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IRA stock? Paypal Stock PYPL $35.50

tennis4789 890 383 December 17, 2015 at 11:55 PM in Slickdeals News & Articles (2) More PayPal.com Deals
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Looking for stocks to buy with IRA. 20 year horizon. Not fan of Mutual funds 1% fee/year costs LOTS over 20 years.

I really only like stocks in companies I spend money on/use.

Thinking PayPal is a good option.

Only places I really spend much money are:
Slick Deals random super cheap deals.
Tmobile - $40/month
Pay Pal -
Ebay -
Ameren - Utility company
Comcast - internet
Discover - credit card
Dollar Tree
Aldis
TAXES/Local Credit Union.

I use Google tons but have never paid them a penny.
I buy gas but only at the cheapest gas station or where I have a discounted gift card.

Any technical analysis of whether to hold off on PayPal or buy it now? Other 20 year performers.

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#2
Quote from tennis4789 View Post :
Looking for stocks to buy with IRA. 20 year horizon. Not fan of Mutual funds 1% fee/year costs LOTS over 20 years.
Why not hold broadly diversified index funds which cost far less than 1% APY? The transaction fees for buying and selling individual stocks will probably be higher than the fees for an index fund.

Rollover your IRA to a discount brokerage like Vanguard, Fidelity, or Charles Schwab if there aren't any decent index funds offered in your current IRA.
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Quote from dhc014 View Post :
Why not hold broadly diversified index funds which cost far less than 1% APY? The transaction fees for buying and selling individual stocks will probably be higher than the fees for an index fund.

Rollover your IRA to a discount brokerage like Vanguard, Fidelity, or Charles Schwab if there aren't any decent index funds offered in your current IRA.
Exactly, dump it into an S&P 500 ETF and leave it be.
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Quote from dhc014 View Post :
Why not hold broadly diversified index funds which cost far less than 1% APY? The transaction fees for buying and selling individual stocks will probably be higher than the fees for an index fund.

Rollover your IRA to a discount brokerage like Vanguard, Fidelity, or Charles Schwab if there aren't any decent index funds offered in your current IRA.
I have an S&P index in my 401k. Charges me 1%. ETF I know are significantly less charges.

I have an IRA with Etrade Costs me $10 to buy or sell. My plan is to just buy Paypal and let it go for 20 years.

Total costs $10 to buy and $10 to sell.

I would rather own 1 stock vs. a bunch in an index. Not sure exactly why. I guess more entertaining to watch 1 stock vs. an index. I feel I will get "lucky" and pick better stocks than are in indexes. Not a whole lot of logic I guess.

I feel like PayPal has a huge lead vs. the other companies. They pretty much dominate the space right now. I spend money with them and use them. Just thinking it's a good stock to own for 20 years.

Having said 20 year time horizon probably kind of stupid to not just buy it today vs. trying to get when it is somewhat of a bargain. It went down some today but market was down.

Anyone doing any technical analysis like candlesticks etc.? that might say buy now or hold of on a downward trend. I would like to learn more about technical trading although if I'm trying to hold good stocks for 20 years technical trading doesn't really play much of a role.
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Last edited by tennis4789 December 18, 2015 at 09:18 PM
#5
Venmo is coming to take some market share from PayPal I think
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Quote from GeTinThere007 View Post :
Venmo is coming to take some market share from PayPal I think
I haven't heard of Venmo before. Seems like almost all on line merchants take visa/MC/Discover and PayPal. My feeling is that others will have a very hard time penetrating the market and getting market share like Paypal already has.

Look at Apple Pay. What a fiasco with its launch.
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Quote from tennis4789 View Post :
I have an S&P index in my 401k. Charges me 1%. ETF I know are significantly less charges.

I have an IRA with Etrade Costs me $10 to buy or sell. My plan is to just buy Paypal and let it go for 20 years.

Total costs $10 to buy and $10 to sell.

I would rather own 1 stock vs. a bunch in an index. Not sure exactly why. I guess more entertaining to watch 1 stock vs. an index. I feel I will get "lucky" and pick better stocks than are in indexes. Not a whole lot of logic I guess.

I feel like PayPal has a huge lead vs. the other companies. They pretty much dominate the space right now. I spend money with them and use them. Just thinking it's a good stock to own for 20 years.

Having said 20 year time horizon probably kind of stupid to not just buy it today vs. trying to get when it is somewhat of a bargain. It went down some today but market was down.

Anyone doing any technical analysis like candlesticks etc.? that might say buy now or hold of on a downward trend. I would like to learn more about technical trading although if I'm trying to hold good stocks for 20 years technical trading doesn't really play much of a role.
So you want to gamble with your money for retirement for entertainment value? You're going to buy and hold stock in one company that you utilize that happens to appear to be doing well currently because you have "a feeling" that other companies would have a difficult time competing? You want someone/something else to tell you whether now is a good time to buy it or not? These are all very bad things and I would encourage you to rethink your retirement investment strategy from the ground up. Do you really want the security of your retirement to depend in any significant amount on any one company?

If you have extra money left over after fully funding your retirement accounts that you want to play around in the stock market with, then go ahead. Don't gamble in your IRA or 401k.

