Any True Stock Brokers here?

[imported_Lothar]

Originally posted by: 91TTZ

Originally posted by: Lothar

Originally posted by: senseamp
Pay house off, it's called diversification.
It's not like you are getting out of stock market if you pay off house.

You shouldn't diversify, just for the sake of diversifying.
Diversification is nothing but a protection against ignorance.

"You shouldn't put all your eggs in one basket"

Generally true, but this is a different case.
I'm not a lawyer, but I wouldn't touch that inheritance if I know that I would be going through divorce pretty soon. It's just much easier to show the courts that way and leave it where it is rather than telling the judge "The 250k I used to pay our house or buy a Bentley was part of my inheritance which would.."

Much better off keeping all his eggs in that one basket where it already is than transferring to a second one that would potentially have a hole in it the next few years through several court battles.

 

[manlymatt83]

Start writing some covered calls on your chase stock and generating some income each month. Looks like you have about 5000 shares of the stock. That's about 50 covered calls you could write every so often.

January 2010 $45 calls are going for 2.70 right now.

2.70 * 100 * 50 = $13,500

There's some free money, and if the stock goes over $45 between now and January, you can either close out the position, or allow the option to be exercised and you'd still cash out at $45, which is $2 higher than the stock is at now.

The only negative is if the stock goes up to $50-$60, but I think financials are way overpriced right now. Just my opinion.

 

[rgwalt]

Originally posted by: Muadib

Originally posted by: speg
Since you said yourself you don't like this stuff, this is what I would recommend you consider:

Sell all your holdings in Chase.
Pay off your house.

Re-invest the remainder in an income producing investment. That could be anything, from real-estate, a diversified fund of high-dividend paying stocks, or even bonds.

I'm seeing Government bonds paying 4.5% - if you have 500k leftover, that would leave you with an extra 22k/year and no mortgage payment.

Winner!!!:thumbsup:

I could live on $22K/year if I didn't have to pay a mortgage. The one thing about those stocks that the OP is holding is that he can't live in them.

 

[Fayd]

Originally posted by: Lothar

Originally posted by: senseamp
Pay house off, it's called diversification.
It's not like you are getting out of stock market if you pay off house.

You shouldn't diversify, just for the sake of diversifying.
Diversification is nothing but a protection against ignorance.

diversify your bonds, awesome dude!

 

[IHateMyJob2004]

Originally posted by: Lothar

Originally posted by: senseamp
Pay house off, it's called diversification.
It's not like you are getting out of stock market if you pay off house.

You shouldn't diversify, just for the sake of diversifying.
Diversification is nothing but a protection against ignorance.

Diversification is a tool for those that don't know what they are doing. The OP falls into this category.

WFC is worth north of $35 (my opinion) and I just read an article that argues for $50+. The thing is, WFC is one of the best run financial stocks out there.

 

[IHateMyJob2004]

Originally posted by: Mike Gayner

Originally posted by: Lothar

Originally posted by: senseamp
Pay house off, it's called diversification.
It's not like you are getting out of stock market if you pay off house.

You shouldn't diversify, just for the sake of diversifying.
Diversification is nothing but a protection against ignorance.

I think you've read too many Robert Kyosaki books TBH. That's absolutely terrible advice.

For the right price, I'd put all my money in WFC and JNJ. Ironically, both are undervalued right now. WFC at $14 was the best move I ever made. And JNJ is orth north of $90. Diversification is needed for most people because they don't know what they are doing.

Heck, for hte right price, I'd go 100% BRK.A/BRK.B

 

[IHateMyJob2004]

Originally posted by: manlymatt83
Start writing some covered calls on your chase stock and generating some income each month. Looks like you have about 5000 shares of the stock. That's about 50 covered calls you could write every so often.

January 2010 $45 calls are going for 2.70 right now.

2.70 * 100 * 50 = $13,500

There's some free money, and if the stock goes over $45 between now and January, you can either close out the position, or allow the option to be exercised and you'd still cash out at $45, which is $2 higher than the stock is at now.

The only negative is if the stock goes up to $50-$60, but I think financials are way overpriced right now. Just my opinion.

God, ever since that show on CNBC appeared talking options, everyone now trades options. Atleast the advertisers will be rich.

Here's what you do. Find a good company worth $100 million. Buy it when people are selling it for $50 million and when the price corrects, sell it.

 

[WildHorse]

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