Black People : Do u invest in stocks, mutual funds, bond, etc? If NOT why?

Discussion in 'Black People Open Forum' started by Nfant_De_Milieu, Jun 2, 2003.

  1. Nfant_De_Milieu

    Nfant_De_Milieu Well-Known Member MEMBER

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    Do you invest in stocks, mutual funds, bonds, or some other type of establishment for a financial gain? Why not? If not you are missing out. In today economy your job is not secured. Why not make your money work for you!! Instead of just letting your money sit in a your bank account at collecting interest at 2%, which will probably be depleted by monthly fees why not put your money some where to mature at a faster rate.

    Suppose you have $5,000 in your bank account and decide to put it into an investment with an 8% annual return. Over the space of the first year, you earn $400 on your investment, giving you a total of $5,400. If you leave those earnings alone, rather than pull them out to spend, the second year would deliver another $432, or 8% on both the original $5,000 and the $800 gain. Your two-year total: $5,832 and climbing.


    Worried that you loose the shirt off your back? Everybody looses money on the markey, but if u play responsiblyloosing can be a minimum. Did you know u can write-off up to $3000 on your taxes in a single year. If you loose more than $3000 you will have to spread it out over time. As a result, you get the money back to reinvest. Historically, the long-term return from stocks is about 11% annually, while bonds — which are less risky — return just 5.2%.

    Still not convinced, well consider this playing the market. Do you want to retired at 45 or do u want to work all your life just getting by. I am no stock markey guru just passing some enlightenment on. You have to learn before you can earn!!

    Here are some helpful links to get u started.

    http://www.suzeorman.com/resources.asp
    http://www.bankrate.com/brm/default.asp
    http://www.smartmoney.com/
    http://bigcharts.marketwatch.com/
     
  2. happy69

    happy69 Well-Known Member MEMBER

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    yeah, 10 years ago started out in "penny stocks" for about 8 years I invested like $25/month and then increased until I was able to do $100... I still do that, plus mutual funds, and insurance... New York Life and Fidelity are both great... for any of you that are interested and not a bad deal...for when/if hard times hit, plus they are guaranteed... you can start that with as little as say $50/month... of course the more you put in the more you have and can use...
     
  3. $$RICH$$

    $$RICH$$ Lyon King Admin. STAFF

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    indeed u both are right it is a long history of our family
    i know all about it been into stocks for 20 years .........
    thanks for sharing ......$R
     
  4. Nfant_De_Milieu

    Nfant_De_Milieu Well-Known Member MEMBER

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    Investing isn't gambling or speculation. It's taking reasonable risks to earn steady rewards.

    With intrest rates at 1.0% it doesnot make much sense to keep my money in the bank with all the fees eating aways at my hard earn money plus inflation knocking at the door. I want my money working just as hard as I am.

    Bonds have their place, but investing in bonds only can be risky. This is why when u hear people talking about the stock market u often hear the word diverse with portfolio . Bonds with stocks and funds can help offset losses. One big thing about Bush's tax plan was the no taxes on dividends, if I remember correctly. Dividends are what is paid to shareholders of a stock. So thanks to Bush those wealthy people who can afford to purchase 1000s of shares make even more money off the stock market. The rich get richer while the poor gets poorer.

    One thing to remember about the stock market is that when somebody is losing money there is always someone else making money! Too many brothas and sistahs are living for the moment and not looking towards the future. People rather be wearing the latest fashion instead of maxing out their 401k, investing in IRAs, etc. Sad that we donot have more people in the discussion. I know before I get married, if I do, I want to know about my spouse's finances. I am saving my money now waiting for an IPO for Sean John and Roca Wear. I want to invest in what I spend my money on. Knowledge is power!
     
  5. NNQueen

    NNQueen going above and beyond PREMIUM MEMBER

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    Good information, Nfant! Thank you! what is Sean John and Roca Wear? Are they Black owned? Are you aware of any Black owned companies/corporations listed on the stock exchanges...Dow or Nasdaq, that are profitable to invest in?

    Peace! :heart:
     
  6. Aqil

    Aqil Well-Known Member MEMBER

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    Poll: Blacks less likely to invest in stocks

    By Sandra Block, USA TODAY

    The percentage of African-Americans with money invested in stocks and mutual funds plummeted last year, and less than half of high-income black investors believe the stock market is the best place for long-term investments, a survey reports.

    Only 61% of African-Americans have money in the stock market, vs. 74% in 2002, according to the annual Ariel-Schwab Black Investor Survey.

    That's close to the 57% level in 1998, the first year of the survey.

    By contrast, the percentage of whites with money invested in the stock market has remained at about 79% in the past five years, the study found.

    http://www.usatoday.com/money/perfi/stocks/2003-06-24-ariel_x.htm
     
  7. j'hiah

    j'hiah Well-Known Member MEMBER

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    Nfant, great post and definitely, definitely most needed.

    This is how they are able to send their children's children to college and make other provisions.
    We (not all of us) have to get out of the check-to-check mental syndrome.
    But today, with overall interest rates down, bonds of any kind are less likely to have a greater return from investment; however you can buy them at whatever fixed percentage you choose.
     
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