Vanguard's Total US Stock Market ETF has a 0.05% expense ratio. Within this fund are nearly 3800 different stocks. One of those stocks is PayPal Holdings Inc. which comprises 0.182% of the fund's total net assets.
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Last edited by dhc014 December 19, 2015 at 08:30 AM
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Quote from dhc014 View Post :
So you want to gamble with your money for retirement for entertainment value? You're going to buy and hold stock in one company that you utilize that happens to appear to be doing well currently because you have "a feeling" that other companies would have a difficult time competing? You want someone/something else to tell you whether now is a good time to buy it or not? These are all very bad things and I would encourage you to rethink your retirement investment strategy from the ground up. Do you really want the security of your retirement to depend in any significant amount on any one company?

If you have extra money left over after fully funding your retirement accounts that you want to play around in the stock market with, then go ahead. Don't gamble in your IRA or 401k.

Vanguard's Total US Stock Market ETF has a 0.05% expense ratio. Within this fund are nearly 3800 different stocks. One of those stocks is PayPal Holdings Inc. which comprises 0.182% of the fund's total net assets.
what is wrong with OPs plan? this was warren buffet's exact strategy. to buy what he knew.
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Quote from voljason View Post :
what is wrong with OPs plan? this was warren buffet's exact strategy. to buy what he knew.
How many Warren Buffets are there in the world? Warren Buffet advocates Index Fund investing.
Buffett wholeheartedly endorsed indexing in his 2013 shareholder letter. He outlined how his survivors should handle his estate, and here's what he had to say:

"My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors -- whether pension funds, institutions or individuals -- who employ high-fee managers."
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Thanks for input. I already do a 401k S&P tracker through work. I will have to wait and see once I see what my taxes are. Leaning toward Paypal.

Thinking I will do a traditional IRA vs. Roth. 20 year time frame. Thinking $5,500 is limit.If I contribute $3,000 it will reduce my tax liability by $1,000. So $2,000 out of pocket. Or should I just do $2,000 into a Roth? TIA
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Quote from tennis4789 View Post :
Thanks for input. I already do a 401k S&P tracker through work. I will have to wait and see once I see what my taxes are. Leaning toward Paypal.

Thinking I will do a traditional IRA vs. Roth. 20 year time frame. Thinking $5,500 is limit.If I contribute $3,000 it will reduce my tax liability by $1,000. So $2,000 out of pocket. Or should I just do $2,000 into a Roth? TIA
It feels a little bit like you are trolling us because your plan goes against a lot of mainstream financial advice. So, assuming you aren't trolling, here's some food for thought:

1.) I believe there's a chance that the federal government could take a closer look at regulating Paypal more closely. As it stands, I think it is less regulated than a bank, and it's possible the federal government could take steps to close that loop. So if you invest, I would keep an eye on next year's elections to see what implications it might have for the regulatory environment.

2.) You've already addressed the competitiveness of paypal, but I would consider VenMo as a sign that tech companies are looking for ways to take some of Paypal's marketshare. And maybe beyond tech companies, I think banks (i.e. BofA, Chase, Wells Fargo) are trying to make inroads in this area too.

3.) I'm not sure that if you participate in a 401k through your employer, that you are also eligible for a traditional IRA. I would double check on your eligibility to have both through your bank or the IRS website.
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Quote from CycloneBD View Post :
It feels a little bit like you are trolling us because your plan goes against a lot of mainstream financial advice. So, assuming you aren't trolling, here's some food for thought:

1.) I believe there's a chance that the federal government could take a closer look at regulating Paypal more closely. As it stands, I think it is less regulated than a bank, and it's possible the federal government could take steps to close that loop. So if you invest, I would keep an eye on next year's elections to see what implications it might have for the regulatory environment.

2.) You've already addressed the competitiveness of paypal, but I would consider VenMo as a sign that tech companies are looking for ways to take some of Paypal's marketshare. And maybe beyond tech companies, I think banks (i.e. BofA, Chase, Wells Fargo) are trying to make inroads in this area too.

3.) I'm not sure that if you participate in a 401k through your employer, that you are also eligible for a traditional IRA. I would double check on your eligibility to have both through your bank or the IRS website.

http://www.amazon.com/One-Up-On-W...0743200403

I'm not trolling. Peter Lynch wrote above book. Worth the read.

I never thought about giv regulations. I'm sure the bank lobby is pgretty strong and would workk to change regs in their favor if paypal is too successful. But paypal does seem very well run by ceo.
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Quote from CycloneBD View Post :
3.) I'm not sure that if you participate in a 401k through your employer, that you are also eligible for a traditional IRA. I would double check on your eligibility to have both through your bank or the IRS website.
Participation in a company-sponsored 401k does not affect eligibility to contribute to an IRA. https://www.irs.gov/Retirement-Pl...ion-Limits
Quote from tennis4789 View Post :
Thinking I will do a traditional IRA vs. Roth. 20 year time frame. Thinking $5,500 is limit.If I contribute $3,000 it will reduce my tax liability by $1,000. So $2,000 out of pocket. Or should I just do $2,000 into a Roth? TIA
The decision to contribute to a Roth or traditional IRA depends only on how your current tax rate compares to the tax rate when you start to take distributions from the IRA. Most people have significantly higher income during their working years than they do in retirement so their tax rate is lower in retirement. This makes the Roth IRA an attractive choice. If you already have a traditional 401k through work, then having a Roth IRA gives you more choices for how to take distributions in retirement with a reduced tax burden.
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Last edited by dhc014 December 21, 2015 at 08:07 AM
#14
You guys realize that Venmo is OWNED by paypal right?
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Quote from tennis4789 View Post :
I have an S&P index in my 401k. Charges me 1%. ETF I know are significantly less charges.
That can't be right. What passively managed index fund charges 1%??
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