Fred...
I was trying to tell a good friend of mine yesterday, a woman who has an apartment worth over a million, which she bought for 80,000, to invest just a few thousand in Qualcomm. I haven't convinced her yet. She said her cash flow is really tight. In any case, I mentioned the situation with DELL: $5,000 in 1992, just in equity, no margin, no options, would have been one million last year.
Maybe we will be lucky enough to find another DELL. But as Mike points out, you have to start somewhere. And if you can go back and find LindyBill's classic post, he started out with something like 5K in his KEOGH. By the time he hit his million dollar mark about 7 years later he'd contributed a total of under $50K. He just made incredibly great decisions and had no tax consequences. The latter is the most instructive to me--as a writer I never figure on retiring, and I doubt my income will drop suddenly, so I never understood the benefit of ploughing as much $ as legally possible into a KEOGH (for tax consequences yet--but for investment purposes, I just didn't get it) until I read Lindy's story. Then I got it. In fact, I was told the same by another veteran on SI, he said to me, "Borrow money if you have to--put as much money as you can into your KEOGH every year."
Jill |
