Hoping I Made The Right Move

Discussion in 'Money & Finances' started by Sheldon Scott, Mar 25, 2017.

  1. Sheldon Scott

    Sheldon Scott Veteran Member
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    I cashed in a CD that matured and did the same with two mutual funds that had been losing money for three years. I used that money and bought stock in two defense contractors. I'm thinking with President Trump's increase in the military budget these stocks will do well
     
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  2. Gloria Mitchell

    Gloria Mitchell Very Well-Known Member
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    Sounds good to me...let us know how that works for you...
     
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  3. Babs Hunt

    Babs Hunt Veteran Member
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  4. Ina I. Wonder

    Ina I. Wonder Very Well-Known Member
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    Way back when I was studying investment possibilities, I tended to buy land, and it's turned out well for me. But one way to invest that intrigued me was perspectives. I checked out the ones that were available at the time because I wanted to do an experiment. I purchased some stock in Center Point Energy for $200. I let the interest roll over without ever taking anything from the account. I wanted to see in what ways those blocks of stock were going to bounce around over a long given time span.

    And this thread just reminded me it's time to cash them in. :p :D I bought them in 1992.
     
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  5. Gloria Mitchell

    Gloria Mitchell Very Well-Known Member
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    Well you feel free to share...ya here:)
     
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  6. Ina I. Wonder

    Ina I. Wonder Very Well-Known Member
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    I'm hoping to get enough to pay off my car. I still owe over $8,000 on it. :( But I doubt I get that much. When I cash out they are supposed to give me a graph/chart of the past 25 years. That was the whole reason I did it, to be able to watch it grow or fizzle. I do admit I wish I had been in a better position to invest more, but this was all I would allow myself to spend on such iffy gambling. :oops: Land has been a better investment for me.
     
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  7. Denise Happyfeet

    Denise Happyfeet Very Well-Known Member
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    Sounds smart to me as well Sheldon. I don't think I've seen the future of America look brighter in my lifetime than since we've got Trump in there. I'll say it again, I have some hope now at least.
     
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  8. Chrissy Cross

    Chrissy Cross Veteran Member
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    #8
  9. Ken Anderson

    Ken Anderson Greeter
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    I believe the part about the stocks dropping, but am not so sure about the attribution. Whenever stocks go up, they look for something that the Democrats did to attribute it to, and when they go down, they blame it on the Republicans. Personally, I think it was the Russians. Damned Russians.
     
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  10. Frank Sanoica

    Frank Sanoica Very Well-Known Member
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    The movement of prices of publicly-traded securities is a much-touted issue, emblazoned by emphasis by brokerages, banks, mutual funds, and the like, aimed at creating public interest to secure ever-more funds committed to traded issues most folks know little or nothing about. It used to be "Industrials, Rails, and Utilities", which shows the extreme strength within the economy of those 3 types of securities. Utilities were once the most secure and safe options one could buy. But they paid less dividends back than the other 2 categories. Sometime back in about the '90's. the very first time EVER, a public Electric Power Co. went belly-up: Tucson Electric Power. There goes your safety in the big 3 categories.

    Good times or bad, some securities will rise, while others will fall. More rise when the climate is conducive to taking risk; more agitating by media-driven forces sucks folks in to buy the securities. The mad scramble to not "miss out" results in "land-rush" buying of anything and everything. Then, as the national economy falters as in 2008, the beleaguered "buying public" slinks away, having sold their "sure things" at or near the bottom of their historic values.
    Frank
     
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  11. Sheldon Scott

    Sheldon Scott Veteran Member
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    Update: The stock market has done very well since Trump became president. The defense contractors I bought stock in; well one of them has gone up $49 a share more than I paid for it. The other has risen about $30 per share. They are expensive stocks so I don't have many shares but I'm sure glad I bought them. They both pay dividends too.
     
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  12. Holly Saunders

    Holly Saunders Veteran Member
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    I wish I understood stocks and shares...I'd love to invest in something...but I'm scared to in case I lose my money...
     
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  13. Cody Fousnaugh

    Cody Fousnaugh Very Well-Known Member
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    Only thing we invest in is my wife's 401k at her work. She used her CD's to buy the house we had in Colorado. Investing is a nice idea, for those that have the money to do it.
     
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  14. Sheldon Scott

    Sheldon Scott Veteran Member
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    @Cody Fousnaugh , 401k"s are the best way to buy stock or mutual funds. Many companies match part of what you put in. That's free money.

