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• Looking for a fund that pays monthly dividends and gives the fund manager complete control on what to pick?

  Any suggestions on this type of fund ? What fund has muni’s, oil trusts, Reits, stocks, bonds and whatever the fund manager thinks is a good investment – globably.

   

• Looking for a fund that pays monthly dividends and gives the fund manager complete control on what to pick?

  Any suggestions on this type of fund ? What fund has muni’s, oil trusts, Reits, stocks, bonds and whatever the fund manager thinks is a good investment – globably.

   

• Stocks and their valuation question -Corporate value model ???

  Barrett Industries invests a lot of money in R&D and as a result it retains and reinvests all of its earninings . In other words , Barrett doesnt pay any dividends , and it has no plans to pay dividends in the near future . A major pension fund is interested in purchasing Barrett’s stock . The pension fund manager has estimated Barrett’s free cash flows for the next 4 years as follows : $ 3 million , $ 6 million , million and million . After the 4 th year , free cash flow is projected to grow at a constant 7 percent . Barrett’s WACC is 12 percent , its debt and preferred stock total to million , and it ha 10 million shares of stock outstanding .
  A. What is the present value of the free cash flows projected during the next 4 years ?
  B. What is the firm’s terminal value ?
  C. What is the firm’s total value today ?
  D. What is an estimate of Berrett’s price per share ?

   

• Stocks and their valuation question -Corporate value model ???

  Barrett Industries invests a lot of money in R&D and as a result it retains and reinvests all of its earninings . In other words , Barrett doesnt pay any dividends , and it has no plans to pay dividends in the near future . A major pension fund is interested in purchasing Barrett’s stock . The pension fund manager has estimated Barrett’s free cash flows for the next 4 years as follows : $ 3 million , $ 6 million , million and million . After the 4 th year , free cash flow is projected to grow at a constant 7 percent . Barrett’s WACC is 12 percent , its debt and preferred stock total to million , and it ha 10 million shares of stock outstanding .
  A. What is the present value of the free cash flows projected during the next 4 years ?
  B. What is the firm’s terminal value ?
  C. What is the firm’s total value today ?
  D. What is an estimate of Berrett’s price per share ?

   

• Stocks and their valuation question -Corporate value model ???

  Barrett Industries invests a lot of money in R&D and as a result it retains and reinvests all of its earninings . In other words , Barrett doesnt pay any dividends , and it has no plans to pay dividends in the near future . A major pension fund is interested in purchasing Barrett’s stock . The pension fund manager has estimated Barrett’s free cash flows for the next 4 years as follows : $ 3 million , $ 6 million , million and million . After the 4 th year , free cash flow is projected to grow at a constant 7 percent . Barrett’s WACC is 12 percent , its debt and preferred stock total to million , and it ha 10 million shares of stock outstanding .
  A. What is the present value of the free cash flows projected during the next 4 years ?
  B. What is the firm’s terminal value ?
  C. What is the firm’s total value today ?
  D. What is an estimate of Berrett’s price per share ?

   

• Why is AT and T (T) in so many mutual funds?

  So I have started looking into a couple new mutual funds and found that T is everywhere. I don’t see what fund managers see in this thing. Someone in the know explain it to me.
  One fund that I own …

  http://finance.yahoo.com/q/hl?s=AIVSX

  Its the top stock. What I am looking for is a trader to give me details into why American Funds thinks this stock is a winner. There isn’t just one fund manager – Im sure its a large group of managers. I want to know specific details as to why this is such a good stock to be in a portfolio. I would not have thought it to be a winner.

   

• Do you pay capital gains on mutual funds even if you don't sell any funds?

  Where do they come from? I thought that since the fund manager is buying and selling stocks within the fund that you must pay for the capital gains on these transactions. Is that correct? Also if you have a good reference explaining this, I’d really appreciate it.

   

• Are Mutual Funds likely to survive any financial downfall due to the diversification of shares?

  I see it like this currently: A fund has lost half it’s value, do you keep it there because you only make a loss when you sell at a loss; or is it possible for the fund to reach a complete zero? (i would have thought that it could go down to 0.001% of value but never 0%). Also, what are the risk of the fund managers themselves going under?

