Hmmm... Do you have enough money to pay off your mortgage? Are you
fully funding your Roth IRA and/or company retirement plan? Generally,
I prefer Growth Stock Mutual funds. They have averaged around 12% over
the last 70 years and I plan on holding them for 30+ years.

Best of Luck Al!

Cheers,
Menck

"John A. Weeks III" <john[at]johnweeks.com> wrote in message
news:john-52AE1A.19080124012005[at]news.mpls.visi.com...
- quote -

I thought that was the reason bonds are where you're supposed to put your
short term money. We haven't been talking about duration in this thread.
Were you buying longer-term bonds?

Elizabeth Richardson

"John A. Weeks III" <john[at]johnweeks.com> wrote
- quote -

Have you conflated some notions here?

I'm pretty sure five-year CDs (for one), have pretty consistently had
coupons well above the annual inflation rate.

- quote -

If by stepping up a category you mean buy stocks, then by doing so you also
have a chance of losing your shirt.

For retired people seeking income, IMO having a significant portion of
one's portfolio in a bond/CD ladder makes a lot of sense to me.

For people who have a longer horizon and are not seeking income, stocks
make a lot of sense.

In article <1106611182.391580.201830[at]z14g2000cwz.googlegroups.com> ,
"jdadverb" <jdadverb[at]yahoo.com> wrote:

- quote -

The problem with "sure thing" investments like CD and government
bonds is that the rate of return is so close to the rate of
inflation that you risk losing buying power over time. You
are sure to get back your investment, but that investment buys
far less stuff when you are done. To me, that is the worst
kind of risk of all--where you have locked your self into a
sure loser. Step up a category where at least you have a
chance of making a profit on the deal.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

In article <ysfJd.4737$r27.1033[at]newsread1.news.pas.earthlink.net> ,
"Elle Navorski" <elle_navorski[at]nospam.earthlink.net> wrote:

- quote -

I don't recall what ComDisco was. At the time, they were big
in disaster recovery...the company you go to when your company
is facing a crisis. I only buy investment grade, so it had to
be pretty highly rated.

MCI and WorldCom had rave reviews. That was the problem...they
were cooking the books and making it look like they were winning
big while they were really teetering on bankruptcy. Things got
out of hand one quarter, and all the dominos fell over, with
both bond holders and stock holders left holding a $10-billion
dollar bag.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

"John A. Weeks III" <john[at]johnweeks.com> wrote
snipping lots; trusting people can look back in the thread.
- quote -

John, do you remember what the Moody/S&P ratings were on these bonds when
you purchased them? Their maturity?

John A. Weeks III wrote:
- quote -

I see your point that if the company goes under there's a good chance
that nobody gets anything, but you are just talking about corporate
bonds. "Bonds" also encompass government bonds which (at least in the
U.S.) are much safer than stocks.

John Lee

al wrote:
- quote -

I think that the stock market is your best option for maximizing your
return on investment. Of course, your risk will be high.

Your return will depend on your ability to pick stocks or mutual funds.
If you can't pick stocks, you may have problems with mutual funds.

You can use options to increase or decrease your risk in the stock
market.

--
Ron

Elli,

I totally agree. I've been looking at what to do with my "safe" ( can't
afford to loose principle) money. I was considering trying my hand at
bonds, but have been able to do better with CD's. I look at Bankrate.com,
then call some of the highest yielding places and they usually will even
bump up another 15 to 25 basis points (I usually ask for a supervisor).
Beats what I am seeing with bonds and the CD's are 100% guaranteed.
Steve
"Elle Navorski" <elle_navorski[at]nospam.earthlink.net> wrote in message
news:H_VId.3875$r27.1828[at]newsread1.news.pas.earthlink.net...
- quote -

In article <H_VId.3875$r27.1828[at]newsread1.news.pas.earthlink.net> ,
"Elle Navorski" <elle_navorski[at]nospam.earthlink.net> wrote:

- quote -

The risk with bonds that I speak of is not interest rate risk,
it is the risk of the company going toes up. I have never had
a company go toes up where I owned stock, but I am a 3 time
loser in picking bonds (ComDisco, WorldCom, MCI). I have
never seen $15,000 turned into 25 cents so quickly in my
entire life. Had I spent that $15K on beer, I would of at
least had some aluminum to sell to a recycler.

Some people think that bonds are safer since they are in line
ahead of stockholders for any assets of the company. In reality,
with companies being highly leveraged these days, keeping no
inventory, and leasing all physical items, it would be highly
unusual for anything to be left for even the bond holders if a
modern top 1000 company goes under. As a result, I consider
bonds to be just as risky as stocks, but with half the return.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

Bonds don't have all the risk of stocks if you hold to maturity.

