Investment Basics

Need ideas best way to invest 20k

BruceWells — Fri, 20 Nov 2009 06:24:49 GMT

My CD has matured and I will invest the 20k at Vanguard in a taxable account. I am thinking of an ETF, VWO (Emerging Markets). Is it wise to invest this amount in a single ETF? Perhaps VWO and VTI (total stock market). This is a buy-and-hold investment and I can handle some risk.

Capitilisation or Distribution?

wentworth — Fri, 20 Nov 2009 06:08:38 GMT

I find funds with the same name but different ISIN and grouped together in the fund website. Could someone let me know what the difference is?

financial advisors

pinfish — Sun, 25 Oct 2009 01:52:29 GMT

I have been concentrating on my job over the last 5 years. I have paid off most of my debt. Prepaid my daughters college tuition. I have saved about $100,000 to invest. I have maximized my 401k since the beginning, otherwise, investing is fairly new to me. I have been reading, but there are so many choices, and I don't feel secure in my decisions. I have meet with 2 advisors to help me in the beginning until I can learn more so that I can take over. I have not decided who to go with yet, and am going to meet with a 3rd. Obviously, no one is more concerned about my returns other than me. What is the average percentage of the overall portfolio that these people charge (fee- only). The 1st guy was 1.75%. I meet with one guy that was fee based - all of the funds had 12b1 fees. I didn't really seem comfortable with that system. Once I learn more about investing I will assume more decisions myself- I just don't want to jump in and make stupid mistakes myself from the get go. What are your thoughts on advisiors - what is the most important thing that I should be looking for in an advisor? Thanks.

Complete newbie question bout Roth IRA

awstauffer — Tue, 17 Nov 2009 16:04:25 GMT

Ok, first off please don't send me to the slaughterhouse over this question. I am sure its very simple yet for the like of me I can't help but ask.

If I open a Roth IRA say with Vanguard, does this mean all my funds have to be Vanguard funds or can I purchase others I like over the years and have them in my port. Or do I need to open a non-retirement account and just buy those funds as a taxable port?

Adam

Macroeconomic podcast

levander — Thu, 19 Nov 2009 20:47:12 GMT

Has anyone found a good one?

I've already found the one at Fundadvice.com. But, that one seems like endless reminders to re-balance your portfolio and asses how much risk you are willing to take.

More interested in podcasts talking about the value of the dollar, why commodity prices are going up or down, etc.

If you gotta good one, I'd love to hear it.

Since people who are interested in podcasts are probably in this thread, I'll go ahead and plug 2 of my favorites. "The Moth" and "This American Life" are two great podcasts that are focused on story-telling. They have nothing to do with investing. Just people telling their stories. I listen to several, but those two are head and shoulders above the rest. I just plug them here because they well deserve the publicity. Not just because they're something if you've got some time to waste, you should check them out.

Having to use FDIC to recover funds

herefishy — Tue, 17 Nov 2009 19:12:18 GMT

If an institution fails and is insured by the FDIC approximately how long does it take to get your money back. Do they pay any interest during the recovery time?

Someone clue me in

Armorhouse — Thu, 19 Nov 2009 01:26:47 GMT

I have a slice and dice portfolio consisting almost entirely of conventional mutual funds. In talking with a former advisor today (he moved to another firm and is trying to get me to move too) he flat out stated that he is advising his current clients to buy only ETFs and suggested I should convert my holdings to them also.

Could someone give me a quickie pro and con comparison of mutual funds vs ETFs? I want to make sure I'm not just getting half the picture from this guy.

how do I know which fund is tax efficient for my taxable account?

wistrick — Wed, 18 Nov 2009 21:56:37 GMT

how do I know which fund is tax efficient for my taxable account? Can I get this info thru the prospectus?

Is it better to open a "taxable" a/c directly with the fund company or with brokerage a/c? I found too much papers to handle if open directly w/the find company vs brokerage a/c.

Does brokerage a/c monitors my cost basis when I sold my shares by end of year ?

Any inputs are much appreciated.

Where can I look at all the analyst reports for a company?

