Washington Mutual is a well branded bank everyone has heard of. Unfortunately, the EPS is negative given all the issues they have had with the mortgage side of the business. Regardless, they continue to provide a 3.6% dividend yield and I highly doubt this company is going to go down the drain. The company market cap is fairly large with over 13B. I have been buying WM for a few years now at high prices, but now I continue to buy with discounted price. Since the EPS is negative the PE ratio is not calculated. This is a good buy for the long-term buy to hold

Who's Not Investing?

Millions marry and start families each year without taking basic steps to
make sure their future, as well as their children's, is financially secure.

According to a recent survey by Princeton University and the Consumer
Federation of America, 70% of households with incomes under $50,000 a year
have retirement savings of less than $5,000. This same report said "most
Americans are living paycheck to paycheck".

Buy to Hold- Biovail Corporation

Biovail Corporation is a specialty pharmaceutical company that applies advanced drug-delivery technologies to improve the clinical effectiveness of medicines. This company provides a 10.70% Yield with a very low PE ratio.. Buy now and hold for the long-run. Buying just 2-3 shares a month will allow you to see the growth in a few years so long as you re-invest the dividends.

Invest now--Why the urgency?

Truth be told, your most important retirement asset isn't your cash -- it's your time. The longer you have before you must spend your money, the less you need to save per month (and in total) to have what you'll need when you need it. It's just the way compounding works.

Assume that you're looking to retire by age 70 with $1 million socked away, and you think you can roughly match the market's historical 10% annualized return. These numbers show just how important time is to meeting your financial goals:

Years to Go	Monthly Investment	Total Invested
50	$57.72	$34,633.25
45	$95.40	$51,514.42
40	$158.13	$75,900.37
35	$263.39	$110,624.19
30	$442.38	$159,257.65
25	$753.67	$226,102.24
20	$1,316.88	$316,051.95
15	$2,412.72	$434,289.21
10	$4,881.74	$585,808.84
5	$12,913.71	$774,822.68

If you thought coming up with $58 a month to invest at age 20 was tough, just try waiting until age 60, and finding nearly 80 times as much spare cash in your budget. No matter how you slice it, the sooner you get started, the less painful it'll be.

Invest with emotions

The conventional thought is not to invest in the market with your emotions
involved. I am here to tell you to do the opposite. With the key factors
(listed below), you should go with your gut feeling. These factors include
the following.

1. Does the company have a brand recognition? Eg Coke, John Deere, IBM,
BofA.
2. Does the company have a large market cap...in the billions?
3. Is the PE ratio low?
4. How is the EPS?
5. Does it give dividends?

Now, as you can see from the above Google fits all with the exception for
#5. And, therefore should not be a long-term investment company in your
portfolio. The reason for this (and Apple) is that if the stock price goes
down you don't win. But, if dividends are given out, you still receive
returns.

Pay yorself first.

How does dividend reinvesting impact my taxes? How are dividends that are reinvested taxed?

When you reinvest your dividends, you are really receiving a dividend and then buying additional shares of stock. So you pay income tax on the dividends that are paid to you, and the new shares that are purchased are nothing more than capital assets, just like the original stock purchased. If you hold these shares for a year or less before you sell them, you'll pay taxes on any gains at your marginal income tax bracket. But if you hold the shares for more than one year, any gain that you realize will be taxed at the preferred capital gains rates.

Your Online Banking is Blocked?

This is the dumbest email I have received. First, I don't have a BofA account, and second, they use the word "their" instead of "there". The email looks professional, but the content sucks.. Even when you click on this, it goes to an IP address instead of bofa.com.. What a dumb scam. .I wonder if anyone still falls for this?

Your Online Banking is Blocked
	Because of unusual number of invalid login attempts on your account, we had to believe that, their might be some security problem on your account. So we have decided to put an extra verification process to ensure your identity and your account security. Please click on continue to the verification process and ensure your account security. It is all about your security. Thank you.
	Bank of America, N.A. Member FDIC. Equal Housing Lender (c) 2008 Bank of America Corporation. All rights reserved

How much do you need to invest in the market?

Simple: just $100 per month. You will see the growth over the years.
Later, I will show you how you can build a portfolio in just $100 per month
of investing in stocks such as JNJ and CAT.

Buy stocks in companies with products you use.

Have you heard of Mr. Clean products? How about Scope mouth wash? These are products we use everyday. You can purchase stocks in Proctor and Gamble directly without a broker. They have a direct deposit application where you can purchase stocks on a monthly basis. Better yet, the stocks certificate will be in your name...(traditionally, if you buy through a broker, it would be in the broker's name).

Here is some other great info.. Market Cap for the company is 204B.. That is big. PE ratio is fairly low, EPS is over $3, and they give out over 2% dividends. Percent dividends are not much, but you have a strong company with well-known brands. You can buy and hold for a very very very long time with no worries about the market. Reinvesting the dividends will get you more shares.

How to invest in P&G

Market Cap:		204.04B
P/E (ttm):		20.06
EPS (ttm):		3.31
Div & Yield:		1.40 (2.10%)

Pay yourself first..

Slow Growth Could Cost Wall Street Jobs

Even banks that have avoided big hits, like Credit Suisse, are eying layoffs, sources tell TheStreet.com.

