AAII web site offers useful investment advice for retirement

AAII web site offers useful investment advice for retirement

If you are like the average American, you may know more about baseball than about investing for retirement. While there are some people who love to do investment research, I'm sure you'll agree that they are in the minority. Most people would rather
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Triple Threat Investing: Wells Fargo

Triple Threat Investing: Wells Fargo

I'd like to preface this article by explicitly indicating that the following commentary is not meant to be a Wells Fargo (WFC) purchase recommendation. Everyone is different with regard to their investing style, scope and requirements. With that being
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Your Questions About Investing In Electric Guitars

William asks…

What do I look for in an electric guitar and amp?

I am thinking of getting into the electric guitar thing, but as a novice I don’t know what to look for in an electric guitar or amp. What are some good brands for both and features that I need to consider?


Justin answers:

If you have the $ to invest get a nice les paul or strat as they are considered standards by players and studios and you can usually get your money back if you change your mind and sell.
Get a classic fender or marshall tube amp for the same reason or a line 6 with multi classic amp sounds.

Michael asks…

i need to make my electric guitar sound distorted without amp just a keyboard?

hi, i need to make my electric guitar sound distorted without amp just a keyboard. is there any way i can do this without going out and buying crap? because ive had this guitar a while now and do not want to invest more money into it.
thanks in advance.

Justin answers:

No, ull either have to buy an amp with distorntion/overdrive built in or buy one thats not and buy an effects pedal or two

James asks…

Looking to make my first electric guitar and need tool advice?

Hi i am looking to make my first electric guitar. I was planning on starting from a template of a tele or a strat and i need to get a table/overhead router set up. I could do with some advice on what the minimum router required is and any recommendations on what to get as there is a huge range of different types?


I found this website that shows one being made and helps a lot but i only plan on making a couple and need to know what things to look for when buying a table and router. Thanks

Justin answers:

I would start with a kit, and then decide if you want to invest in the tools to carve your own.


This company can help you with all the information you need to do it however you decide.

Good luck.

Paul asks…

If I wanted to learn to play the electric guitar, would I have to learn to play acoustic first?

If I wanted to learn to play the electric guitar, would I have to learn to play acoustic guitar first?
Also, any tips on learning the guitar? I’d probably go to a teacher, but I was just wondering if anyone had experience? Is it hard? What do you think of it? I want to be sure I want to take lessons before I invest in not only the lessons, but the guitar too.
Any feedback would be much appreciated.

Thanks in Advance(:

Justin answers:

No. You could learn to play an electric without learning to play an acoustic.

It isn’t terribly hard, but you do have to toughen up your fingertips, especially if you play a steel string guitar. There are probably stores where you could rent a guitar while you start learning, and that would allow you to take a few lessons and practice without actually buying one.

David asks…

What is a good set of cheap, noise-cancelling headphones?

The person in the bedroom next to mine makes a lot of noise with Electric Guitars and a Drumkit, as well as acapella singing and general noise from playing CDs/Mp3s. I want to invest in a set of noise cancelling headphones but don’t want to spend too much. Any particular models I could get?

Justin answers:

I don’t think that even an expensive pair will help you….
Try :
JVC HANC80 ~$35
Sony MDRNC7 ~$50
Audio Technica ATH-ANC1 QuietPoint ~$80

Thomas asks…

Can somebody help me with a guitar question?

I got an electric guitar for my birthday a couple months ago and I still don’t know how to play it. Can somebody help me such as a website or link? Any help will be appreciated. Thanks!

Justin answers:

“How to Play Guitar” by Roger Evans is a really good book to start off with to teach yourself how to play. I taught myself with this book. Get as far as you can on your own, and then maybe invest in some lessons. You wouldn’t have to start with the basics, because you would already have a good start. That’s what I did anyway and it worked pretty well. Oh yeah, and practice every single day, that is also a major help.

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Your Questions About Invest In Gold Mines

Richard asks…

What are your thoughts on Gold and precious metal investing right now?

I have been dollar cost averaging stocks such as GG and AU since those gold mining stocks hit new highs in early December. My investments have decreased significantly so far. The stocks themselves are down about 20% since their early December highs. Because I have been dollar cost averaging these stocks my investments in these stocks are only down 7%. I feel in my heart that Gold and Oil stocks are going to bounce back up soon and that is why I keep buying 100 more shares everytime these stocks have a bad day like they did today. In fact I bought another 100 shares of GG today at $37.72. I feel in my heart that Gold and Oil stocks are going to reach new highs again.

What are your thoughts on this? What could possibly cause these stocks to stay depressed for any length of time?

financi4 answers:

I’m guessing two or three more weeks of correction in gold and then resume its natural course. Just look at the length of the past runs and corrections on a chart and you get the idea. I’m still new at this(15-20yrs) so its difficult to be exact.

Daniel asks…

Stocks in Gold and Copper Mines… and Chinas influence!!?

