investment insights & specific recommendations most frequently asked questions
Post on 19-Dec-2015
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1. I have some extra money, what investment would be good for me?
1 – Diversified
2 – Allocated
3 – Low Expenses
Found at: https://personal.vanguard.com/us/content/Funds/FundsVanguardFundsTargetOverviewJSP.jsp
Vanguard meets these three requirements
1. I have some extra money, what investment would be good for me?
Companies Bonds3,381
4,762478493831
… as of 8/31/2010
5,183 4,762TOTALS
2. I want to do my own investing, where can I find quality
information?
1. What Investment2. Quality
Information
3. I have some money that I am going to use shortly, where should I
put it?
1. What Investment
Depends on your Time Line
2. Quality Information
Less than 2 years = Money Market2 to 5 years =Conservative Portfolio5 to 10 years = Balanced PortfolioMore than 10 years = Equity Portfolio
3. Short Term Money
Where can I find these Portfolio? – Next Question
4. Where can I find good Portfolio Allocations?
1. What Investment2. Quality
Information3. Short Term
Money
4. Where can I find good Portfolio Allocations?
1. What Investment2. Quality
Information3. Short Term
Money
ALLOCATION
4. Where can I find good Portfolio Allocations?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios
5. I heard I should invest in Index Funds, would you agree with that?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios
http://www.ifa.com/12steps/step3/step3page2.asp
Active Investing vs. Passive Investing
5. I heard I should invest in Index Funds, would you agree with that?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios
http://www.ifa.com/12steps/step3/step3page2.asp
Active Investing vs. Passive Investing
5. I heard I should invest in Index Funds, would you agree with that?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. What company is the best to set up my account at?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index FundsA Discount Brokerage
A Discount Brokerage gives you:
1.Money Market Checking Account
1.Higher Interest
2.Lower Fees (no overdraft penalties)
2.Much easier investment buy/sell optionsHighest Ranked = Charles Schwab
6. Discount Brokerage
7. Should I invest in Real Estate1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
$ 40,000 Down
$ 360,000 Debt
$400,000 Duplex
Your Investment
Borrowed Money
10% Appreciation
$ 40,000 Gain
$ 40,000 Gain$ 40,000 Down
100% Gain
$ 40,000 Loss$ 40,000 Down
100% Loss
A. Leverage - Debt
1. Positives
7. Should I invest in Real Estate1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
A. Leverage - Debt
6. Discount Brokerage
1. Positives
B. Rent – ‘Free (unearned) Income’C. Depreciation – ‘non-cash’ expense
7. Should I invest in Real Estate1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
A. Leverage - Debt
6. Discount Brokerage
1. Positives
B. Rent – ‘Free (unearned) Income’C. Depreciation – ‘non-cash’ expense
D. Behaviorally sound
A. Leverage – High Risk Investment
2. Negatives
B. Landlord – High Maintenance investment
7. Should I invest in Real Estate1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
SOUND REAL ESTATE PRINCIPLES
1. Avoid “nothing down” workshops
2. Avoid real estate “counselors”
3. Avoid time share “investments”
4. Employ an excellent CPA advisor
5. Establish a relationship with a bank appraiser
6. Guidelines:
1. 50% vacancy for six months
2. Don’t own long distance
3. Be sure you’ll live in the area for, at least, 5 years
4. The first home – a duplex
6. Discount Brokerage
7. Real Estate
8. Should I invest in Gold or Precious Metals
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
Worst Investment for the past 30 years
6. Discount Brokerage
7. Real Estate
Dow Jones
Gold Index
8. Should I invest in Gold or Precious Metals
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
Best Investment for the past 3 years
6. Discount Brokerage
7. Real Estate
Gold
Dow Jones
8. Should I invest in Gold or Precious Metals
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals
Brigham Young
The time will come that gold will hold no comparison in value to a bushel of wheat . . . Gold is good for nothing, only as men value it . . . It is not half so good as the soil from which we raise our wheat.
