Investment Buddy » News http://investmentbuddy.com/investments Save and Invest Wisely – Use Investment Buddy to be your coach an and mentor. Sun, 25 Jul 2010 05:01:16 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 US Economic Stimulus Plan – Or How Much is $850,000,000,000.00? http://investmentbuddy.com/investments/this-is-a-sunday-night-test-post/ http://investmentbuddy.com/investments/this-is-a-sunday-night-test-post/#comments Mon, 21 Jul 2008 04:24:12 +0000 Buddy http://investmentbuddy.com/investments/?p=144 1162217_dollar_army_2First, the InvestmentBuddy thinks that the US should pass a simple law to keep everything in perspective.  Call things like you see them.  We should take the words “billions” and “trillions” out of the dictionary.  Most Americans have a concept of what a million dollars is.  Your can relate it to a very large home.  A few of million buys your community a new drugstore, ballpark, bridge, library, etc.

If we had to describe a billion as “a thousand million dollars”  then $850,000,000,000 would be 850 thousand million dollars! That is about $6,800 for every working American.  The Investment Buddy would rather have the cash.  That would boost the economy this quarter!

]]> http://investmentbuddy.com/investments/this-is-a-sunday-night-test-post/feed/ 0 It’s A Boy! – Start That UGTMA Account http://investmentbuddy.com/investments/its-a-boy-start-that-ugtma-account/ http://investmentbuddy.com/investments/its-a-boy-start-that-ugtma-account/#comments Sun, 20 Jul 2008 22:35:10 +0000 Buddy http://investmentbuddy.com/investments/?p=118 When is the right time to start investing in your child’s college education?  You can wait until you get home from the hospital.  After all, there are more important things to do then.  But don’t wait too long.  There are many important things you should do for your infant when  he or she is young.  One of them is to begin a savings plan.

There are a few “Freebies” that the US Government provides for investors.  This may also change in the next few years as the government looks for ways to pay for entitlement programs, the Stimulus Plans of 2009 and 2010 and President Oboma’s healthcare plan.  None of the items above have been paid for, and we are working off of borrowed money.

The most valuable way to save for your child’s college, wedding or emergency is through a plan called the Uniform Gifts to Minors Act account (U.G.T.M.A.) The program is simple.  The child pays taxes on the passive income that the account accumulates at the child’s tax rate.  REPEAT:  Passive income, such as interest and dividends, is taxed at the CHILD’S TAX RATE.  This should be 0% unless you have contributed an obnoxious sum of money into the account.

So, here is the plan:

  1. Take baby home.
  2. Locate food, diapers, etc.
  3. Love and care for baby.
  4. Open a Uniform Gifts to Minor’s Account for your precious one.

We did this for our three children before they were in elementary school.  It provided a tremendous savings account by simply making a number of small monthly contributions.  There are many instruments that can be used, including savings accounts, mutual funds, bonds and common stocks.

We chose to buy stock through a Dividend Re-Investment Plan (DRIP) for each child.  Our first child accumulated McDonald’s stock.  The second one, Dow Chemical, and the third one, Johnson Controls.  They were initially purchased through the National Association of Investment Clubs (NAIC) Dividend Reinvestment Plan.  This plan was made available to individual investors and is now called the Better Investing Community.

Compounding and reinvesting is a phenomenal principle.  Although all the of our selections did well, McDonald’s and Johnson Controls “hit it out of the park.”  As always, don’t make investing a monthly decision.  Decide one time to invest automatically through a bank draft or automatic process.  Set it and forget it … just like Ron Popeil’s Showtime Rotisserie.

Start early.  Start small.  Reinvest dividends and earnings. Watch it grow tax free, in most cases.  remember UGTMA accounts are taxed at the child’s tax rate.   After you see the value of appreciation, you will WANT TO make the monthly contributions larger, and you will.  Good Luck from your InvestmentBuddy.

]]> http://investmentbuddy.com/investments/its-a-boy-start-that-ugtma-account/feed/ 1 The Purpose of Investment Buddy http://investmentbuddy.com/investments/hello-world/ http://investmentbuddy.com/investments/hello-world/#comments Sat, 19 Jul 2008 00:10:37 +0000 Buddy http://investmentbuddy.com/investments/?p=1 Investment Buddy is born out of wanting to help other people save, invest, spend wisely and retire comfortably. Contributors to Investment Buddy come from varying careers. Their talents are different and may sometimes provide you with more than one alternative to sound investing. They include nationally recognized syndicated speakers and authors, business and community leaders, active traders and investors, personal motivational coaches and guests. Comments and suggestions from readers are always welcome.

The Investment Buddy contributors will provide you with assistance in making sound financial decisions.

What Investment Buddy will NOT do:

* Investment Buddy does not sell annuities
* Investment Buddy does not sell mutual funds
* Investment Buddy does not sell stocks
* Investment Buddy does not sell bonds
* Investment Buddy does not sell gold or precious metals
* Investment Buddy does not sell life insurance
* Investment Buddy does not sell CDs
* Investment Buddy does not sell software

Investment Buddy only provides you with a forum to exchange ideas with other individuals just like yourself. Investment Buddy will help you plan for your family’s future, just as we are doing for families just like yours.

We welcome your input.
+InvestmentBuddy.com

]]> http://investmentbuddy.com/investments/hello-world/feed/ 0