MaStA's Account Talk

[Birchtree]

Here are a few stocks that might fit well into a Roth IRA for consideration. Pfizer, which trades at a 8 times forward earnings, is paying a 4.5% dividend yield. Merck, also trading at 8 times forward earnings is paying a 4.7% dividend yield. Verizon, trading at 15 times forward earnings, is yielding 5.5% and AT&T, trading at 12 times forward earnings, is yielding 5.9%. Most utilities are yielding around 5%.

 

[MaStA]

Here are a few stocks that might fit well into a Roth IRA for consideration. Pfizer, which trades at a 8 times forward earnings, is paying a 4.5% dividend yield. Merck, also trading at 8 times forward earnings is paying a 4.7% dividend yield. Verizon, trading at 15 times forward earnings, is yielding 5.5% and AT&T, trading at 12 times forward earnings, is yielding 5.9%. Most utilities are yielding around 5%.

Thank you for the help. I will definitely look into those. I'm going to have to sell some of my mutual fund to get money available in my roth ira again so I can buy individual stocks. Good thing is I currently have 50 free trades I got from USAA for opening the account. They expire November 1st though. How many shares do people usually buy at a time? I'm guessing it all depends on how much money you have available, the price of the stock, and what risk level you wish to take with the company....I just need to figure out where I want to draw my lines on all these issues.

So if I were to invest more money outside of the roth ira and just buy stocks, I'm guessing difference would be that I pay interest on the earnings where as the earnings in the roth ira are tax free. Is this correct?

 

[burrocrat]

Good thing is I currently have 50 free trades I got from USAA for opening the account. They expire November 1st though. How many shares do people usually buy at a time?

Don't let the free trades trip you into transactions you weren't going to make anyways. Buy blocks in increments of 100 shares if at all possible to spread transaction costs as best you can, but don't forgo a winner just because it may cost you a few bucks more.

Heck, at 9 bucks a pop a good exchange is cheap for the little guy, don't forget to factor it in to the win/loss column.
We blow more than $9 a day doing stupider stuff than trading stocks so what is there to lose?

 

[MaStA]

Don't let the free trades trip you into transactions you weren't going to make anyways. Buy blocks in increments of 100 shares if at all possible to spread transaction costs as best you can, but don't forgo a winner just because it may cost you a few bucks more.

Heck, at 9 bucks a pop a good exchange is cheap for the little guy, don't forget to factor it in to the win/loss column.

I blow more than $9 a day doing stupider stuff than trading stocks so what have I got to lose?

Thanks for your input as well. If you are familiar with USAA's accounts I have a question. I already have a Roth IRA account setup. If I want to buy stocks outside of the Roth IRA I need to open up an Investment Account correct? Then under my accounts I will have my Investment Account (outside of the Roth IRA) and my Roth IRA account, correct?

I would prefer to find a new company starting up where the stocks start dirt cheap and take a chance on that. I just don't know how to find out about new companies starting, etc. If share prices started at a dollar and I bought $300, it would be a small investment that could turn out very well.

Thanks again!

 

[Birchtree]

The answer is yes to all your questions. Low priced stocks aren't necessarily the best approach speaking from experience unless they are oversold from a correction like now. I remember buying RT (Ruby Tuesday) at $0.89 down from a price high of $29. It has rallied back to $12 and is now resting some where in the $9 range - it's on my buy list for next week as a dollar cost averaging technique. LUB (Lubys) at $5.50 is an up and comer as well as WEN (Wendys) at $5.00 - especially if gas prices come down. Two years ago I started nibbling on SNS (Steak N Shake) at $3.00 and bought via dollar cost averaging up to $12 - then the company did a reverse split making the shares very expensive but reducing my total position, so I sold getting away with a $5K profit.

 

[MaStA]

The thing that is eating at me currently is that I just tossed $5,000 into my Roth IRA a few days ago into USAA's 2050 Retirement Mutual Fund. Oddly, I was not thinking about when to toss that money in and should have thought more about it. I should of waited for the bottom and then invest, but I guess I am learning daily.

