Hypothetical time.

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AngryReb	Hypothetical time.		Lead	[-]
Posts: 3540 May 5, 2008 9:30 AM Registered Member	Tags : None If you suddenly came into a chunk of change (not life-changing, but five figures or so), what would you invest in to see a relatively quick return? And, no, Peruvian cocaine mules, hookers, sports gambling, etc are NOT valid responses, you jackasses. Edited to add: I know next to nothing about the stock market, mutual funds, etc. since I've never had money to invest. The transition from college student to lowly Proletariat-serf does not present a young man with much incentive to follow the stock market. ----------------- "Someone with midget expertise might know. I've met several in person and don't trust them. My biggest fear is to be driving home from work and one of those bastards pop up from the back seat and start biting me or just anything. I die from a heart attack as soon as I see him. Most of them are very angry." - ScaldedbanditReb Last Edited By: AngryReb May 5, 2008 9:38 AM. Edited 1 time.
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BhamReb	"relatively quick return."	#1	[url]	[-]
Posts: 1436 May 5, 2008 9:45 AM	relative to what? Ole Miss' return to football glory? why not mutual funds? Something like NEWFX edited: I would simply open a mutual funds account on Vanguard. Do your homework on the funds (get some that are safe and some that are less-than-safe or "emerging markets") and buy them and don't switch them around once you buy them. these are medium to long term investments. Hypothetically, of course. DISCLAIMER: This is all assuming you're already maxing out your IRA (not to mention the fictional wife and kid's 529) "Work is the curse of the drinking class." -- Wilde Last Edited By: BhamReb May 5, 2008 9:56 AM. Edited 1 time.
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AngryReb	No. I want to use this money before I die.	#2	[url]	[-]
Posts: 3541 May 5, 2008 9:51 AM Registered Member	Can you explain "trailing total returns"? I will have returned to dust before the Rebels ever sniff a football championship. That 3 year 18.5% return ain't too shabby. It could be horrible for all I know. What's the bench mark for returns I should be looking for after about 3 years? ----------------- "Someone with midget expertise might know. I've met several in person and don't trust them. My biggest fear is to be driving home from work and one of those bastards pop up from the back seat and start biting me or just anything. I die from a heart attack as soon as I see him. Most of them are very angry." - ScaldedbanditReb
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BigErnMcracken		#3	[url]	[-]
Posts: 1468 May 5, 2008 9:59 AM Registered Member	you can do better than 18.5 over 3 years. I do all my investing through Vanguard. Lowest fees and the easiest web site to operate. It also depends on the amount. Is it $10,000 or $50,000? Will you need access to this money in the near future? "I am a member of the Sons of the Confederate Veterans......I know a thing or two" -- Cowbell9--
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BhamReb	If you're not getting 10% average back from a mutual fund, you can do better...	#4	[url]	[-]
Posts: 1438 May 5, 2008 10:02 AM	and by average, I mean over the lifetime, or maybe 10 years. The mutual funds that do most of their business in the far east are gonna be a great investment in the long run because nothing can stop those areas from industrializing (short of a nuclear holocaust). You're gonna get a better return investing in that area than you would in America, however it's not as safe in the short term (read: volatile). A little bit of perspective: Certificates of Deposit are yielding 3% on average (to really dumb/scared elderly people) "Work is the curse of the drinking class." -- Wilde
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AngryReb	Most likely about $20k.	#5	[url]	[-]
Posts: 3542 May 5, 2008 10:04 AM Registered Member	I'd like to have access to the fundage after about 3 or so years ideally, but it depends on the return rate. If I'm getting close to 25% return I'll let that bitch marinate until I can't stand it anymore. ----------------- "Someone with midget expertise might know. I've met several in person and don't trust them. My biggest fear is to be driving home from work and one of those bastards pop up from the back seat and start biting me or just anything. I die from a heart attack as soon as I see him. Most of them are very angry." - ScaldedbanditReb
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GrantGannon		#6	[url]	[-]
Posts: 1081 May 5, 2008 10:05 AM	I made the post below about Yahoo as a question about trying to make a quick $500-$1500. You cabsically gamble on whether or not the stock will jump back up should GOOG or MSFT re-enter the picture. If I had $10K, $20K etc. right now and I had to invest it over the short-term...and 3 years is the short-term...I'd go nowhere else but a CD, high interet savings account etc. (of which there are few now) \hat are you looking to do with the cash? Do you want to invest now and make a down payment on a house in 36 months or do you just want to buy something? If you're simply thinking you can waltz into the stock market uneducated and find a lottery ticket and turn $25K into $30K, (18% over three years) chances are you're going to have less than when you started. If that's the case--that you just want to try to get more money later than you have now so you can buy something nicer -- you're almost better off going to Tunica. You can lose it all in one night rather than constantly watching the stock price go up and down 3% every day. Why not start your retirement now by dropping the yearly maximum ($5000 in 2008) into a RothIRA in an instant? Fund itThen take the other cash and put it in CDs of varying length i.e. 12, 24, 36 months and continue to fund a RothIRA up to the yearly maximum for years to come?
