Turn Off Ads?
Page 3 of 10 FirstFirst 1234567 ... LastLast
Results 31 to 45 of 136

Thread: Anyone want to talk stocks and retirement?

  1. #31
    Waitin til next year bucksfan2's Avatar
    Join Date
    Dec 2006
    Location
    Cincinnati
    Posts
    10,180

    Re: Anyone want to talk stocks and retirement?

    I guess it would be helpful to define DRIP. Its a dividend reinvestment program. It usually takes a phone call to set it up, and any dividend that is paid is automatically converted to shares of that company. Its compounding interest with stocks. Conventional wisdom is you reinvest your dividends until the time comes when you need the income flow that dividend stock provide.

    Altria (MO) is a great dividend payer but it also is raises an interesting question. Are you ok investing in a tobacco stock, even if you don't agree with tobacco and realize the effects it has.

  2. Turn Off Ads?
  3. #32
    Member medford's Avatar
    Join Date
    Mar 2002
    Posts
    2,083

    Re: Anyone want to talk stocks and retirement?

    I think I'd rather have Phillip Morris international for the long run than Altria right now. Actually I do, I sold off MO and the Kraft spin off some time ago and held onto the Phillip MOrris International (PM) spin off. MO has been very good to me over the years, steady stream of dividends and I made a pretty nice profit off of MO, Kraft and now PM

  4. #33
    Member
    Join Date
    Feb 2008
    Posts
    1,007

    Re: Anyone want to talk stocks and retirement?

    Wow....tons of info. Medford....here is a little background

    35 years old
    Wife and kid..teenager
    I have a pers and a deferred comp program for retirement right now
    The 100 dollars is basically what I have that is not put in savings, it's kind of what I call my monthly waste money....after everything is all said and done each month I usually find an extra $100 in my checking account.....that why I wanted to start with that...that way if I lose it all on stupid moves I won't feel so bad....I could do more but I am not comfortable doing that at this time, maybe when I learn more and feel a little better about investing I might add to that number, just not at this stage in the learning process...

    I will however start with talking to my HR people and see if I am taking advantage of all my options at work before I start to invest anywhere else. I agree that is smart. I have no issue talking to them and sounding dumb, trust me.....I have spent 15 years not knowing where my money goes, the only embarrassing part is not doing this sooner.

    Keep the advice coming. I studied some online sites about drips last night.

    Oh yeah, I did the Dave Ramsey class through my church....great program, lots of common sense stuff that most people don't consider but his program is great.

    We have a mortgage and 2 small credit cards that don't even equal 1k....we pride ourselves on little to no debt....we own both vehicles. We have a small savings account that we have for our teenager for college.....it's under 20k and I refuse to touch that unless it's a guaranteed program.

    Any other advice is great.....keep em coming, I will watch this thread daily.

  5. #34
    Member JaxRed's Avatar
    Join Date
    Apr 2000
    Location
    Jacksonville, FL
    Posts
    9,546

    Re: Anyone want to talk stocks and retirement?

    The chances of losing all your money is incredibly remote as long as you stay out of stuff like options.

    Many people think a pullback is coming since stocks are pretty high right now. So a bad pullback might be 25% or so.

  6. #35
    Waitin til next year bucksfan2's Avatar
    Join Date
    Dec 2006
    Location
    Cincinnati
    Posts
    10,180

    Re: Anyone want to talk stocks and retirement?

    Quote Originally Posted by medford View Post
    I think I'd rather have Phillip Morris international for the long run than Altria right now. Actually I do, I sold off MO and the Kraft spin off some time ago and held onto the Phillip MOrris International (PM) spin off. MO has been very good to me over the years, steady stream of dividends and I made a pretty nice profit off of MO, Kraft and now PM
    I decided to do the moral thing and buy PM because it didn't effect any Americans! I owned MO for a couple of years, loved the dividend, sold it because I thought it had hit the top end of its range. It was a mistake because I could have held onto it and just collected the 6%. I picked up PM because of the growth as well as the growing dividend.

    I haven't really read or follow much of Dave Ramsey. I have just heard that he can get extreme. Some people need that type of advice to get their finances in order. But what I have found out is that in even some of the bad investment books I have read (there are many) you can find good solid advice in them.

  7. #36
    Member medford's Avatar
    Join Date
    Mar 2002
    Posts
    2,083

    Re: Anyone want to talk stocks and retirement?

    bucksfan2,

    I caught a bit of Dave's radio show the other evening. Someone was calling in w/ a question about travel to see family or whatever. Anyways, as the conversation went on, Dave made the point that he likes his system to be tough, to force people from expering debt before vacations and what not, so that they can learn to live at their true minimum and feel the freedom of financial independence once they get rid of that debt.

    thought of another book that I've read aside from the Peter Lynch stuff was a book called buffetology (or something like that) by Warren's former daughter in law. She allegedly takes you thru the practices that she picked up from Warren during the time she was married to his son. I don't know how true that is, but there is a lot of good stuff in there about valueing companies.