AndyinSanDiego — Wed, 18 Nov 2009 08:46:46 GMT

Hey guys,

I am wondering if there is a good website where I can find all the analyst information on a particular company. I want something that has everything in one place, has information on each analyst, and each analyst's past reports. Morningstar is a good place to see the consensus, high, low, and a short term history of estimates, but I want something that identifies each analyst and has their own reports.

Thanks in advance,

Andy

Having to use FDIC to recover funds

herefishy — Tue, 17 Nov 2009 19:12:09 GMT

Sorry for the double post

Young artist looking to invest for a more independent future.

sjdjohnson — Sun, 15 Nov 2009 05:00:31 GMT

Hello,

I am brand new to investing, still in college (just finishing BFA and heading to grad school next fall) and receive a monthly allowance from a trust; roughly $2400. I've been stashing close to $700 per month in my savings account for awhile but I'm very interested in exploring more aggressive investments.

I'm 24 and I'll be "in school" for probably another 4-6 years and afterwards would like to moving toward an independent lifestyle (as much as is possible). What are my options or what direction would a more savvy and experienced investor take?

index funds vs. individual stocks

youngly — Mon, 09 Nov 2009 01:36:01 GMT

So several books I've read seem to be big proponents of intelligent stock buying versus investing in index funds and mutual funds. I'm 28 and my husband is 35 and I have been purchasing stocks for us within our roth IRA's (mine is only 14k with a range of risky to blue chip stocks and 10% in the freedom 2045 and his is 5k with more safe stocks and an international index fund). I'm trying out the million dollar portfolio suggestion of buying 12 stocks for one year. I think with time, I will learn a lot and really enjoy buying stocks.

However, my in-laws all very strongly think I should only be investing in mutual funds or at least index funds. I've read articles on the fool about why stocks can be much better, so I'm a big proponent of that, but everyone keeps saying to just put it in a target retirement fund and forget about it. A few years ago I did just that with Fidelity and it has done horribly compared to my stock purchases. Because I am investing so long term, I am open to experimenting and to suggestions.

Thanks!!!

You may only Need a Bal Fund & Treasuries..

Limoman — Sat, 14 Nov 2009 14:55:32 GMT

Subject : Potential Using just a Balanced Fund and Treasuries and Being "Flexible"... and after you have owned them for a few yrs and really watch them ( Along with Getting a Couple of Good Financial Newsletters and Websites ) you can pick up some hint's on helping you do some safer "Flexible" moving around (or market timing for you purist..)

The Key to running your own business is to Use People who are Smarter than you at their Specific Professions and you just Co-ordinate it... and there is No reason to Re-Invent the Wheel or be some kind of T/A guru for investing either or owning a fist full of Sector Equity and Bond Funds.. having the Right Questions comes 1st and having the right people to provide those answers comes 2nd..

And her's a Little Secret..

You can just use a Decent Bal. Fund and Treasuries, just like those Mgrs do..but go 1 step further..

Bull markets> 100% in Your Bal Fund..Don't care what % allocation it is, from a 40/60 to a 80/20

Bear yrs: Cut your Bal Fund by 50% and move that $ into Treasuries.

Example: Using VWELX and VUSTX ( LT Treas) Est. per $1k cost basis and not rebalanced.. Rebalance it yourself to get more accurate #'s..

99': VWELX = + 4% = $1,040 Est. Tot. Value.

00-02': 50% VWELX AND 50% VUSTX = +24% = $1,312 ETV

03'-06' = VWELX = +54% = $2,170 ETV

07'-08 = 50/50 = VWELX = - 14% , 50% VUSTX = +31% = +8.5% = $2,352 ETV.

09': VWELX = + 20.5% YTD = $2,835 ETV.

Now do this same procedure using OAKBX and Treas.

or anyother AMBF you have..

and you have an idea of what I made on doing this..( not as accurate in my being Flexible or Market Timing/Guessing Expertise) and I only started doing this using only 25% of my Total $ in my AMBF's in 02' and increased that to over 50% in 04' and 75% in 07'' and why I am so adamant on using Bal. Funds for us More Simple Minded InWestors.

and I feel it's safer playing this game using Moderate to Conservative Bal Funds vs just Equities . Some I know, using a Port of Index (and others using Non Index) Equities and Bonds have been very successful doing this for yrs and learned it from them and following them as well.

but, they aren't going to tell others Until AFTER they made their Moves..Which is Understandable to me..