- June 5, 1853, Journal of Discourses 1:248
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals
1.Very High Commissions
2.Surrender Penalties
3.High Investment Fees
4.Capital Gain Income become Ordinary Income
5.Equity Index Annuities – a good deal!
9. Somebody tried to sell me an Annuity or Investment Life Insurance Policy, are they good investments?
Hot Deal!!An investment
Goes up, but never down
No commission
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals
9. Somebody tried to sell me an Annuity or Investment Life Insurance Policy, are they good investments?
1.Very High Commissions
2.Surrender Penalties
3.High Investment Fees
4.Capital Gain Income become Ordinary Income
5.Equity Index Annuities – a good deal!Hot Deal!!An investment
Goes up, but never down
No commission
Those Investment Management Fees2% to 3% higher than necessary
2% difference
8% = $527,454 10%
= $ 1,048,250
3% difference
9% = $740,488 12%
= $ 2,114,546
9. Somebody tried to sell me an Annuity or Investment Life Insurance Policy, are they good investments?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities
10. I don’t have any money but I want to start investing, what can I
do?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals
Minimums For Investing
1.Checking Account = $10
2.Mutual Fund/Brokerage
1.Lump Sum = $500 - $2,000
2.Automatic Withdrawal = $50/month
9. Insurance & Annuities
10. Minimum Investments
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
Recommended Books
This list is found on Blackboard
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
NOT Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
NOT Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
NOT Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
NOT Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments
NOT Recommended Books
11. What books should I read to learn more about investing?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments11. Books
12. Have you heard about ____ investments, do you like those?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments11. Books
If you have to ask if I have heard about it, it is most likely an Alternative
InvestmentsThese investments are too risky or
speculative.Examples:
1. Tax Liens
2. Discounted Notes
3. Hard Money Lending
4. Real Estate Flipping
5. Options
6. Hedge Funds
7. Margin Trading
12. Have you heard about ____ investments, do you like those?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments11. Books
Something we found recently
An ad on Yahoo!
12. Have you heard about ____ investments, do you like those?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments11. Books
Something we found today!
An add on Yahoo
12. Alternative Investments
13. I have some debt, what is the best approach to get rid of it?
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments11. Books
Australian Loan
12. Alternative Investments
13. Debt
14. Should I put money in a Roth or Traditional IRA
1. What Investment2. Quality
Information3. Short Term
Money4. Good Portfolios5. Index Funds
6. Discount Brokerage
7. Real Estate
8. Precious Metals9. Insurance &
Annuities10. Minimum
Investments11. Books
If you pay Taxes = Traditional IRA
12. Alternative Investments
If you Don’t pay Taxes = Roth IRA
40% of People Don’t Pay Taxes
13. Debt
14. Roth vs. Traditional IRA
20% of People Pay 80% of the Taxes
Invest Taxes Saved - R.E.S.I.R.V.
Contribution = $500/month
ROTH
ROTH
ROTH
Federal Tax = 0%State Tax = 0%
TOTAL TAX = 0%
Federal Tax = 15%State Tax = 7%
TOTAL TAX = 22%
Federal Tax = 25%State Tax = 7%
TOTAL TAX = 32%
$ 5,250,000
TRAD
TRAD
$ 6,720,000TRADI T IONAL
$ 7,710,000
+22%
+32%
EMPLOYER TAX
MATCH
$ 10,170,000+64%
Investment annual growth = 10%Employer Match = 100%
How much tax do retirees’ pay
72% in lower tax bracket than when IRA was contributed
50% of all Americans pay no income tax
Which tax will increase?
Value added, consumption, federal sales tax transaction
Capital gain tax increase does not apply to IRA accounts
Qualified charitable contributions
Tax paid on conversion now can never be reclaimed
Many withdrawal options pay no tax or result in no tax
Energy saving tax credits
Any tax deductible expense
Payments to long-term care policies
Payments to a Health Savings Account
Withdrawals where disabilities or unemployment have reduced tax bracket
Taxes saved and invested are matched by employer doubling the tax saved benefit
WHY ROTH