Re: Investing

From: "Louis J. Schwarz, CFP, RFC" <louis@deafmoney.com>
Subject: Re: Investing
Date: Tue, 18 Aug 1998 20:06:02 -0400

Next Article (by Author): Bridge Loan - How Do They Work? Mark Orr
Previous Article (by Author): Income tax on investments Jerry Conley
Top of Thread: Re: Investing
Articles sorted by: [Date] [Author] [Subject]

> Date: Mon, 17 Aug 1998 15:52:05 -0600
> From: jeff@scrooge.csd.sdl.usu.edu (Jeff Salisbury)
> Subject: Re: Asset Allocation , part 2
>
> Steve,
>
> I too, am a buy and hold advocate.  However, being a CFP, what do you do for,
> or recommend for your clients?  Mutual funds?  Or, a portfolio of stocks?  How
> do you choose a mutual fund or stock since you indicate that you don't do much
> research?
>

The bottomline is the "lifetime" discipline method!

If investors do not want to read news, they better do DCA (Dollar Cost Averaging)
methods with several mutual funds outright their working years.

If investors do not want to trade from time to time, they better invest at least
75 percent of unneeded money in several stocks selected from the publicized list
of 100 best stocks and use their DRIPs (Dividend Reinvestment Program) during
their "buy and hold" years. Perhaps by the time they retire, they will receive
nice bigger dividends.

If investors want to make advantages of making possible better gains, they should
have stayed to the discipline method (can be anything but must be consistent) such
as if the price of conservative stock drops ten percent, sell it, so forth for
moderate stock (15 or 20%) and for aggressive (25 or 30%).  They should be patient
at least 12 months for each investment for sake of maximum 20% taxable long term
gain unless the unexpected event warrants for the immediate sale.

I, as the CFP, merely make the financial independence projections at the suggested
rate of return, including the factors on inflation and taxation. If the total
investment portfolio meets the given rate or better, I will be happy because my
clients are happy too - regardless of such unexpected high rate of return
currently.

Of course, all CFPs must do due dilgence on selecting any investment to be sure
each does meet the client's specific goals and objectives. So they must do some
research or review on investments before recommending to clients.
- --
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Louis J. Schwarz, CFP,RFC                             TTY: 301 587 5996
Schwarz Financial Concepts                            FAX: 301 587 5997
814 Thayer Avenue, Suite 301                        Voice: 800 735 2258
Silver Spring, MD 20910-4500            Email: louis@moneysigns.com
WWW: http://www.moneysigns.com




- -

Go to Jeff Salisbury LWGate Home Page.