    Speaking of Lynch, he often wrote about the value in finding smaller local companies that you have a feel in that have room to grow, restaurants being one of them. I'm still kicking myself for not buying Chipotle however many years ago after McDonald's spun them off and they fell into the upper 30s/lower 40s range. I thought they were a tade bit overpriced, but certainly fit all the criteria that lynch laid out years ago. Now that they sit above 300, closing in on what would have been a 10 bagger, wish I would have bought some back then. Live & learn.

  8. #37
    Member
    Join Date
    Feb 2008
    Posts
    1,007

    Re: Anyone want to talk stocks and retirement?

    I have a family member who "got rich" from Chipotle and when I asked him why he put so much money in them when they were "young" he said...."I liked their food"....he started with just a little bit and as they started to grow he started putting all his eggs in their basket....I understand that is the wrong way to invest but it worked for him and he laughs every time we talk about it....he truly invested in them cause he truly liked their food....

    Medford.....what are your thoughts on buying penny stocks? i have been reading several online message boards and have read where some people are suggestion you start out with penny stocks and learn the game from that standpoint.....not sure if I even agree with that, maybe I could understand it if I was only interested in trading stocks, but I am wanting to "invest", not just trade stocks.

    so at the age of 35, if I started with DRIPs and kept this poilcy going till I retire at the age of 55, would I be able to see a good chunk of money made from that in 20 years of doing that? I hope that makes sense.....

    my wife and I both started in PERS and deferred comp when we were 21 and started our careers, we both will be elgible to retire at 55 with full benefits from pers and our goal is to walk away from work at 55 and not look back.....we dont want to be the people who work past retirement because we HAVE to....if we work it will be cause we WANT to.....I think we both understand that with both our pers accounts and both deff comps we should be able to retire and live a good easy life......we want more....we want to be able to retire at 55 and live the good life with no financial strain whatsoever......so being that we are going to have 20 years in "investing", can we make decent money in 20 years? I understand that as I get older I am going to need to invest more than the 100/month.

  9. #38
    Member medford's Avatar
    Join Date
    Mar 2002
    Posts
    2,083

    Re: Anyone want to talk stocks and retirement?

    How good are you at excel? Like easy excel calculations/tables? I'm sure you can find something similar on the web, but I set up a quick and easy calculation table. The nice thing about setting it up in excel is it allows me to quickly change the constants and the vairables. I'd be happy to send you it if you PM me your email address. I'll warn that its very quick/easy if you know even a little about excel you could create you own in 2 minutes, I'm sure there is something better on the net, but I'd be happy to send it along at any rate if you like.

    Anyhoo, I put in some constants, basically putting in 1200 now (age 35) and ran it out 30 years. I assumed a 7% return (including dividends) and re-invested all dividends each year, plus an additional 1200 each season. Is it enough to retire? depends on what your needs are, and how much your PERS pays out at age 55 (or beyond)

    Using just the 1200 a year, plus 7% return each year 20 years of savings at those returns will generate just under $53,000 at the age of 55. here is the value of compound interst, work another 10 years and achieve those same returns, and you're nest egg will be worth $121,000. Now, lets change things up a bit, lets say you cut out some things from your budget (you say you're tight to begin with, but could you find an extra $100 a month?) Lets bump that up to $2400 a year and still assume a 7% return. In 20 years, you'll have nearly $106,000, while in 30 years you'll have $242,000.

    No imagine you had started that at 21 when you began working. You'd retire at 55 with $330,000 in the bank. Not bad. Enough to retire, depends on what you spend, how much your PERS is worth. I've read a retirement theory about the power of 20, or something like that. The theory is, take whatever your anticipated living expenses are at retirement and multiple it by 20. Then when you start retirment, take out 5% (1/20th) each year to live off of and invest the rest. The Motley Fool ran these numbers 10+ years ago when that site was fairly new, I'm sure its been done several times, but they tested it against the worst 20 year time frame (an expected number of years you spend retired before death) using the exact S&P 500 returns each year. I believe the time frame for the worst 20 year period started in the 70s, when over the course of 20 years, the S&P 500 was relatively flat. Even using that period, your return on investment using the rule of 20 you managed to make money before departing this world for whatever lies beyond.

    If you need 50,000 a year to live at retirement, that would be $1,000,000 for your rule of 20 net value. I don't know how PERS works, if its like the STRS program that my wife has, you'll get paid a % of your 3 highest earning years. So if you're making $80k in 20 years, you'll get whatever % of that they give you as your pension, then you'll need to make up the rest thru Social Security and any additional investments. Going back to my 1st calculations, using $1200 a year and 7% returns (giving you $53,000) and applying the rule of 20, that would net you a little more than $2,650 a year in addition to PERS and social security.

