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Stock Advice Thread

LineSkiCat14 said:
Has anyone looked into front-loading their Roth IRA contributions? I can finally max this fully for $5,500 after a recent raise.. but I do it over ~450ish/month. I've read that if you can suck it up, dump the 2018 year's load in now and save up the for the January 2019 load over the next 6-7 months... you can see some serious returns down the road.

I'm young enough that this would help (31), but it would be a pretty decent pinch to put that money in now. I'm already 10% 401, and 6% on savings. I'm not making too much yet in my early career, so I'm starting to feel the strain.. recently had to order Rolling Rock cause it was on sale for HH.

So not sure if it's REALLY worth it. And also not sure how I feel about putting THAT much money into stocks.
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Do it and buy something like an index fund! Also consider saving up to the 401k match only to help fund it. Don't worry too much about what it's doing in 5, 10 or 15 years. This money is there for retirement. Compounding is a wonderful thing over the long term.
 
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LineSkiCat14 said:
Lot to catch up here, and TBH, some posts lost me a bit.

Something that's intriguing about Starbucks is that it's an experience. The coffee part is more or less throw-away, especially with more and more people looking to save money and eat/drink in. There are some fantastic ways to make great coffee at home from the easy systems like Keurigs all the way to elaboritae cold-brew systems that look like a science fair project.

But Starbucks still brings people in. Many times I go there to read or work simply because it's being out of the house, with less distractions, but there's still people around. And it's always packed. We're talking at least 15-20 people in mine, and many always have a drink or food.

As Ecommerce swallows up retailers, the ones that can become an experience will survive, and survive well. I like Starbucks for the future.
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This is a good way to invest. It's something you know and will keep you interested.
 
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jameslee32 said:
Do it and buy something like an index fund! Also consider saving up to the 401k match only to help fund it. Don't worry too much about what it's doing in 5, 10 or 15 years. This money is there for retirement. Compounding is a wonderful thing over the long term.
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Not sure i fully understand this compound interest thing. I plan to put about 1.5k a month into those mutual funds i have for next 20-25 years.
 
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I'm having good short term success with Micron. Bought in last month and is already up 33%.

http://money.cnn.com/quote/quote.html?symb=MU



That being said, I am not doing well with another stock. For the most part I do well with my picks.....especially since the vast majority of my portfolio are mutual funds, etc. But every so often I have a brain fart. Bought NVAX during the height of the flu season about 6 months ago.....idiot! Apparently many gurus have been waiting for eons for NVAX to supposedly take off. I guess I'll just sit on it for a good long while and see what happens. I may have the idiotic impulse buy on occasion, but I am patient.
 
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Willy4UK said:
Not sure i fully understand this compound interest thing. I plan to put about 1.5k a month into those mutual funds i have for next 20-25 years.
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Bro, below is an example of compounded interest on a $100 investment over 3 years and it appreciated at 10% annually.

Year 1: $100 + $10 = $110
Year 2: $110 + $11 = $121
Year 3: $121 + $12.1 = $133.10.

One may also calculate as such: 1.1 y^x 3 = 1.331 * 100 = 133.10. The example above is without addition to the principle initial $100 investment.

Many experts now say to expect 4-7% annual returns using index funds. Not bad.
 
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AustinTXCat said:
Bro, below is an example of compounded interest on a $100 investment over 3 years and it appreciated at 10% annually.

Year 1: $100 + $10 = $110
Year 2: $110 + $11 = $121
Year 3: $121 + $12.1 = $133.10.

One may also calculate as such: 1.1 y^x 3 = 1.331 * 100 = 133.10. The example above is without addition to the principle initial $100 investment.

Many experts now say to expect 4-7% annual returns using index funds. Not bad.
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So what's it look like when you got 100k or 200k saved?
 
Willy4UK said:
So what's it look like when you got 100k or 200k saved?
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@AustinTXCat Yo compounding interest gets my dick wet. Playing around with a compounding interest calculator is the SINGLE biggest reason I started down this road of investing/retirement/etc..

I have an alarming number of friends from mid 20's to early 30's, who don't even quite understand the premise of interest. I showed two people a compounding interest calculator.. played around with some numbers that got them to a million dollars in an account.. and they were floored. Absolutely floored.
 