   

• Are there any portfolio managers that manage mutual funds or ETFs to go up in both expansions and recessions?

  Everybody I know got hit hard on their funds this recession. That shouldn’t be the case, considering fund managers can set stop losses, short stocks, or invest in ETFs that actually go up when the market goes down (bear funds).

  Are there any fund managers that adapt and switch from long to short to profit from recessions using the methods I mentioned in the title?

   

• how does mutual funds and others alike pool so much money ?

  how do mutual funds pool tremendous amount of money? is it simply from marketing, with a few marketers from the company goign around and telling ppl to put there money.

  is mutual funds just purely marketing thing ? only 8% of fund managers in the world are said to have returning above average returns….

  what about hedge funds? do they just track down rich guys and tell them that htey nee dto put there money here.

  Is it possible for one to start his own mutual funds, provided he had the start up costs, and experience and knowledge.

   

• How can you maximize returns from mutual funds if are penalized for frequent exchanges?

  There are several mutual fund options in my 401k program. Most of which penalize or suspend you for "round trip" trading. So when the market goes down several times a year, and I want to maximize my ROI and YTD, I can’t put the money into a stable value fund more than 2 times in 90 days, or 4 times total per year. Pretty stupid…so how do I get the most out of my money when I am limited to this?
  Though I understand that my retirement is important, I don’t see how riding in a fund that tanking is logical. Why not go into stable when the market is down and go back in when it’s up? Can I rely on the fund manager to do this? My goal is to get 15% return and keep it there. I want to retire comfortably, but I want my money to work harder than it is now at 9-10%.

   

• How exactly does mutual funds work?

  Hello, as a beginner investor how do you actually earn money from mutual funds? I heard that it’s not about compounding interest and that it’s about the NAV on the day you wish to withdraw the funds that will determine your profit?

  I had a perception that it was like time deposit, that your initial investment will earn interest and interest is added up to your initial investment and it will compound over time only that the interest rates varies every time. This is not the case in mutual funds right or is it?

  Can someone enlighten me on this? Thanks.
  Note: I know what a mutual fund is at least it’s general idea that it’s composed of diversified investments managed by a fund manager. My question is how do you earn technically? Is it like compounding interest or not?

   

• How does 401k work????????? (must be 20 characters so the extra ?'s are to make y/a happy))?

  can people choose what fund their money goes into, how much control of where the money is invested do people have?

  are there options like cash deposits, property, equities, et cetera where you can decide your weighting or is it all decided by the fund managers?

  who are the fund managers?

  Many thanks, check where im asking the question from if you wonder why i dont know these things, thanks

   

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• How does 401k work????????? (must be 20 characters so the extra ?'s are to make y/a happy))?

  can people choose what fund their money goes into, how much control of where the money is invested do people have?

  are there options like cash deposits, property, equities, et cetera where you can decide your weighting or is it all decided by the fund managers?

  who are the fund managers?

  Many thanks, check where im asking the question from if you wonder why i dont know these things, thanks

   

• Mutual fund questions?

  Several questions about investing the mutual fund

  1. Is it good idea to invest all your money with just one fund manager but in different fund categories?

  2. Which is the better way to invest mutual fund? Through your commercial bank or brokerage firm (e.g. Etrade) or directly through the mutual fund company?

  3. Does the commercial bank charge transaction fee while you transferring certain amount of money regularly out of your checking account to your investment account in brokerage firm or mutual fund companies?
  For the first question, I mean put all the money into one mutual fund company(e.g. Fidelity) but allocate into different fund category (e.g. some in internatioal some in index fund)

   

• Is starting a hedge fund business the fastest way to become a billionaire via investing, and ……..?

