I'm looking for some suggestions on someplace to place anywhere between 400.00 and 1000.00 per month for long term growth.

I can always do 400.00 being conservative. If I make it a point, I can do 1000.00 or more some months, but I used 400.00 as a lowpoint.

I have a Smith Barney IRA which I will continue to use up to my maximum allowable contribution, but I want to put money elsewhere.

Until I find a better idea, I think paying down the principle on my home loan is a good way to start.

My house will be worth quite a bit when I retire, if I have it paid off that would be a nice 400-500k at least.

Suggestions as always, be appreciated.

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Enough about me, how are you doing?

I'll try this again, lost the last one.

Prepay Pros and Cons. Do some but maybe just 100 of the 400.

Once you have some cash in savings or Money market (I know interest rates suck, but have some cash).

Then look for a good Mutual fund, no-load. Find the Forbes yearly review, go to MorningStar ... DO SOME RESEARCH, consider it an investment. Most will allow starting small with monthly auto DPs. Do the Auto conservative, you don't want to get discouraged if you have a short month, or a extra expense.
But PAY YOURSELF FIRST, my Lil Bro's fav line.

After you have a couple of K, cut back on that deposit (cut back NOT eliminate). And find another, if the first was growth, find a bond or international or .... DIVERSIFY and start depositing to it.

Once you get 4 or 5 different investments stop finding new ones and build the ones you have.

Diversify, and don't let anyone tell you an investment is bad (ie Don't buy Savings bonds, well they aren't great but they are secure). Do some research, consider it an investment, and don't try to time the market.
Invest Long Term.



I started this way, savings, funds, stocks.

Now I am an aggressive investor, I trade options actively, but each quarter my wife gets a bonus and part goes into US Savings bonds, part to savings, extra principal, add to funds ... DIVERSIFY. I am pounding my 401K.

Also look up a ROTH IRA, after tax contribution, but tax free growth.

FINALLY again, make sure you have some liquid investments (Cash, Money Market ...) incase something happens or maybe that MB you always wanted goes up for sale :-}

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KLK, MCSE

1990 500SL

I was always taught to respect my elders.
I don't have to respect too many people anymore.

eliminate all debt over 10%. on the house it depends. you'll have to do some math but at least make an extra payment or two a year... i'm not a big fan of MFs but love spyders... almost the same thing but better... look into those... i'd also look into inversing in individual companies of your liking... start small, do a lot of research and buy...

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72 W114/M130

RedMeat cartoon

Find the most popular vacation area within 100 miles of you and buy property/house/condo there and hang on to it for a few years. Property in desirable areas can see 30% (or more) annual appreciation. Plus you can rent it out in the mean time....It'll cost more up front but the potential for ROI can put all but the most remarkable market investments to shame.

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...Tracy

'00 ML320 "Casper"
'92 400E "Stella"

There so much someone should know about you before giving this type advice, but I think we know you pretty good from your posts and the fact you’re asking for advice here.
At the levels you speak too I’d say the best investment you’d make is to pay off debt. Your residence is a little bit different, but having too much equity in an urban place may give you fewer options should you want to move it. If you know absolutely you want to be there forever, be on a 15 yr. mortgage and pay it down, but there’s a lot to consider. Your accountant is your best source of guidance here. If Bush’s SS# - private business happens there may be a hell of a move in equities. It will be good enough that you won’t have to be all in to do well, and the other side of this coin might be a little dicey. Being to complacent about the equity market or being overly committed to it here is foolish. At the level I assume you’re at it is more important not to loose than it is to try and hit a home run.
Take a look at these if you must – they’re boring, pay good dividends, but may perform much like a bond (go down) when rates really turn up. There is a crazy unprecedented situation here – the world is awash in cheap dollars that are financing our debt, so that rates are low because there are too many dollars. Just the opposite of what rules of logic dictate – it’s very inflationary, but when – it takes a long time for this stuff to impact us at the store. Buy a little bit every month (this is buyandhold.com type of stuff, just never buy less than $200 worth and re-invest the dividends) - Aqua America (WTR) water is going to shock people someday. United Mobile Homes (UMH) trailer parks are the biggest cash cows in real estate. Health Care Network (HCN) – old folks homes – caution here, obvious double top on the chart from insider selling right into the new year, but may be a buy here – yields over 7%. Check out the FPA Funds – Crescent – well positioned in energy and sitting on 50% (which means they’re smart and doing your money management for you) cash. I can’t say enough about what a quality, conservative game these guys play.
Mostly, spend wisely. The advice from the two above me are also great - read the vaction home very slowly, and make sure you might like to live there.

