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Author: TRYSTERO Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: "The time has come," the walrus said.. Date: 11/1/1999 9:14 PM
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The funds have finally been rolled over from
my old 403B to my IRA. I just checked my on
line brokerage account, and instead of a bunch
of 0's, the account ballence was $14,100 and
change. This is no longer an intellectual
exercise. I have to decide what to do with this
money to maximise my return. I've recently
finished reading YOU HAVE MORE THAN YOU THINK,
and I'm half way through
THE MOTLEY FOOL INVESTMENT GUIDE.
Tomorrow I'm going to order the Rule
Maker/Breaker book. I'm about to embark on a
road I've never traveled, fiscal responsibility.
I find this concept a bit scarey, even though in
the past I thought nothing of going to a casino
and throwing away $1000 tax refund in the hopes
of hitting the big one. Now I realize what an
irresponsible idiot I've been over the thirty
years of my adult life and that it's time to take
the first step in a new direction. I'll
probably go with the Foolish Four, but the
shakeup in the DOW recently has me a bit
confused. A small voice says wait till the
Y2K smoke clears. Another voice says never
mind Y2k. Over the long haul it won't matter.
Still another voice says try a rule breaker
portfolio, you're old (51) and don't have 25
30 years to invest. (Perhaps If I increase the medication,
the voices will go away) But I
have to do something with this tax deferred
account so that I can go back to the business
of paying off the plastic debt. I want to be
able to provide my wife and myself a retirement
that doesn't include cat food as a staple in our diet. This is no longer theoretical and I don't
mind admitting that I'm more than a bit nervous.
I realize that It is ultumately UP TO ME, but
I sure wouldn't mind some Foolish council.
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Author: ChuckONeil Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15025 of 74759
Subject: Re: "The time has come," the walrus sa Date: 11/1/1999 11:05 PM
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TRYSTERO

Congratulations! I'm sure the butterflies will disappear when you actually start making some investments. Remember it won't always be an up hill ride. You'll have to go through some downturns.

I'm glad to see you've done so much reading! You're on your way to intellegent Foolish investing.

If you want to start with the foolish four you could wait until mid December. I doubt that anything will look much better then (there's always all these negatives the press & analysts talk about). The book, "The Foolish Four" suggests that the best time to start is in mid December to the first of January. This starting period historically has given the best returns. If you start now you should hold the stocks until Mid December 2000.

Happy investing!

Chuck

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Author: GrayWulff Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15035 of 74759
Subject: Re: "The time has come," the walrus sa Date: 11/2/1999 9:48 AM
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TRYSTERO,

Hmm, real money huh? It does make things more interesting. Still, TMF's program is a good way to get your feet wet. In the order of increasing risk:

1) Vanguard's VFINX: A good place to put some of your money, especially while you're getting your feet wet. Long history of beating most mutual funds.

2) Foolish Four (RP4 or otherwise). Another good vehicle for building a solid base of investments. Particularly good in IRA's. Despite all controversy, is based on a system that has actually beaten the S&P500 by a bit since being proposed in the early '90s.

3) Long Term Buy and Hold--Rule Makers. How can you go wrong? Buy six or eight great companies and just hold on. Lots of advice about selection available right here on the Fool.

4) Foolish Workshop--PEG5 or other models. I especially like PEG5 and other models that select their candidates from Value Line's Timeliness Rankings of 1 and 2. VL has a multi-decade track record of beating the market. These are truly exciting go-go momentum growth stocks. Also lots of support here at TMF.

5)LTB&Hold--Rule Breakers. For the truly adventurous. Fasten your seat belts.

Personally, I keep about half my money in S&P500 index funds and split the rest between Foolish Four and PEG5 stocks. Gradually, as some of my 401k and deferred compensation money becomes available, I will put more into FF and PEG selections. I also hold a rule maker or two. But then, I'm an old f*rt; I used to invest most of my money in Value Line Timeliness 1 stocks almost exclusively. It was good, but as I approach retierment, I no longer want quite so much volatility.

Cheers,
GW

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Author: TRYSTERO Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15038 of 74759
Subject: Re: "The time has come," the walrus sa Date: 11/2/1999 11:04 AM
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What are the differences, in light of the recent
DOW change, of doing the RP4 on the S&P verses
the DOW? And has anyone been doing an S&P RP4
long enough to se if the returns mirror the Dow
set. The prices per share are quire a bit lower
which would allow for more shares per ammount
of money invested in the 2,2,3,4,5. wouldnt
this effect the dividend return, or is the
dividend more of a marker to choose the stock,
rather than a significant factor in the
investment return?

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Author: x4a54 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15039 of 74759
Subject: Re: "The time has come," the walrus sa Date: 11/2/1999 11:11 AM
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T.,

Welcome!

sounds to me like you have the basics figured out:
gotta do Something,
GOTTA do something about the debt,
Your decision...

i started just a bit younger (49, 5yrs ago) that you,
so i think i understand the impatience and the nervous.

...good advice from g.Wulff
--Hard to go wrong with an index fund.
--F4 (check out the 'Dow Investing' Board) *can* cause
more heartburn than it's worth.
--other Workshop screens --so many they confuse *me*,
but keep them in mind.
--Rule Maker/Breaker(s). Personally, i've had a lot
of success with such.

i don't like to give actual advice but... were i starting
now, knowing what i've learnt in 5yrs: i'd put a big
chunk in an index fund to anchor the port, then pick
1-4 RM/Bs that i think i know and like (either from
fundamental analysis or cuz i do a lot of business
with them)... then keep studying and learning.

Me: 24% index; 30% Breaker-like; 30% Maker-like;
rest in cash and F4.


good luck,

jp

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Author: x4a54 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15040 of 74759
Subject: Re: "The time has come," the walrus sa Date: 11/2/1999 11:18 AM
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What are the differences, in light of the recent
DOW change, of doing the RP4 on the S&P verses
the DOW? And has anyone been doing an S&P RP4
long enough to se if the returns mirror the Dow
set. The prices per share are quire a bit lower
which would allow for more shares per ammount
of money invested in the 2,2,3,4,5. wouldnt
this effect the dividend return, or is the
dividend more of a marker to choose the stock,
rather than a significant factor in the
investment return?


tsk tsk.... back to School for you..

22345 is passé.

yes dividends are a significant part of the return
(my F4, over 9months is up 7% w/o dividends, 11+%
with)

price/sh in and of itself is not important.

IMHO: the BSP is not to be trusted (not without Significant study), but the RP4 is not to be used
without a thorough understanding.


jp

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