  I am 18, and have a very strong interst in the financial markets, especially the stock market. My next favourite is the currency market which I’m rather good at and then the commodities markets. I know that investing and trading a 2 seperate things. I also know that trading is more like speculating than investing and can carry a high degree of risk to your capital. I happen to have a plan however for the idea of how a good hedge fund could operate, and that is to invest into distressed assets such as undervalued stocks that will surely bounce back with time applying value investing techniques. I know that some hedge fund managers do this and I’m very inspired by their successes. My favourite guy here is David Teppen or whatever his name is who made billion for his fund this year, 2009. What I would like to know is, is starting a hedge fund as such the fastest way to become a billionaire via investing in the financial markets? Please give a good reasonable answer. Thanks.

   

• My Social Security fix (”If” you’ve got the mental fortitude to read it)?

  Even though I’ve already prepared for no social security benefit I definitely do NOT see it going belly up. Any required changes “WILL” be made because the baby boom generation is way too big of a voting segment. Here are three things I think either will or "should" be changed. I’m sure there will be some disagreements but here we go (it’s a little long):

  1) One of the things I definitely expect to see soon is a change in the SS tax so that there is NO cap on income subject to the tax (currently 97.5K).

  2) A .5% increase ( extra per K of annual earnings) in the tax itself to 6.7%. This, combined with #1 above, would add quite a bit to the fund. Ex: a person earning 197.5K would pay an extra ,187.50. A hedge fund manager (wall Street exec, etc) making 100,097,500.00 would pay an additional 6,700,487.50 in SS tax. The tax could be reduced to .5% lower than the “current” level as the system gained its footing. That would mean a 5.7% SS tax. The .5% reduction (from 6.2 to 5.7) could then be added to the Medicare tax to fix it. The net effect would be no change in the total SS/Medicare tax (it would still be a total of 7.65%)

  3) Unfortunately, I think most people (i.e. 70%+) would do even worse than the governments historically bad rate of return; therefore I’m against giving some of the money to individuals who, for the most part, can’t even manage what they have now. However, I do believe the money should be invested for higher returns in a diversified ETF portfolio something like this: 50% domestic/international stocks (ex’s: S&P, NASDAQ, IOO, ADRA), 20% commodities related (GLD, DBA, VAW, IGE,), 20% High Quality Bonds (Gov’t & Corporate), 10% Cash equivalents like CD ylding > 6%.

  4) Protect SS funds from “other” uses.

  5) Additionally, in the interest of saving the system, and because I believe social security should be more of a safety net for “if” you need it, I submit the following thought. I think SS benefits should be “eliminated” for people with retirement sources of income (cap gains, div’s, pensions, etc) “or” assets (minus primary house & active farmland) totaling greater than a set limit that adjusts for inflation. Purely as a starting point for debate: I would support a current income threshold limit of 2.5X the average income of the city you reside in “and/or” a 3M asset limit. For example: if your city’s avg income was 40K, and your total retired income exceeded 100K (or assets > 2M), you would not get any of the SS money that you would otherwise collect (your full benefit would simply be “reduced” between 1.5-2.5X that city’s avg income). Adjusting for salary increases, the avg income in my example would be around 100K in 30 yrs and therefore you total retired income would have to be more than 250K (or assets >5M) to lose the entire benefit. My money’s where my mouth is because I’m 30yrs from SS eligibility and I will have ZERO problem giving up my benefits when I’m spending >250K/yr and/or have assets >5M. BTW, the hedge fund mngr mentioned in #2 would get a nice fat 00/month (6K/month in 30 yrs) “if” he somehow went bankrupt between making 100M and retirement so he “would” be able to take advantage of the “safety net” that he had paid into. Actually, the max benefit would have to be increase when the 97.5K cap was abolished. I could see the hedge fund guy getting the new max benefit of 10K/month (28K/month in 30 yrs) because he put more into it. The 10K/month amount would apply to anyone who had paid SS tax on an average income > 500K/yr every yr from age 21 (per current rules for the 2100 max payment). The 500K as of 07’ would be adjusted backward and fwd for inflation.

  Unlike some, who think SS should be phased out, I still like the idea of SS (even if I never benefit from mine). I see it as an encouragement for people to take chances in their lives such as entrepreneurial risks. I think that knowing there is “something” to fall back on would provide at least a little bit of encouragement to try high risks/high reward endeavors. If, however, the business risk pays off and you create the next MSFT, APPL, GOOG, CAT, etc, etc. then there’s no reason to “access” that safety net.