    Regarding your friend and Chipotle, "liking the food" is one of Peter Lynch's aspect, invest in what you know/like. Now just liking food somewhere isn't enough, you've got to put some work in, but certainly one reason why Chipotle sits above $400 a share today is because it has good food that people are willing to pay for despite lines often backed up to the door on a fairly regular basis and its been proven across many markets. However, you have one thing down that I like. It doesn't sound like your interested in "getting rich quick" not that that is a bad thing, just most people who get rich quick in the market, lose it just as quick, think of the tech bubble in the 90s where many stocks shot up above $100 but sit below $5 today. The best way to plan for retirement, the easiest way to plan for retirment, is to get rich slowly. Use the power of time to compound your interest, the earlier you start, the easier it becomes.
    Last edited by medford; 05-04-2012 at 10:26 AM.

  10. #39
    Member medford's Avatar
    Join Date
    Mar 2002
    Posts
    2,083

    Re: Anyone want to talk stocks and retirement?

    Penny Stocks, I've seen numbers that an overwhelming majority of stocks sitting below $10 never climb above that number. not that it doesn't happen, just that most penny stocks remain penny stocks until they move into bankruptcy. Investing is not "a game", I cringe at that notion every time I hear it. Warren Buffet didn't become a billionair by playing a game, he continually found great value in underperforming stocks and waiting for the market to catch up with the results of their business. He'll often buy and hold forever if he likes a company enough (like coke) knowing that a great company that stays a great company will continue to rise in value.

  11. #40
    Waitin til next year bucksfan2's Avatar
    Join Date
    Dec 2006
    Location
    Cincinnati
    Posts
    10,180

    Re: Anyone want to talk stocks and retirement?

    @lidspinner

    I would be very wary of the PERS system right now. They are going to run out of money and the tough decisions are being kicked down the road. The problem for many like you (me 30) is that how long can you kick that can down the road? As of right now they are doing their best to honor their obligations. IMO that can't continue to happen and tough decisions are going to be made. I think you need to operate as if all the money you were promised won't exactly be there. Now that I am off my soap box......

    I have never really heard anything good about penny stocks. Good solid stocks with solid dividends are a good way to invest in the market for me. But in the end its whatever works for you and what you are comfortable with.

  12. #41
    Member
    Join Date
    Aug 2001
    Location
    Los Angeles, CA
    Posts
    2,672

    Re: Anyone want to talk stocks and retirement?

    The other huge issue with penny stocks is the vast majority of them don't trade an an exchange. They trade on what's called the bulletin board or the pink sheets. What this basically means is that they aren't very liquid and when you buy and sell them the price you see isn't the price you're going to get. Penny stocks are a bad idea for a person just starting out.

  13. #42
    Member JaxRed's Avatar
    Join Date
    Apr 2000
    Location
    Jacksonville, FL
    Posts
    9,546

    Re: Anyone want to talk stocks and retirement?

    I also would absolutely avoid penny stocks. That is not investing. It is gambling.

  14. #43
    Member
    Join Date
    Feb 2008
    Posts
    1,007

    Re: Anyone want to talk stocks and retirement?

    Guys, I've gotten more from here than I've gotten from 3 months on financial sites....

  15. #44
    Member muddie's Avatar
    Join Date
    Oct 2009
    Location
    Raleigh, N.C.
    Posts
    1,974

    Re: Anyone want to talk stocks and retirement?

    Donald Luskin has an interesting take on the market going forward. This clip from the weekend edition of the WSJ. I found it interesting as there is a lot of talk about dividend investing here. I would be interested in you guys thoughts.

    http://online.wsj.com/article/SB1000...ctions_opinion

  16. #45
    Member muddie's Avatar
    Join Date
    Oct 2009
    Location
    Raleigh, N.C.
    Posts
    1,974

    Re: Anyone want to talk stocks and retirement?

    Quote Originally Posted by JaxRed View Post
    The chances of losing all your money is incredibly remote as long as you stay out of stuff like options.

    Many people think a pullback is coming since stocks are pretty high right now. So a bad pullback might be 25% or so.
    The French have reverted back to a socialist government and Merkel's coalition may be in trouble. The Eurozone is going to be a headache for a while and I honestly don't see a good end to this drawn out mess. Spain is a big problem that will get bigger. Domestically, job growth is slowing down. I think a near term pullback is realistic based on all these problems. Isn't this fun!


Turn Off Ads?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Board Moderators may, at their discretion and judgment, delete and/or edit any messages that violate any of the following guidelines: 1. Explicit references to alleged illegal or unlawful acts. 2. Graphic sexual descriptions. 3. Racial or ethnic slurs. 4. Use of edgy language (including masked profanity). 5. Direct personal attacks, flames, fights, trolling, baiting, name-calling, general nuisance, excessive player criticism or anything along those lines. 6. Posting spam. 7. Each person may have only one user account. It is fine to be critical here - that's what this board is for. But let's not beat a subject or a player to death, please.

Thank you, and most importantly, enjoy yourselves!


RedsZone.com is a privately owned website and is not affiliated with the Cincinnati Reds or Major League Baseball


Contact us: Boss | GIK | BCubb2003 | dabvu2498 | Gallen5862 | LexRedsFan | Plus Plus | RedlegJake | redsfan1995 | The Operator | Tommyjohn25