Comments on: Beginner Investing Strategies

By: Ryan Guina

Ryan Guina — Mon, 23 Apr 2012 20:09:56 +0000

The only funds that are FDIC insured are typically Certificates of Deposit (CDs) or money market accounts, both of which don’t usually offer very good long term returns – at least, not enough to grow wealth over the long run. If you have risk aversion, then consider visiting with a financial professional who can give you a better idea of how the markets work in the long run.

As far as charging you to change companies, that all depends. Almost all target date funds have some sort of associated management fee which is charged to maintain the fund. If you decide to move to a different company, you can often leave your funds with your old company and just open a new account, or you can liquidate the account (convert it to cash), then transfer the funds to another IRA at a different company (just be sure to do a rollover IRA to preserve the tax benefits; if you cash it out, you may owe a substantial amount of taxes). Some firms charge a small transaction fee to buy or sell shares of a stock or funds, but it shouldn’t normally be a substantial amount. So in most cases, the cost to move your funds to a new brokerage will be either nothing, or very minimal. Just be sure to research this topic before opening your account so you have a better idea of which fees you may owe under different circumstances.

Here is a list of the best Roth IRA companies in our opinion.

By: Randa

Randa — Mon, 23 Apr 2012 18:40:47 +0000

If you start out with a target date fund, do companies charge you for changing the companies you’re investing in at a later date? Also, does anyone know of an IRA fund that is FDIC insured? I’m having trouble finding one at a brokerage firm. I’m looking at Fidelity, ING, or a similar company. Any advice would be appreciated.

By: Ryan

Ryan — Wed, 28 Jul 2010 12:58:13 +0000

Dennis, DCA is a rough concept that can work fine by itself, or if you take the concept and run with it, like you have done. The most important factor, in my opinion, is to make sure your actions reflect your investment goals and risk tolerance. It sounds like you have modified the concept for your situation in a way that works for you, which is wonderful. Just be sure to periodically review your trades for performance and compare the results to other possibilities. Investing is a situation where there is no one-size-fits-all solution.

By: dennis

dennis — Wed, 28 Jul 2010 01:12:33 +0000

Ryan,
have you been recommending any type of dollar cost averaging strategies for people trying to put away a specific amt of money on a monthly or quarterly basis?? i use a process that is a form of DCA that not only buys , but sells at specific junctures nailing down profits in overbought markets and buying into oversold ones…..its just hard to stay disciplined….any thoughts??

By: Hammachi Yakimono

Hammachi Yakimono — Mon, 15 Mar 2010 17:59:37 +0000

I started buying stocks more than 30 years ago. It was hard to get much information back then so I used lists from the almanac. My plan was to buy one stock and evaluate it, then buy another similar stock. I still have the first stock and recently sold the second.
Today there is much more information available, maybe too much. Investing in stocks is much like learning to ride a bicycle or use a computer. That is to learn by doing it. Wells Fargo is one of many stock transfer agents. Their shareholder services has a list of companies offering direct purchase plans. Some like Kraft Foods or General Mills are well known. Wells Fargo might be a good place to start. Information on these plans is available right there. A potential investor could ask a Wells Fargo representative what they recommend.

By: Ryan

Ryan — Mon, 15 Mar 2010 03:03:01 +0000

Great points, Hammachi. Not everyone is disciplined or educated enough in the stock markets to purchase individual stocks. But if you are willing to do the research and track you investments properly for tax reasons, direct purchases can save you money in the long run.

By: Hammachi Yakimono

Hammachi Yakimono — Sun, 14 Mar 2010 17:33:20 +0000

Mutual funds charge fees for investing. Minimums are $2500 or more and stock funds don’t beat the market average. By using direct purchase an investor can buy an individual stock for $300 or less, add money and reinvest dividends often with no fees. His chances of beating the market average are much better also.
I own several stocks all in large cap US Corporations. Most have been in business more than 100 years and all are good dividend stocks. I also have some money in no load mutual funds. I am switching some of the stock mutual funds to bonds. I think this will work much better.

By: Bill

Bill — Wed, 03 Mar 2010 14:27:48 +0000

hi there to all i have read every1′s comment & will be doing sum kind of
investment weathere it’s in the share market or sumthings i have noted
down, yes i am a beginner & i think i will do good at this path from knowin of
my knowledge i kind of like have a strong mentality for bussiness in the
hospitality industry iv’e always wanted to do investment & time is around the corner ex. i can come up with great ideas to boom sales, as far as i know money makes money, but i have a question for all if it’s ok, have any of use reached the expectations that you invested in or reached your goal so far,thanks for the advice i will never invest in anything without a financial advicer. cheers