    I would put in the maximum allowed in the 401k before I even thought of investing elsewhere.

    I used my 401k to pay off the house when I retired. Since I retired I no longer had a 401k so I started investing through a broker.
     
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  15. Tim Burr

    Tim Burr Very Well-Known Member
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    @Sheldon Scott I do a similar thing with my VA disability check.
    It's not very large and I invest the whole amount each month.
    So far it is doing better than just sticking it in a savings account.
    The market is doing pretty well so far, fingers crossed...
     
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  16. Hal Pollner

    Hal Pollner Well-Known Member
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    Don't be too sure that your shares will continue increasing in value!

    They could go the other way, which is why the Market is always a gamble.

    I recently re-invested a matured CD into another one which earns higher interest.

    Retired people should play it safe...playing the Market is for those who can afford the losses and have the years to recoup those losses.

    This is just my philosophy, and I've done OK by it.

    Hal
     
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  17. Vinny Waccio

    Vinny Waccio New Member
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    I am not a believer in holding stock in in one or two companies because your have risked all of your investment into just two companies. I lost my shirt that way investing in tech companies. All the advice I got was to just buy ETF's or mutual funds that hold stock in many companies, including defense so that no one or more companies can destroy your investment. That is what I have done and made money even up to today. I do not know what mutual fund you have since most made money. I turned $1,000 into $16.000 in one fund.

    Vanguard is one of the top firms to offer mutual funds. They always out perform other funds. Google it. Also look at ETF which are funds run by computers. They work like a mutual fund at much less of a cost. If you research it you will find that these Electronic Transferred Funds outperform managed funds 87% of the time. Computers can react a lot faster than fund managers who sometimes only make changes every few months. ETFs can react to market changes almost instantly and the fee you pay is so much less.

    I would not feel comfortable with my investment into just two companies no matter what industry since I am retired. There are ETFs that are specialized in different sectors like real estate, defense, etc. that buy stock in many companies to avoid losing it all. It is your money but after researching this to death years before my recent retirement. You will find many say just buy four funds that cover US and Foreign Stocks and the next two cover US and Intl bonds. Your money will rise and fall with the market. As I learned the hard way, the market always goes up. When the DOW hit 12000 I thought it would not go much higher and look where it is now. In just 10 years many doubled their money. BTW, my former business was doing the logistics for defense companies through DOD and DOS and did not want to invest in their stocks. Delays and cancellation of contracts, being underbid, military spending reduced due to a recession or treat agreements or a new President if one gets impeached before his term expires. Just too much risk to depend on one person and two companies for my comfort. There are lots of good articles out there for seniors investing and what is safe and what is not. Research and then choose your poison. The stock market often does not follow logic. One newspaper article can bring the stock prices of a company tumbling down.

    This is just my opinion as a very cautious investor. Worst thing to happen is to need your money during a recession. Have you taken a look at online banks. I am getting 2.85% on a 5 year CD which is about the same as Treasury notes and corporate bonds. All FDIC covered. My online bank pays 1.75% on my savings account.
     
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  18. Sheldon Scott

    Sheldon Scott Veteran Member
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    Vinny, I agree with you. I only invested the money from that CD in those two companies. I already had stock in other companies plus some mutual funds. My primary investments are in quality stocks that pay good dividends.
     
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  19. Hal Pollner

    Hal Pollner Well-Known Member
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    Investing success? Look what the Turkeys are doing, and do the opposite!

    H.P.
     
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  20. Vinny Waccio

    Vinny Waccio New Member
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    Good to hear. I just to have some dividend stocks and they were pretty good.
     
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  21. Hal Pollner

    Hal Pollner Well-Known Member
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    There's always the mattress, Holly...lousy interest but real safety!
    Hal
     
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  22. Frank Sanoica

    Frank Sanoica Very Well-Known Member
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    @Holly Saunders
    Holly, the stock market is little more than a gambling casino. True, good Blue Chip stocks are generally good for the long-run, but still no guarantees. There are Preferred Stocks, separate issues of companies which are given preference to pay their dividends first, before the Common Stock, but given very "hard times", no guarantee either.

    One financial advisor sage once said if the market is generally going up, one might as well throw a dart at the Wall Street Journal stock listings, and buy the one it sticks in.
    Frank
     
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