Last week I xfered all $5,000 of it in one fell swoop (not to be confused with “fowl swoop” which I thought it was all my life), and then yesterday we had some fun stock-picking :) If you recall from last year’s Roth adventure, I basically treat it as my treasure chest full of stocks. My 401(k) is full of the boring, but important/safe mutual funds, already, so I allow a chunk every year to be allocated to more risque holdings. This way if I really screw things up, only a small % of my overall net worth is phased (now at about $17k vs the $140k+ in safety accounts).
Only the thing is, I don’t really know what I’m doing in that department. With all the blogging and traveling in life, who’s got time to research it all? ;) Well I’ll tell you who – Warren Buffett and Josh Alexander. The first I’m sure you’ve heard of before (and if you haven’t you better look him up ASAP), and the second you wouldn’t have unless you live in Chicago and frequent Spanish bars every other night (and you’re a girl). That’s cuz Josh is a friend from college who spends a good 60 hours a week pouring through every last detail of bank stocks (and he hits on any chick that moves after dark ;)).
So instead of trying to research everything from scratch, I lean on these 2 pimps to check out the scene for me and watch what they’re adding to their portfolios. Then I cherry pick! I look for the companies I’ve heard of and I like, with a little dabbling of my own research, and I invest away! It’s not as sexy as finding my own, but it feels risky w/out being totally risky – does that make sense?
Here are my latest additions:
I couldn’t help that last one, I’ve been wanting to own a portion of Buffett’s Berkshire Hathaway for years! But who could afford Class A’s $116,000+ share prices? For just ONE! Haha…So when these B’s came out (or split, or whatever they did) I knew I had to jump on ’em. Regardless of whether or not they’ll still rule once the big man leaves this earth. Or if my stocks are now overlapping, which I’m pretty sure they are.
The beauty of the Roth is that you can invest in pretty much anything you want as long as you set up the account that way (I have a “Brokerage Roth” for ex. which allows me to invest in stocks, funds, etfs, etc, while the wifey used to have a Roth for CDs only). It’s basically one rockin’ retirement tool.
The point of all this is that it let’s me have FUN. I get to go out of my comfort zone a bit and invest in things that my conservative side won’t let me. And If I lose it all, I lose it all! Highly doubtful in my opinion (esp w/ the backing of my 2 said friends), but in the world of stock-picking anything’s possible. I wouldn’t advise this for everyone – like those without emergency funds or barely any retirement saved up – but it’s a nice way to play the markets if you’ve got the extra cash laying around. Now let’s hope my spidey-senses pays off!