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BhamReb	well...	#7	[url]	[-]
Posts: 1439 May 5, 2008 10:11 AM	you're not exactly "waltzing into the stock market" when you're buying Mutual funds. Buying mutual funds is like having Fred Astaire waltz in for you. You've got experts with years of experience tending to your diversified money. I do however understand some hesitancy in the "short term." "Work is the curse of the drinking class." -- Wilde
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GrantGannon		#8	[url]	[-]
Posts: 1082 May 5, 2008 10:16 AM	I think you're unlikely to find anything that's going to return 25% over a year. Warren Buffett, the single greatest investor...ever...said yesterday at the Berkshire meetings that he's expects to continue returns of 8-10 percent every year but if shareholders are going to get pissy about not getting more than that he advised them to sell their stock. If you're going to go after aggressive returns, like 25%, you're going to have to take on a large amount of risk. Are you willing to accept a possibiliy of a 25% loss too? If you're strictly investing short-term chasing monster gains is extremely risky and ill-advised. You're better off going to Tunica and betting red and black.
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JacksonDevilDog	Re: CD's	#9	[url]	[-]
Posts: 11 May 5, 2008 10:18 AM	Plus, Let's say you're getting 3.5% on a CD at your local bank. You have to pay taxes on that CD every year. Taxes can be anywhere from 1-2%. So in reality, you are only making 1% or so. Mutual funds and annuitys are the way to go.
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BhamReb	Not to mention...	#10	[url]	[-]
Posts: 1440 May 5, 2008 10:19 AM	Inflation is 3% a year so you're actually still losing money. "Work is the curse of the drinking class." -- Wilde
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BigErnMcracken		#11	[url]	[-]
Posts: 1469 May 5, 2008 10:21 AM Registered Member	IRA's max is still $4000 until 2009. Then it goes to $5000 "I am a member of the Sons of the Confederate Veterans......I know a thing or two" -- Cowbell9--
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RounderReb		#12	[url]	[-]
Posts: 53 May 5, 2008 10:24 AM	BhamReb wrote: you're not exactly "waltzing into the stock market" when you're buying Mutual funds. Buying mutual funds is like having Fred Astaire waltz in for you. You've got experts with years of experience tending to your diversified money. I do however understand some hesitancy in the "short term." Yes, but over 85% of these experts fail to beat the market over a 5 year period. Much research should be done even when investing in mutual funds. In my opinion, investing in mutual funds right now may be kind of fruitless. The economy is gonna get worse before it gets better. If you are already in the market you might as well stay because there is a going to be a multitude of buy low opportunities. If you haven't invested yet, at least wait til after the Bejing Olympics. Make sure China is in good financial health and doesn't have to start calling U.S. Treasuries to finance their issues. China owns us, if they start calling bonds to go along with the already troubling sub-prime crisis, the stock market will tank and you will be glad you waited to invest. If you do decide to invest, read the mutual funds' prospectus closely. If you don't know what to make of it find a friend or acquaintance who does. I'm no expert but I do read a lot. "They were still peeing in a wooden trough in the men's urinals with a dirt floor well into the 1970s."- jhvaught talking about Davis Wade stadium at MSU
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GrantGannon		#13	[url]	[-]
Posts: 1083 May 5, 2008 10:25 AM	Agree on mutual funds. But I think Angry is looking for a golden ticket which average Joe investor can't pick. If there was a magic mutual fund that had returned 25% a year for the last 10 years, we'd all be in it. If someone handed me $20K right now I'd top off my emergency fund, fully-fund my Roth IRA and buy an investment...(read: house). Playing the stock market to make a quick buck just doesn't make sense. That's not investing, it's gambling. It's kind of like betting 6-team parlays every weekend in college football but with one big bet on the surefire winner. You're probably not going to make a ton since your parlay always loses but you make a few bucks on the winner. But if that parlay hits, you've made bank.
