"Investors... should try to be fearful when others are greedy and greedy when others are fearful."
Showing posts with label investments. Show all posts
Showing posts with label investments. Show all posts
Thursday, February 7, 2008
Sunday, December 23, 2007
Social LENDING...
So I was browsing around the net today and came across a video, and then this article on CNNMoney.com:
Social Networking for dollars
This is a very interesting concept - one that I wish I would've thought of myself. But it appears that there are at least a few websites - Zopa, Prosper, and GlobeFunder that are focus on the idea of social lending.
I guess the gist is this: You know those 'friends' you have on myspace or facebook? Well bottom line is some have more money than you or (if you're Daddy Warbucks) some could use a buck or two from you. These sites allow you to borrow from your 'friend' who always shows pics of all the exotic places that she visits while at the same time your friend gets to earn interest on those loans. Or if you happen to have an extra $500-$25K laying around it offers a way of gaining a better interest rate than that worthless savings account you have - only with a lot more risk involved.
I just browsed the sites briefly and it seems as if Zapo only offers a 5.1% return if your a lender but, the borrowers can be charged about anything they are willing to pay above that amount.
Prosper offers rates in the 9, 10 & 11% ranges as far as a return if you're an investor.
It appears that GlobeFunder is still in the 'beta' version now so to speak and they are accepting members but not making any loans as of yet. But the homepage design appears pretty nice.
I'll have to do a little bit more research but, if they can make the loan payback a little bit more immediate and the risk factor a little less risky - I might have a great new investment avenue.
Social Networking for dollars
This is a very interesting concept - one that I wish I would've thought of myself. But it appears that there are at least a few websites - Zopa, Prosper, and GlobeFunder that are focus on the idea of social lending.
I guess the gist is this: You know those 'friends' you have on myspace or facebook? Well bottom line is some have more money than you or (if you're Daddy Warbucks) some could use a buck or two from you. These sites allow you to borrow from your 'friend' who always shows pics of all the exotic places that she visits while at the same time your friend gets to earn interest on those loans. Or if you happen to have an extra $500-$25K laying around it offers a way of gaining a better interest rate than that worthless savings account you have - only with a lot more risk involved.
I just browsed the sites briefly and it seems as if Zapo only offers a 5.1% return if your a lender but, the borrowers can be charged about anything they are willing to pay above that amount.
Prosper offers rates in the 9, 10 & 11% ranges as far as a return if you're an investor.
It appears that GlobeFunder is still in the 'beta' version now so to speak and they are accepting members but not making any loans as of yet. But the homepage design appears pretty nice.
I'll have to do a little bit more research but, if they can make the loan payback a little bit more immediate and the risk factor a little less risky - I might have a great new investment avenue.
Wednesday, October 3, 2007
DANGER: When co-workers ask for Investment advice...
So If I haven't mentioned it recently, I am currently in the process of starting an Investment Club at my job with two other co-workers.
Well today, while we were talking about what books and topics to possibly discuss at our first semi-official meeting, one of the co-workers started talking about our company's 401K plan and what investments she has in her account currently.
More specifically she pointed out the fact that for the past month or so the vast majority of our 401k options went down in value. I tried to not to boast when I mentioned that my account went up up overall (mainly because I decided to get out of US stocks the moment the Dow hit the 14,000 mark the first time) . At this point my co-worker began to pick my brain about what she should invest in....WARNING!!! DANGER !!!
I tried to be vague and general just mentioning I had chosen some of "Emerging Markets" aka China & India stocks.
- but then she began to say something to the effect of "Oh well, I'll put all of my 401K into Emerging Markets then..."
At this point I tried to be general while at the same time trying to explain why it might be a bad strategy for you to put all your 401k money into any one fund/stock/bond etc. I also mentioned how important diversification is.
We were interrupted by another co-worker and I went back to my desk. But then my co-worker called my extension to finish our discussion and began picking my brain about my exact allocation - which I pretty much told her but at the same time I tried to stress "whatever you do with your money is up to you!"
I didn't go into the whole "I am not a financial planner" spiel but, on a certain level I think I should have.
Even though sometimes I feel somewhat financially savvy at times I by no means should be consulting someone older than me on how to direct their 401k allocations!
One key difference between me and my co-worker are our investment strategies. For example:
Has anyone else had this problem at work or elsewhere? co-workers find out you're kind of a finance geek and then suddenly think you're the next Warren Buffet? Just curious.
Well today, while we were talking about what books and topics to possibly discuss at our first semi-official meeting, one of the co-workers started talking about our company's 401K plan and what investments she has in her account currently.
More specifically she pointed out the fact that for the past month or so the vast majority of our 401k options went down in value. I tried to not to boast when I mentioned that my account went up up overall (mainly because I decided to get out of US stocks the moment the Dow hit the 14,000 mark the first time) . At this point my co-worker began to pick my brain about what she should invest in....WARNING!!! DANGER !!!
I tried to be vague and general just mentioning I had chosen some of "Emerging Markets" aka China & India stocks.
- but then she began to say something to the effect of "Oh well, I'll put all of my 401K into Emerging Markets then..."
At this point I tried to be general while at the same time trying to explain why it might be a bad strategy for you to put all your 401k money into any one fund/stock/bond etc. I also mentioned how important diversification is.
We were interrupted by another co-worker and I went back to my desk. But then my co-worker called my extension to finish our discussion and began picking my brain about my exact allocation - which I pretty much told her but at the same time I tried to stress "whatever you do with your money is up to you!"
I didn't go into the whole "I am not a financial planner" spiel but, on a certain level I think I should have.
Even though sometimes I feel somewhat financially savvy at times I by no means should be consulting someone older than me on how to direct their 401k allocations!
One key difference between me and my co-worker are our investment strategies. For example:
- I am a very cautious investor and I'd be fine and dandy making a straight 7-8% return in my 401K pretty much for life
- My co-worker on the other hand is a more high-risk investor and would get upset if she was only making 7-8% return assuming the market as a whole was making 12%.
Has anyone else had this problem at work or elsewhere? co-workers find out you're kind of a finance geek and then suddenly think you're the next Warren Buffet? Just curious.
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