Making money with buy and hold

[Boghie]

Birch
I was not asking what your TSP balance is. I am just curious to know how long you have been contributing to TSP and what was your initial contribution in percentages or dollars. But then again, I suppose that information doesn't really help me because everyone's contribution differs based on their salary.
So rather than speak in percentages or dollar amounts, would it be fair to say that you do or try to contribute the maximum allowable amount to TSP? I'm currently contributing 12% and thinking about increasing it.
How does a ROTH IRA play into the big scheme of things? Should I maximize on the ROTH and only contribute the 6% employer matching to TSP? If you have "X" amount of money to invest, how do you decide what percentage to allocate to either one?

JPCavin,

Contribute to the match in TSP. That is a given. A nice 100% gain right off.
Then, if your top tax bracket is 15% (maybe 20%) max out a Roth IRA.
Then, finish up by filling up the rest of TSP (minus the above)

If your top bracket is higher than 15% or 20% than don't bother with the Roth (unless you want to guarantee some untaxed income in your dotage:toung: - which is not a bad idea either)

I'm not a tax dude, but I think you can $5,000 in a Roth as BT stated. My understanding is that leaves you $11,500 to place in your TSP account. All these accounts can't add up to more than a certain amount - and, I think that is the $16,500 limit BT mentioned. The one joy of tax season is that you can ask your tax man these questions and avoid a stay in the 'Grey Bar Motel'.

 

[Boghie]

This message board will provide you will some good learning tools so that when you are ready you can strap on the dual six shooters and take down the targets. I may turn gunslinger myself just to have fun.

Birch just likes 'plinking' the chumps above him on the AutoTracker.

He spent about two months between one and five spots behind me in 2009. I have lots of dents and holes in me from that era.

Even though I did ok last year BT was too far in front of me to plink him - so I stayed quiet.

And, this year, I think an embarrassed quiet is my proper etiquette.

But, then again, with some luck I'll get a chance to...

 

[jpcavin]

This message board will provide you will some good learning tools so that when you are ready you can strap on the dual six shooters and take down the targets. I may turn gunslinger myself just to have fun.

Looking forward to much learning. I'll be asking questions when I open a Sharebuilder or Scottrade account. Not planning to pour my money into it. Just enough to allow me to play and learn.

 

[jpcavin]

Boghie
Thank you as well. Just want you guys to know how much your guidance is appreciated.

 

[Birchtree]

Sharebuilder is now owned by ING and is an excellent company with low costs. There are several members on the MB that use them. I have my margin account with Bank of America now serviced on line via Merrill. I pay $4.95 a trade. If I weren't so stingy and put $25,000 into a checking account with the bank I'd get 30 free trades a month - I plan to do that eventually. Perhaps after the next $100K gain in value. The interest rate I pay on the margin loan is tax deductable - you don't find that often these days. Please don't tell Dumbo Eggplant.

 

[jpcavin]

Sharebuilder is now owned by ING and is an excellent company with low costs. There are several members on the MB that use them. I have my margin account with Bank of America now serviced on line via Merrill. I pay $4.95 a trade. If I weren't so stingy and put $25,000 into a checking account with the bank I'd get 30 free trades a month - I plan to do that eventually. Perhaps after the next $100K gain in value. The interest rate I pay on the margin loan is tax deductable - you don't find that often these days. Please don't tell Dumbo Eggplant.

Question about Sharebuilder. They charge $4 per investment. Does that mean that if I purchase shares from 5 different companies in the same transaction I get charged $4 for that transaction or I get charged $20 ($4 per company)?

 

[Cashflow911]

Another thought I have been having is let's say you buy into your funds and you lose 1.00 per share across the board, as a buy and holder I imagine you would keep buying at the lower price but as a swing trader do you hit the eject button and get out or hold and wait until your in the green again however long it takes.

 

[Nate]

Question about Sharebuilder. They charge $4 per investment. Does that mean that if I purchase shares from 5 different companies in the same transaction I get charged $4 for that transaction or I get charged $20 ($4 per company)?

Ive got sharebuilder...$4 trades is only if you set up an "automatic" monthly allotment to transfer from your bank to stock(s) of your choice. IE: If you set up an automatic transfer of $1000 on the 1st of every month from your checking to sharebuilder, to (automatically) purchase say $500 Disney stock and $500 VIX. Every month, it will be the same amount ($1000) and same stock (Disney + VIX) then you qualify for $4 trades (x2 companies - disney + vix) = $8 per month, leaving you with $992 to buy these shares ...automatically.
If you want to buy what you want, when you want, then youre in my boat....paying $9.95 comission (per company)....when its convienient for you.
IE: If you dont invest "automatically" with ING, and have an extra $1000 laying around.......and you decide you want some Disney, Microsoft, and Apple, these are 3 seperate transactions, with seperate comissions ($9.95 ea) total = $29.85, leaving you $970.15 for investing into these 3 companies.
I havent sold anything yet, but Im pretty sure the same goes for when you sell......$9.95 per.
They also have other deals IE: if you make 100+ trades a month, you get a discounted comission fee or maybe x# for free. IF you refer friends, you get x# free, etc. Im not specific on these numbers....you'd have to look into it on their site.

 

[jpcavin]

Thanks Nate

Those fees take the fun out of investing. I guess I have to work my way up one company at a time.

 

[tsptalk]

Another thought I have been having is let's say you buy into your funds and you lose 1.00 per share across the board, as a buy and holder I imagine you would keep buying at the lower price but as a swing trader do you hit the eject button and get out or hold and wait until your in the green again however long it takes.

I guess it depends on how someone makes their buy and hold decisions. the trader would have tried to avoid the loss.

I don't know if you read my daily commentary (plug ) but I, and many here talk about support and resistance levels on the charts. That gives us potential places to buy and sell.

 

[Cashflow911]

I guess it depends on how someone makes their buy and hold decisions. the trader would have tried to avoid the loss.

I don't know if you read my daily commentary (plug ) but I, and many here talk about support and resistance levels on the charts. That gives us potential places to buy and sell.

Everyday and I go through information withdraws if I don't. I read IT's priemum service daily when it was free but with my work I can't get any information until I get home. No phones and every internet site that isnt .Gov is blocked so now it's account talk pages and daily commentary. I am ordering a couple books that some of the members have recomended because I still don't know what the charts are telling me so if you don't give the information for dummies in the commentary it goes over my head. To sound like a broken record thanks

 

[Intrepid_Timer]

Another thought I have been having is let's say you buy into your funds and you lose 1.00 per share across the board, as a buy and holder I imagine you would keep buying at the lower price but as a swing trader do you hit the eject button and get out or hold and wait until your in the green again however long it takes.

As a swing trader, you'd wanna be out before you took that 1.00 hit..........

Oops, didn't read Tom's post before I spoke.............

I don't think I'd like your job.........