Hi All,

I’m a beginner in the stock market and i have about 10k that i want to invest… but understandably I’m a little anxious on what stocks to be buying.

I’m looking at Gold and Copper mines due to the strengths of both of them despite the lows in the Australian stock market and in face of a possible recession in the States… but I’m not sure of the effects of Chinas influence on the price of gold and copper.

Could anyone shed light on this topic… or give advice to a beginner that is trying to learn as much as possible.

Thank in advance

financi4 answers:

In my view, China is becoming an increasingly larger consumer of all kinds of things, including gold and copper. I would expect that extra demand to keep the prices higher than they would be without that demand (unless of course the supply increases by more than the demand, which I doubt will happen).

However, I personally would NOT be investing in anything related to gold, copper, or other commodities right now. The prices have risen dramatically in recent months. While they could still go higher, I suspect we’re closer to a top than a bottom in commodity prices. Remember the bubble in tech stocks a few years back? Prices were high and rising and everyone wanted in. Then the bottom fell out and the people that bought high lost a lot of money. Remember the bubble in home prices just a couple years ago? Same story.

The last time gold was setting record highs was in the early 1980s. Same story as the other bubbles. Not long after, gold started a long downtrend and only got back to the early ’80s prices recently – after 27 years! Historically, over the long-term, gold and gold mining stocks have not been particularly good performers.

If I was just starting and had $10k, I personally would put it into a mutual fund that tracks a major market index like the S&P 500, Mid-Cap 400, or Russell 2000. (Fidelity, Vanguard, American Century are some of the fund companies I like.) Diversifying (i.e. Spreading) an investment across many stocks in many industries is important to protect the investment against a sudden drop in one or two stocks. Buying an index-based mutual fund provides diversification with a single purchase. Doing it by buying 20 different stocks, in my view, requires much more than $10k (I’d say $50k minimum) to keep the commissions low as a percentage of the investment.

Another possibility is an exchange-traded fund (ETF) that tracks a major index. SPY, MDY, and IWM are the ticker symbols of three such ETFs. An ETF is pretty much like a mutual fund, but is bought and sold like a stock through a broker rather than through a mutual fund company.

For me personally, I like the Russell 2000 based funds (or the IWM ETF) right now. In the recent stock market debacle, small-company stocks are down more than larger company stocks (over 20% off the high now I think). They could certainly still go lower, but looking back five years from now, I think the current prices will look VERY cheap.

Steven asks…

how do you invest in gold ?

do you buy shares in the companys that mine it? or do you actually buy gold as in rings and watchs etc ? or gold bars ?

financi4 answers:

Bit late for that now. The price of gold is through the roof so the only way is down unless you plan on a long term investment…. And I mean long!

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Your Questions About Invest In Gold Stock

George asks…

If gold is in full swing, why not Gold Stocks?

Is it not a good time to invest in gold shares and any names i stay in south africa and will invest on the jse

financi4 answers:

There is a difference in owning stocks and commodities.

Commodities such as gold has been on a speculative run again.

Gold stocks don’t trade in tandem with gold prices.

What is interesting is that even during the worst time of the economy (2008), gold did not reach this high of a price. So why it is moving higher now?

1. Lower US dollar. Massive US gov spending is creating massive debt and thus lowers the value of the Dollar. As the dollar declines in value commodity prices priced in dollars tend to go up.

2. Speculation.

3. Counties like China and Russia wanting to use a global currency other than the dollar.

4. Other or not known yet.

Mark asks…

IA Investing: 1980s stock market boom or bust during gold bull market? Economy Stock Market Finance?

In the stock market dip in the early 1980s when gold reached its all-time highest price, did the S&P and DJIA increase over the same time period?
– Compared to the current stock market, gold and stocks are BOTH going up — was it the same trend in the 1980s?

financi4 answers:

No, the opposite.

The great bull market in Gold saw headlines about “The Death of Equities” and “The End of Stock Investing for the General Public.”

1982 was the start of the Great Bull Market in Stocks…which took off in earnest in the 1990’s. (After the 1987 crash).

Steven asks…

need advice on Investing in gold?

Like many, i am worried about the weakening value of the dollar, our debt and hyperinflation.

I invest in the stock market, bonds, and real estate. Does anyone know much about investing in gold or silver. Is it better to have physical gold or stocks in it?

What do you guys reccommend?

financi4 answers:

My opinion gold stocks offer you so much more leverage. A mining company has a fixed cost per ounce to bring the gold out of the ground. As the price of gold rises the price of the gold stock increases exponentially. Don’t get me started on junior mining companies……omg penny stocks!
Good luck!

William asks…

What is the best stock to invest in at this time?

