Posts Tagged ‘bargain stocks’

Don’t push the panic button (yet!)

Posted November 3, 2008 by Bernz

By Carrythebanner

Listen, I know all the news lately has you worried. We’re facing a global economic recession and that is very scary. But in spite of all the latest happenings, life should go on. So, in spite of the paper’s headline and what your co-workers are chatting about around the water cooler here are some tips that assure you panicking (just yet) is not the right move.

As I mentioned in my post, Bargain stocks, a good deal, one of the things you can do right now is to take care of new money coming in. This gives you an opportunity to put funds in those areas where contributions are low.

Another thing I strongly suggest is that you look at how your old money is invested and who it is invested with. Call your money manager and get help with this. What you’ll likely learn is that your money is safe but you’ll also learn about where your assets are and what you can do to make sure they are protected. Word of caution you’re stripping money from your retirement savings and future gains because compound interest wipes away that opportunity as does annual fees that are more than 3% a year.

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Posted in Financial Education | 2 Comments »

Bargain stocks, a good deal?

Posted October 24, 2008 by Bernz

Diving stocks are hugely tempting. Despite intense speculation and high hopes of locking in tax benefits. But watch out. Bargain stocks might not be the good deal they seem.

As put by CNBC.com, “You know when Warren Buffett starts buying stocks that we are at least within a 500-mile radius of the bottom”.

When a company is going through bankruptcy its shareholders are the last people to get paid. There is also a chance you might not get paid at all, meaning the stock you hold for that company could be completely worthless. I say “could be” because there is a chance that some pre-existing shareholders will receive some payment, but it’s a major gamble.

Friends, a smarter investment in these tumultuous times could simply be taking better care of what ever new money you have coming in. For instance a reallocation program that adjusts contributions to under-funded areas in your portfolio can keep you from locking yourself in to future losses. Talk to your financial advisor or your employer’s benefits manager about setting up a program that reallocates your new money.

And another thing: diversify. With the risks of having all your eggs placed in one basket, diversification should be among your top investment priorities. I’ve covered a few strategies that lend to automatic diversification. Click here to learn about a common way to instantly diversify your portfolio.

Posted in Investing Basics, Stock Market Investing, Stock Watch | 1 Comment »


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