Investment Help

[Illuminati]

I a small chunk of change that I want to do something with. I already have both a traditional and roth IRA account set up.
I have about $5000-$6000 extra (on top of having a 3 month emergency stash) that I want to invest. Can anybody give me any ideas?

Thanks

 

[bran987]

you want to know whether to put it in the trad. ira or the roth ira? or you just want a stock or fund idea?

by the way i'd never be comfortable without a 6 month cash stash AND some set aside for emergency as well. just another idea, could be the smartest investment you ever make. with only 3 months cushion I would make sure you invest pretty conservatively and in something liquid in case you need it.

BBBY is undervalued right now.

-bran

 

[Devastation]

just in case, if you have ANY high interest credit card debt or high interest loans, you should pay them off with this extra chunk you got now. many families are in high interest debt with little hope of getting out any time soon

 

[Illuminati]

just in case, if you have ANY high interest credit card debt or high interest loans, you should pay them off with this extra chunk you got now. many families are in high interest debt with little hope of getting out any time soon

The only debt that I have is my truck. Interest rate is pretty low. could always put the money on the principal. But, I could invest it, and make a better rate of return on it, than I would if I paid down the principal.

Bran...No. wasn't asking if I should put the money in a traditional or roth. I was saying that I already have them set up. why do you say that BBBY is very undervalued right now?

what's your take on buying stock and selling covered calls?

 

[d_o_c_]

Jump on ABLE when it goes down a bit more. It always bounces back with a two or three day run. Nice profits to be made.

 

[bran987]

The only debt that I have is my truck. Interest rate is pretty low. could always put the money on the principal. But, I could invest it, and make a better rate of return on it, than I would if I paid down the principal.

Bran...No. wasn't asking if I should put the money in a traditional or roth. I was saying that I already have them set up. why do you say that BBBY is very undervalued right now?

what's your take on buying stock and selling covered calls?

Buying stock and selling covered calls is the lowest risk option strategy available. You give up the possibility of some upside above your exercise price in exchange for an option premium, so you're "long" the stock and "short" the call (because you're "selling" or "writing" the call). Because you're giving up some of the upside, but still holding all of the downside risk should the stock fall, I like that strategy best on less volatile stocks (although the option premiums will be lower).

You need to be OK with having the stock called away at the exercise price if it does happen (usually people are OK with this because they're makin' a profit so who cares).

do you have an email address? i'll send you something about BBBY.

 

[Illuminati]

Buying stock and selling covered calls is the lowest risk option strategy available. You give up the possibility of some upside above your exercise price in exchange for an option premium, so you're "long" the stock and "short" the call (because you're "selling" or "writing" the call). Because you're giving up some of the upside, but still holding all of the downside risk should the stock fall, I like that strategy best on less volatile stocks (although the option premiums will be lower).

You need to be OK with having the stock called away at the exercise price if it does happen (usually people are OK with this because they're makin' a profit so who cares).

do you have an email address? i'll send you something about BBBY.

Bran,

thanks for your help. I just sent your a PM with my email address.