Money & Investing - Banks.com

I’m all about making plans for the future and doing my best to prepare. I like to set goals – and I like to achieve them even more. That’s why I love this time of year. Sure, I set little goals throughout the year, and achieve small accomplishments. But the end of an old year and the beginning of a New Year offer me the chance to think on a larger scale about what I would like to do with myself in the coming year. I usually divide these items up into categories (personal finance, etc.), and set larger goals that I can then pare down into mini-goals later. It’s all about making a plan.

My investing plan for 2009

For the most part, my investing style is “set it and forget it.” Most of my investments are in a retirement account (a Roth IRA). If 2009 continues to be a bit of a bear, then it means that I can get more shares for my money – resulting in a more comfortable retirement down the road. But I have another retirement related investing goal for 2009: Open a solo Roth 401k.

A solo Roth 401k offers the same tax advantages as a Roth account, but with the more generous limits and requirements found with a 401k (a Roth IRA has restrictions on income and allows fewer contributions). I would love to open a solo Roth 401k to increase my retirement investments.

Another thing I’d like to do is set aside a couple thousand dollars for use in more active trading. More than likely, it won’t be anything too exciting, but I would like to be able to buy on significant dips and sell on sporadic rallies. We saw some fairly spectacular moves in October, and I would like to be able to take better advantage of those. So one of my investing goals for 2009 is to acquire a little “play” money that I can afford to lose while learning a little bit more about short-term trading.

Happy New Year!

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

I’m not a huge fan of some of Jim Cramer’s over the top antics when it comes to recommending stocks, but sometimes he sits down and rationally discusses the points of one stock or sector against another. And I like when he does this. Of course, no one is going to be right all the time, and sometimes Jim Cramer is woefully off. But I do like his idea that Oracle is probably a good pick right now.

And there are other tech sector stocks that Cramer recommends. You can see in this video of some of his recommendations:

Looking ahead: stock investing and the new year

As 2009 approaches, it is time to think about your investment portfolio, and your strategy. Consider the stocks that you want to invest in, and think about how you think certain sectors will do. But think about things in terms of the long haul. 2009 may not see a stock market recovery. This means that now is the time to carefully buy, while you can get bargains.

Thinking about the long term is the best way to view the stock market right now. Overall, the stock market gains as time progresses. So while you may be down right now, in five or ten years, you will be up. And if you have been buying right now, odds are that you will be way up. So carefully consider solid value stocks. They are to be had right now for great prices that you may not see again for quite some time.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.

By now, it is pretty clear that 2008 is a lost cause for stocks. They are down overall, and chances are that the stocks you have in your investment portfolio have lost in value. And, while that doesn’t mean that you should dump all of your stocks (remember: it’s only a loss if you liquidate), it does mean that you might be a little worried about where the stock market is headed in 2009.

The answer to that question may be seen in the first five days of stock trading in 2009. Flexo at Consumerism Commentary points this out about the stock market:

Over the last 36 years whose first five days resulted in a stock market increase, 31 of those years experienced an overall good year for stocks. …

This method has an 86% success ratio.

Now, obviously, on the stock market, past performance is not always an indicator of future results. And even this indicator is not infallible. But it does offer something to think about. And, depending on how well the stock market does in the first five sessions of 2009 (Friday this week and Monday through Thursday next week), could set the tone for the entire year.

Opportunities no matter how the stock market goes

The savvy investor will find opportunities to make money, no matter what happens on the stock market. Indeed, for bargain hunters, the last few months have presented great chances to get good deals on a number of normally-expensive value stocks. If 2009 ends up like 2008, the savvy investor will diversify a bit (adding some safer investments) while continuing to buy up some of  bargains stocks so that more money can be made with the stock market recovers in earnest.

If 2009 turns out to be good, those who bought when the bargains were at their finest will find that their investment portfolios are gaining in value. And that 2009 might be a good time to do a little controlled selling.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.