What can any one here tell me about these three investments, Thanks =

[Tuesday Afternoon]

1. Radian Group ... I think it is a Group. not sure of the scroll Letters.

2. MTG ... those are the scroll letters ... think this is a mortgage group like Radian ... ?

3. Bank of America ... what is it on the scroll? BAC ... ?

[PoliticAverse]

1. Radian Group is 'RDN', 'MTG' is MGIC Investment Corp, Bank of America is 'BAC'.

https://finance.yahoo.com/q?s=RDN
https://finance.yahoo.com/q?s=MTG
https://finance.yahoo.com/q?s=BAC

[Tuesday Afternoon]

2. thanks for the links. PoliticAverse

These are high risk, right?

not blue chip.

[elleng]

3. I don't know anything about them,

which is why I invest in mutual funds via experienced financial advisors.

I do try to watch PBS' Nightly Business Report, to get general ideas about what's happening, and they do discuss particular companies. As to BAC and all the other high-flying banks, I myself consider them all 'high risk,' and I hope I'm not investing in them. And I'd also like to stay away from any 'mortgage' groups, considering all the game-playing that's gone on in that industry in recent years.

[kg4jxt]

4. another good investment strategy

I want to get rich in the stock market, but I hate doing all the research. So I take the lazy way out as recommended by Peter Bogle - founder of Vanguard Mutual Funds: I have determined from reading and experience that my current "risk tolerance" equates to about 70% investment in stocks. I keep the remaining investment in long-term treasury bonds. I do not own any individual stocks or bonds, but purchase the S&P500 index fund and the long term bond index fund (VFINX and VBLTX, respectively). Every six months, I check the balance. If it is still at 70% I do nothing. If stocks are up, then I sell some to get back to 70% (sell high, right?). If stocks are down, then I sell some bonds and buy stocks (buy low, right?). I have followed this approach since 1994 and I have averaged a tidy 8.5% return on my investments. It does not take much time and I do not have to do any research or stress out about market calamities - when it is time to rebalance I just do it.

When I have money to invest, I invest it gradually over many months. When I need money, I take it out gradually over many months. I dollar-cost-average. Not all my investment moves come at the best or worst time. It might be that I lose an opportunity but it is very safe (well, safe for stock market investing anyway).

[elleng]

5. Index funds are good ideas, imo,

tho I've never done it that way. I like your approach.

[Tuesday Afternoon]

7. thank you, kg4jxt

[Sherman A1]

8. Interesting approach

i would like to learn more about this.

[kg4jxt]

9. I think I told you all I know!

If you check on Yahoo Finance, you will easily observe that VFINX has one of the lowest cost ratios in the mutual fund business. I do not mean to be a shill for Vanguard, but I have been quite pleased with them. Their funds are no-load and they orient their funds to people who invest in the way I described. That means they limit the number of transactions (but they do not include timed investment or withdrawal in that limit). So you can get in slow and get out slow, but you cannot time the market with them. That is fine with me.

[Sherman A1]

10. I would be interested in

your methodology to determine your risk tolerance. The fund sounds very interesting and I will check into it as well.
Thanks!

[kg4jxt]

11. Risk Tolerance

Money Magazine and other financial publications have a variety of "model portfolios" that cover a range of risk tolerances ranging from aggressive investor to very important to preserve investment, such as might befit a person with only a short time-horizon of investment. From my prior experience, market volatility only creates major deviations from a long-term upward trend for periods of a year or two - though certainly there have been longer market downturns prior to my time in the market. I think most of the money I invest is still going to be in the market in 15 years, so although I am retired I consider myself to be a fairly long term investor. But I cannot quite stomach the wild gyrations that a truly aggressive portfolio would entail. So I have not sought the high returns of REITs, junk bonds, emerging markets, or various specialty industry funds. These types of investments can lead to higher returns as befits their higher risk. But neither do I grasp my investment compulsively - money market fund returns are so low as to be of no interest, IMHO. But it is a very subjective matter. It depends on individual disposition, investment horizon, living circumstances and personal flexibility to deal with loss. There can only be guidance but no "correct" solution.

[Tuesday Afternoon]

6. that is what I thought, thanks. elleng