They often pay a higher interest rate than CDs. Of course, the risk is
somewhat more, depending on the bond rating.

OTOH, lately my bank is offering fixed rate and one-time adjustable rate
CDs that are paying better than high grade bonds. They are trumping bond
offerings (as seen at Fidelity) big-time.

I was going to build a bond ladder as part of my portfolio, but so far over
half of it is CDs.

"Robert Ricks" <stevericks[at]mindspring.com> wrote
- quote -

John A. Weeks III" <john[at]johnweeks.com> wrote in message news:john-

". Bonds are the wildcard...they have almost
- quote -

Just what I have always thought and have asked in newsgroups-why should one
buy them over CD's -but everyone still says buy bonds.
Steve

al wrote:

- quote -

The amount of capital you quoted is small. Liquidity isn't a problem
- invest based on risk preferences.

- quote -

Real Estate is a basic investment - if you fail here, equity markets
will eat you.

- quote -

your credit rating.

- quote -

You don't stand a chance - find a good FP before you turn old and
gray.

John A. Weeks III wrote:
- quote -

I tend to agree with John as to gold's value in your portfolio, but
there are gold ETFs now that at least eliminate the storage factor.
Anyone have any thoughts on these ETFs?

- quote -

Beenie Baby's are going to come back any day now. You'll see.

-Will

In article <hJAId.891$G31.156[at]okepread05> ,
"Brent D. Gardner, ChFC" <bgardner20[at]cox.net> wrote:

- quote -

Read carefully what I wrote. I said "new business". I never
said anything about franchises. I don't know the numbers for
franchises, but I will quote the US Government on the topic:

- quote -

This comes directly off of the Small Business Administration home
page, http://www.sba.gov/starting_business...eyouready.html.

If you factor in that so many small businesses these days are one
person operations where a person was converted from employee to
contractor, and really isn't running a real business, we can see
that about half of the 23% that you mention that survive really are
not businesses at all.

- quote -

I think that a certain 30+ year attorney owes me an apology.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

"John A. Weeks III" <john[at]johnweeks.com> wrote in message
news:john-51447A.13474322012005[at]news.mpls.visi.com...
- quote -

Incorrect. According to a survey by the U .S. Commerce Department, the
percentage of businesses still operating after the first year -- compared to
independent businesses -- is 97% to 62 %. After five years, the comparison
is even more telling -- 92% of franchised businesses are still operating,
compared to 23% of independent businesses. After ten years. 90% of
franchised businesses are still operating. compared to 18% of independent
businesses.

I have to admit, I have an invaluable source in my practice -- an attorney
with 30+ years experience in franchise law. =)

He bust out laughing when he heard me read the false statistics given by
John Weeks.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://www.brentdgardner.com/
http://www.gardnerfinancialgroup.com/
http://www.topgunproducers.com/
http://www.creditfixinc.com/

Si vis pacem para bellum!

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.

opinions? everyone will have one, be careful...

50K I would look into about 5-6 stock mutual funds, 100k I might
venture into about 20 individual securities and 1-2 mutual funds. 200k
I would go with 20-30 individual stocks and 1-2 mutual funds.

Hi John - I appreciate your answers - they were very helpful. I noticed you
have a phenomenal background in programming. Has this helped you to become a
market tactician, or merely to confirm the efficient market theory?

best regards,

al

(direct email is fake)

If you have a nack for technology. Then I would sincerely recommend a
Wireless Zone Franchise. They have an awesome ROI- some acquaintances have
done well, not by luck.

-DZM

In article <MduId.29904$SK6.22540[at]bignews3.bellsouth.net> ,
"al" <abuse[at]bellsouth.net> wrote:

- quote -

There is no best way. To determine what is best, one would have to
know the future. Since none of us knows what the future holds, we
can only make guesses and take a shot at it.

- quote -

This is probably the safest way to go. Savings accounts, money
market, and the like almost never go broke. Stocks have a historic
rate of return above 11%. Bonds are the wildcard...they have almost
all the risk of stocks, yet they have less than half the return.

- quote -

A true sucker play if there ever was one. Gold has no real
value, very few uses, it has no rate of return, the buy/sell
split is enormous, and you have to pay to store the damn stuff.

- quote -

90%+ of new business fail within 5 years. That sounds even
worse than the stock market since March of 2000.

- quote -

At least you wouldn't be dissapointed when you don't earn anything
since you knew that going in with this one. How about sending it
all for Tsunami relief?

- quote -

Ask the beenie-baby people how it worked out for them after they
paid $100 for beenies that are now worth less than 25 cents each?

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================