YAIT: Diversification of assets!

[Safeway]

With my money: $10,000

I'm thinking of doing the following:

$1000 = I Bonds from Treasurydirect.gov
$1000 = Scottrade
$4000 = VFINX or VTSMX
$4000 = ING Orange Savings

Thoughts, ideas?

 

[SampSon]

$9,999 = given to me
$1 = lottery ticket for you

 

[imported_Mike]

That $4k in VFINX going to be an IRA?

 

[ponyo]

I don't believe in diversifying much. Too much is just as harmful as not enough.

What are you trying to accomplish?

 

[Safeway]

Originally posted by: Mike
That $4k in VFINX going to be an IRA?

No, it's not going to be. I recently turned 20, and am a full time student at UT. I need immediate, emergency access to a portion of the funds (ING), slightly higher rates (VFINX, VTSMX), a few stocks that an ibanker friend recommended (Scottrade), and high interest rates to smooth things out (6.7% Treasurydirect)

 

[GTaudiophile]

Add some metals! I made a killing last year on gold and platinum!

 

[Safeway]

Originally posted by: GTaudiophile
Add some metals! I made a killing last year on gold and platinum!

Yea, I was reading the Wall Street Journal the past few weeks, and the metals had a great year.

Who knows if it will continue ... and I am already somewhat into metals: I have 30-50 Troy Ounces of Silver, and 5 of Gold (They are older, collectible type coins that my dad had and gave to me).

One of the .999 pure gold troy ounces was in a tool box he bought from a pawn shop. He paid $20 for the entire box, with Snap-On tools, etc. And a $580 coin! Better yet, it was a 25 Year Anniversary coin for Pizza Inn! Hah.

 

[Jon855]

I would suggest one for the long run invest in fed bond. Just put in one 4k into 10-15yrs fed bonds and they'll double. For the rest, just do what you feel is right, I'm a nub on this... If I were you I would invest around 4k into GOOG and the rest in a ROTH IRA and let it grow.

 

[Safeway]

Originally posted by: Jon855
I would suggest one for the long run invest in fed bond. Just put in one 4k into 10-15yrs fed bonds and they'll double. For the rest, just do what you feel is right, I'm a nub on this... If I were you I would invest around 4k into GOOG and the rest in a ROTH IRA and let it grow.

Too late to jump into GOOG. I'm not sure I want to risk $4k in a stock and hope that it reaches the ridiculous expectation of $600. Over-valued to the max.

 

[CrimsonChaos]

Originally posted by: Safeway
With my money: $10,000

I'm thinking of doing the following:

$1000 = I Bonds from Treasurydirect.gov
$1000 = Scottrade
$4000 = VFINX or VTSMX
$4000 = ING Orange Savings

Thoughts, ideas?

Way too passive for my tastes. But if you have a low risk-tolerance then it's fine.

 

[Safeway]

Originally posted by: CrimsonChaos

Originally posted by: Safeway
With my money: $10,000

I'm thinking of doing the following:

$1000 = I Bonds from Treasurydirect.gov
$1000 = Scottrade
$4000 = VFINX or VTSMX
$4000 = ING Orange Savings

Thoughts, ideas?

Way too passive for my tastes. But if you have a low risk-tolerance then it's fine.

Well, what would you suggest instead? I'm not necessarily looking for low risk, just liquid assets (all but the bonds).

 

[Lonyo]

Originally posted by: Safeway

Originally posted by: Jon855
I would suggest one for the long run invest in fed bond. Just put in one 4k into 10-15yrs fed bonds and they'll double. For the rest, just do what you feel is right, I'm a nub on this... If I were you I would invest around 4k into GOOG and the rest in a ROTH IRA and let it grow.

Too late to jump into GOOG. I'm not sure I want to risk $4k in a stock and hope that it reaches the ridiculous expectation of $600. Over-valued to the max.

They're at 466, and just had their new year jump from 420 (likely based on rumoured announcements of diversification - video service announced at CES).
TBH in the short term there's little IMO to give indication for huge change, they're likely to either grow like they have or bust because they're overvalued.

 

[Safeway]

Originally posted by: Lonyo

Originally posted by: Safeway

Originally posted by: Jon855
I would suggest one for the long run invest in fed bond. Just put in one 4k into 10-15yrs fed bonds and they'll double. For the rest, just do what you feel is right, I'm a nub on this... If I were you I would invest around 4k into GOOG and the rest in a ROTH IRA and let it grow.

Too late to jump into GOOG. I'm not sure I want to risk $4k in a stock and hope that it reaches the ridiculous expectation of $600. Over-valued to the max.

They're at 466, and just had their new year jump from 420 (likely based on rumoured announcements of diversification - video service announced at CES).
TBH in the short term there's little IMO to give indication for huge change, they're likely to either grow like they have or bust because they're overvalued.

Exactly -> Huge bust because they are over-valued.

 

[Lonyo]

Originally posted by: Safeway

Exactly -> Huge bust because they are over-valued.

People said they were overvalued possibly at IPO, and they haven't fallen so far.
There is IMO no discernable reason for the stocks to necessarily crash, because there's no indication Google has any problems. They are increasing their revenue options by going into new markets.
It's a tough call. I'd hedge my bets on flatlining for a while until something happens, good or bad. But obviously flat or bust are both bad, so it's not worth investing. There seems to be little short term gain to be had - unless the video service takes off in an absolutely huge way.

 

[Safeway]

Back on topic :wink; How is my breakdown, and what could I do to possibly get higher returns, while not being absolutely aggresive.