Latest Updates: investment strategy RSS

  • Should I invest in 401K or in the stock market?

    With the limited amount of I have, I can either invest in 401K or in the . What’s a better ?

     

  • Are there any mutual funds that focus their investment strategy on call and put options?

    Are there any lower risk ways to invest in options contracts? Any managed investment vehicle that I could use? Thank you.

     

  • Are there any mutual funds that focus their investment strategy on call and put options?

    Are there any lower risk ways to invest in options contracts? Any managed investment vehicle that I could use? Thank you.

     

  • This is what I have so far but i need help with choosing the 5 mutual funds Can anyone help me out?

    Cliff Swatner is single, 33, and owns a condominium in New York City worth 0,000. Cliff is an attorney and doing well financially. His income last year exceeded ,000, and he has sufficient liquid assets to supplement his condominium and other tangible assets. Several years ago, Cliff began investing in and . He made his selections on the basis of articles he read describing good . Some have worked well for Cliff, but others have not. Cliff has never taken the time to evaluate his portfolio performance, but he feels it isn’t very good. Cliff currently has about ,000 invested. He has been dating a woman lately and hopes to marry her in three years, at which time he will need ,000 for marriage expenses and a honeymoon. Cliff’s only other objective is to accumulate funds for retirement, but he does not have a specific dollar target for this goal. Cliff feels that he has a moderate risk-tolerance level. 1. Explain some disadvantages of Cliff’s current investment approach. 2. Construct a portfolio for Cliff, limiting your selections to 5 (assume that he sells his current stock and bond holdings). Make sure your plan indicates specific dollar amounts for each portfolio component. Make sure your plan also explains your selections for each portfolio component. Visit an investment firm that deals in , such as, Vanguard.com, AmericanCentury.com, Fidelity.com, etc. and select 5 that will diversify Cliff’s portfolio. Record the fund name, ticker symbol, 5 year average annual returns (can use 3 year if 5 year is unavailable), the amount to be invested in each fund, and the amount returned in 3 years using the 5 years average annual return for the wedding. 3. Explain how Cliff should periodically rebalance his portfolio, indicating how frequently re balancing should be done.

    This is what I have so far but i need help with choosing the 5 Can anyone help me out?

    Some disadvantages of Cliff’s current investment approach are that he has not kept track of his . Having made the Cliff should have kept track of them. He should hold on to the that are doing well and sell the ones that are not. Investing without any specific targets or goals, doesn’t help when he is trying to accumulate funds for retirement.
    Different have different risk and should be kept in mind while investing. He has no dollar amount as a target, while investing it is important to have the dollar amount that he wishes to acquire. Based on these and the expected returns, a monthly allotment can be made. Without the target, it is difficult to put aside any amount of . His portfolio should if possible be a diversified portfolio so that the instability in returns is reduced. This means that he should include some low risk securities such as Treasury Bills.
    Advantages of : Professional Management – The primary advantage of (at least theoretically) is the professional management of your . Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor .
    – By owning shares in a instead of owning individual or , your risk is spread out. The idea behind is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more and you own, the less any one of them can hurt you. Large typically own hundreds of different in many different industries. It wouldn’t be possible for an investor to build this kind of a portfolio with a small amount of .

    Economies of Scale – Because a buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay. Liquidity – Just like an individual stock, a allows you to request that your shares be converted into cash at any time. Simplicity – Buying a is easy.
    Cliff can invest the ,000 as follows:
    Asset HoldingsAmountProportion

    Growth ,00030%
    International ,00020%
    High quality ,50025%
    Zero coupon ,50015%
    3 to 5-year CDs$ 9,00010%

    Total,000100%

    Rebalancing the portfolio means moving from risky assets to safer assets as you time passes. The logic behind that is that an investor would not like to lose capital as he grows older, since the sources of income would be limited. As people approach retirement, they tend to become more risk averse. Their also tends to emphasize capital preservation. This increased conservatism is a very normal response. However, this shift in risk tolerance requires tha

     

  • Advice on Mutual Fund Selection?

