Parody thread, but also a serious question.

By the end of the year, ill have made about $13,000 from my internhip this summer and my co-op in the fall. I just bought an R6 for about 6 grand, but what should i do with the other $7000 and give it to some of you is not an option. I'll obviously live on some, but im guessing ill still have about $5000 to do something with. Ideally id like to invest it, but how should I. im thinking 50% in stocks, and 50% in something else, but what.. what would u guys invest this amount of money in

[Edited on June 17, 2006 at 11:54 PM. Reason : k]

6/17/2006 11:54:03 PM

Take the rest, stuff in mattress...profit

6/18/2006 12:06:56 AM

Trip to Vegas. Bunny Ranch.....broke

6/18/2006 12:07:45 AM

if you're gonna put 50% in stocks save the rest

6/18/2006 12:08:14 AM

You should have saved it all and put it in a 12 month CD account. They are getting close to 5% interest.

6/18/2006 12:30:59 AM

comic factor

6/18/2006 12:31:48 AM

2 chics at once.

6/18/2006 1:02:49 AM

Quote :

"if you're gonna put 50% in stocks save the rest"

im planning on saving it all, thats the point of stocks, save but increase.. but how should i invest the other 50% mutual funds, cd, money market, etc.

6/18/2006 1:18:51 AM

invest $3K in cisco systems and the other ten I'd blow on clothes, cocaine and whores.

and a nice watch, a suit and a pair of wingtips.
-


that's just me though . . . .



- Jesus, B.

6/18/2006 1:24:43 AM

this is the company im doin my internship with, should i invest in them
http://www.google.com/finance?q=BOOM

6/18/2006 1:27:09 AM

i would never invest with the company i work for- Don't know why but it is just something i learned when i was in school. anyways, my awesome advice. research everything there is to know about quality sports betting- follow one sport (probably baseball) and bet big - Either you will get rich or fall flat...either way it gives you something to do!

BTW: Kind of a joke but i know a guy who hated sports and won $23,000 on NY State lottery did this for 3 months and dedicated everything to it....turned it into over $55,000. threw it in the bank and CD's and was set for a while
lol

6/18/2006 2:14:17 AM

$13,000 would just about cover my tuition and books for the school year.

6/18/2006 2:22:59 AM

You should visit your parents. Otherwise they'll lay a ridiculous guilt trip on you.


happy father's day



flame on

6/18/2006 2:39:54 AM

Quote :

"i would never invest with the company i work for"

One big reason is if you hear something about the company that'll make the stock go down, and you pull out, you will (or can...) get busted for insider trading.

6/18/2006 2:42:56 AM

Get a Roth IRA.

6/18/2006 5:37:06 AM

^ Yes

Open a Roth IRA, max it out ($4000), put the rest in the stock market, but I'd use it to build a base of mutual funds or ETFs rather than common stock. Maybe put aside a few thousand of it to play with common stock if you're feeling froggy.

6/18/2006 8:47:27 AM

where is the best place to get one

6/18/2006 4:23:38 PM

If you dont own a home yet buy one. Then you can deduct the mortgage interest from your taxes. On a new loan the majority of your payment (except a few dollars) is interest, take that payment and multiply by 12 and you got a nice deduction.

6/18/2006 4:40:15 PM

What would you do with $70000?

I have already put 10k in stocks and 11k in IRA(that does NOT come out of the 70k)

6/18/2006 5:03:17 PM

my philosophy on investing, dont invest until youve attempted to put the max in your roth IRA.

Start that compounding, you cant buy time.

6/18/2006 11:16:36 PM

Quote :

"where is the best place to get one"

I've used Schwab, AMTD, Scottrade and Fidelity.

1. I hate Schwab. Terrible website and relatively expensive compared to the others. The products they offer are the same as Fidelity's (from what I can tell).
2. AMTD - easy to use. Not many bells and whistles.
3. Scottrade - same opinion as AMTD
3. Fidelity - my favorite. Cheapest one, most tools and research. And they have advisers.

6/19/2006 9:45:56 AM

What about Wachovia? They offer Roth IRAs, but I don't really even know what features I should be looking for. I have other accounts with them.

