Newbies to investing

**Frixxxx** · 10-15-2009, 12:45 AM

I'm going to start looking at different "teaching aides/beginner investment" links and post them here.

I love wiki for quick hit investing techniques that can be used to "diversify" some portfolios:

http://www.wikihow.com/Invest-Small-...f-Money-Wisely

Very informative for the "teenager with a job"

**Frixxxx** · 10-15-2009, 02:56 PM

Love this one,

Quick hit on amount to be invested and where to look:

http://www.fool.com/investing/broker...-and-more.aspx

My kid started with Southwest on these types of plans....he now owns 50 shares....He loves the fact that he can get two or three shares a paycheck.

Now that he is at 50 shares, he wants to "diversify", can you believe it?

Brought a tear to my eye....22 years-old...and he's into DIVERSIFICATION!!!!!!!!!

**tsptalk** · 10-15-2009, 03:32 PM

Start them young! Get those shares churning.

My son is 15 and when he was about 12 he bought LVLT after hearing Cramer recommend it as his aggressive stock of the year. Unfortunately, after some early success, the stock tanked and he's down over 60%. He's lost that loving feeling but he learned first hand that friends don't let friends buy and hold.

**Frixxxx** · 10-16-2009, 04:04 PM

Originally Posted by tsptalk

Start them young! Get those shares churning.........
He's lost that loving feeling but he learned first hand that friends don't let friends buy and hold.

NICE!!

Today's investment tool:

Certificate Of Deposit

What Does Certificate Of Deposit - CD Mean?
A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years. ~~Investopedia.com http://www.investopedia.com/terms/c/...eofdeposit.asp

Some sites that review and advertise good rates:
http://cdrates.bankaholic.com/
http://www.getrichslowly.org/blog/20...-online-banks/
http://www.bargaineering.com/articles/cd-rates

CD CALCULATOR:
http://www.calcxml.com/do/inv10

**Frixxxx** · 10-19-2009, 09:15 PM

Roth IRAs

I saw another thread asking about these:
So compare between the two:
http://beginnersinvest.about.com/cs/...dvsrothira.htm
Roth IRA defined:
http://www.investopedia.com/terms/r/rothira.asp
Read the additions at the bottom.

I think it is a great investment tool after you get all the possible TAX Deferred benefits.

For the younger set:
http://www.investopedia.com/ask/answ...t-kind-IRA.asp

Anyway, have fun and happy investing!

**JTH** · 10-19-2009, 10:21 PM

I plan on building one of these once I get enough money saved up.

CD Ladders: A Smart Savings Strategy

Linda Builds a Ladder

To understand how it works, let’s look at an example. Linda has $5,000 in excess cash and wants it to earn as much interest as possible without risking her principal. At the moment, her bank's five-year CD offers the highest rate, but she's nervous about locking up her money that long, and is wary of rates rising after she commits herself.
The ladder strategy directly addresses both concerns. As shown in the chart, instead of putting all her money in a five-year CD, she splits it among five different CDs, with terms ranging between one and five years. As each one matures, she reinvests the proceeds in a new five-year certificate.
Attachment 7004
By diversifying across five different CDs, Linda avoids an all-or-nothing bet that the current five-year rate is the best one that will be available over that time period. She also gains some liquidity: While each CD still has a penalty for early withdrawal, she'll never have to wait more than a year to access a portion of her money.
Put Your Rungs Close Together or Far Apart

Instead of a tall multi-year ladder, you can also create a shorter, more liquid one. For example, if you're holding cash for emergency needs, consider splitting it into three CDs with maturities ranging from one to three months. As each one matures, reinvest the proceeds in a new three-month CD. That way, you'll always be within a month of getting your hands on your money.

**Frixxxx** · 10-19-2009, 10:58 PM

Ladders are nice when you are in your retirement years. My parents started their CD ladder with budget excess. Now they have a monthly "bonus" which they use for fun.

I don't like the small returns during "young" investment years.....

However, I have done some math with my "liquid" money.

A person should have 6-8 months in the bank in case they have an emergency or face a lay-off.

If you put it in a CD you might get a few more pennies than a savings account and if you invest it on a monthly ladder for a 12 month rotation, then your "paycheck" will mature at the beginning of each month.

Good luck with that!

**JTH** · 10-19-2009, 11:12 PM

If you had 84 seven year CDs than I suppose you could get a nice paycheck every month? I can't even comprehend that kind of cash flow...

**Frixxxx** · 10-19-2009, 11:27 PM

Investment is dedication and sacrifice.

Utilizing just CDs for investment and you got 2% APR on your investment it would take you this long to get 6 months of salary:

Salary: $50000
Mth Inv: $300
1st year:$3600
2nd year:$7272
3rd year:$11017
4th year:$14838
5th year:$18734
6th year:$22710

**Frixxxx** · 11-06-2009, 02:29 PM

Something new for you to consider retirees:

http://www.federalnewsradio.com/?nid=15&sid=1805136

But make sure your taxes are in order

**Frixxxx** · 03-09-2010, 02:37 PM

Most Americans still unprepared for retirement - survey

Most-Americans-still-unprepared-for retirement

Save people...save!

**Frixxxx** · 04-20-2010, 02:37 PM

Last night I did some searching about the SEC....

I came across this site for beginner investments:

http://www.sec.gov/investor/pubs/begininvest.htm

WOW....

I thought I'd add it to this thread for beginners!