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re: Best way to invest $50-$100 a month..

Posted on 10/18/13 at 5:41 pm to
Posted by roguetiger15
Member since Jan 2013
16146 posts
Posted on 10/18/13 at 5:41 pm to
The fund will never increase in value substantially. They are a pure dividend play. So no, in not worried its at an all time high. Hell equities in general are in all time highs. Look at it's history perforce. 50 something years in the green around 14-15 in the red. And those years in the red, everyone was in the red.
Posted by Oenophile Brah
The Edge of Sanity
Member since Jan 2013
7540 posts
Posted on 10/18/13 at 6:41 pm to
Rogue

My concern is the fund's performance is very impressive. I did a google search of the fund and it's no secret. There are entire ETF's that are created trying to duplicate it's mix.

Any issue the fund is overweight and will struggle to keep up the results?
Posted by roguetiger15
Member since Jan 2013
16146 posts
Posted on 10/18/13 at 6:55 pm to
Struggle to keep what results? They're fund consist of divedend pay companies. Always has always will. They are not concerned with the price of their fund. They are concerned with finding blue chip companies that will help them get the dividend payout they want. why do you think competitors try to immulate they're reasoning? Because its been successful
Posted by Volvagia
Fort Worth
Member since Mar 2006
51892 posts
Posted on 10/18/13 at 9:16 pm to
quote:

Tell me a mutual fund that's selling at around 2.50 and has averaged around 9 percent yield for over 5 decades with that low expense charge and ill give u a free portfolio stress test.


The problem is that you are looking at too long of a period of time. The financial climate of the US in 1948 has literally nothing to do with now, and even less to do with the climate going forward.

You only look at the past couple of decades and the performance comes WAY down to earth.

Still not a horrible choice, but comparable to alternative offerings.

Come on, you are an advisor and you don't live by the practice of past performances doesn't make future results a given?
Posted by Volvagia
Fort Worth
Member since Mar 2006
51892 posts
Posted on 10/18/13 at 9:19 pm to
quote:

Struggle to keep what results? They're fund consist of divedend pay companies. Always has always will. They are not concerned with the price of their fund. They are concerned with finding blue chip companies that will help them get the dividend payout they want. why do you think competitors try to immulate they're reasoning? Because its been successful


Correct me if I'm wrong, maybe there are different types of Franklin Income Funds.....doesn't a good part of the good yields come from investing in below investor grade bonds and the good rates you get from the (spread out) risk?

It's not purely dividend plays.

Out of curiosity though, do you know which is the dividend style they go for?

High yeild or appreciation.
Posted by Chris Farley
Regulating
Member since Sep 2009
4180 posts
Posted on 10/18/13 at 9:51 pm to
Not sure if this has been pointed out yet or not, but your money might be best spent on birth control at this point. The damage has been done.
Posted by roguetiger15
Member since Jan 2013
16146 posts
Posted on 10/18/13 at 10:14 pm to
Franklin income fund has AVERAGED over 9 percent annual yield for the last 60 plus years. What more do u want?
Posted by DaBeerz
Member since Sep 2004
16892 posts
Posted on 10/19/13 at 1:36 am to
quote:


Not sure if this has been pointed out yet or not, but your money might be best spent on birth control at this point. The damage has been done.


I was typing that out earlier, but then I felt like I was being mean. I mean he has 5 kids under age 8 and he is now trying to save only 50-100$ a month and he doesn't know what a dividend is. Hope the kids can get TOPS.

CENLA you are about 8 years late to the game. Go buy some investing books and start saving as much as you can.
This post was edited on 10/19/13 at 10:36 am
Posted by Volvagia
Fort Worth
Member since Mar 2006
51892 posts
Posted on 10/19/13 at 1:53 am to
You can capitalize AVERAGE all you want, it doesn't change my points.

That AVERAGE is only that way because of high values you can't realistically expect in the future.

What's the AVERAGE of the past 20 years?
Posted by roguetiger15
Member since Jan 2013
16146 posts
Posted on 10/19/13 at 8:29 am to
quote:

What's the AVERAGE of the past 20 years?


8.6
Posted by Chris Farley
Regulating
Member since Sep 2009
4180 posts
Posted on 10/19/13 at 9:25 am to
quote:

I was typing that out earlier, but then I felt like I was being mean. I mean he has 5 kids under age 8 and he is just know trying to save only 50-100$ a month and he doesn't know what a dividend is. Hope the kids can get TOPS


I couldn't imagine supporting that many kids and being able to help out with college. Between adequately saving for retirement and funding 20yrs of college expenses I wouldn't be able to eat. Best of luck to this guy, he wants to help and it's on his mind early, which is a lot more than we can say for most parents in this country.
Posted by CENLALSUFAN
Beaumont
Member since Mar 2009
7208 posts
Posted on 10/19/13 at 10:36 am to
I could go little bit higher but got a30 year mortgage I want to pay off in 15.. which would be better pay that of early and not pay as much interest or take that little extra and put to saving and pay for the house for 30 years..

like I said before retirement is already taken out for railroad retirement.. actually taken out twice for me and spouse..
Posted by chuckitdeep
Member since Nov 2008
730 posts
Posted on 10/19/13 at 11:40 am to
Quick question related to this. I have several stocks I have DRIPed since I was about 20 (35 now). Each year the stock company sends me a tax form for the amount reinvested to be taxed. I shouldn't be paying taxes until I sell?
Posted by Chris Farley
Regulating
Member since Sep 2009
4180 posts
Posted on 10/19/13 at 1:08 pm to
What is your interest rate on the mortgage?
Posted by DaBeerz
Member since Sep 2004
16892 posts
Posted on 10/19/13 at 5:55 pm to
quote:


Quick question related to this. I have several stocks I have DRIPed since I was about 20 (35 now). Each year the stock company sends me a tax form for the amount reinvested to be taxed. I shouldn't be paying taxes until I sell?



Correct
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 10/19/13 at 5:58 pm to
But you best keep all your tax info straight for when you do sell though
Posted by CENLALSUFAN
Beaumont
Member since Mar 2009
7208 posts
Posted on 10/19/13 at 8:38 pm to
4.25
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 10/20/13 at 1:11 am to
FKINX appears to be worthy of consideration. 4-star and High Risk and High Return. I look at the years following the market manipulation culminating in the Great Recession. I see this fund at 10.9% YTD, and 3 years prior at 12.9, 2.8 and 13.7%. Annual expense of .64.

Be aware of the 4.25% front load to buy into the MF.

I stay away from front loads and High Risk funds and will be searching Vanguard, TRowe, etc to see if they have a comparable MF.
Posted by roguetiger15
Member since Jan 2013
16146 posts
Posted on 10/20/13 at 8:40 am to
Just get the c share
Posted by Chris Farley
Regulating
Member since Sep 2009
4180 posts
Posted on 10/20/13 at 9:58 am to
That's not terrible, why the rush to pay it off? You might be best served investing that money for the time being.
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