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Archive for the ‘Investing’ Category

Why You Don’t Need A ROTH IRA

March 27th, 2012 5 comments

Source: via Jeff on Pinterest

Jeff Rose of has issued a challenge to personal finance bloggers to get the word out about why you (especially if you are a young adult) need a ROTH IRA. It all started with this post on that Jeff wrote after speaking to a group of young people on personal finance. There are over 125 bloggers who will be addressing this issue on March 27 as well as some company promotion. Thanks to Jeff for taking the time to organize this event. The link for the event is here.

I don’t know how many of the bloggers will agree with Jeff about ROTH IRAs. I suspect that most of them will. It is my desire to give you another view of the story.

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Investments I’m Watching…When To Buy?

March 23rd, 2012 7 comments

Whenever we get stock movement you will get an opportunity to buy some quality investments at attractive prices. First, keep an eye on the macro events to give clues on where to look.

Since the start of 2012, there has been a rotation among sectors. The previous stocks in the dog house, Financials, are now the darlings. Since the start of the year, Bank Of America (BAC) is up over 75%. This is little consolation to those who may have bought BAC when it was trading over 40 a few years ago. Investments like these that have been beaten down so much can make big moves like this simply on whispers or hunches that the economy is improving. Financial stocks as well as consumer discretionary, and energy are considered to be economically sensitive. When the economy does well, these companies should do better because demand increases.

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The Best TV Programming for Investors

March 17th, 2012 2 comments

We live in a mass media culture. We also live in a time where investing has become democratized. Despite the war against the 1% and the investor class going on in the country, the reality is that the average person is more invested in the markets than they realize. Not just their 401(k)s, but their pensions, their personal college funds, university endowments that provide financial aid, sometimes even their health care accounts.

This mix of mass media and mass ownership is a recipe for bad financial programming. There’s a lot of bad financial stations and programs out there. They focus on the wrong issues and cover the shortest term market problems and gyrations.

Is there anything good out there?

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Growth Plays Dividend Investors Can Love

March 3rd, 2012 5 comments

Dividend investors get a leg up on other investors because a company that shares profits is much more likely to be a quality company. Or should I say, it’s much more likely that you will be able to find quality companies by this attribute. The discipline required to consistently make a profit is hard in any business and only the highest quality ones can increase them over time. A dividend can assist you to find these companies because a profit that is paid out can’t be faked. At least not for the long term.

But should you never invest in so called growth companies? If you have been an investor for some time you will realize that growth and dividends are not mutually exclusive, but generally speaking many pure play growth companies don’t pay dividends. And, many investors have yield thresholds such that they do not consider companies that have very low or non-existent yields.

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Think Options Are Risky? Here’s Why You Should Use Them!

February 28th, 2012 3 comments

If you think stock investing is risky, then option investing is even riskier. There is some truth to this but it very much depends on what it is you are trying to do. If you invest in low beta stocks or in Dividend Aristocrats, you can lower your investment risk. Similarly, there are option strategies that are very conservative.

The Risky Option Strategy

The risky way to use options is to buy an option in the expectation of a specific outcome. If that outcome doesn’t occur you lose your money because time runs out on the option. For example, let’s say you think that Ford (F) is going to have a great quarter.

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