My wife has been teaching at a private school for years now, and up until recently it was a pretty small place. They had about 35 students and 3 teachers until about 6 months ago when they expanded to 70 students and 7 teachers. Since they are getting bigger and bigger, her boss decided it was time to offer something to her teachers for working there and it came in the form of a raise and enrollment in a 401K. Her boss is going to match 4% her pay, which is pretty good for such a small company. And even though we invest in Roth IRA’s and mutual funds, we will take free money any day of the week!
Those of you who have been regular readers for a while might know that I run another site on environmental issues. Although I won’t mention the site, it’s not that hard to find as it is linked in my blogroll. I just received the October issue of Kiplinger’s and it is the “Green” issue, with all sorts of articles about going green and making money, which can go hand in hand if done correctly. One article in particular stood out, as it was a list of 25 different companies that they think you should invest in in order to help make for a cleaner world. Who made the list?
ABB – They sell power transmission equipment that reduces energy losses between power plants and the end-user.
A number of other personal finance bloggers have started picking up on the fact that several others of us have sold some stock due to the market going on it’s wild ride. I wrote the other day that I had moved out of my individual stock portfolio just in time. But what readers should know is that I am not advocating getting out at all and in fact if anything, if you have long term investing and are OK with managing individual stocks, you should be getting in, not out – there is a sale on stocks right now!
Although I do agree somewhat with a lot of people that say now is the time to go in and buy cheap shares of companies you like, I am glad that a few weeks ago I removed myself almost 100% from my individual stock portfolio. After watching the market bounce around for a while, I finally made the call to do what I had meant to do for a long time…get out. Sure, I still have mutual funds and retirement accounts, but I had been holding on to my personal stock portfolio for years, long after I stopped investing in individual companies. I took home a nice profit on most shares and only experienced a loss on a few of them.
This article I just read reminded me of something my Dad once told me when I was a kid (will explain below). The article was discussing how investing in or with a friend or family member can be a risky proposition. There are all sorts of problems that can crop up in terms of your relationships outside of the money issues themselves. To be better prepared, you might want to have a checklist of things you should know before you sign on the dotted line.
Some questions to get answers to: