To: May Lee who wrote (4799 ) 12/10/1998 1:21:00 PM From: MonsieurGonzo Read Replies (2) | Respond to
May; RE:" Dude's Ersatz TechSpaetzle Fund ? "where I can find the symbol... The S&P-500 Index handily, which is the benchmark by which most funds and portfolios measure their performance. This year, buying these 10 stocks at random 12 times a year would have earned anywhere from 50% to 150% kapital gain. Thing about TechSpaetzles, though - they giveth, and they taketh away! When you get a big gain in Techs, it is probably prudent (to take some profits) to re-adjust your portfolio (shove some of the profits from Techs into bonds and BigBoys for example) to keep one's portfolio mix balanced.UND - Unum Corp 8.5% MIDS or DUK - Duke Energy ) for which you wish to preserve kapital, to STOCKS -- for which you wish to achieve kapital gains growth. Say you choose the ratio 20:80 = Bonds+Fixed Income : TechStocks+BigBoys to begin with.SPY - S&P-500 in stock form, et voila! you have beat most professional fund managers, with less risk, lower commissions and NO fees. There are no (direct) fund management fees with SPY, you can buy it for $10-$20 from a discount broker, and it will beat 75% of the funds out there every year. ChrisDude recently advises us that SPY is an automatic Dividend Re-Investment Plan (DRIP) stock; but the dividend is only about 1% per year, and few discount brokers will support DRIP stocks - especially in an IRA. Unless you are very lucky, it is probably better to spread out purchases of SPY over time, rather than buying a lump sum all at once.fixed-income portion in an IRA discount broker, divide the APR yield by 0.75 to get the taxable equivalent yield . I use my IRA for income-generators and other discount broker(s) accounts to buy and sell stocks/options for kapital gains. 8.5% APR yield divided by 0.75 = 11.34% APR taxable equiv yield.