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@Willy4UK

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Here's an easy calculator (some get complex). The only field I'm kind of iffy on is "Compound interest time(s) annually".. which maybe someone else can shed light on what the "norm" is for that.

So if you invest just $1,000 for 30 years with a 5% return, you get $69,760. As opposed to just $30,000 if you stashed that money in a mattress. Now, add 10 years to it (to make it 40 years), and you get over $126k.. that 33% of additional growth rate.. allowed for nearly 100% in growth. Which is why doing this when your 20 is absolutely crucial.
 
Willy4UK said:
So what's it look like when you got 100k or 200k saved?
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Assuming flat 10% return.

Yr 1 - $100,000 + $10k = $110,000
Yr 2 - $110,000 + $11k = $121,000
Yr 3 - $121,000 + $12,100 = $133,100
Yr 4 - $133,100 + $13,310 = $146,410
Yr 5 - $146,410 + $14,641 = $161,051
Yr 6 - $161,051 + $16,105 = $177,156
Yr 7 - $177,156 + $17,712 = $194,868
Yr 8 - $194,868 + $19,487 = $214,355
Yr 9 - $214,355 + $21,436 = $235,791
Yr 10 - $235,791 + $23,579 = $259,370

Yr 11 - $259,370 + $25,937 = $285,307
Yr 12 - $285,307 + $28,531 = $313,838
Yr 13 - $313,838 + $31,384 = $345,222
Yr 14 - $345,222 + $34,522 = $379,744
Yr 15 - $379,744 + $37,974 = $417,718
Yr 16 - $417,718 + $41,772 = $459,490
Yr 17 - $459,490 + $45,949 = $505,439


Notice that every single yr it grows at a faster rate.
 
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^Moreover, this is when looking at interest being charged 1x a yr. Let's say that you get 10% flat return monthly over the same 17 yr span above. You don't have $505,439.......you have $543,552. Or how about wkly.....$546,501. Daily.....$547,267.

In that 18th yr, you "could" make >$50,000 and never leave the house or go to work.
 
BlueRaider22 said:
^Moreover, this is when looking at interest being charged 1x a yr. Let's say that you get 10% flat return monthly over the same 17 yr span above. You don't have $505,439.......you have $543,552. Or how about wkly.....$546,501. Daily.....$547,267.

In that 18th yr, you "could" make >$50,000 and never leave the house or go to work.
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So that's kind of in regards to my question above.. what constitutes as you getting interest put pack yearly, quarterly, daily? That part always tricks me up, and I never know what to expect from different accounts.
 
LineSkiCat14 said:
So that's kind of in regards to my question above.. what constitutes as you getting interest put pack yearly, quarterly, daily? That part always tricks me up, and I never know what to expect from different accounts.
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My fidelity account shows a daily rates of return......however, the market fluctuates so much that you'll go nuts watching it soooo closely on a daily basis. My mutual funds, I'll glance at them a couple times a yr......(actually I check every time I log on because of the greedy Scrooge McDuck feeling I get) My stocks, I check every wk or two. (I also have alerts on my phone so I don't have to check it as much)

Overall, I mostly evaluate how I'm doing on a yearly basis.

I don't know about others.
 
LineSkiCat14 said:
@AustinTXCat Yo compounding interest gets my dick wet. Playing around with a compounding interest calculator is the SINGLE biggest reason I started down this road of investing/retirement/etc..

I have an alarming number of friends from mid 20's to early 30's, who don't even quite understand the premise of interest. I showed two people a compounding interest calculator.. played around with some numbers that got them to a million dollars in an account.. and they were floored. Absolutely floored.
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Yep. Love it. Power of compounding + time.

Contribute as much as possible, as early as possible, and watch it grow. Similar to an avalanche effect. I know a guy, who's nearing retirement age and began contributing over 35 years ago. He's actually been slowing contributions lately and started enjoying life these days. Sort of "semi-retired" while still employed.
 
LineSkiCat14 said:
@Willy4UK

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Here's an easy calculator (some get complex). The only field I'm kind of iffy on is "Compound interest time(s) annually".. which maybe someone else can shed light on what the "norm" is for that.

