Wow - been a long time! Strangely, not all that much has happened to the market for many years, other than it continues to trudge upwards. Other than accumulating cash, that doesn't do very much for AIM accounts. We need a deep correction or an outright bear market to reset prices and have us reinvest our cash at lower stock levels. I'm starting to feel it coming. That doesn't mean much - this bull market could go on for another couple years. I wouldn't think that's likely, though...we're already approaching a historic time frame for bull markets, if we haven't surpassed it already.
I made some changes to a couple of accounts. I'm loosening up the personal thought that I should only have 5 stocks in an account. That makes it hard to invest a larger chunk of cash into your retirement account - you would have to distribute it evenly into each stock and that would end up making you spend quite a bit in commissions. I just recently got a larger amount from my son to invest in his account, and it was enough to add another stock to his portfolio, plus the amount to keep in cash. I also did the same with my account, since I didn't have to pay as much in taxes as I thought I would.
My other son's account is having some trouble with stocks going down, even though the market is strong. I guess that's why Lichello says to use stocks with recognizable names. I used stocks that had been paying a good dividend. I guess if the stocks get bad enough, they'll quit paying the dividend and I'll have to dump them. Hopefully they won't lose so much value it takes the account down. I've been starting to mix in some stocks that are a bit more recognizable to balance it out.
We had a little correction - I'll be updating this more often, especially if the market continues to break downward.
Tuesday, April 24, 2018
Too long
Labels:
dividends,
investments,
IRA,
market,
mutual fund,
retirement account,
stock market,
stocks
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