 

[PEP]

I just opened up a USAA investment account. I put in some funds but it says I have to wait at least a week before I can buy stocks.

 

[MaStA]

I just opened up a USAA investment account. I put in some funds but it says I have to wait at least a week before I can buy stocks.

That is strange. I would call USAA and see if they can help you sooner. I haven't bought individual stocks yet, but did invest in a mutual fund the same day I opened it.

 

[PEP]

That is strange. I would call USAA and see if they can help you sooner. I haven't bought individual stocks yet, but did invest in a mutual fund the same day I opened it.

Did you transfer funds from a USAA checking/savings account? I did a transfer from another bank, maybe that's why. I had been hoping to be able to use the funds once the transaction was complete.

 

[MaStA]

Did you transfer funds from a USAA checking/savings account? I did a transfer from another bank, maybe that's why. I had been hoping to be able to use the funds once the transaction was complete.

Yes I transferred money directly from a USAA checking account so that is most likely the reason for the delay.

 

[MaStA]

I'm going to stay put in the S fund through today as well. I considered diversifying a little into the I fund, but at this point there is no reason to burn an IFT. I'm really trying to get all of my losses back...I hate looking at the auto tracker to see that I am down over 11%...kills me. At this snail pace, this will take a while to get those losses back.

 

[MaStA]

I hope the stocks will go up, up, and away for the rest of the month. I played one good move by being out for yesterday's downfall and now I'm back in. I'm out of IFT's so my current plan is to ride the month out and hopefully be positive and not negative. I'm sure there will be some negative days, but I'm hoping the positive will outweight the negative...

Here's to hoping at least.

 

[MaStA]

Well my journey to recoup my last year's losses is doing well so far. I had my finger on the Submit button to make an IFT out today at 1159 but I couldn't do it lol. From what I am gathering, tomorrow should shed some light on what to expect with the markets in the near future hopefully...? I would really like to go into next month invested, but if I go back to the G fund I am out of IFT's so I don't know what to do. If you go into a month invested you can get out once and get back in which allows you to be in the market on two separate occasions opposed to going into a month not invested and only being able to enter and exit one time. If that even makes sense...either way if it isn't too painful I would like to ride this month out and start invested for February, but we will see how that plays out.

I've also been considering moving my Roth IRA to a different fund since it is in a retirement 2050 fund right now. I've been considering a NASDAQ fund to move it into and I now wish I would of done so a few days ago, but life goes on.

 

[SteelSaving]

I too like going into a new month invested, however, as soon as I meet my monthly goal I have no problem pulling back out even if it means I am out of IFT's.
I am behind this month but still ok with my slim progress so far. I just can't let it turn me greedy later this year to try and make up for it!

 

[MaStA]

I too like going into a new month invested, however, as soon as I meet my monthly goal I have no problem pulling back out even if it means I am out of IFT's.
I am behind this month but still ok with my slim progress so far. I just can't let it turn me greedy later this year to try and make up for it!

Last year I wasn't greedy, I was just ignorant to what I should of been doing. I would ride the huge down wave, bail into the G fund, and then miss the big up wave. I'm still learning though, but hopefully I have learned not to do that anymore.

Today is looking even better for the S fund as of right now...

 

[Birchtree]

You might consider American's New Perspective Fund to cover your bases. It's a combination domestic and foreign fund with large caps predominant.

 

[MaStA]

You might consider American's New Perspective Fund to cover your bases. It's a combination domestic and foreign fund with large caps predominant.

What company is that through? Right now I have my Roth IRA with USAA. Thank you.

 

[jpcavin]

What company is that through? Right now I have my Roth IRA with USAA. Thank you.

American Funds?

 

[Birchtree]

I'm sure you can purchase the fund through USAA. They should have a nice write up on it.

 

[MaStA]

Well I'm still riding the train, but I'm worried to see what Monday brings. Hopefully some kind of magic happens over the weekend and Monday is another decent day.