So if you invest just $1,000 for 30 years with a 5% return, you get $69,760. As opposed to just $30,000 if you stashed that money in a mattress. Now, add 10 years to it (to make it 40 years), and you get over $126k.. that 33% of additional growth rate.. allowed for nearly 100% in growth. Which is why doing this when your 20 is absolutely crucial.
Click to expand...

I like this calculator best:

http://structx.com/annual_compound_interest_with_contributions.html

Accounts for regular contributions over a given time.
 
CatGotMyTongue said:
Y’all going to have massive strokes the week of your retirements

Enjoy!
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Don't you take out 4% and leave your account open to continue growth? It would suck to be 60 in 2009 when the market crashed... but it's not like you cash out at some end-date. You only lose $100,000 if you stop right there. If instead, you take distributions or RMD's, the economy, and your stocks, will have a chance to grow back and right the ship.

Unless I'm missing something..
 
LineSkiCat14 said:
Don't you take out 4% and leave your account open to continue growth? It would suck to be 60 in 2009 when the market crashed... but it's not like you cash out at some end-date. You only lose $100,000 if you stop right there. If instead, you take distributions or RMD's, the economy, and your stocks, will have a chance to grow back and right the ship.

Unless I'm missing something..
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4% is the recommendation. I'm looking at possibly 6%.
 
BlueRaider22 said:
Assuming flat 10% return.

Yr 1 - $100,000 + $10k = $110,000
Yr 2 - $110,000 + $11k = $121,000
Yr 3 - $121,000 + $12,100 = $133,100
Yr 4 - $133,100 + $13,310 = $146,410
Yr 5 - $146,410 + $14,641 = $161,051
Yr 6 - $161,051 + $16,105 = $177,156
Yr 7 - $177,156 + $17,712 = $194,868
Yr 8 - $194,868 + $19,487 = $214,355
Yr 9 - $214,355 + $21,436 = $235,791
Yr 10 - $235,791 + $23,579 = $259,370

Yr 11 - $259,370 + $25,937 = $285,307
Yr 12 - $285,307 + $28,531 = $313,838
Yr 13 - $313,838 + $31,384 = $345,222
Yr 14 - $345,222 + $34,522 = $379,744
Yr 15 - $379,744 + $37,974 = $417,718
Yr 16 - $417,718 + $41,772 = $459,490
Yr 17 - $459,490 + $45,949 = $505,439


Notice that every single yr it grows at a faster rate.
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Man, I have about $25K now, hahahaha I'm poor. I'm putting in 1500 a month for another 25 years. Then what is it. I'm not good with calculators. Not good with money either
 
AustinTXCat said:
Bro, below is an example of compounded interest on a $100 investment over 3 years and it appreciated at 10% annually.

Year 1: $100 + $10 = $110
Year 2: $110 + $11 = $121
Year 3: $121 + $12.1 = $133.10.

One may also calculate as such: 1.1 y^x 3 = 1.331 * 100 = 133.10. The example above is without addition to the principle initial $100 investment.

Many experts now say to expect 4-7% annual returns using index funds. Not bad.
Click to expand...
Not to mention the dividends.
 
jameslee32 said:
Never fear the tax man on a profit especially if it's deferred to retirement.
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You have account for his whereabouts though. You could walking into retirement planning for $700k but may not have it. For some the amount you owe on taxes could mean the difference of continuing to work a few more yrs.
 
LineSkiCat14 said:
It would suck to be 60 in 2009 when the market crashed... but it's not like you cash out at some end-date.

Unless I'm missing something..
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Economists have changed their tune on retirement contributions since the ‘09 crash. They used to say that the average person should put 10-12% of their yrly income to funding retirement. Now they’re saying 13-15%.

And as always diversify your portfolio.
 
A little advice, if y'all will.

What is your strategy for the supposed downturn that's going to take place soon?

https://www.msn.com/en-us/money/markets/a-dollar18-trillion-investing-behemoth-explains-why-the-next-recession-will-be-an-entirely-different-beast-—-and-outlines-what-traders-can-do-to-prepare/ar-AAy25cD?li=BBnbfcL

There's the obvious "buy the dip" strategy?

Do you wait to invest your current savings.....or just go ahead and invest to "ride out the storm?"

Do you avoid more stocks in favor or funds/bonds?

How do mutual funds typically do in lesser economies....can they still turn profit?