6/19/2006 9:55:02 AM

[Edited on June 19, 2006 at 10:04 AM. Reason : n/m]

6/19/2006 10:02:48 AM

^^ Wachovia has ridiculously high fees for their accounts compared with online brokers.

[Edited on June 19, 2006 at 10:27 AM. Reason : as do all B&M banks. ]

6/19/2006 10:27:20 AM

"tyrone biggums' 50,000 13,000 dollar crack party!"

[Edited on June 19, 2006 at 10:30 AM. Reason : *]

6/19/2006 10:29:51 AM

Maxing out the Roth IRA is a must! Vanguard (http://vanguard.com/) has very good, LOW COST mutual funds that have been doing nicely over the long run. They have Target Retirement Funds that are primarily made up of Index Funds that I really like. They have a minimum of $5,000 or they charge a yearly fee. If you can't make this, then I would just put it in a CD until you hit his minimum. The reason I like Vanguard Mutual Funds is the low cost they offer.

If you can't make the minimums, I would just put the money in an ING Direct Savings Account since they give 4.25% anyway.

In terms of picking stocks, I think it's worthless in the long run, unless you want to gamble. Index Funds (once again, Vanguard has great Index Funds) provide a good return with respect to the market and very low costs.

6/19/2006 12:25:50 PM

Quote :

"In terms of picking stocks, I think it's worthless in the long run, unless you want to gamble."

Warren Buffet, Kirk Kerkorian, and many others would disagree.

6/19/2006 1:43:35 PM

I don't know much about bank-stuff, maybe you guys do.

I deposited $180 into my checking account around 10AM this morning, and I am looking online and it's still not there. Does anyone know why, or can explain?

6/19/2006 1:50:46 PM

^ Most banks run deposits at midnight of the first weekday after recieving the funds
It should clear your account tonight.

6/19/2006 2:19:39 PM

^^^True, but that is their life's work. Compare the number of Buffets to the number of average Joes that lost their shirts. You could even include those that broke even or made a small profit. I'm generally not a gambler. I'll leave it to the pros.


Also, what would you recommend on 401k vs. IRA contributions? I start work in August and had planned to contribute the maximum amount to my 401k (19%, I think). There is some company matching, but I'm not sure what percentage that goes up to.

Now I also plan to max out a Roth IRA, but could the contributions to the 401k in excess of what is matched be better invested in another type of IRA account?

I was also already planning to put leftovers into a Vanguard Money Market / Mutual Funds account. I think that account has a $3000 minumum.

[Edited on June 19, 2006 at 3:27 PM. Reason : ]

6/19/2006 3:08:16 PM

Quote :

"Compare the number of Buffets to the number of average Joes that lost their shirts. You could even include those that broke even or made a small amount."

Most people picking stocks (even if they do it randomly) should expect a decent positive return as long they have diversified away their unsystematic risk.

6/19/2006 3:24:00 PM

would invest half of it in glorious mutual funds and take the other half over to my friend Asadulah who works in securities

6/19/2006 3:34:46 PM

I could live like a bum at the beach for the rest of the summer off of that.

6/19/2006 3:36:20 PM

pay off my debts, and start an online investing account

6/19/2006 3:37:37 PM

19% into a 401k sounds kind of steep.

I'd go more along the lines of 10%.

Experts say you should save 10-20% in order to prepare for a "comfortable" retirement. Having 19% in a 401k means you're already near the upper threshold and you're not even taking into account the company's matching contribution, IRAs, bonds, etc.

It never hurts to error on the safe side with saving the bling, but you gotta leave yourself some cheddar to play with before you retire, too.

6/19/2006 5:23:07 PM

Quote :

"Also, what would you recommend on 401k vs. IRA contributions? I start work in August and had planned to contribute the maximum amount to my 401k (19%, I think). There is some company matching, but I'm not sure what percentage that goes up to. Now I also plan to max out a Roth IRA, but could the contributions to the 401k in excess of what is matched be better invested in another type of IRA account? I was also already planning to put leftovers into a Vanguard Money Market / Mutual Funds account. I think that account has a $3000 minumum."

I'd recommend contributing the max that gets an employer match on the 401(k). Generally, most companies have a limited selection of funds that you can invest that money in, the advantage being that it's tax deferred, and you get an immediate return in terms of the company match. Once you get past the company match, you could invest even more, but you may be better off investing it in mutual funds or ETFs, keeping that money accessible if need be.