    Hi all.. I am new to investing. I just graduated and got my first job paying 60,000 and i need advnce on where to put my earnings for retirement. I am 24, live with my parents, and plan to do so for the next 5 years. How does this sound. I plan to put in 1,000 a month in my 401k. We have about 10 to choose from and im thinking about putting 30% , 25% Large Cap, 25% Small Cap, and 20% International. Im just going to compare the funds available in each category according to ratings on Morning Star and their expense ratio. Also, im thinking about putting them in a Roth 401k since i probally would be in a higher tax bracket when i retiree. Is this a good strategy? By the way, im just putting the in every month and never plan to take it take it out. Im riding the market. Any advice is greatly appreciated.

     

  • Investment Strategy with Mutual Funds?

    If you have 00 a month that you can invest in – and you are already well diversifed (large, mid, small blends/value/growth/emerging/foreign, etc. – as well as , REIT and some specialty funds) – Is it best to purchase a NEW fund each month (while continuing to stay diversified) – or to simply add that monthly 00 to funds already owned (let’s say you have 2 or 3 funds in each of the ‘categories’ noted above)?
    If you can, please note justification to support your thought.

    Many Thanks for your input -

     

  • Buy a home and get cash out of the deal?

    Ok so a friend in the real estate investment business told me that you can buy a home and get cash out of the deal. This person uses this cash to pay the mortgage for the first year.

    I talked to another friend who said it is illegal to get more than 3 percent out of the deal in CA.

    So who is right and who is wrong? To me it sounds like good a good to buy homes where people have alot of equity in them and then rent it out or live in it while it appreciates, and to use that cash incentive to help with initial bills.

    Anyone with knowledge and advice on this matter? I really want to get into real estate investing but, I want to do it right! HELP!

     

  • Buy a home and get cash out of the deal?

    Ok so a friend in the real estate investment business told me that you can buy a home and get cash out of the deal. This person uses this cash to pay the mortgage for the first year.

    I talked to another friend who said it is illegal to get more than 3 percent out of the deal in CA.

    So who is right and who is wrong? To me it sounds like good a good to buy homes where people have alot of equity in them and then rent it out or live in it while it appreciates, and to use that cash incentive to help with initial bills.

    Anyone with knowledge and advice on this matter? I really want to get into real estate investing but, I want to do it right! HELP!

     

  • How much should I invest in tax liens?

    I want to invest in tax liens , but I see lien prices that range from 1k -18k. Should I go for 1 or 2 k liens or spread the investment out by getting a bunch of k liens? My is to get interest NOT own the property.

     

  • Have the recent events with the credit market and the stock market had an effect on YOU?

    Have the recent events with the credit market and the had an effect on YOU and your trust in future investing in the ? Can you accept the ?

     

  • As a long-term investment strategy, is it possible to "lose" by investing in index funds?

    My thinking is as follows. As a long-term (say, buying — and buying regularly — and holding for a period of 20 years or longer): a) it is possible to "win" by investing in , b) it is possible to "win" even bigger by investing in actively-managed (or by handpicking ), however, c) it is also possible to "lose" by investing in actively-managed funds. So, d) is it possible to "lose" by investing in index (i.e., passively-managed) funds, or is investing in them a no-brainer despite the potential bigger gains of actively-managed funds?

     

  • Help with 401k investing?

    My husband and I are working for the same company with the both of us investing 13% a piece in 401K retirement. My husband is 49 and I am 39. The company only match up to 5% and has lately changed on their contributions from every month to yearly which means they will still match the 6% but, it looks as if we want be getting I good return in retirement. We really don’t understand the entire but, need advice on investing past what the company match . What is the safest option we should take? Should we continue invest the % that we have or should we take another route. And of course this is the only investment we have for know. Please give me some good investment ideas. Thanks

     

  • I am looking to start investing in the stock market. What full service brokerage firms are best rated?

    I am a beginner and I am not savvy with the market and (yet). Does anyone know what full service firm is rated best, for stock picks, service, research, and fees? What is the minimum investment amount?

     

  • What REAL return can you expect by investing in the stock market?

    Say I invest ,000 in the for the long term. I don’t ever want to lose that principal, but I want it to grow as much as possible.

    Using the most tried-and true, proven, reliable or strategies, what net return — after taxes — can I expect to earn?

     
c
compose new post
j
next post/next comment
k
previous post/previous comment
r
reply
e
edit
o
show/hide comments
t
go to top
esc
cancel