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Journal of No. 118

December 27th, 2006

Yay for compound interest! @ 12:24 pm


It screws you in the butt when you owe, but sometimes the compound interest fairy gives back. One of my mutual funds just unloaded a year-end dividend of unusual size, in addition to posting. Should it continue to spew at that same rate (and I reinvest it all, as I do) I calculate that I will be a millionaire when I'm 95!
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Date:January 3rd, 2007 11:15 am (UTC)
One of ours did that, too. No idea how much we got out of it, though, as I checked when it was happening, and the site wasn't updated.

Are you with Fidelity? How diversified is your portfolio?

THIS is the kinda talk blog readers need to read! (wish there was more of this on MySpace to bore the kids off).
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Date:January 3rd, 2007 11:29 pm (UTC)
Rebecca is with Fidelity, but I have almost all of my investment stuff at E*TRADE. There's still a stupid 401K left over from Notre Dame Academy. I believe they want a blood sample and my notarized left nut before they will transfer the money into my rollover IRA.

Most of my worth is from the stock that Great Uncle Harold left me when I was 2. All hail Harold! That company split into three separate companies, so my eggs that were all in one basket are now in three somewhat similar baskets.
Since then, I've made a losing investment in one stock and invested in three very different mutual funds. I'm getting ready to dump more into my IRA and will probably pick yet another mutual fund. I'm probably not as diversified as I should be, but adding more money to the mutual fund side of the balance helps.
Date:January 4th, 2007 12:35 am (UTC)
Have you talked to Suzanne about it? She helped K and I, and I think we're better off now (money seems to go up a little faster than before, at least until the next Depression).

K has a 401K, we just added a Roth IRA (her dad will match her contribution to it, up to the $4,000/year limit, so $2K/year), we have money in six (seven?) mutual funds through Fidelity, and have some liquidity in an ING savings (then there's the regular Wells Fargo account, which also has a little bit in the savings account attached to it).

All this came from K's wonderful Grandmother, and her Aunt, who set it up before we broke it out and I actually did some basic management of the money (I do occasionally have to work for my free room and board).

I'd really recommend talking to Suzanne if you haven't yet. We only met with her twice, but that was enough to explain what was going on, and, I think, set up our finances well enough that we can leave them there for now without much worry.

Investment in a single stock (company), I think, is risky. If it goes south, you can lose a lot. So we don't have any single stock. Then again, I know that we have money in Halliburton somewhere, but I have learned to live with my hypocrisy every time I see the total fund value go up.
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Date:January 7th, 2007 01:51 am (UTC)
We haven't talked to Suzanne, but I feel comfortable with my own paltry efforts.

Single stock has risks, but it's really the only way to win the lottery by investing. My losing stock is making a rally, and their intellectual property situation is good. I'm still hopeful that they will kick some serious ass and become a ten-bagger, in Peter Lynch's phrase.

But for solidity in my dotage, I'm certainly relying heavily on mutual funds.

Although I claim no expertise, Becca seems to think investing is in my blood. My grandfather was president of the National Association of Investment Clubs, or whatever it is they're calling themselves now. Certainly, Grandpa sent me enough books on investing. Peter Lynch's being the best of them. Of course, he works for Fidelity, so you're getting his benefit anyway.

Journal of No. 118