Like I didn't want to tell others to Reduce CGMFX in Late 07', until AFTER I got my $ out of it's super run up.. and I did in early 08' and had done so in early 02' and 04'.

And even reducing my Bond Port by 50% and Moved that $ into Treasuries in 07-08'.. and then back to my More Aggressive Bonds for a Recovery play in 09' ( did the same in 00-02' and 03' )

and to Go with Aggressive Bal Funds going into this yr ...as a Recovery play..of DCA ing into them the first 3 mos., which was a set back in March, but has recovered very well since.

And not based upon my Expertise, just passed on what others I follow were and are doing..

And sorry, Whom those Resources are , are N/A..maybe release that list in my Will after I'm gone..but I doubt it, since my Kids have that list and it would be determental to them and I doubt they will release it..

But, If you spend the time, effort and $, you can find similar resources in a few yrs, like I did yrs ago..

And FYI? All May Not be what they Appear to Be...

A lot of Investment Advisors to Financial Columnist use Balanced Funds and just Either Simulate them or use part of what they do and get paid for doing it for clients..and none the wiser..

Sneaky aren't they...

And You could sound really good in these Boards by just telling everyone else what to buy & sell. by just following them as well ( or even using some M* Analysis articles) and passing it onto the rest, as some do in here...and just don't divulge your resources..and impress you..

Investing in Bulgaria

investnet — Thu, 12 Nov 2009 10:47:05 GMT

For anyone interested in investing in Bulgaria, the following information may be useful.

The American University in Bulgaria, in partnership with Bulgarian software company Eastisoft and the American Chamber of Commerce in Bulgaria,have launched a new website - www.InvestNet.bg

This website promotes Bulgarian investment advantages and serves as a networking tool for communication, interaction and exchange of information among investors, governmental institutions, sectoral organizations, private companies, and foreign commercial attachés in Bulgaria. The website also publishes useful materials, analyses, reports, and surveys on Bulgaria.

For more details, check out the website; www.investnet.bg

What to put where?

KrisH19 — Sat, 07 Nov 2009 01:25:19 GMT

Hello,

To start I've been investing for 1-2 years now but I'd like some guidance.

I currently have a brokerage, Roth IRA, and a normal IRA (employment) all with the same company. I have a firm grasp of AA but I'm wondering what exactly to keep in my Roth.

I'm looking for advice on how to split my AA between these 3 accounts. Obviously I want to keep anything taxed at normal rates in my tax advantaged accounts, but does this mean keeping most of my income producers in Roth > IRA > Brokerage?

I take my employers match 100% for my IRA, I've been maxing my Roth and putting the rest of my investment money in my brokerage. Over the last 6 months my 3 accounts have gotten all mixed up and I'm looking to rebalance appropriately.

Some of my favorite MFs include:

MCHFX

MSMLX

OAKBX

YACKX

USAGX

TGMNX

PTTDX

Any suggestions would be great, thanks.

Total return versus total cost

r1gInvest — Fri, 06 Nov 2009 21:53:03 GMT

Could anyone explain to me why Morningstar has decided to record dividends in the "Total cost" column versus the "Gain/loss since purchase" column in their Portfolio Manager? This change was enacted two months ago. When I called to inquire they told me that subscribers wanted this.

This makes absolutely no sense to me. Any input would be appreciated. Thanks.

This weeks Pharma merger tax questions

carlinredmond — Sat, 07 Nov 2009 04:10:30 GMT

I have been given contrary information from my accountant, investment advisor, and also confused by internet research. I thought I might try this forum for clarification as to whom I should believe.

I bought Schering-Plough in January, two months before the Merck merger was announced. They have an interesting structure wherein my gain does not include the shares in Merck, however, apparently the IRS will consider the cash portion a short term gain by no fault of my own.

I have owned Wyeth since Christ was a child and it appears that I will take long term capital gains on the entire offering,including the Pfizer share value, as if I sold the Wyeth stock.

If anyone here has knowledge of why these deal structures are treated differently, and how I can minimize my tax consequences, which is my primary goal from these passive investment situations, it would be greatly appreciated.