I tend to favor mutual funds in general, but still do have stocks. The level of risk suits me fairly well. What I have done in the past is just continue to contribute monthly regardless of what's going on with the market.....but will back off stocks during harder times. I figure you can't ever be sure when the market is going to go down and how long it will stay there.....so, you might as well plug along and contribute. I don't know if that is the best strategy or not?....
 
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BlueRaider22 said:
You have account for his whereabouts though. You could walking into retirement planning for $700k but may not have it. For some the amount you owe on taxes could mean the difference of continuing to work a few more yrs.
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You deferred it to be taxed at a lower bracket in retirement and not to spend all at once. Take what you need.
 
jameslee32 said:
You deferred it to be taxed at a lower bracket in retirement and not to spend all at once. Take what you need.
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Right, but what's the rate? For example if you figure you need $500k in retirement....and you see $500k the last time you logged in, but every time you withdraw you have to pay a 5% tax....that be the equivalent of only have 475k in retirement. For some, that may mean that you should work another yr or three.
 
I've been watching this thread because I have some money sitting not doing anything and who else could I trust but those on the Paddock.

I'll be 64 in November, but my wife is only 55. I would like to invest $50K in something that would make some money rather than sitting in savings not doing much at all.

What would you do with that amount?
 
Chuckinden said:
I've been watching this thread because I have some money sitting not doing anything and who else could I trust but those on the Paddock.

I'll be 64 in November, but my wife is only 55. I would like to invest $50K in something that would make some money rather than sitting in savings not doing much at all.

What would you do with that amount?
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I would be very interested to hear what the more educated/experienced among us say as well. While I invest decently, I certainly am not very knowledgeable.

If it were me, I'd probably just find some good funds to spread the money into (see below).....but like I said, I'm certainly not an expert.

https://fundresearch.fidelity.com/mutual-funds/summary/316390822?type=sq-NavBar

*When you follow the link, note that up at the top right there is a search box. Input the stock symbol and away you go.
*Also, note the performance. Fidelity tends to list how well the fund has done the last 1, 3, 5, and 10 yrs.
*Further down the page they list the top companies that each fund has holdings of.

The fund that I linked above has done very well. Earning 15.7% over the last 10 yrs and well over 20% in the last 3-5 yrs. Takes minimum of $2500 to invest.

What's nice about the Fidelity Select funds is that you can invest in different sectors. (of course, I would imagine that every entity has their versions...Schwab, T-Rowe, etc.)

FPHAX - is pharmaceuticals
FSRPX - is retail
FDCPX - computers
FBMPX - multimedia
FSCSX - software, IT
FOCPX - port
FSDAX - defense/aerospace

etc.....there are thousands of funds to choose from.

Just recently I bought some of TRBCX which is T Rowe Price's Blue Chip fund. They invest in giants like Amazon, Microsoft, Google, Credit Card's. This fund seems to be really strong the last 10+ yrs.
 
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BlueRaider22 said:
A little advice, if y'all will.

What is your strategy for the supposed downturn that's going to take place soon?

https://www.msn.com/en-us/money/markets/a-dollar18-trillion-investing-behemoth-explains-why-the-next-recession-will-be-an-entirely-different-beast-—-and-outlines-what-traders-can-do-to-prepare/ar-AAy25cD?li=BBnbfcL

There's the obvious "buy the dip" strategy?

Do you wait to invest your current savings.....or just go ahead and invest to "ride out the storm?"

Do you avoid more stocks in favor or funds/bonds?

How do mutual funds typically do in lesser economies....can they still turn profit?





I tend to favor mutual funds in general, but still do have stocks. The level of risk suits me fairly well. What I have done in the past is just continue to contribute monthly regardless of what's going on with the market.....but will back off stocks during harder times. I figure you can't ever be sure when the market is going to go down and how long it will stay there.....so, you might as well plug along and contribute. I don't know if that is the best strategy or not?....
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"Experts" have been calling for a correction every day during this long bull market.

To try and time the market is pretty much impossible unless you're a genius or clairvoyant.

You may want to up your cash % in order to buy low in the future, but my opinion is that you're doing the right thing by steadily investing and knowing your risk tolerance.

I don't know your age but as we get older your money should be rebalanced going to more bonds or bond funds as they won't fluctuate as easily as stocks.
 
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