Lets talk Investment Vehicles

[monsoon]

I think I have to quit this board. Last week I found out that I am obese, now I know that I am poor. What's next?

 

[monsoon]

Don't get fixated on the 3400 number. I just put that out there as an example toward what I pay monthly to life insurance. I pay monthly a good bit to my mutual funds in addition to that. I wasn't saying that i have 3400 dollars and how should i allocate that, its 3400 to life insurance, X amount to mutual funds, etc .

no, I get it. I assumed that you had considerable income beyond that. Why I believed that you will have no problem with an early retirement.

 

[FLBB89]

I think I have to quit this board. Last week I found out that I am obese, now I know that I am poor. What's next?

are you 12 percent body fat you fat ****?

 

[-KB-]

I think I have to quit this board. Last week I found out that I am obese, now I know that I am poor. What's next?

You're ugly too and have a small pecker.

 

[graniteman]

Dex, I have considerable holdings in every single marijuana penny stock right now. I also believe they will be worth something one day.

A business partner of mine wanted to get an investment group going and pay to send someone to Colorado to farm marijuana.

Personally, I think the big money valuation will help to the marijuana industry when it gets bought out by big tobacco or alcohol. I know that Southern Wine and Spirits has been trying to move in on the marijuana farms but has seen resistance from the mom and pop growers. Eventually, it will happen and the stock values will be a good pay out, IMO.

IMO, Big Biz and Marijuana will not take off unless it's legalized on a federal level. Phillip Morris and a few have looked into it but lawyers don't want corporate monies being co-mingled with marijuana business' legal in some states but not on a Federal level. It could lead to racketeering or other criminal implications. You're starting to see some pushback on marijuana legalization already in Colorado\Washington. It's odd Cali has not pushed it through so there must be some lingering questions on Fed law.

 

[graniteman]

Almost forgot, forget tech for now Bio is on fire at the moment, pretty much carrying the Nasdaq

 

[FLBB89]

Almost forgot, forget tech for now Bio is on fire at the moment, pretty much carrying the Nasdaq

Most of my the securities that I trade myself (i.e. not managed money accounts) are in biotech.

The reason i currently "like" tech is because the valuation of these companies are ridiculous. As I have mentioned repeatedly, it boggles my mind to see 10 or more revenue multipliers applied to tech companies that do not make any money - but its happening. Now is the time to get involved in private equity in that sector IMO.

 

[FLBB89]

IMO, Big Biz and Marijuana will not take off unless it's legalized on a federal level. Phillip Morris and a few have looked into it but lawyers don't want corporate monies being co-mingled with marijuana business' legal in some states but not on a Federal level. It could lead to racketeering or other criminal implications. You're starting to see some pushback on marijuana legalization already in Colorado\Washington. It's odd Cali has not pushed it through so there must be some lingering questions on Fed law.

Granite,

I look at marijuana stocks from a dual perspective.

1) VERY long position. I personally think theres a chance that the marijuana industry will thrive and become bigger. I want to own a large amount of these stocks in case that happens as I am never one to wonder "what if." Since these are worthless penny stocks, if they dont ever increase in value, its not like I will have lost much money on them anyway.

2) Immediate return with aggressive day trading. Like most worthless penny stocks these securities have a ton of volatility and respond to any amount of publicity/hype dramatically. If you are not particularly risk adverse and understand when to sell, you can make a lot of money with these stocks. Remember when MDBX went from ~13 to 90 in about 72 hours? If you put $10,000 on MDBX when it first started appearing all over the news when Colorado legalized you would have made approximately $69,230 less brokerage fees. Someone here PM'ed me asking for advice the other day on another weed stock. It went up 50% by 1015am. If you had put $10,000 on it when the market opened you'd have made $5k less brokerage fees in 45 minutes.

I do not recommend someone put their savings into weed stocks nor would I recommend someone who does not have a fair amount of disposable income to get involved in this. There is too much volatility and it really isn't worth the risk unless you can put $10,000 on each security. And then you have to be prepared to lose a good bit of that money.

 

[monsoon]

You're ugly too and have a small pecker.

I can't get upset about the things I can't change.

 

[JR Ewing]

I'm all about liquidity. If I decide I want my money, I want it when I want it.

That's also a good reason I avoid tying too much up in actual real estate. I like having a nice home, and land in good locations can be a very good thing to own. But I don't like dealing with tenants or having too much $ tied up in things that may take months or longer to get my $ out if I decide to do something else with it or otherwise need to get my hands on it.

You can buy stock in real estate companies and also in better real estate mutual funds, and have your $ available within days or less.

Well said JR.

As you mentioned, I actually can't pay over $3400 per month or it gets taxed as ordinary income. And that's exactly why I use this - I can't qualify for a Roth Ira.

Jr: what is your opinion on REITs? My financial advisor is suggesting that as a way to diversify but the lack of liquidity scares me.

 

[JR Ewing]

I'd like to agree with you but as CFO of our company I see how little people defer into their 401(k)'s. The single most important thing about saving for retirement is how much you save. Not your asset allocation, expenses, investment return, etc. People would rather spend their money.

Most people are not financially savvy and don't care that much about retirement. Many don't even think about it until they're in their 50's. I started investing at 25, and I'll be 45 in 5 months.

The main advantages with the work retirement plans are that they're tax deferred (or free with the Roths), there may be some company match ("free" money to the employee), and most importantly IMO is dollar cost averaging.

By putting a set amount into plans each payday, the employee is automatically dollar cost averaging - buying more shares of the investments when they are cheaper, and fewer shares when they are more expensive. This is a VERY powerful tool to greatly increase ROI over time.

 

[ItalianMuscle]

You're ugly too and have a small pecker.

But he still is a 'Super Nice Guy'..