financial
Don’t count on your 401k
401k is the new Social Security. That comment is not a good thing. The reason anyone has a 401k is because we can’t depend on having social security when we retire. We will still be paying for it, but it just won’t be there. The people counting on their 401k to be there when they wanted to retire in 2008-2009 were let down. The recession killed many people’s retirement plan. This is a wakeup call to everyone. DO NOT count on your 401k; take charge of your finances now. Its time for everyone to become personally responsible for their own retirement. Start a savings account, open a CD, and/or get an IRA. Its time! Don’t wait until the next recession to find out that you have to wait on retirement. After working hard your whole life, you deserve some financial security. Create it!
How to Find Companies Worth Investing – Part II – Components
In my post, How To Find Companies Worth Investing – Part I, I talked about investing in companies that make the products that you use and love. Now let’s look at companies that help make those products happen.
Let’s say you don’t want to invest in HP or Apple. What about the companies that make the components of their products?
Typical Components Inside a Computer:
CPU – Intel (INTC) or AMD (AMD)
Video card – Nvidia (NVDA), ATI (part of AMD)
Monitor – HP (HPQ), LG (KRX)
There are plenty of excellent companies that you can find that make the bits and pieces of your favorite products. Do a search on google or wikipedia to find who makes what.
Happy trading!
How To Find Companies Worth Investing – Part I
Peter Lynch is well known for saying, “Invest in what you know”. With that in mind, one good place to find companies to invest is the grocery store or mega super store that is the size of a small country. The products that you buy, use, consume and generally can’t live without are made by some of the best companies to invest. List your 5 favorite products and do some homework.
Here are my 5:
1. Tide
2. Starbucks coffee (it helps me write)
3. Coke Zero
4. Doritos
5. Cheez-its
What companies make these products?* A quick search on Wikipedia shows:
1. Tide – Proctor & Gamble Co. (PG)
2. Starbucks – Starbucks Corp. (SBUX)
3. Coke Zero – Coca-Cola Company (KO)
4. Doritos – PepsiCo, Inc. (PEP)
5. Cheez-its – Kellogg Company (K)
That was easy! I now have 5 companies to do my investing homework. On your next visit to the grocery store, check out a few of your favorite products. Who makes them? Leave a comment below and have fun trading!
* These stocks are listed for example purposes only and I do not endorse these companies. Remember to always investigate and consider the risk before investing.
My 2010 Financial Goals
It’s always good to have a plan. Without a good solid plan or at least some idea of where you are going, you will get lost on the way through the new year. Be sure to make achievable goals. Here for all to see is my 2010 Financial Goals:
- Learn and use swing trading
- Open a CD account for youngest son
- Continue to work toward my goal of trading to own my van
- Read one financial book a month
- Review and Readjust my 401k
- Take one investing class
- Learn and use Long Term Value Investing
In the spirit of goals, I’ll also list my goals for this blog:
- 2 posts a week (no excuses)
- Podcast (later in the year)
- Add video
- New layout
- New affiliates
- Ebook (later in the year)
- Email list
- Requests and Suggestion box
Sound off in the comments and let me know what your financial goals are for 2010. Good luck on your financial goals and HAPPY NEW YEAR!
