ralper

The stock market has been showing some signs of life lately. Still there is a great deal of uncertainty around, and it hasn't been able to make a break through.

Interest rates are low so C.D.'s, bonds, muni bonds and the like are yielding less then in the past.

We are all, more or less, middle age with an eye towards the retirement years. What types of investments are you making to help insure your future?

paS2K

Some of the best investments that I've included in our portfolio:

*Vanguard REIT Index Fund- This has been a great play on REITs. It may have peaked but I've been there for 5-10 yrs I can never figure out why various articles on REITS rarely mention this Vanguard fund, which invests in a large basket of trusts...over 100 in all areas: apts/ retail/ office, etc

*Vanguard GNMA Fund- Has cranked out 8-10%...year after year, whether rates go up or rates go down. I have about 1/4 of my retirements investments in this fund, so that gain is tax-sheltered.

*Vanguard Healthcare Fund- OMG, what a winner...drops back 1 step and shortly advances 1.5 steps It's also into Bio and Pharm companies, as well as pure healthcare bets. It's the perfect vintage play to track our baby boomer demographics

....what I NEED to do is move a chunk of $$$ out of a <1% MM fund (Vanguard, of course ) and into something with more upside potential/ but not toooooooooo risky.

OK, Rob- There you go Mr CPA.
I knew you were just priming the pump...so you can weigh in with the professional's advice

ralper

[QUOTE]Originally posted by paS2K
OK, Rob- There you go Mr CPA.

Legal Bill

I always have great ideas that I don't have the guts to go into. I stick with large equity funds like Fidelity's Magellan, Growth Co, etc, plus a mid cap and small cap fund and one international fund.
I try to keep a big chunk liquid in case of emergencies.

If I was going to go out on a limb...Buy real estate in Florida and the Georgia and S Carolina coast to hold for 10 to 15 years. As we boomers retire, this will become very hot property. I predict that Yankees like me will have a hard time finding anything good if we wait until we're 65 or 70, and the value of our northern houses will all go to buy the retirement house down south. I think we have already posted about this idea haven't we? Buy two or three properties, rent them now, sell one or two in 10 to 15 years and keep one to live in....

jrfblueeyes

I am a diligent long term invester. I don't try to time the market. Every year, I have simply dollar cost averaged into equities. I stick and have stuck with a mix of large cap, mid cap and small cap no load mutual funds that have very light fees. REITS are part of my aggressive portfolio but not a huge portion of the pie. There I go with pie again! I am also in a bond fund that makes up 2-3% of my portfolio. At 45, I am very aggressive and 98% out there with my retirement money. On the other hand, I have a large cash money market fund that I keep in the highest rated insured fund I can find. I keep that in case I need lots of cash, find a great investment or have to pay my home off. I hope to use it to invest in other Real Estate soon. That's why I can't tie it up. There are other money market funds that offer a slightly higher rate but being from the old school, I don't know them or trust them with my hard earned money. I have my cash with ING direct now. They pay me 2%
That's about as good as it gets. I really wish I could invest more into my retirement fund but am limited to IRAs at this point. My house in California has been my biggest and fastest money maker and I live in that. And no I don't believe in tapping that equity but I did only to buy my S2000. A 4% equity loan that I end up paying a little over 2% after taxes. My house bought my S2000 and could have easily bought me another since I bought my 2002. R.E. prices are rising so quickly here that it's hard to keep up.
I don't really know what I'm doing but keep my ear to the ground and try and learn as much as possible. Any suggestions?

mns2k

While I have used the normal mutual fund investment vehicles I am also using Preferred Stock. This is a investment vehicle that is between stocks and bonds. They trade on the market and are liquid. Normal issue price is $25/share. Like bonds they pay interest and have a call option. An example is XL-B. Paid $25 a share now trading at $27.11 and paying a rate of 7.625%. This stock has a guaranteed call option that at the end of 5 years you will get a minimum of your $25 back. Interest is paid quarterly.
Nuveen (symbol JPC) has some funds that cover pf. stocks. This one is paying a yield of 4.75%.
These are not without risk at you need to see how the interest payment is structured and if they miss a payout do they make it up?
Also have some fun stocks DPII, TGEN, GNTA, that are low price and betting that if they hit a item that the FDA approves there is a lot of up side. If they don't down side is you stock certificate look good framed.

paS2K

[QUOTE]Originally posted by jrfblueeyes
....I don't really know what I'm doing but keep my ear to the ground and try and learn as much as possible.

OhioRacer

This topic is number 3 on my angst meter. My best investment is the one where my ass is flopped right now...Paragon Consulting, Inc. There ins't a company out there, including Berkshire Hathaway that has a better ROI than this one. I'm just uncomfortable having so much of the family pie tied up here.

Commenting on what Bill said about coastal real estate, I must agree. In Myrtle Beach they are building golf course communities as fast as we change underwear. It is a sight to behold. I also have a friend who is high up at a local real estate/building firm and their company is building condos and homes as fast as they can in Florida (can't remember exactly where). These places are sold before the ground is broken he said.

MsPerky

I have a fairly diversified investment portfolio - a mix of stocks and bonds (some individual, some in funds) that changes usually when I need to offset gains with losses for tax purposes. I did lose pretty badly in the stock market, but am in it for the long haul. Real estate has paid off quite well on the four homes I owned before I bought the condo I live in now, which has more than doubled in value (location, location, location).

I also manage my 95-yr-old aunt's investments and have a pretty big involvement in my parents' financial affairs, although they are still able to handle theirs for the most part.

P.S. I don't manage all this on my own...I don't have the time. I have an investment advisor who helps me.
It also helps to have a great retirement plan. And I'm very happy to have one.

OhioRacer

Here's another question for this thread. I'm thinking of changing investment advisors. How did you choose yours?