Investments

[prayerfull]

Lately, my husband and I have been on this major push to really review our monthly family budget, savings, and long-term investmests.

We haven't done much investing just yet. We both have 401(k) retirements, I have a retirement pension from a previous employer, we dig into our savings a little too much. We also have bank accounts set up for the kids.

I've been reading a lot lately about the importance of "Paying Yourself First" in savings and investments. So, beginning today, I've routed a good amount of money into our money market savings, and am considering opening a stock investment account via a new site called Sharebuilder.com (I found it via Blackenterprise.com). I like the investment approach and the fees are much better than E-trade.

What investments and savings options to you hold...(I ain't trying to get into anyone's bizness...just hoping that we can all share some positive investment and savings strategies!!!)

Stocks, mutual funds, IRA, Roth IRA, 529 college savings plans, etc.

[Riley]

That is the best method. And for those who dip into your saving too much an account you can't really touch is the best bet. I personally have a VUL I can't remember what it stands for but it is life ins. that accumulates intrest.

[lovele1978]

"VUL I can't remember what it stands for but it is life ins. that accumulates intrest."

It stands for Variable Life Insurance. It kind of doubles as a life insurance policy and a investment account. Part of your premium covers the insurance part and the other half or so is invested for you. Just a little help for sisterfriend Riley . I have one of those two, I also have a seperate fund that is set up for my son's future education. The money that I put in it is invested into several different money market accounts. I want to learn more about the stock market, but I don't think that I will start investing now until it gets back up off it's feet .

[Bamboozled]

I currently have a Roth IRA with TDWaterhouse and I try to contribute the maximum amount each year (which just increased to $3000/year if you're under the age of 50). I also participate in my firm's 401(K) retirement plan. I met with a financial planner about a year ago and he really opened my eyes to a lot of things that I didn't know I was doing wrong. For example, make sure you are contributing the MAXIMUM percentage allowed into your 401(K). At the time, I was contributing a measly 7% and he encouraged me to change it to the max (which I believe is 15%, but don't quote me). I haven't really felt the difference in my take home pay and the amount I've accumulated has almost doubled within that year. Also, it is important to diversify your assets. If you don't, the money in your 401(K) could be sitting in a non-interest bearing account until you retire. So, my financial advisor taught me how to diverisfy. Now my portfolio is spread out over large cap stocks, small/mid cap stocks, international bonds and mutual funds. The type of investments you choose will vary depending on your risk tolerance.

Also make sure you understand and take advantage of your company's profit sharing plan and matching contribution.

[Steeltrap]

'Black America Saves' Initiative Heats Up

Posted Aug. 30, 2002 -- Financial experts keep pounding the message that saving and investing is vital to the future of Black Americans. If you don't yet get it, here are some numbers that might drive the point home for you:

Black net wealth equals $15,500, compared to $71,700 of net wealth accumulated by other Americans, according to a new study of federal data by the Consumer Federation of America (CFA) and BET.com. The study, released today, analyzed figures from the Federal Reserve Board's 1998 Survey of Consumer Finances. In other words, minus debts, deductions and expenses, this is the amount the average Black household has stowed away.

"Black wealth is a new concept for our community," says Debra L. Lee, president and COO of BET, which recently partnered with BET.com and the Consumer Federation of America to launch the new "Black America Saves" campaign. "[Wealth] is a concept that's uncomfortable for us."

The "Black America Saves" initiative is what the groups hope will ease African Americans into a regular saving routine, and ultimately reduce this dramatic wealth gap. Those who join submit a saving goal and receive free information about saving tools and options, a free subscription to the American Saver newsletter, and free financial advice by phone or Internet. So far, some 1,000 users from all over the country have enrolled. [See link at left.]

"The message, 'You Can Build Wealth,' is something that would surprise many people," says Stephen Brobeck, CFA's executive director. "We are trying to communicate that Blacks can build wealth as well. The things that will make a difference are patience, smarts and discipline. There has to be a mental aspect to this."

While the Fed report on Black wealth appears gloomy, there has been substantial growth in savings among African Americans over the past 10 years, showing an increase of 321 percent. But, proportionately more Blacks than others are what analysts call "wealth-poor," or those with a net wealth of less than $10,000.

Experts attribute these numbers to differing attitudes and financial behaviors. By and large, Blacks fail to plan for retirement and college. Many, 24 percent, spend more than they make, and 32 percent don't save. But other cultural factors come into play, many say.

"I think this is the first generation of African Americans who are familiar with wealth and many are using that wealth to take care of each other," says Marvin J. Owens Jr., director of housing and community economic development at the National Urban League. Both the Urban League and the NAACP have thrown their support behind the Black America Saves initiative. "Also, other Americans have been passing on wealth to each other for generations" so many of us are starting at a disadvantage, he said.

Program supporters say the key to changing the way African Americans view money is information. Both BET.com and BET are keeping the topic fresh with stories and programs about home buying, entrepreneurship, saving, and investing, and other means to building wealth.

"I think a lot of it is education and getting people to think on these terms," Lee says. "There's something about the Internet that makes people want to participate. I hope what BET.com and the network is doing will have a big impact."

[CrimsonTide4]

I get my year end bonus in a few weeks and instead of using it to only pay off bills, I want to invest at least a third of it wisely. I definitely plan to increase my 401K deduction this year as well since our company does a great matching program.

What are some short and long term wise investment strategies?

[Eclipse]

Originally Posted by CrimsonTide4

I get my year end bonus in a few weeks and instead of using it to only pay off bills, I want to invest at least a third of it wisely. I definitely plan to increase my 401K deduction this year as well since our company does a great matching program.

What are some short and long term wise investment strategies?

I am no investment advisor, so you get what you pay for but here are my suggestions:

Depending on your debt and the interest rate of that debt, I would pay that off first. If you have a credit card with a 15% interest rate paying it off will save you quite a bit in the long run. This also depends on you staying out of debt. If all of your debt is paid off how much extra money would you have to invest?

Number two would be to have a nice size emergency fund (not your regular savings account). Do you normal put large purchases on a credit card? I mean stuff like major car repairs, unexpected trips home, etc. Most people suggest that you put 3 - 6 months worth of income in your emergency fund. .

Then, if your 401(k) is maxed out, I would invest. Look for mutual funds or a Roth IRA is my only suggestion.

I've been listening to Dave Ramsey a lot lately on the radio (www.daveramsey.com) and although he proposing a some stuff I don't necessarily agree with (like never ever using a credit card) he has great ideas and is a real advocate of being 100% debt free

(BTW, I am not expecting you to answer these questions here, just something for you to think about)

[pinkies up]

Mr. Pinkies Up is a Financial Advisor, so if you have any questions, you can pm me and I'll get him to answer them. (You know every AKA husband has a Honey-Do list...)