  Any opinions, thoughts, or new ideas that aren’t smartass in nature?

   

• My Social Security fix (If you’re willing to read it)?

  Even though I’ve already prepared for no social security benefit I definitely do NOT see it going belly up. Any required changes “WILL” be made because the baby boom generation is way too big of a voting segment. Here are three things I think either will or "should" be changed. I’m sure there will be some disagreements but here we go (it’s a little long):

  1) One of the things I definitely expect to see soon is a change in the SS tax so that there is NO cap on income subject to the tax (currently 97.5K).

  2) A .5% increase ( extra per K of annual earnings) in the tax itself to 6.7%. This, combined with #1 above, would add quite a bit to the fund. Ex: a person earning 197.5K would pay an extra ,187.50. A hedge fund manager (wall Street exec, etc) making 100,097,500.00 would pay an additional 6,700,487.50 in SS tax. The tax could be reduced to .5% lower than the “current” level as the system gained its footing. That would mean a 5.7% SS tax. The .5% reduction (from 6.2 to 5.7) could then be added to the Medicare tax to fix it. The net effect would be no change in the total SS/Medicare tax (it would still be a total of 7.65%)

  3) Unfortunately, I think most people (i.e. 70%+) would do even worse than the governments historically bad rate of return; therefore I’m against giving some of the money to individuals who, for the most part, can’t even manage what they have now. However, I do believe the money should be invested for higher returns in a diversified ETF portfolio something like this: 50% domestic/international stocks (ex’s: S&P, NASDAQ, IOO, ADRA), 20% commodities related (GLD, DBA, VAW, IGE,), 20% High Quality Bonds (Gov’t & Corporate), 10% Cash equivalents like CD ylding > 6%.

  4) Protect SS funds from “other” uses.

  5) Additionally, in the interest of saving the system, and because I believe social security should be more of a safety net for “if” you need it, I submit the following thought. I think SS benefits should be “eliminated” for people with retirement sources of income (cap gains, div’s, pensions, etc) “or” assets (minus primary house & active farmland) totaling greater than a set limit that adjusts for inflation. Purely as a starting point for debate: I would support a current income threshold limit of 2.5X the average income of the city you reside in “and/or” a 3M asset limit. For example: if your city’s avg income was 40K, and your total retired income exceeded 100K (or assets > 2M), you would not get any of the SS money that you would otherwise collect (your full benefit would simply be “reduced” between 1.5-2.5X that city’s avg income). Adjusting for salary increases, the avg income in my example would be around 100K in 30 yrs and therefore you total retired income would have to be more than 250K (or assets >5M) to lose the entire benefit. My money’s where my mouth is because I’m 30yrs from SS eligibility and I will have ZERO problem giving up my benefits when I’m spending >250K/yr and/or have assets >5M. BTW, the hedge fund mngr mentioned in #2 would get a nice fat 00/month (6K/month in 30 yrs) “if” he somehow went bankrupt between making 100M and retirement so he “would” be able to take advantage of the “safety net” that he had paid into. Actually, the max benefit would have to be increase when the 97.5K cap was abolished. I could see the hedge fund guy getting the new max benefit of 10K/month (28K/month in 30 yrs) because he put more into it. The 10K/month amount would apply to anyone who had paid SS tax on an average income > 500K/yr every yr from age 21 (per current rules for the 2100 max payment). The 500K as of 07’ would be adjusted backward and fwd for inflation.

  Unlike some, who think SS should be phased out, I still like the idea of SS (even if I never benefit from mine). I see it as an encouragement for people to take chances in their lives such as entrepreneurial risks. I think that knowing there is “something” to fall back on would provide at least a little bit of encouragement to try high risks/high reward endeavors. If, however, the business risk pays off and you create the next MSFT, APPL, GOOG, CAT, etc, etc. then there’s no reason to “access” that safety net.

  Any opinions, thoughts, or new ideas that aren’t smartass in nature?

