New To Investing Thread

[tdaver]

I own all of the stocks.  History says it should work out great.

[steve dave]

Does anyone put a meaningful amount of their retirement into individual stocks? The idea alone makes my palms sweat.

yes.  most of my money is in individual stocks (somewhere btwn 10-15% isn't).

How do you choose which ones?

I've always gravitated towards things I'm interested in or know something about.  I also like looking at the dogs of the dow.  They're company's we all know and but have gotten beaten up compared to the others.  They also pay a dividend which you can use to buy more shares or use elsewhere.  I have close to 25% in individual stocks but I think there are variables to how much each should own.  Age, dough, risk tolerance and how much time you have  watch and trade.  With my job I am able to pay more attention to my portfolio if need be.

go buy an absolute shitload of GE. you should be able to take a majority share for the price of an F150 at this point and there is no bigger dog.

[8manpick]

SD, I’ll give you $1k for gE instead, how about that?

[I_have_purplewood]

Does anyone put a meaningful amount of their retirement into individual stocks? The idea alone makes my palms sweat.

yes.  most of my money is in individual stocks (somewhere btwn 10-15% isn't).

How do you choose which ones?

I've always gravitated towards things I'm interested in or know something about.  I also like looking at the dogs of the dow.  They're company's we all know and but have gotten beaten up compared to the others.  They also pay a dividend which you can use to buy more shares or use elsewhere.  I have close to 25% in individual stocks but I think there are variables to how much each should own.  Age, dough, risk tolerance and how much time you have  watch and trade.  With my job I am able to pay more attention to my portfolio if need be.

go buy an absolute shitload of GE. you should be able to take a majority share for the price of an F150 at this point and there is no bigger dog.

Yeah, going to have to dollar cost average this dog for sure.  I think there is more pain here but have buys in the system.  I should have had some puts on this SOB.  I will buy F when it sinks below $5 btw.

[DaBigTrain]

SD, I’ll give you $1k for gE instead, how about that?

You could create a copycat version of gE for $11.99

[steve dave]

SD, I’ll give you $1k for gE instead, how about that?

NO DEAL

[I_have_purplewood]

Does anyone put a meaningful amount of their retirement into individual stocks? The idea alone makes my palms sweat.

yes.  most of my money is in individual stocks (somewhere btwn 10-15% isn't).

How do you choose which ones?

I've always gravitated towards things I'm interested in or know something about.  I also like looking at the dogs of the dow.  They're company's we all know and but have gotten beaten up compared to the others.  They also pay a dividend which you can use to buy more shares or use elsewhere.  I have close to 25% in individual stocks but I think there are variables to how much each should own.  Age, dough, risk tolerance and how much time you have  watch and trade.  With my job I am able to pay more attention to my portfolio if need be.

go buy an absolute shitload of GE. you should be able to take a majority share for the price of an F150 at this point and there is no bigger dog.

Yeah, going to have to dollar cost average this dog for sure.  I think there is more pain here but have buys in the system.  I should have had some puts on this SOB.  I will buy F when it sinks below $5 btw.

Broke old 10 year support levels today.  If it doesn't close strong then more pain but if it does it should be a buy signal.

[ben ji]

I have about 10% of my retirement funds in Individual Stocks and about 10% in Industry Specific Funds. I don't plan on "beating" the market but it keeps me interested.

[steve dave]

That’s a good amount imo


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[chum1]

I picked up a little of this stock like a year in an attempt to buy low. Here's what it's done since. 

EGLTQ
EGALET CORP -97.87%

 

Please click the below link to view an important document related to the EGALET CORPORATION bankruptcy case:

Notice of Chapter 11 Bankruptcy Case

http://www.kccllc.net/egalet/info/8994

[chum1]

sys, is EGLT a company you would like to have in your collection? Why or why not?

[catastrophe]

Is that different than EGLTQ or is the Q just to be more inclusive?

[sys]

sys, is EGLT a company you would like to have in your collection? Why or why not?

no, because i don't know anything about it and also some guy on a bulletin board i read says they're going bankrupt.

[Phil Titola]

Weed grower investing?  Legal in missouri now, no idea how to approach this being a good investment.

[steve dave]

They talk about some of the big names on CNBC sometimes. I think you’d have to go the private route for any MO specific investments.


