Investment Gurus

[ManSnake]

Bet all on black. You get to double your $ :thumbsup:

 

[Spooner]

Originally posted by: mugs
Er... wait, I think he means buy and resell used cars. Also talk to PAB, he'll give you all sorts of tips like cars with Jesus fish on the back are good moneymakers.

yeah, i don't have the time or energy to bother wiht that

 

[Fern]

Suggestions not yet mentioned

1. You don't say if you have any debt (credit cards or car loan etc.), if you do look into paying those off/down. For example, if they are charging you 8%, paying them down /off is like making an 8% return on your investment.

2. Are you maxing out on your 401K? If not, do so and use the $10k to make up for the smaller paycheck. Then plan to have your 401k deduction adjusted down for when the $10k runs out.

Fern

 

[crownjules]

Originally posted by: mugs

Originally posted by: phatj
give it to me. I made 28% of the stock market since april. I'll give you half of the profit

You're delusional if you think you can maintain anything close to that.

Why is he delusional? Because you're not smart and/or disciplined enough to do it? Why are you so quick to project your failures on to his successes? Or do you just buy into the whole 8-10% in a Vanguard account is ALL you can ever hope to achieve?

 

[dullard]

Originally posted by: crownjules
Why is he delusional? Because you're not smart and/or disciplined enough to do it? Why are you so quick to project your failures on to his successes? Or do you just buy into the whole 8-10% in a Vanguard account is ALL you can ever hope to achieve?

No one in the history of the world has been able to maintain that type of rate. And even if you do maintain it for a little bit, people will take notice. People will copy you and make your choices earn a whole lot less than when you were a small fish in the giant sea. So even your wonderful strategy becomes less and less wonderful as time goes on.

Bill Miller is the person with the longest winning streak on record. And his returns are only 15.88%. In the same time period, an S&P index fund would have returned 11.03%. So use this information when thinking about MAINTAINING a 28% return. Can ATOT's own phatj really beat the record holder by almost twice.

Thus, unless you are an all knowing god, it is delusional to think you can maintain 28% returns for years on end.

 

[DaveSimmons]

Originally posted by: mugs

Originally posted by: Spooner

Originally posted by: audiotherapy
maybe flip some used cars for 10k....

say wha?

Talk to PAB - you buy a used car and then flip it and commit insurance fraud.

Er... wait, I think he means buy and resell used cars. Also talk to PAB, he'll give you all sorts of tips like cars with Jesus fish on the back are good moneymakers.

LOL!
Listen to dullard, for this time window savings or a CD is a much better choice than vegas or even my beloved VFINX.

 

[AgaBoogaBoo]

Citibank's e-savings account offer 5%, might want to put it in there until you buy a place of your own

 

[Spooner]

Originally posted by: Fern
Suggestions not yet mentioned

1. You don't say if you have any debt (credit cards or car loan etc.), if you do look into paying those off/down. For example, if they are charging you 8%, paying them down /off is like making an 8% return on your investment.

2. Are you maxing out on your 401K? If not, do so and use the $10k to make up for the smaller paycheck. Then plan to have your 401k deduction adjusted down for when the $10k runs out.

Fern

I have a little outstanding college loan debt and a couple thousand i have on a credit without any interest (i just bought an HD TV hehe)

Interesting point made on the 401k deduction. I currently have it set at 6% because that is the max at which my company matches 100% so i'm really putting in double that. Anything more than that my company does not match

 

[ebaycj]

you could take your 10k and stick it up your ass !! (probably wouldn't get too much interest that way though, from the banks or otherwise).

 

[fitzov]

Keep it in a paypal account that gets you 5% apr and a dividend every month--and it's liquid.

 

[crownjules]

Originally posted by: dullard
No one in the history of the world has been able to maintain that type of rate. And even if you do maintain it for a little bit, people will take notice. People will copy you and make your choices earn a whole lot less than when you were a small fish in the giant sea. So even your wonderful strategy becomes less and less wonderful as time goes on.

Thus, unless you are an all knowing god, it is delusional to think you can maintain 28% returns for years on end.

Your first comment is just a flat out lie. Jesse Livermore? George Soros? Warren Buffet? Those are huge figureheads that speak of enormous market success. I also know several traders personally that consider 28% return in week to be a bad week. I've watched them trade live, seen them do their stuff, and it's amazing.

People can only copy you if you allow them to do so. That means you go out and publish your system. Ever heard of Turtle Traders? It's an advertised trading system that now is very hard to make a profit by. But the people that invented and used it became millionaires before it was published. It's edge was significantly diminished once that happened, hence it's modern day unprofitability.

 

[dullard]

Originally posted by: Spooner
Interesting point made on the 401k deduction. I currently have it set at 6% because that is the max at which my company matches 100% so i'm really putting in double that. Anything more than that my company does not match

When it comes to the 401k, be careful of fees. It may not be in your best interest to invest more than that 6% if the fees are higher than you'd get if you invest in another form of retirement account.

 

[dullard]

Originally posted by: crownjules
Your first comment is just a flat out lie. Jesse Livermore? George Soros? Warren Buffet?

That is showing your delusions. None of them were consistant large gainers. They were large gainers, but not consistant.

Look at Warren Buffet in 2001. And even if you ignore the consistancy part, the average gain is still just 22.6%. You'll have to beat Warren Buffet's record by 5.4% if you want to maintain 28% returns.

