quote:

Originally posted by xxGAMBITxx:
First thing, is know what "the other side" is REALLY talking about (ie. Banks, loan companies, etc.).

ASSET -Bottom line an asset is anything that PUTS MONEY INTO YOUR HANDS/POCKETS.People tend to think of an asset of something that they have/own (ie. House, Car, clothes). These are'nt assets. Unless you're making money from them. When the bank tells you your home is an asset they are right....it's just thier asset NOT YOURS! They are making money off of your mortgage payments. Now if you rent/lease/sell said home, then it becomes YOUR ASSET.

LIABILITIES - Basically the reverse of what I wrote above. The banks assets are your liabilites and vice versa. Open up a CD, money market, any bank "gimmick" where the bank pays YOU dividends/interest..that is your asset, and their liability. So when speaking with a banker, mind how you interpret their words. They're tricky lil bastards.

I'll try to add more tonight, when I get back. Gotta few high school graduations to attend this evening..........

I agree with that 10000%!!!

quote:

Originally posted by ShayaButHer:

quote:

Originally posted by xxGAMBITxx:
First thing, is know what "the other side" is REALLY talking about (ie. Banks, loan companies, etc.).

ASSET -Bottom line an asset is anything that PUTS MONEY INTO YOUR HANDS/POCKETS.People tend to think of an asset of something that they have/own (ie. House, Car, clothes). These are'nt assets. Unless you're making money from them. When the bank tells you your home is an asset they are right....it's just thier asset NOT YOURS! They are making money off of your mortgage payments. Now if you rent/lease/sell said home, then it becomes YOUR ASSET.

LIABILITIES - Basically the reverse of what I wrote above. The banks assets are your liabilites and vice versa. Open up a CD, money market, any bank "gimmick" where the bank pays YOU dividends/interest..that is your asset, and their liability. So when speaking with a banker, mind how you interpret their words. They're tricky lil bastards.

I'll try to add more tonight, when I get back. Gotta few high school graduations to attend this evening..........

I agree with that 10000%!!!

Electronic Traded Funds aka ETF's

Basically this is a certain stock sector or bundle of stocks being tracked and traded under one banner. It's a mutual fund that has lower expense fees and that you can actually control on your own. They trade just like stocks so you can hop in and out when you want to. I like ETF's because it takes some pressure off of me, if I like a certain investment sector, but don't have either enough knowledge/time/money to research, pick, and or invest in individual entities.

For information on ETF's check out Morningstar.com, or other financial outlets. Theres pro's and con's to everything, but in my own experience, they're a good way to get in the market and get some measure of risk management too.

Children and Money..Early is the way to go.

I hope everyone has already begun or will begin to start saving for their children. (ie. follow ocatchings example..you cant go wrong there)

To hit upon this more and hopefully to get your childs money to take the burden off of you, I'm going to use the financial plan I have for my daughter as an example.

Since my daughter is only five years old, I have time before any of the "big" things hit...like college; but shes growing like a weed and I have to keep the lil smurfette clothed and fed and we all know that takes money. So what I do is I put money up for her in this way....I divided everything into the various markets for greater stability and return for her.

Lets say I put up for her $200/month (its not easy for everyone but this is just an example)

60%--in a cash market account (ie.savings, money market)

25%---in a treasury bond fund..specifically the ETF "SHY..This fund deals with 1-3 year treasury bonds and thier respective yields. The annual dividend from SHY is around 3-4 percent (not bad), and it pays out the dividend in MONTHLY installments...by reinvesting, thats money going to my daughter thats not coming out of my own pocket. And it's relativilly safe and secure (contingent upon your definition concerning the U.S government..lol) but its not a bad deal to take advantage of compounding little money over time.

10%---I put into stocks. Mainly Big blue chips and REITS... and just reinvest those dividends for her as well. I've done this now since the day after she was born and I have to admit..I'm pretty happy with what she has right now. If anything comes up in the future thats unexpected, I know between my portfolio and hers, she can be taken care of. It does'nt take alot of money and time, and just by shaving a little off of misc. expenditures, such as going out, and purchasing items that catch my eye, I've used deferred gratification to get her ahead. Not to mention it takes some pressure off of being a parent nowadays.

Remember, it's never to late to start.

How does the decreasing value of the dollar affect this advice?

Does investing in foreign markets do me any good if I'm still buying in with U.S. dollars?

If I have $500 (post-tax dollars) laying around, what should I be doing with it? Seems like anything that pays me back in U.S. dollars is a losing proposition right now.

quote:

Originally posted by ATPWordPro:

If I have $500 (post-tax dollars) laying around, what should I be doing with it? Seems like anything that pays me back in U.S. dollars is a losing proposition right now.

Really its not that relevant unless you're talking about really big dollars and you need to offset currency risk in some way. If I were you I'd buy an index of the Dow or NASDAQ and let it sit.

Hi MBM, thanks for the advice.

I have been holding ShareBuilder in the back of my mind as a way to get into post-tax investments. Do you have any opinion on them?

Ooops. Never mind. The decision may have been made for me.

Sharebuilder has been acquired by ING Direct who I already have an account with. Since I like stuff simple and streamlined, I'll probably just create an additional direct deposit with them.

Whatever the outcome, any extra money has to be GONE before it hits my checking. Once it's in there . . . well, you know.

quote:

Originally posted by ATPWordPro:

Hi MBM, thanks for the advice.

I have been holding ShareBuilder in the back of my mind as a way to get into post-tax investments. Do you have any opinion on them?

I've had accounts there (college funds) for about 5 years. I think they're great!!!

P.S. I wouldn't summarily dismiss Sharebuilder. ING bought them for a reason. I doubt they'll meaningfully change them any time soon.

quote:

Originally posted by MBM:

quote:

Originally posted by ATPWordPro:

Hi MBM, thanks for the advice.

I have been holding ShareBuilder in the back of my mind as a way to get into post-tax investments. Do you have any opinion on them?

I've had accounts there (college funds) for about 5 years. I think they're great!!!

P.S. I wouldn't summarily dismiss Sharebuilder. ING bought them for a reason. I doubt they'll meaningfully change them any time soon.

I'm sorry, I didn't mean that I was dismissing Sharebuilder. I meant that since they are now one company it will be convenient to send extra cash there and have saving and investment handled in the same place. Makes it easier for me. And if it's easy, it's more likely that I will actually do it.