Stocks/stocks/bonds Homepage

Question: Should i buy these stocks/bonds for my roth-ira account?

(Posted by: mollyjones on 2009-05-10 05:05:00)

1/ TM ( Toyota ) = 3K 2/ Dell ( Computer Company ) = 3K 3/ CAH ( Medical supply ) = 3K 4/ SVGBX ( Bond ) = 3K 5/ VWITX ( Bond ) = 3K 6/ PTRAX ( M. Market) = 3K I have 18K in my Roth account now. I don't think of mutual funds because I've already have in my 401K. Anything else you can suggest? Procter & Gamble, Coke, Walmart ...... Thanks

Posted by: Space Invader101 on 2009-05-10, 06:50:20

For a retirement fund, I'd prefer blue chips that pay dividends. They can really add up if you're long term. Toyota looks good. Dell doesn't pay dividends. It might be a good stock, but I'd probably swap it for something like Protector & Gamble, Chevron or United Technologies.

Posted by: Grumple on 2009-05-12, 12:06:06

Since the Roth grows tax free you may want to add a REIT or MLP. I have IGR and KMP for example. I also own blue chips like PG, GE, DD, COP. I'm not big on the Dell pick, I dont think they pay a dividend and they may have plateaued. ORCL may be better if you like tech IMHO.

Posted by: Bill Hicks on 2009-05-13, 16:18:55

It depends on your age and risk tolerance. You say you are allocating half your money to individual stocks and half to bonds (including 3K in a money market). I would take a step back as these may not be what you think they are: VGBX is a B loaded (meaning it will cost you to sell it) fund. It is filled with other funds from the same company and is made up of 40% stock funds. VWITX is a tax exempt bond but your IRA is already tax exempt so you are giving up yield for tax benefits you can not realize. PTRAX (according to Yahoo) has 5,000,0000 initial investment. These are institutional shares. As to individual stocks, it is nearly impossible to pick the right ones Buying Toyota in the beginning of 2000 would have lost you half Your investment by the middle of 2003 and taken another 3 years to get back to even and you would still be down 30% from those highs nine years later. Try to take one of the asset allocator questionnaires (on most investment sights) see what your proper mix is. Also see what you need to achived with this account to meet your goals. You can buy low cost ETF's that fit your needs. There are age based and allocation based ones that will be much cheaper. Good luck