn from someone else first. DO is right about dropping cash. Know what is a good price for a piece of property.
If commercial, do you see empty buildings near you? A recession can bankrupt you.

I currently have Commercial in Chattanooga. My partners want to start another building in the spring. I will opt out.
 
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#45
#45
Volunteer08 said:
Apologies if there is better thread for this. What are your thoughts on saving as a household when it comes to 401k? I currently max mine out and my wife will be eligible to contribute with her employer in April. We will at least contribute the minimum to take full advantage of the employer match, but what about beyond that?

considering:
- accessible vs non-accessible cash (we already have a 3 month safety net in cash)
- more diversity - I've always wanted to have an investment property or to buy individual stocks

Any suggestions? Best practices? Concerns with property investments? (if you can't tell this is really what I want to do with savings)
Click to expand...

Best practice is to ALWAYS max 401ks (traditional preferrable), as it is tax-advantaged. Then invest seperately or in individual stocks. Also review what your 401k is in. I worked for a bank and they had our 401ks going into a fund with a 1% expense ratio BY DEFAULT. I immediately switched out of it.
 
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#46
#46
With rentals, it takes a ton of research and smarts. It is a competitive market. You must find good deals to get profitable ratios and be in the right area. Remember, it is also pretty illiquid. IF you can get a great deal, put minimum cash down (very high leverage) in the right market, and don't need liquidity, it can work really well.

It's also a side job. For all reasons above, I prefer passive returns via equities and debts. No work and reliable long-term returns, high liquidity.
 
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#47
#47
Thanks for all the feedback, guys. Devo, I think that's a really good point about the rental property being a side job. I'm sure it would be fun at first, but could easily become a nuisance as 1972 pointed out.

Thanks for all the help. I'll stick with investing.
 
#48
#48
Volunteer08 said:
Thanks for all the feedback, guys. Devo, I think that's a really good point about the rental property being a side job. I'm sure it would be fun at first, but could easily become a nuisance as 1972 pointed out.

Thanks for all the help. I'll stick with investing.
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The only reason to do it is to build wealth through appreciation of the property value and tax advantages. This is provided you are in an area where real estate appreciates at a good clip, you have a supply of decent renters, and you can charge a decent price. I wasn't really blessed with any of the three. For some, it works out well. Having said that, the commercial was easier for me than residential. Of course, this is dependent upon location and condition of surrounding property.
 
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