Picking stocks is so easy, a baby can do it.
Some of you long time readers might remember that back in February, I decided to take my student loan and try to time the market by investing in a hand-full of well known companies whose stocks were very low.
Here’s what I got(2-25-09):
- FORD – 100 shares @ $2.04
- CITIBANK – 100 shares @ $2.66
- JP MORGAN – 20 shares @ $21.13
- GE – 15 shares @ $7.07
These were not rock bottom prices. In fact the market took a HUGE tumble right after I got in (Citibank went down to $1.03). Oh well that how these things go. But since then the market has recovered nicely.
As of this writing (6-01-09) here is where these stand:
- FORD – $6.13 (+ 199%)
- CITIBANK – $3.69 (+ 38%)
- JP Morgan – $36.11 (+71%)
- GE – $13.86 (+ 96%)
In a little more than three months I turned my $1000 into $1900.
My personal trading account is my fun money. Over the years I used it to help with down payments for our first house and our van. I also tapped it to buy our first Mac (6 years ago, using it to write this post).
I realize that there will be a short term capital gain tax, but I don’t sweat those. To me taxes just mean I made money. Plus I don’t think I’ll have to worry too much about taxes this year(full time student, kids, high medical expenses).
So, what to do?
As I’ve mentioned before, we use a Wish List to keep track of long term wants. And one item in particular is starting to look very enticing.
- A Trip to NYC
We’ve been wanting to go for a couple of years now. But timing, relatively low airfares, and these recent stock gains might finally push us over the edge and actually get us there.
While there we plan on catching the US Open, the Late Show, a Yankee Game, and all the other usual touristy stuff(Broadway, Museums, Famous Landmarks).
I realize that you Dave Ramsey fans out there won’t be too pleased with the vacation option. Here’s what his recent newsletter said about the subject
Waaaahhhh! I didn’t go on vacation for two years while I was cleaning up my mess. Listen, your life has been a trip to the beach. Now it’s time to clean up your mess! I’m not saying that you should never go on a vacation. Just don’t go when you’re $20,000 in debt! Suck it up and live like no one else now so later you can live like no one else. That’s what I did. Now I can go to the beach any time I want! You’ve got to break this cycle in your head that you deserve stuff. None of us deserve squat.
So do I take the money and head to the big apple? Or do I let it ride and really let it accumulate?
I guess I could also use it for something responsible like tuition or for the A/C repair in our van, but where’s the adventure in that?
Until next time,