No but see, that’s exactly why the price is low. I’m not waiting for it to go up, and I wouldn’t be bothered to see it drop some more either. I’d love a chance to get it at a better price.
I don’t need good news, just going through their financial reports I can see that they run a ridiculously wide profit margin, (I saw numbers as wide as 70%) and a very healthy dividend payout ratio. It’s mine.
EDIT: Forgot to mention, they’re sitting on a good trillion yen in cash. I think Buffett would be on this company if he wasn’t such good friends with Bill Gates.
I’m thinking about investing some savings in oil companies - has anyone done similar? If yes, anything I should be aware of, or just treat it as a regular investment?
Apply the same rules as any other company worth investing in. Good cash flow and profit margins are king. You can create a great income stream with Master Limited Partnerships, in particular I’m a fan of Linn Energy (LINE), and Kinder Morgan Energy Partners (KMP). Linn is extremely cheap at 2x earnings, maybe they’re not getting attention because they’re sort of new in the pipeline business. Take advantage of it, their numbers are great.
I went over the annual report for ConocoPhilips (COP) the other day and I liked what was in there. I also think Schlumberger (SLB) is keen. Even ExxonMobil (XOM) is a good price these days.
Stay out of Canadian oil trusts for the time being. I know the yields look juicy but it hasn’t been proven yet how the new tax laws will change things coming into next year.
ok, so I’m at the point where I’m actually trying to think a little bit about the future, savings-wise. Today I have an appointment at 4pm with State Farm to open up a Roth IRA and possibly get life insurance (to accumulate some money for the future, etc). My question is - is it better to put my money in a Roth IRA, or a savings account? Also, is it worth it to get life insurance? I currently have the minimum one through my company, but that will only work as long as I work there, obviously.
As you can probably tell, I have very little experience with saving money. Any suggestions/advice is welcome.
We’ve been getting questions about Roth accounts now for a while, and I’ve finally started reading up on them, so hopefully I can contribute something meaningful.
There are really two issues you want to be concerned with here. One is reduction of tax liability and the other is whether your money will grow. With a normal IRA the government gets to take a big chunk of your cash at retirement. The advantage on the Roth is that you pay some tax up front to avoid a greater taxation later. Odds are good that taxes will be higher when you get older, know what I mean?
So that’s good. Next you’re comparing a savings account vs. an investment account, and these aren’t really the same kind of thing. In the savings account there’s no question of how stable your money is. It’s probably guaranteed by the FDIC, and you know exactly what interest rate you will earn. Your money is not at risk.
No risk sounds pretty good, except that there is one. Inflation risk. If your money isn’t earning a suitable rate of return, inflation will erode the value of the money you’ve saved. So that just straight sucks. The Roth should offer you the ability to invest in stocks, bonds, mutual fund, and possibly other types of things so that you can put some funds at risk, with the expectation that a greater return can be expected.
I’ve still got a lot to learn about tax-protected accounts. For the time being I haven’t seen a good argument that they’re any better than paying that tax up front and enjoying compounded returns that uncle sam isn’t going to have a right to later on. Talk to your advisor, and please feel free to add what you’ve learned.
In the meantime, learn. Read as much as you can about investing, in the end that’s how you’ll overcome risks.
yeah, going with Roth. I don’t want to be able to touch that money, unless it’s for a down payment for my (possible future) house. In any case, the appointment was changed for Tuesday, so I’ll post again then.
I need some serious budget help…somewhat quickly as I’m trying to put this information together today.
Essentially, next to your mortage, what other monthly/yearly bills do you have and how much do they compare to the cost of your mortage. I’m trying to figure it all out but know that by myself I’ll miss something and miscalculate my budget. The numbers I’ve been throwing around are based on what I’ve read verse what I make in terms of mortage (I’m at roughly 62k :bluu: ) which puts me at a 180k mortage without killing myself or anything…but I’ve got other financial goals tied into everything so I’m trying to piece it all together. So in short I’m looking for
As of now, my mortgage is ~52% of our total monthly bills. For me, it is 35% of my monthly paycheck. All bills monthly come out to be 42% of my monthly paycheck.
Your estimates are correct, spliting the cost of our house in half nets you exactly what you quoted. Depending on your interest rate and how much of a down payment you put on the house, you should be looking at ~1200 a month.
Well I’m less concerned about just the mortage and more balancing the other things that someone who has all utiltiies included isn’t going to think about lol.
When I worked for Money Management we used to suggest a good rule of thumb is to set aside 10% of your budget for home related costs not associated with mortgages. If you couldn’t meet that 10% and set aside another 10% for personal savings, then you had no business being in a house.
Sorry for the confusion, the second option. I don’t mean money for utilities and normal monthly bills. Talking about having money ready for unexpected things. You want to get it so that you can be setting that money aside as well as money for normal savings/investments.
The rule my wife and I are following is that we are saving 6 months worth of all total bills. (Sucks cause I having been able to spend money on myself in about 2-3 years… :sad:)
Sorry to bump this up, but I’m in a bit of a conundrum here.
I just got a college grant for $4000 (2K a semester). Put with the financial aid I already have, that just about knocks out tuition for this semester. Awesome, right?
Well, it’s a little less than totally awesome. The catch is that they’ve all but eradicated my work study funds. Now my chances of getting a job on campus are slimmer than ever, and outside… HA!
But my federal loans are still there if I need them. They’re all unsubsidized (meaning I pay the interest), but it’s a package of 2K a semester. I’d have to fill out some forms or pay them right back ASAP to cancel them.
I try to be as good with my money as possible, so why the hell am I even considering adding more debt to my roster? I need a car. Just a used one to get back and forth to the college (and a potential job interview). My mom keeps rattling on about all these cars she sees for under 2K.
Realistically, unless I get a new job that pays well RIGHT NOW, the only way I’m going to have 2K to get a car now or years in the future is through a bank loan. The interest on these fed loans is less than a bank loan.
So, do you guys think it’s a good idea to use that loan money for a car one semester and then cancel the loan for the next semester? Or should I just keep looking for a job and save up?
You can also try getting a store credit card. I got my first credit card at Macy’s when I was 18. There’s lots of stores to choose from and I would say you shouldn’t have any problems. Target, stores in the mall, etc etc. Don’t expect a high limit though and be sure you pay your bills every month.
DV8 said it. The number one way to build credit is to pay all of your bills on time each month. Carrying low balances on any open accounts you have is also good.
