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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: rgammon who wrote (12087)	7/17/2000 8:46:18 AM
From: Steve Grabczyk	Respond to of 18928

Hi Robert: I caught Scott Burns' column yesterday as well, and I also thought it was very interesting. I've always resented the high, front end sales charges that fund companies charge. Add that to the 12b-1 and you can pretty much kiss half of your compounding gains goodbye over the long haul. Not to mention that in taxable accounts, you end up paying cap gains out of pocket or via redemptions. Nice work if you can get it huh? My daughter's new Roth IRA is going into UOPIX or some other 2x type of fund. Long term, diversified, and volatile. Just what RL ordered! Regards, Steve

To: rgammon who wrote (12087)	7/17/2000 2:33:09 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi RG, Great note! While you're examining Preferred Stocks, make sure you take a look at convertible preferred's as well. Sometimes they pay just as well and have the extra kick of possible conversion in the future. This can really be nice. Usually what I do when I can find something I like is to buy a mix of the Common and the Conv. Preferred. I try to make the mix of the two give me a yield about the same as money market rates. If we had a conv. preferred that paid 10%, I'd buy half the total value with the conv. and half with the common to give me a total yield of about 5% (assuming the common doesn't pay any yield). Now, as the price moves about, I trade the common with AIM and keep the conv. preferred for the yield. In the past this has worked quite well. Currently I have remaining shares of conv. preferred's even from stocks that were bought out long ago. This is extra fun as the conv's still have several years to run while paying very nicely. Best regards, Tom