Long term tax savings with ETF's vs index funds

pinfish — Sun, 08 Nov 2009 02:48:15 GMT

I put this in the EFT forum, but decided to also put it here since it was not about a specific ETF.

I'm 38 years old and am building a long term (20 year) taxable portfolio. I will be using index funds or EFT's- I can't decide which is the smartest move. I have a sum of greater than $100,000 to start with and then will be dollar cost averaging after that. I have seen that the average tax savings of EFT's over index funds have been 0.36% over 3 years and 0.77% since the eft's inception. If investing $1000 at each transaction ( lets say 4 trades per month) on scottrtade, $7 is 0.7%. Obviously this fee is when you buy, and when you sell. If this math is carried out over 20 years, how much is the real tax savings- assuming 15% long term capital gain taxes, and a 10% annual return? I can't seem to find "real world" examples that clears this up.

Also, what type of bond fund would be best in a taxable account.

S&P 500 200-day moving average

nycomm1 — Fri, 06 Nov 2009 17:39:59 GMT

I'm looking for a website at which I can access this information and/or procure software that would allow me to construct my own moving average. Any suggestions? Thanks.

CD's Money Market Accounts as safe investments

jerols — Mon, 02 Nov 2009 14:10:52 GMT

I have a moderate amount of money to put aside and I'm interested in safe investments such as CD's and/or a money market accounts. My risk tolerance is lower and lower these days given the downturn, and I don't want to lock into anything more than 5 years out. Any suggestions on how to proceed with research? I have done a preliminary look at bankrate.com to compare rates.

Thanks

Jean

Estimating alpha

Carbonator — Wed, 04 Nov 2009 21:01:50 GMT

Hey guys,

using excel I've developed a simple program that calculates average returns, weekly returns (etc.), standard deviation and beta for a given stock using daily data. The beta coefficient i simply estimate using linear regression (Rm = S&P500).

I am also interested in, however, calculating the alpha for the stock in question, although I know this usually only is used within the hedgefund business. I inquired my corporate finance professor on the subject, but he had never heard of alpha.

I've done a bit of searching the web, but I couldn't find any explainations that were applicable to my daily data.

If any of you should happen to have any suggestions as to how I might go about estimating the alpha, I'd be very grateful.

SUPER NEWBIE. need some direction. heres my quick intro

BIGMANNY — Mon, 02 Nov 2009 21:02:52 GMT

hello my name is manny i would like to get into investing and i have been reading online at different site and i always here mention to morningstar which is why i am here. i am 32 i have a retirement at work which i put in the max weekly. but i want to stark investing in stocks or mutual funds and i would have to say that i have been leaning toward mutaual funds from what i have been reading. i was real eager to just throw my money in but after reading i had to hold on to it and learn a little more before i do this. i have $10,000 extra put asside that i have to put into the market. i have concluded that i want to try this at high risk so i may try and get a high return.but i have no idea where to start. i opened an account at etrade but have not funded it yet due to the fact that i had no idea what i was doing. can anyone give me some pointers or direct me where to start. articles here books,sites anything i would appreciate it. i think i will give myself a few months to learn before i put my money in, unless there are lowrisk ones i can put my money in for now untill i decide were i really want it.

"The fund invests from the bottom up", Please explain this?

gazelleNtense — Tue, 03 Nov 2009 01:50:21 GMT

"The fund uses a value-oriented approach and invests from the bottom up". Please explain this term? Is this good? Thank you.

ROE/ROA vs Projected Earnings

Uncertain — Sun, 01 Nov 2009 00:39:45 GMT

My stock portfolio currently has a much lower ROE and ROA relative to the S&P 500, but much higher projected earnings than the S&P 500. I'm diversified over quite a bit of asset classes with plenty of international exposure. I understand the risk, but am I taking a risk that doesn't have the appropriate reward? I'm 30 years old which makes risk ok, but is this fundamentally off?

Setting Trailing Stops

snuffbeans — Fri, 30 Oct 2009 15:15:57 GMT

Using an ATR as a basis, what multiplier is recommended to set a trailing stop?

Would you use a percent or straight number of points?