 

[JS80]

Originally posted by: dullard

Originally posted by: crownjules
Why is he delusional? Because you're not smart and/or disciplined enough to do it? Why are you so quick to project your failures on to his successes? Or do you just buy into the whole 8-10% in a Vanguard account is ALL you can ever hope to achieve?

No one in the history of the world has been able to maintain that type of rate. And even if you do maintain it for a little bit, people will take notice. People will copy you and make your choices earn a whole lot less than when you were a small fish in the giant sea. So even your wonderful strategy becomes less and less wonderful as time goes on.

Bill Miller is the person with the longest winning streak on record. And his returns are only 15.88%. In the same time period, an S&P index fund would have returned 11.03%. So use this information when thinking about MAINTAINING a 28% return. Can ATOT's own phatj really beat the record holder by almost twice.

Thus, unless you are an all knowing god, it is delusional to think you can maintain 28% returns for years on end.

There are day traders who get 20% returns a year consistently. It's harder for a fund manager with billions of dollars to manage to beat the market, but it is very feasible for an individual or a small hedge fund to have 20%+ returns a year. Even large hedge funds, such as Citadel, post uber returns over the long term.

 

[b0mbrman]

TD Ameritrade

$500 bonus for signing up, then stick it in a couple ETFs based on your risk tolerance.

Money locked up for about a year...

APY = 5% guaranteed + return on whatever ETFs you buy

 

[JS80]

Originally posted by: dullard

Originally posted by: crownjules
Your first comment is just a flat out lie. Jesse Livermore? George Soros? Warren Buffet?

That is showing your delusions. None of them were consistant large gainers.

Citadel? Peter Lynch?

By the time he resigned as a fund manager in 1990, Magellan averaged a staggering 29.2% annualized return since inception, and only underperformed the S&P 500 twice while growing to more than $14 billion in assets with more than 1,000 individual stock positions.

 

[dullard]

Originally posted by: JS80
Citadel? Peter Lynch?

Even they didn't have CONSISTANT 28% returns. Magellan averaging 29.2% had many years below 28% (and many above).

[*]You can be consistant.
[*]You can have a large average return.
[*]No one has succeeded with both. In reality, the large average return is what I would care about. But that isn't what we are talking about.

 

[MadPeriot]

What I did 3 years ago was invest most of my money in ING earning 4.0% interest. Some in IRA and rest in 401. I saved enough for a condo and pulled my money out of ING and IRA and now I have a half mil condo in So Cal. Now I rented out two rooms to have someone else pay for my mortage and starting to save money again.

 

[alrocky]

Originally posted by: Spooner
well, there's no gaurantee that i'll be buying in '07 though. Could be more like 08 or 09

I have other money that I could use toward a downpayment, so I don't even need this money to be all that liquid

Originally posted by: vi_edit
Right now you can pull around 5.1% at Vanguard in their "Prime" money market. If you wanted low risk, decent yield, that's probably your best and easiest option.

Vanguard Prime Money Market Fund (VMMXX) is a good place to park your money until you figure out what to do with it. Please clarify, will you use this $10K towards the future home purchase or is this strictly for retirement investment purposes?

 

[vulcanman]

Originally posted by: JS80
There are day traders who get 20% returns a year consistently. It's harder for a fund manager with billions of dollars to manage to beat the market, but it is very feasible for an individual or a small hedge fund to have 20%+ returns a year. Even large hedge funds, such as Citadel, post uber returns over the long term.

Day trading will make you lose your hair, your wife and your life. Get a real job. I used to day trade very actively while at work ... and the only one who made money was my brokerage firm ... thanks to all those commissions !!

No more! You are a small fish in a septic tank. Even if the big fish don't get you the water will !

Available - $10K
Since you had this in a CD all along ... I am assuming you don't have immediate plans to spend that money ... so it does not have to be all liquid.

Take $3.5K and put it in a high-yield account as someone suggested.

Take $3.5K in a conservative mutual fund - I recommend the Kinetics Paradigm Fund (WWNPX) or the Fairholme Fund (FAIRX).

Put the remaining $3K in a Sharebuilder account. Start with cash (you get ~5% return). Set up an automatic investing of $200 per month in a stock or ETF. Conservative Suggestions: Brookfield Management (BAM) or Leucadia (LUK). These are asset management companies that spread their risks across multiple sectors.

Later.

/\/

 

[intogamer]

Originally posted by: fitzov
Keep it in a paypal account that gets you 5% apr and a dividend every month--and it's liquid.

Dude have you ever read the prospectus?

Paypal takes a huge chunk from the always rising apr

 

[chuckywang]

5.37% APY at Countrywide Bank 3-month CD.

 

[Spooner]

Originally posted by: alrocky
Vanguard Prime Money Market Fund (VMMXX) is a good place to park your money until you figure out what to do with it. Please clarify, will you use this $10K towards the future home purchase or is this strictly for retirement investment purposes?

I'd like to eventually use this money toward a downpayment on a house

 

[alrocky]

As a rule of thumb any money that will be needed/used (ie purchase a house) within 5 years should be invested conservatively. (A drop in the stock market may result in loss of principal which you may not regain within the short time 5 yr. period.) Since you stated in the OP, that you're considering a home purchase as early as next year, you should follow the advice of DaveSimmons:

Listen to dullard, for this time window, savings or a CD.

Live frugally and save as much as you can for the house.

 

[enyce2k9]

i dont got much (ROUND 2K) in hsbc, and its earning me 5.05% APY, with the payments coming every 3 months.