Have a question, thanks in advance

[Kruser6]

I was given $5,000 from a family member when I graduated college. The purpose was to put it all towards my school loans, however I have consolidated my loans ($23,500) and am locked in at a low rate. Can't think of this number right now, but can find it in the morning. Think it's like 3-5%. My question is this:

Wouldn't it not make sense to do as this family member wishes me to do wth this money? I was thinking that I could take $1000 out and put it in my bank in which the monthly payments will be automatically pulled frooom - somewhere around $120. This will get me by around 8-9 months. In the meantime I could make a little porfolio together and try to earn 10-12% on the $4,000 which would give me 7%(est.) more money then I would have if I just paid all $5,000 against the loan right now.

What would you guys do? Would you invest in some small cap market stocks and hope to get some good return, or invest in something a little more secure. I am new at all this investing so any help is greatly appreciated.

 

[Dubpoet]

Why don't you use half for the loans and half to start an Ira. The quicker you get started the more you will have to retire on and you can use it also for your first home down payment.

 

[Uno]

Betting on sports with the money is not an option? Moving to mexico and hitting all of the online casinos in Juan's name is not an option?

 

[Timetopay]

Kruser how did it go at the airport?

 

[Kruser6]

Kruser how did it go at the airport?

Made it, but they failed to mention that it was going to cost me an extra $25 to get on through stand-by

 

[Kruser6]

Betting on sports with the money is not an option? Moving to mexico and hitting all of the online casinos in Juan's name is not an option?

:smoking:

 

[myboymagic]

:smoking:

Kruser, do you live in or near dyersville? I definately would not pay off the loan with the money if the interest rate is that low. If you want to take a shot, I like NLY. If interest rates go down, this stock should jump. Good time to get in now, I think the Fed will have to lower rates towards the eoy or beginning of next

 

[PercocetThreat]

Yeah, definiately do not pay off the loans. Hell, you could find a 12 month CD which yields like 6%. You wouldn't make much but it's better than nothing and it's guaranteed.

Personally, I would put it all into GRMN.

Good luck either way.

 

[Kruser6]

Yeah, definiately do not pay off the loans. Hell, you could find a 12 month CD which yields like 6%. You wouldn't make much but it's better than nothing and it's guaranteed.

Personally, I would put it all into GRMN.

Good luck either way.

Where do you see GRMN at in a year?

 

[jeckll]

Do you see the idiocy of taking stock picking advice (at all, but that's a different subject) on a gambling forum?

If you're gett 3% on your loans, it's a different story than if you're getting 5%. If you're getting 3%, you can put it in a high-yield savings account or CD and get several points in cream, even after tax on your interest earned. If it's 5%, sure you may be able to get more than that playing the stock market, or even investing in some funds, but short term, most people playing that game get their ass handed to them.

Index funds, over the long haul, do better than the hedge-fund managers who make hundreds of millions of dollars per year. And there's a reason for it. Humans cannot pick stocks. Period. Ask John Bogle, or Warren Buffet, if you don't believe me.

 

[Kruser6]

Cklennon, There are many very smart people on this forum. Many whom have handed out very good advice on stocks which have made incredible increases since recommendation. Look back at some of the picks -

Under Armour - $15 IPO - Now sitting at $67

I can name a lot of others - Exon Mobile - Up $4 since recommendation.

To say that a gambling forum is an idiotic way to get advice is idiotic in its ownself.

Aceduecetray made a good pick just the other day.

Humans can not pick stocks? that is flat out laughable. I am new to this game, but I do know one thing - you are talking like a fool. I mean that in no disrespect, but you are really talking about something that you know nothing about.

Hell, Percocet just picked Garmin which was up 3.53% today alone.

Please do a little research before making such broad statements.

 

[PercocetThreat]

Where do you see GRMN at in a year?

Considering their growth, I think they should be trading at about 60x 2008's earnings. I think they'll make around $4.25-$4.75 in 2008. Taking the low earnings number......

60 x 4.25 = $255/share

There is more to the calculation but that is the jist of it. cklennon is right in that you should not blindly take recommendations from anyone on a message board. Check the #'s and do some research and I think that you'll agree with me. They have had a real nice run in the past few months or so but I still think it is way undervalued. This company is fantastic.

Good luck

 

[jeckll]

Cklennon, There are many very smart people on this forum. Many whom have handed out very good advice on stocks which have made incredible increases since recommendation. Look back at some of the picks -

Under Armour - $15 IPO - Now sitting at $67

I can name a lot of others - Exon Mobile - Up $4 since recommendation.

To say that a gambling forum is an idiotic way to get advice is idiotic in its ownself.

Aceduecetray made a good pick just the other day.

Humans can not pick stocks? that is flat out laughable. I am new to this game, but I do know one thing - you are talking like a fool. I mean that in no disrespect, but you are really talking about something that you know nothing about.

Hell, Percocet just picked Garmin which was up 3.53% today alone.

Please do a little research before making such broad statements.

OK then, you play the stock picking game and then compare yourself to an index fund in 15 years' time. You have no chance. The guys that make $300m per year can't beat it, why can you? I know plenty about this subject, and simply don't believe the daytrading game pays off in the long run. But if it suits your fancy, go right ahead.

 

[PercocetThreat]

OK then, you play the stock picking game and then compare yourself to an index fund in 15 years' time. You have no chance. The guys that make $300m per year can't beat it, why can you? I know plenty about this subject, and simply don't believe the daytrading game pays off in the long run. But if it suits your fancy, go right ahead.

I implore anyone who reads this to completely ignore the above comment. The market is beatable if you are smart, work hard, and pay attention. Don't let emotions get in the way and have the ability to fall in and out of love with a stock at a moments notice.

 

[PercocetThreat]

I sure picked a fine time to tout GRMN, down to $93 today. My portfolio is bleeding red from every oriface today, goddamn.

 

[D2bets]

Put $4K into a Roth IRA and allocate it to a diversified fund or ETF (assuming you have at least $4K earned income this year). Pay the student loan over time and unless you exceed the income limitation you can tax deduct the interest, so in essence 4% is more like 3%. No reason to prepay a loan that is essentially 3%. You can beat that and better yet beat it in a Roth where earnings can grow tax-free. Should you fall on hard times the actual original contribution amount can always be withdrawn tax and penalty free at any time. You probably want to save for a down payment too. The student loan is not bad debt. Don't pay it off quicker than you have to.

 

[Darwinian]

Put it all on Oklahome in week 2 vs U of Miami

 

[PercocetThreat]

I sure picked a fine time to tout GRMN, down to $93 today. My portfolio is bleeding red from every oriface today, goddamn.

Now back to $104, tis a volatile little monkey.