I am doing a stock simulation is school, and I already invested in gold, BRK-B, GM and Ford (I know some of you may find it stupid but its cheap and the gov won’t allow it to drop excessivly), but its not enough. Im thinking of investing in BRK-A, but its expensive and Im not sure if its reliable. Please give suggestions so I can simulate the purchase for when the stock market opens up on Monday. Will be sure to vote for BA

financi4 answers:

If you can afford it BRK-A is the way to go. One of the best investment minds controling it and it is hughly successful. This would always be the best stock to invest in if you can afford it. Don’t forget to vote for BA. Everyone who says they will never does.

Charles asks…

Is it wise to invest in gold?

I want to save for my future. I often wonder how much the national currencies tend to fluctuate, and therefore began wondering about gold: Is it a better option than just stuffing cash into the bank? Pros and cons? Is it better to buy through the stock market or actual gold bars? Any suggestions would be helpful! Thanks for your time!

financi4 answers:

I’m not a big fan of gold as an investment. Although it is a “steady” index, as opposed to currency, gold just does not appreciate at the same rate as the S&P, mutual funds, etc.
That being said, if you STILL want to invest in gold, I would suggest no more than 10 percent of your portfolio contain gold.
You may hear the old adage “An ounce of gold in 1880 could buy a good man’s suit, and in 2007 an ounce of gold can buy a good man’s suit.” By this logic, the an ounce of gold you buy now, in 40 years, will be able to buy you a ….good suit. Whoo hoo.
No imagine if you took the money you would have invested in gold and invested it in an S&P 500 index. The historical return on the S&P is great!
The emerging stock markets, e.g. China and India are going to be the next big players. I’m a betting man, and I’m betting on them to come through for me.
Good luck!

James asks…

should I buy gold jewelry or invest in gold?

I am getting this wish to buy gold jewelry, like 14K, and yet I’m wondering if this is a good investment or should I just buy gold as in the stock market?

financi4 answers:

14k jewelry is rarely investment quality. (For a good definition of “investment”, look up the first page of Ben Graham’s “The Intelligent Investor”.) Its value will be heavily discounted on resale, and will never approach any value imputed to rarity or workmanship – for which you pay extra.

However, buying gold in the stock market (assuming you’re referring to an ETF like GLD) is a purely short-term ploy. The ETF is a distant cousin to the paper-traded near future price of gold, which is heavily manipulated by the bullion banks. In addition, the value of the ETF erodes constantantly as the gold it purchases is sold off in small quanta for storage fees every month.

Even the futures market bears little resemblance to physical gold coins. Last week I took a look at physical vs. Future price of gold. The human-human transaction price per ounce on, say, Ebay, turned out to be 25% greater than the current future price quoted on Kitco. So for investment, I would go with the physical transaction established by bidding on Ebay – there are no markups or dealer costs passed on to the buyer. That price disparity implies that the price-flipping by futures speculators has dramatically corrupted the reported price, and does not reflect the true scarcity – commodity value of physical gold.

Again, given today’s market for gold there is little advantage to holding numismatic vs. Bullion gold, as most numismatic value is swallowed up in the gold price.

So if your choice extends to bullion coins, consider safely purchasing a gold coin through CL or Ebay. A more reliable but slightly more expensive alternative would be APMEX.com. In such an event your investment horizon must be measured in years, and you should establish for yourself the basis for an up-market hypothesis.

If you are simply attracted to the beauty of gold jewelry and want an eventual heirloom, then jewelry is your choice – but not for investment. You might also consider platinum, which is currently cheaper than gold – a situation that has only occurred during the crises of the last four years.

Robert asks…

Is better to invest in stocks or gold?

financi4 answers:

Long term, stocks. Gold is a high risk commodity – worth having a little if any as a hedge, especially if there is a lot of inflation or a major war breaks out. But gold now is a bubble that will pop sooner or later. Long term stock appreciation though is not guaranteed, but with major reliable companies has been quite lucrative.

Donald asks…

what stocks do you buy to invest in gold?

What are the names of the stocks in which you invest in gold?

financi4 answers:

Do NOT invest in gold, because it is at it’s all time high and is bound to drop. I would invest in other companies that took a hit recently such as Japanese steel comanies or other Japanese companies. Or you could wait until the price of gold drops substantially then invest in it.

Daniel asks…

Can someone explain to someone who doesn’t know the first thing about economics/stocks how to invest in gold?

I have been hearing this on the radio for about 5 years.

financi4 answers:

The easy way is to buy an ETF that mimmics the price of gold exactly. It avoids all security issues of owning the bullion directly. The ticker is GLD.

Having said that, gold has been a historically bad investment. Today it is reaching all time highs, yes, but viewed in the long run, savings accounts would have done better than gold.

That you are interested at a time when it is reaching all time highs should serve as a warning… Enthusiasm is greatest just before a crash.

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Of Pinterest and Angel Investing

Of Pinterest and Angel Investing

One of the biggest digital stories of 2012 was Pinterest's meteoric rise into the upper echelon of digital media platforms. Now one of the 15 most trafficked U.S. websites, Pinterest is here to stay and growing. Recently, some of Long Island's social
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