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[Phil Titola]

They talk about some of the big names on CNBC sometimes. I think you’d have to go the private route for any MO specific investments.


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Yeah I have a potential private opportunity, I just have no idea to judge if it's a good investment....nor the risks to take into account...seems overall like a gold rush situation just want to hook to the right wagon.

[ben ji]

They talk about some of the big names on CNBC sometimes. I think you’d have to go the private route for any MO specific investments.


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Yeah I have a potential private opportunity, I just have no idea to judge if it's a good investment....nor the risks to take into account...seems overall like a gold rush situation just want to hook to the right wagon.

My companys parent company is in the BIG AG business and we share an office. I went into a conference room the other day and looked at the whiteboard, instead of price per bushel for whatever money losing grain is in flavor this week jotted all over the whiteboards it was a grow schedule/staff/warehouse/electricity costs/security etc....I asked around and it looks like they might be buying a weed company in Canada.

[ben ji]

I'm about 90% sure I know the answer to this but I figured I would ask for some reassurances/advice from people on this great blog. (side note, this is not me)

Scenario: You have money in a 401k but will be going back to school in the summer for a couple of years full time to earn an advanced degree in a field that will roughly double your income. You will not be able to work or earn any money during this time.

1.While you are in school and not earning any money you should AT MINIMUM convert $12,000 per year from the 401k to a Roth IRA. Since the Standard Deduction for a single person is $12,000 you would not have to pay any taxes for the conversion and could withdraw that money tax free in retirement. Correct?

2. Lets assume you plan on paying for some of it with savings and part of it with student loans(no idea on the vig). If you need to convert more than $12,000 per year into a roth ira while you have no declared income is it worth it to use part of your savings or student loans to pay for the taxes (lets assume it would be in the 12% bracket and your student loans are like 7% or whatever the going rate is these days) instead of using those savings/loans to pay for school?

3. If the answer to #3 is to use your savings to cover any taxes on conversions in the 12% tax bracket then shouldn't you make sure to maximize your 401k  to the limit for the first part of this year before you go back to school?

Any other tips/recommendations for this specific scenario?

[ben ji]

Just looked at the KU grad level tax brackets and it looks like the first $9,526 in income is taxed at 0% so with the $12,000 deduction could you convert $21,526 from a 401k to a roth ira each year without paying any taxes?

[star seed 7]

You'll still get hit with the early withdrawal penalty won't you?

[Rage Against the McKee]

Just looked at the KU grad level tax brackets and it looks like the first $9,526 in income is taxed at 0% so with the $12,000 deduction could you convert $21,526 from a 401k to a roth ira each year without paying any taxes?

I think so, but you would have to not earn any other income and somehow manage to survive the whole year.

[Kat Kid]

You'll still get hit with the early withdrawal penalty won't you?

Higher Education Expenses (IRA only)

Withdrawals from IRAs for qualified higher education expenses for you, your spouse, child, or grandchild are exempt from the early withdrawal penalty. The distribution can’t exceed the qualified higher education expenses incurred during the tax year. Qualified higher education expenses include tuition at a postsecondary school, room and board (if enrolled at least half-time), fees, books, supplies, and equipment required for enrollment or attendance.

[star seed 7]

Yeah, I know about the exceptions, but a Roth Ira doesn't qualify, does it?

I suppose you can say you're using that money for higher education expenses and putting "different" money into the Roth.

[ben ji]

You'll still get hit with the early withdrawal penalty won't you?

Higher Education Expenses (IRA only)

Withdrawals from IRAs for qualified higher education expenses for you, your spouse, child, or grandchild are exempt from the early withdrawal penalty. The distribution can’t exceed the qualified higher education expenses incurred during the tax year. Qualified higher education expenses include tuition at a postsecondary school, room and board (if enrolled at least half-time), fees, books, supplies, and equipment required for enrollment or attendance.

You wouldn't be withdrawing from your IRA to pay for school. You would convert money from your traditional IRA to a Roth IRA while you have no income and thus not pay any taxes up to a certain amount.

[ben ji]

Just looked at the KU grad level tax brackets and it looks like the first $9,526 in income is taxed at 0% so with the $12,000 deduction could you convert $21,526 from a 401k to a roth ira each year without paying any taxes?

I think so, but you would have to not earn any other income and somehow manage to survive the whole year.

That's where student loans/savings come in.