Comments on: Why individual stocks are poison http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/ Your personal finance advocate—putting consumers first! Sat, 28 May 2011 14:35:38 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jane http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-284 Jane Wed, 24 Mar 2010 01:50:08 +0000 http://janebryantquinn.com/?p=722#comment-284 Hi, you're posting correctly. Comments come to me first for approval first, then I put them up. Hi, you’re posting correctly. Comments come to me first for approval first, then I put them up.

]]> By: Perkins http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-283 Perkins Tue, 23 Mar 2010 17:56:23 +0000 http://janebryantquinn.com/?p=722#comment-283 Hi, It doesn't work when I try to post a question or submit a comment? What happened? Perkins Hi,

It doesn’t work when I try to post a question or submit a comment?

What happened?

Perkins

]]> By: Perkins http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-282 Perkins Tue, 23 Mar 2010 13:48:32 +0000 http://janebryantquinn.com/?p=722#comment-282 Some time ago, I posted a question about TIPS...now I can't find it so I can't find the answer. I can't remember where I posted it. Some time ago, I posted a question about TIPS…now I can’t find it so I can’t find the answer. I can’t remember where I posted it.

]]> By: Jane http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-227 Jane Sat, 20 Feb 2010 23:26:17 +0000 http://janebryantquinn.com/?p=722#comment-227 The prime rate is a lending rate. Money funds are tied to savings rates, which are lower. A money fund largely in Treasuries returns less than 1% today. The prime rate is a lending rate. Money funds are tied to savings rates, which are lower. A money fund largely in Treasuries returns less than 1% today.

]]> By: Jane http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-226 Jane Sat, 20 Feb 2010 23:24:24 +0000 http://janebryantquinn.com/?p=722#comment-226 Put it into a target retirement fund--e.g. Vanguard, whose target funds follow index funds. It will be rebalanced for you automatically, which is a way of limiting risk. If you put it all into REITs, you are betting on just a single, narrow part of the market to perform well. All your eggs in one basket. And thanks for reading the book--you'll help with advisers in Chapt 32. Put it into a target retirement fund–e.g. Vanguard, whose target funds follow index funds. It will be rebalanced for you automatically, which is a way of limiting risk. If you put it all into REITs, you are betting on just a single, narrow part of the market to perform well. All your eggs in one basket. And thanks for reading the book–you’ll help with advisers in Chapt 32.

]]> By: Perkins http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-200 Perkins Sun, 14 Feb 2010 18:19:45 +0000 http://janebryantquinn.com/?p=722#comment-200 I've been wondering for 2 years where to put my IRA..since I know very little about investing, I've been reading up on it for many months, but I still have a long way to go. Right now, my traditional IRA is in a savings account...which is a temporary parking place. I was wondering if I could put it in a high-dividend REIT? I currently have $14,000. Should I put only 5% of it in a REIT and the rest in a nice index fund? Or all of it into a lifecycle fund? I'm 48 years old. I have doubts about lifecycle funds..so I was thinking of putting the IRA into 7 or 8 different things...maybe a little bit into a REIT? a little bit into an index fund..a little bit into a bond fund..a little bit into a money market mutual fund? But I have no idea how to rebalance..in fact, i didn't even know about rebalancing until last year...I will be adding another $5,000 for this year...from savings. Or maybe I could just put it all into a safe enough REIT that has both high dividends and just enough growth to make it worthwhile. I tried interviewing 2 financial advisors in order to get some help with my IRA, but I was not comfortable with them..so I did not hire them. I would rather read your whole book before hiring any financial advisors so I can protect myself from the unscrupulous ones. I’ve been wondering for 2 years where to put my IRA..since I know very little about investing, I’ve been reading up on it for many months, but I still have a long way to go. Right now, my traditional IRA is in a savings account…which is a temporary parking place. I was wondering if I could put it in a high-dividend REIT? I currently have $14,000. Should I put only 5% of it in a REIT and the rest in a nice index fund? Or all of it into a lifecycle fund? I’m 48 years old.

I have doubts about lifecycle funds..so I was thinking of putting the IRA into 7 or 8 different things…maybe a little bit into a REIT? a little bit into an index fund..a little bit into a bond fund..a little bit into a money market mutual fund? But I have no idea how to rebalance..in fact, i didn’t even know about rebalancing until last year…I will be adding another $5,000 for this year…from savings.

Or maybe I could just put it all into a safe enough REIT that has both high dividends and just enough growth to make it worthwhile. I tried interviewing 2 financial advisors in order to get some help with my IRA, but I was not comfortable with them..so I did not hire them. I would rather read your whole book before hiring any financial advisors so I can protect myself from the unscrupulous ones.

]]> By: Perkins http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-199 Perkins Sun, 14 Feb 2010 17:55:16 +0000 http://janebryantquinn.com/?p=722#comment-199 I see from bankrate.com that 3.25% has been the prime rate for the past year or so. Is it true that money market mutual funds are always higher than the prime rate? That is, if the prime rate is 3.25%, does that mean that the interest rate on a money fund will definitely be at least 4%...or at least more than 3.25%? I see from bankrate.com that 3.25% has been the prime rate for the past year or so. Is it true that money market mutual funds are always higher than the prime rate? That is, if the prime rate is 3.25%, does that mean that the interest rate on a money fund will definitely be at least 4%…or at least more than 3.25%?

]]> By: Jane http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-188 Jane Fri, 12 Feb 2010 13:35:51 +0000 http://janebryantquinn.com/?p=722#comment-188 The QQQ (now the QQQQ) is an ETF (a fund that trades like a stock) representing 100 principally high-tech companies that trade on the Nasdaq exchange. It's an index for a particular, and speculative, portion of the stock market, not representative of the market as a whole. The QQQ (now the QQQQ) is an ETF (a fund that trades like a stock) representing 100 principally high-tech companies that trade on the Nasdaq exchange. It’s an index for a particular, and speculative, portion of the stock market, not representative of the market as a whole.

]]> By: Jane http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-187 Jane Fri, 12 Feb 2010 13:30:35 +0000 http://janebryantquinn.com/?p=722#comment-187 As you may remember, Charles Givens had a lot of legal troubles and, before his death, got out of the financial advice business. You can find the prime rate by entering the term into any search engine or at bankrate.com. Money funds will be 20% if hyper-inflation hits the US--in which case your 20% interest still won't be worth anything, in extra purchasing power As you may remember, Charles Givens had a lot of legal troubles and, before his death, got out of the financial advice business. You can find the prime rate by entering the term into any search engine or at bankrate.com. Money funds will be 20% if hyper-inflation hits the US–in which case your 20% interest still won’t be worth anything, in extra purchasing power

]]> By: Perkins http://janebryantquinn.com/2010/01/why-individual-stocks-are-poison/comment-page-1/#comment-185 Perkins Thu, 11 Feb 2010 14:49:53 +0000 http://janebryantquinn.com/?p=722#comment-185 Charles Givens had some really interesting things to say...I don't agree with everything he says, but he does have some really fascinating ideas, such as...look at the Prime Rate to see what you should be invested in. For example, he said the following: **** Can you ever make money in a money market mutual fund? Of course. In 1981, with the Prime Rate averaging 18%, money market funds were paying as much as 20% interest! Of course, when the Prime rate is 11%, and you are in a money market mutual fund, you are averaging only about 11% on your money. ****** How can I find out what the current Prime Rate is? He said that it's the easiest of the interest rates to follow. It moves slowly and does not change direction as often as stock prices do. It has changed direction only 11 times in ten years (at the time the book was written). Will the Prime Rate ever be at 20% again? With smiles, Perkins Charles Givens had some really interesting things to say…I don’t agree with everything he says, but he does have some really fascinating ideas, such as…look at the Prime Rate to see what you should be invested in. For example, he said the following:

****
Can you ever make money in a money market mutual fund? Of course. In 1981, with the Prime Rate averaging 18%, money market funds were paying as much as 20% interest! Of course, when the Prime rate is 11%, and you are in a money market mutual fund, you are averaging only about 11% on your money.
******

How can I find out what the current Prime Rate is? He said that it’s the easiest of the interest rates to follow. It moves slowly and does not change direction as often as stock prices do. It has changed direction only 11 times in ten years (at the time the book was written).

Will the Prime Rate ever be at 20% again?

With smiles,
Perkins

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