As I stated in the previous post, I want to share something about my investment plan. Yes, its important to have a plan. That way there is a direction to what one does. This year, I have changed direction slightly. I recalibrated my portfolio by selling positions (stocks held) I held in companies that have not and do not pay dividends. I reallocated those funds and profits to strengthen positions I already have that pay dividends. This year, I focused on stocks I want to have for a long term. Now with the upturn in stock prices, it has been difficult for one like me to purchase the companies I want a price I can afford. So its little by little, as funds are built up, I invest in a few shares. Dividends can amount to enough to pay the stock fee or even a share of stock.
Now there is a cost to investing in individual stocks. So I have a minimum number of shares I purchase. When considering a sell the price must be enough to cover the fee plus profit. Otherwise its best to hold the stock.
So for this new year, pending how the economy and markets fare, I am going to invest in mutual funds. Two types of funds, an equity fund, and bond or fixed income fund. I do not have either in my Roth portfolio. I have not picked the funds yet, but they will be No Load (no initiation fee) No Transaction fee funds. Also the minimum investment has to be on the lower end to make it an affordable move. So each pay period I plan on making deposits to my Roth account, and as the funds build make appropriate purchases.
I also have an add on Certificate of Deposit at my Credit Union that is a long term saving, as well as a small emergency fund.
I hope that when I get to retirement to have sources of income from Social Security, a small annuity I am vested in, then my 401K, Roth and then long term savings.
I hope these two posts have given you some food for thought about your saving plan. You build it one deposit at a time. If its $10 or $100 a month, it adds up after a while. I encourage you to explore your options!
Now there is a cost to investing in individual stocks. So I have a minimum number of shares I purchase. When considering a sell the price must be enough to cover the fee plus profit. Otherwise its best to hold the stock.
So for this new year, pending how the economy and markets fare, I am going to invest in mutual funds. Two types of funds, an equity fund, and bond or fixed income fund. I do not have either in my Roth portfolio. I have not picked the funds yet, but they will be No Load (no initiation fee) No Transaction fee funds. Also the minimum investment has to be on the lower end to make it an affordable move. So each pay period I plan on making deposits to my Roth account, and as the funds build make appropriate purchases.
I also have an add on Certificate of Deposit at my Credit Union that is a long term saving, as well as a small emergency fund.
I hope that when I get to retirement to have sources of income from Social Security, a small annuity I am vested in, then my 401K, Roth and then long term savings.
I hope these two posts have given you some food for thought about your saving plan. You build it one deposit at a time. If its $10 or $100 a month, it adds up after a while. I encourage you to explore your options!
No comments:
Post a Comment