New Sharebuilder IRA

If you aren't going to watch stocks and buy and sell, you should invest in either mutual funds or an etf. I am not sure if Sharebuilder has those, but a quick search on their site will give you that answer.

Quote from discostu58 : If you aren't going to watch stocks and buy and sell, you should invest in either mutual funds or an etf. I am not sure if Sharebuilder has those, but a quick search on their site will give you that answer.

Thanks for the feedback. Do you know a good mutual fund?

Quote from monacutest : Thanks for the feedback. Do you know a good mutual fund?

sorry not through Sharebuilder, each financial institution has different ones. Some will be identical, but for the most part will be different.

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go with dupont, flavored sugar water is just a fad

All your eggs into one basket could be good or could be bad.

They pay a decent dividend. So if the stock stays the same you would still be up.

I'll judge by current time of posting the price of KO is 67.92$ per, so that is 73 shares. So every penny it goes up or down its a multiple of 73.

coke pays about a 47 cent dividend a quarter. So thats $137.24 in dividends a year you COULD make. if the stock stays EXACTLY the same. Now if coke gets some bad press well, your going to be a lost, or if 2008 repeats itself.

I thought sharebuilder was $4 to buy and like $25 to sell. They really dont want you to sell.

If your just starting out with next to zero knowledge, i would say stick to the big name stocks and spread the money around into different areas. Like go buy 1000 shares of coke and 1000 shares of pepsi. But if you wanted to do that do 500 of each. I wanted to spend $2000 into ATT or Verzion, i could make up my mind so rather then get one, i did $1000 of each. Which turned out decent because i was going to do $2000 into VZW, which dropped a couple bucks and ATT was stable.

Quote from okashira : Coca Cola is not a bad choice, but not the best potential either Just an index fund like the Vanguard (500)?? would be better then a mutual fund

I second that, I'm a fan of index funds for a long term investment.

thanks for all your feedback! I received 5 free online trades from Sharebuilder so I am thinking of dividing $10000 ($5000 for 2011 and $5000 for 2012 contribution) between these companies:

Coke
Philip morris
Procter Gamble
NLY (I just read from the motley fool that this is one stable stock)
Apple (?)

Any comments? I know it may be risky to put all the money in stocks but I am thinking of long term investing and am willing to take the risk since these are very good companies.

Quote from monacutest : thanks for all your feedback! I received 5 free online trades from Sharebuilder so I am thinking of dividing $10000 ($5000 for 2011 and $5000 for 2012 contribution) between these companies: Coke Philip morris Procter Gamble NLY (I just read from the motley fool that this is one stable stock) Apple (?) Any comments? I know it may be risky to put all the money in stocks but I am thinking of long term investing and am willing to take the risk since these are very good companies.

Nothing wrong with the above; I hold all in my portfolio. You want large cap, prefferably dividend paying stocks for your intentions. Take a look at CVX, MSFT, as a couple other solid choices.

Quote from IchBinSoBose : Nothing wrong with the above; I hold all in my portfolio. You want large cap, prefferably dividend paying stocks for your intentions. Take a look at CVX, MSFT, as a couple other solid choices.

Great! Should I buy them now or wait for them to at least go down a bit?

Be careful with NLY - I've heard some rumors about the security's ability to maintain such a high dividend yield. If you are interested in high-dividend and want to minimize your risk a bit, try the etf MORT. One of the securities it holds is NLY, but it has others as well, spreading your risk.

is a index fund not a type of mutual fund?

i.e. Vanguard target date mutual funds seek to match the S&P500 no?

Quote from okashira : NO to ETF's and don't bother with mutual funds. Most lose to the general market. Coca Cola is not a bad choice, but not the best potential either Just an index fund like the Vanguard (500)?? would be better then a mutual fund It is more fun to choose your own stocks, but if you really want to, spread it out a little more. You could do 1/3 into Chevron, 1/3 in to Coca Cola and 1/3 into Intel. That would be pretty solid. Ideally you want at least 10, though. But three's better then 1.

What's wrong with mutual funds??