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"The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane."
Marcus Aurelius

Thanks guys.

The real estate thing is something I have been looking at. Real estate in outh Florida is cost prohibitive for me to make any money on, plus I think it will faltten out in the near future.

Where I am looking at is Cenral Florida, where th eland is still cheap and undoubtedly is and will contnue to rise as coastal areas like Miami, Ft Lauderdale are too expensive and the land is scarce.

I aready have a roth IRA that I started a few years ago and will continue to put the max in.

I'll do some homework.

Thanks

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Enough about me, how are you doing?

I have $400 a month too and toyed with the idea of making my kid a millionaire. Figured that would offset his potentially mishapen youth dumped upon him by his stay at home dad. But then we decided that we could use the money to do other things to enrich his life like buying myself a new car when he gets to preschool/kindergarten.

I don't like the idea of vacation property because I don't want to be stuck thinking I have to use it. An icehouse on the lake maybe, vacation no. Kinda limits my vacation options no?

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

Not sure what kind of a tax refund (if any) you get, but I wouldn't be in such a hurry to pay off the house...

...other than timing the note maturity at retirement age, those big interest payments are a nice tax deduction!

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2009 ML350 (106K) - Family vehicle
2001 CLK430 Cabriolet (80K) - Wife's car
2005 BMW 645CI (138K) - My daily driver
2016 Mustang (32K) - Daughter's car

I always liked paying down the mortgage. In the end its close to a 3 to 1 return.

We're going to send it to a mutual fund..... one that has a 50 year track record. It has seen Republicans and Democrats, inflation and deficit spending, Reagan's military build up and Carter's troubles, Korea-Vietnam-Grenada-Kuwait-WTC-Afghanistan-Iraq, Elvis-the Beatles-Woodstock-Zeppelin-Disco-WHAM-INXS-Nirvana-Usher, Johnny Unitas-Joe Namath-Joe Montana-Tom Brady.... good times, bad times, ups and downs.... with an average annual return of 12.87%, net of load and fees.... cheap to own. (Past performance no guarantee of future results, your mileage may vary, see your doctor before reading this and all other emails.)

Term life insurance is a possibnility, although most people do not recommend life insurance as an investment strategy, it has its advantages.

If spending the money would put you in the realm where you couldn’t afford other forms of entertainment/vacation it might be a bad idea, especially if you didn’t like the place. Were you to rent it out, the cost to you would be negligible.

But the real key is that the appreciation effects the value of the property, even though most would initially have 10% to 20% equity. So as an easy example, say a place that had a value of 100K and that it appreciated at an absurdly conservative 3% the first year you’d return $3K, at least on paper. Were you to take $10K or $20K and invest it, you’d have to return 15% to 30% to make the same money. Plus, of course mortgage interest expense would most likely be a tax deduction. Add to that that hot properties appreciate at a much higher rate. Add to that the lack of capital gains taxes you may pay with a vacation property and it’s a darned good value.

About the housing market topping out, what my crystal ball predicts is that over the next 3 years we’re gonna see continual rate hikes at the fed. These will slow the rate of appreciation and also make money more costly. But folks with money to spend will always take vacations…..

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...Tracy

'00 ML320 "Casper"
'92 400E "Stella"

Don't buy a vacation house to make money on it. From my limited knowledge of realestate investing here are a few things that I like. My family loves realestate and has built or sold a large chunk of the house's in my city.

Buy a house that has a building lot next to it. Break the lot off and resell the house. This can be done very fast and in a hot market the house will not lose any value. Now you have a building lot to either sell or build a house on then sell. Their is a house down the street from me with two building lots sitting next to it, if it ever goes for sale even if they are asking $50k more then other houses in the area, (they probably wont) money can still be made on it. The best part of this is it is fast, you can make $20k in a week or two by doing this.

My favorite is buy a few multi family homes and have them pay off the mortgage for you. You will not fix crap by doing this that is a myth.

Or you can buy under developed land and either get it rezoned for something that is better for the area, or develope it in a better way. For example a gas station on a corner lot may not be worth much, but a small store might be.

Read a few books, look for deals.

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1999 SL500
1969 280SE
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