Just One Man's Opinion - 10 July 2005
by JMac
GOOGLEMANIA !!!!!!! - I recently came across an analyst's blog site wherein he extrapolates Googles numbers and predicts it eventually will have a market cap of ONE TRILLION DOLLARS !!!!! He says this will make the stock worth $3,5000 !!!!!
As I said on July 1, don't ask me, I haven't a freaking clue....
Fed Watch - My sense is the Fed raises to 4% on Fed Funds rate and stops.The Fed seldom raises rate during an election cycle (except when the Prez is a peanut farmer) and let's face it, Greenspan wants the Republicans to keep the House. That ties in with this:
Recently I recommended SBC for an income (4% dividend) but no growth portfolio. Now, I recommend you switch out for Bank of America. It has income ( 4% div.) AND growth. My sense is they are looking to make more acquisitions than just announced last week. There is some low hanging fruit in the regionals in the South and Southwest, which couldl be accredtive to their earnings in late 06 and 07. Wall Street hated the FleetBoston deal and it was WRONG. This makes this a growth AND income play.
ANNUITIES - A PERSONAL STORY -
In 1997 I enjoyed a small, unexpected windfall. I read a very small article in a respected financial magazine which asserted " In recorded history no one had ever lost a dollar in annuities". I spent the next week reading everything I could find regarding annuities and finally invested a portion of my windfall (50K) in a variable rate annuity. It doubled in eight years, which is an annualized return of 9%, net of costs, tax deferred. At the time I was in the 39.6% bracket, today 28%. I annuitized it on June 30 of this year and I, or my wife, will receive a monthly check for $600.00 for the next 20 years, or $144,000, paying tax only on the portion that represents my gains. Big deal ! right ? Well, I just refied my house for twenty years and that is my current house payment.
There are a plethora of companies that offer annuities. I picked one that had been around a while and had the lowest expenses. (If you want to know what I chose, send an inquiry by commenting to this thread) but you can find them as easily as me.
Annuities give you great freedom of choice. The big ones offer a guaranteed fixed return in, e.g. MMA's, bonds, gov't and corp. (don't buy tax free's the income is already deferred) as well as a market basket of stock portfolios and index portfolios. Typical portfolios are :Balanced, Capital Growth, International, Index ( Russell, S&P, Mid-Cap, Large-Cap. etc.) They offer you any style, or combination of styles, you want and you can spread your dollars throughout and switch, mix and match, at NO COST, at anytime.
For instance, I put 10% in International, 10% Balanced and Capital Growth, 20% Large Cap, 20% Mid Cap, 20% Small Cap,
and 10% Growth & Income. ( I did tweak it a couple of times).
After a period of time (usually one year ) you can: cash out or, take income for a set period of years, or for your life, or the life of the last survivor, if you designate a co-annuitant(s). If you die at any time after you put in your first dollar, your beneficiary can take the cash, or step in your shoes and do whatever he/she likes. Give your insurance agent a call.
GOOGLEMANIA !!!!!!! - I recently came across an analyst's blog site wherein he extrapolates Googles numbers and predicts it eventually will have a market cap of ONE TRILLION DOLLARS !!!!! He says this will make the stock worth $3,5000 !!!!!
As I said on July 1, don't ask me, I haven't a freaking clue....
Fed Watch - My sense is the Fed raises to 4% on Fed Funds rate and stops.The Fed seldom raises rate during an election cycle (except when the Prez is a peanut farmer) and let's face it, Greenspan wants the Republicans to keep the House. That ties in with this:
Recently I recommended SBC for an income (4% dividend) but no growth portfolio. Now, I recommend you switch out for Bank of America. It has income ( 4% div.) AND growth. My sense is they are looking to make more acquisitions than just announced last week. There is some low hanging fruit in the regionals in the South and Southwest, which couldl be accredtive to their earnings in late 06 and 07. Wall Street hated the FleetBoston deal and it was WRONG. This makes this a growth AND income play.
ANNUITIES - A PERSONAL STORY -
In 1997 I enjoyed a small, unexpected windfall. I read a very small article in a respected financial magazine which asserted " In recorded history no one had ever lost a dollar in annuities". I spent the next week reading everything I could find regarding annuities and finally invested a portion of my windfall (50K) in a variable rate annuity. It doubled in eight years, which is an annualized return of 9%, net of costs, tax deferred. At the time I was in the 39.6% bracket, today 28%. I annuitized it on June 30 of this year and I, or my wife, will receive a monthly check for $600.00 for the next 20 years, or $144,000, paying tax only on the portion that represents my gains. Big deal ! right ? Well, I just refied my house for twenty years and that is my current house payment.
There are a plethora of companies that offer annuities. I picked one that had been around a while and had the lowest expenses. (If you want to know what I chose, send an inquiry by commenting to this thread) but you can find them as easily as me.
Annuities give you great freedom of choice. The big ones offer a guaranteed fixed return in, e.g. MMA's, bonds, gov't and corp. (don't buy tax free's the income is already deferred) as well as a market basket of stock portfolios and index portfolios. Typical portfolios are :Balanced, Capital Growth, International, Index ( Russell, S&P, Mid-Cap, Large-Cap. etc.) They offer you any style, or combination of styles, you want and you can spread your dollars throughout and switch, mix and match, at NO COST, at anytime.
For instance, I put 10% in International, 10% Balanced and Capital Growth, 20% Large Cap, 20% Mid Cap, 20% Small Cap,
and 10% Growth & Income. ( I did tweak it a couple of times).
After a period of time (usually one year ) you can: cash out or, take income for a set period of years, or for your life, or the life of the last survivor, if you designate a co-annuitant(s). If you die at any time after you put in your first dollar, your beneficiary can take the cash, or step in your shoes and do whatever he/she likes. Give your insurance agent a call.
posted by TandaPundit at 12.7.05
0 Comments:
Post a Comment
<< Home