   

• what are Mutual Funds?Meaning of Mutual funds?Advantages and Disadavntages?

  What are Mutual Funds?What does the mutual fund manager exactly do?Do we really get good returns investing in mutual funds?What happens in a mutual fund?inside mutual fund.

   

• My Social Security fix (If you’re willing to read it)?

  Even though I’ve already prepared for no social security benefit I definitely do NOT see it going belly up. Any required changes “WILL” be made because the baby boom generation is way too big of a voting segment. Here are three things I think either will or "should" be changed. I’m sure there will be some disagreements but here we go (it’s a little long):

  1) One of the things I definitely expect to see soon is a change in the SS tax so that there is NO cap on income subject to the tax (currently 97.5K).

  2) A .5% increase ( extra per K of annual earnings) in the tax itself to 6.7%. This, combined with #1 above, would add quite a bit to the fund. Ex: a person earning 197.5K would pay an extra ,187.50. A hedge fund manager (wall Street exec, etc) making 100,097,500.00 would pay an additional 6,700,487.50 in SS tax. The tax could be reduced to .5% lower than the “current” level as the system gained its footing. That would mean a 5.7% SS tax. The .5% reduction (from 6.2 to 5.7) could then be added to the Medicare tax to fix it. The net effect would be no change in the total SS/Medicare tax (it would still be a total of 7.65%)

  3) Unfortunately, I think most people (i.e. 70%+) would do even worse than the governments historically bad rate of return; therefore I’m against giving some of the money to individuals who, for the most part, can’t even manage what they have now. However, I do believe the money should be invested for higher returns in a diversified ETF portfolio something like this: 50% domestic/international stocks (ex’s: S&P, NASDAQ, IOO, ADRA), 20% commodities related (GLD, DBA, VAW, IGE,), 20% High Quality Bonds (Gov’t & Corporate), 10% Cash equivalents like CD ylding > 6%.

  4) Protect SS funds from “other” uses.

  5) Additionally, in the interest of saving the system, and because I believe social security should be more of a safety net for “if” you need it, I submit the following thought. I think SS benefits should be “eliminated” for people with retirement sources of income (cap gains, div’s, pensions, etc) “or” assets (minus primary house & active farmland) totaling greater than a set limit that adjusts for inflation. Purely as a starting point for debate: I would support a current income threshold limit of 2.5X the average income of the city you reside in “and/or” a 3M asset limit. For example: if your city’s avg income was 40K, and your total retired income exceeded 100K (or assets > 2M), you would not get any of the SS money that you would otherwise collect (your full benefit would simply be “reduced” between 1.5-2.5X that city’s avg income). Adjusting for salary increases, the avg income in my example would be around 100K in 30 yrs and therefore you total retired income would have to be more than 250K (or assets >5M) to lose the entire benefit. My money’s where my mouth is because I’m 30yrs from SS eligibility and I will have ZERO problem giving up my benefits when I’m spending >250K/yr and/or have assets >5M. BTW, the hedge fund mngr mentioned in #2 would get a nice fat 00/month (6K/month in 30 yrs) “if” he somehow went bankrupt between making 100M and retirement so he “would” be able to take advantage of the “safety net” that he had paid into. Actually, the max benefit would have to be increase when the 97.5K cap was abolished. I could see the hedge fund guy getting the new max benefit of 10K/month (28K/month in 30 yrs) because he put more into it. The 10K/month amount would apply to anyone who had paid SS tax on an average income > 500K/yr every yr from age 21 (per current rules for the 2100 max payment). The 500K as of 07’ would be adjusted backward and fwd for inflation.

  Unlike some, who think SS should be phased out, I still like the idea of SS (even if I never benefit from mine). I see it as an encouragement for people to take chances in their lives such as entrepreneurial risks. I think that knowing there is “something” to fall back on would provide at least a little bit of encouragement to try high risks/high reward endeavors. If, however, the business risk pays off and you create the next MSFT, APPL, GOOG, CAT, etc, etc. then there’s no reason to “access” that safety net.

  Any opinions, thoughts, or new ideas that aren’t smartass in nature?