Definitely max out the roth IRA each year ($4000).

I'd also recommend keeping a nest egg of about 3 months salary that can tide you over in the event of a layoff, extended disability, or some other catastrophe that is out of your control. You can keep this in a high yield savings account such as ING, T-bonds, CDs, etc., something that is accessible relatively quickly.

6/19/2006 5:53:10 PM

buy my car seven times.

6/19/2006 6:06:54 PM

^*7 Sorry guys, don't know how to do quotes and stuff, never was a big poster here...

"Most people picking stocks (even if they do it randomly) should expect a decent positive return as long they have diversified away their unsystematic risk."

After taking BUS 422 (Portfolio Theory Class), the professor said that empirical studies have shown that the the unsystematic risk converges to 0 at about 40 stocks. Most people do not have enough money to hold 40 individual stocks. Additionally, this requires you to have money for transaction costs to buy and sell individual stocks when you feel they are underperforming and whatnot. That is why I prefer index funds, at least until my money increases to something around $50,000 and I have a bankroll to try my predictions out. While transactions costs are dirt cheap compared to five to ten years ago, they still do add up. It just doesn't make sense for me to pay $7-$15 to buy and the same to sell a stock in which I have only $1,000 in it. This comes out to basically a 1.4% to 3% tax on your earnings... or losses... Now multiply this by the number of stocks you hold, thus I keep going back to Mutual Funds, of which Vanguard's typical cost basis is around 0.39%.

Oh, also this statement indicates you are planning on taking a position for a LONG time, whereas most college kids will not hold a position for years at a time.

In terms of 401(k) savings, http://www.Fool.com has a short article explaing why 401(k) is good stuff called "Instantly Double Your Money" http://www.fool.com/news/commentary/2006/commentary06061912.htm

Also, I don't think you can ever put too much away in your Roth IRA or your 401(k), even if it is more than a company matches. A lot of financial planning books tell you to live below your means and locking your money away is the best way to force this on yourself.

As someone mentioned, it is good to keep a decent supply in a high-yield savings account so if you get in a bind, you have access to your money without all the penalties for getting at money that is already locked in somewhere else.

Also, Warren Buffet has the ability to not give a damn about the money he loses and wins, because he has diversified himself like crazy and can afford to lose a lot of money on an individual position, whereas most of us college kids can't do that, we are putting all our eggs in one (or a few) baskets, so to speak.

Just my two cents... anyone that thinks differently, let me know, I am always trying to figure out the financial systems more and more...

6/19/2006 6:16:22 PM

My point is, that your statement

Quote :

"In terms of picking stocks, I think it's worthless in the long run, unless you want to gamble."

is patently false.

6/19/2006 6:24:51 PM

with a 15% discount on stocks for the company I work for (which is in the fortune 50), I sure as shit will be buying stock from the company i work for. Because I have access to SEC controlled information, I only have a couple week windows each year (after the company announces earnings) to sell stock, but it's a worthwhile tradeoff. I'm not looking to make a quick buck off of it, rather I'm in for the long haul.

6/19/2006 6:29:45 PM

spend $6,000 to clear up all of my debts. spend another $2,000 for tuition. then the rest of the $5,000 will go towards buying a car.

6/19/2006 6:32:49 PM

BobbyDigital, sorry I wrote before I thought. I was thinking college kids won't hold stocks for a long time, so it is worthless when I wrote that.

Also, about 15%, hell yeah. I did that when I was at IBM and picked up a couple of shares at 15% and am just letting them ride. Figure if I take a loss at some point, I'll just count the capital losses on my taxes once I graduate and start making bank and if I get a capital gain, whatever, let the dividends keep coming :-)

6/19/2006 6:35:59 PM

Many people mention ING Direct for high-yield savings, but are there differing opinions for which institution to go with on that? I assume that most web-based accounts have similar rates, and other factors must contribute to the decision.

6/19/2006 7:18:10 PM

For those of you who want complete stability and liquidity at a decent rate:

Emigrant Direct Savings Account - 4.65% APY

/thread

6/20/2006 10:27:31 AM