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AngryReb	Wrong!	#14	[url]	[-]
Posts: 3543 May 5, 2008 10:30 AM Registered Member	I'm not looking to charter a sunken spanish treasure galleon expedition, complete with red wool hats, helicopters and glocks, but I'd like to be rewarded for the risk. I just don't want to waste my money. Hell, for 3% a year I could just stick it in regular old savings account. You jump to conclusions, Mr. Gannon. ----------------- "Someone with midget expertise might know. I've met several in person and don't trust them. My biggest fear is to be driving home from work and one of those bastards pop up from the back seat and start biting me or just anything. I die from a heart attack as soon as I see him. Most of them are very angry." - ScaldedbanditReb Last Edited By: AngryReb May 5, 2008 10:33 AM. Edited 1 time.
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BhamReb	Yes, but...	#15	[url]	[-]
Posts: 1441 May 5, 2008 10:44 AM	50% of mutual funds are above average. It's not hard to find the well managed funds. By your statistics, if I see a list of 100 mutual funds, I should easily be able to see the 15 that are outperforming their benchmark. Then I choose say 4 of those. Pete Boone couldn't fuck it up. [before you hit reply, that was a stupid lead off joke, yes] "Work is the curse of the drinking class." -- Wilde
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645CI		#16	[url]	[-]
Posts: 639 May 5, 2008 10:44 AM Thinks We Care About His Kids	Hornets -2 -105 or or I'm with the Mutual fund guys. You mentioned "quick return" the only quick returns are ones that you could lose money on as well in that same time frame. if you don't need the money in the next 24-36 months then I would invest in a sound mutual fund. Or better yet, invest it and pretend like you never got it. You will thank yourself in 25 years, when you may actually NEED it.
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GrantGannon		#17	[url]	[-]
Posts: 1084 May 5, 2008 10:56 AM	Okay, let me restate it. I think your expectations are slightly out of touch with the reality that is the stock market in America today. I absolutely can't begin to make informed stock decisions on an individual basis. I let mutual fund managers do that for me. I invest a small amount each month into a RothIRA. Those investments generated gains in excess of 12% a year for the three years I owned them up until last summer. In the last 12 months the two funds I invest in are down 3% and 1% respectively. For the year they're down 3% and 4% but for the quarter up 8% and 10%. Those swings are completely manageable because it's a long term investment. If anything I'm lowering my average investment. But what you're talking about...25% gains over 3 years...is, in my opinion, mostly a matter of luck for the novice investor. If I had $20K right now, and I knew I needed that $20K to purchase something in 36 months my main focus would be preservation of capital. A savings account with a company like ING right now is going to preserve that capital and pace inflation. But trying to jump that capital? The risk far outweighs the reward, are you willing to risk a $10K swing between potential gain and potential loss? No mutual fund, stock etc. is going to guarantee a preservation of capital.
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GrantGannon		#18	[url]	[-]
Posts: 1085 May 5, 2008 10:57 AM	Or better yet, invest it and pretend like you never got it. You will thank yourself in 25 years, when you may actually NEED it. Best advice in this thread.
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BigErnMcracken		#19	[url]	[-]
Posts: 1470 May 5, 2008 11:04 AM Registered Member	go to Amazon...type in The Total Money Makeover by Dave Ramsey....Read it...decide after that what you want to do. It is cliff-notes for people who dont know what to do with money (which is essentially 98% of America). "I am a member of the Sons of the Confederate Veterans......I know a thing or two" -- Cowbell9--
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SoxFan343	If I may ask	#20	[url]	[-]
Posts: 2789 May 5, 2008 11:04 AM Registered Member	Why do you want a relatively quick return? If there is a reason you need a relatively quick return, be prepared to take on some risk. If not, avoid the relatively quick return. That would be my advice. Does your employer have a retirement plan? Do you have an IRA? Do you own a home? If you do not, have you considered buying one?
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