2/15/2008 12:06 PM EST

What is in a DRIP?

From Yahoo Finance

A DRIP is one of the greatest secrets ever revealed to the small investor. A DRIP can be one of the best tools to help the individual investor's find financial success. A DRIP doesn't require a large sum of money to be invested, so almost anyone can participate.

So what's a DRIP? It stands for Dividend Reinvestment Plan, a program run by a publicly-traded company for its shareholders. Instead of sending dividend checks to shareholders enrolled in a company's DRIP, the company reinvests those dividends by purchasing additional shares (or fractional shares) in the shareholder's name. A shareholder usually needs only one share to enroll in a company's DRIP plan, and most of the time the company will reinvest a shareholder's dividends without a fee or commission.

Some companies have DRIPs that are enormously popular with their shareholders. RPM, Inc., a Fortune 500 specialty chemical company, reports that 71% of its shareholders are enrolled in its DRIP. Over 64% of the shareholders of AFLAC, Inc., a company that sells supplemental life insurance policies, are enrolled in that company's DRIP. Over 1,200 companies have dividend reinvestment plans for their shareholders.

Companies like DRIPs for several reasons. DRIPs provide a stable base of shareholders who are likely to have a long-term, "buy and hold" investment philosophy. Individuals, particularly those who are dollar cost averaging into their DRIPs, may see the drop in a stock's share price as a buying opportunity, as opposed to institutions and traders who move in and out of stocks with short-term goals in mind. This base of individual shareholders can help stabilize a company's share price. DRIPs keep capital inside the company, by not paying cash dividends outright and having those dividends reinvested in additional share purchases. DRIPs can also help companies to raise additional capital without making a public offering.

Here's the best part about DRIPs: most allow additional purchases to be made by participants without paying a fee or commission!

That means that an investor can purchase additional shares of stock through a DRIP with as little as $10 or $25. Most companies allow these Optional Cash Purchases (OCPs) on a regular schedule, usually once or twice a month, or sometimes quarterly. The company purchases the shares and issues statements that detail the shareholder's account.

So, what's a DRIP?

From Yahoo Finance

A DRIP is one of the greatest secrets ever revealed to the small investor. A DRIP can be one of the best tools to help the individual investor's find financial success. A DRIP doesn't require a large sum of money to be invested, so almost anyone can participate.

So what's a DRIP? It stands for Dividend Reinvestment Plan, a program run by a publicly-traded company for its shareholders. Instead of sending dividend checks to shareholders enrolled in a company's DRIP, the company reinvests those dividends by purchasing additional shares (or fractional shares) in the shareholder's name. A shareholder usually needs only one share to enroll in a company's DRIP plan, and most of the time the company will reinvest a shareholder's dividends without a fee or commission.

Some companies have DRIPs that are enormously popular with their shareholders. RPM, Inc., a Fortune 500 specialty chemical company, reports that 71% of its shareholders are enrolled in its DRIP. Over 64% of the shareholders of AFLAC, Inc., a company that sells supplemental life insurance policies, are enrolled in that company's DRIP. Over 1,200 companies have dividend reinvestment plans for their shareholders.

Companies like DRIPs for several reasons. DRIPs provide a stable base of shareholders who are likely to have a long-term, "buy and hold" investment philosophy. Individuals, particularly those who are dollar cost averaging into their DRIPs, may see the drop in a stock's share price as a buying opportunity, as opposed to institutions and traders who move in and out of stocks with short-term goals in mind. This base of individual shareholders can help stabilize a company's share price. DRIPs keep capital inside the company, by not paying cash dividends outright and having those dividends reinvested in additional share purchases. DRIPs can also help companies to raise additional capital without making a public offering.

Here's the best part about DRIPs: most allow additional purchases to be made by participants without paying a fee or commission!

That means that an investor can purchase additional shares of stock through a DRIP with as little as $10 or $25. Most companies allow these Optional Cash Purchases (OCPs) on a regular schedule, usually once or twice a month, or sometimes quarterly. The company purchases the shares and issues statements that detail the shareholder's account.

 

Ask the Readers: What’s the Best Way to Compare Credit Cards?

Ask the Readers: What's the Best Way to Compare Credit Cards? Posted: 15 Feb 2008 07:00 AM CST on Get Rich Slowly In October, Michael wrote with a question about credit cards. Because I try to discourage credit card use, I haven't posted it. But my attitude is beginning to soften. Michael's question now seems perfectly reasonable, and I suspect other readers have similar concerns. He writes: I have a credit card account which I got with Wells Fargo when I started college. I'd like to switch over to a card with some sort of bonus (miles, or cash back or something), which means I'm now credit card shopping. As I've tried to look for the best credit card for my needs, I've run into some difficulties: There are TONS of junk pages out there making it hard to find good objective comparison sites. Info pages on the cards only list the initial APR (which is usually super low, like 0% for 12 months.) I may actually keep the current credit card open since I've had it for almost six years and have been very responsible with it. I've paid it off completely every month, except for maybe two or three times, but always paid it off completely the following month. I can't recall having seen an article like this on your site. How can I choose a credit card?

Fool.com: Drip Portfolio

http://www.fool.com/dripport/whataredrips.htm

Drips are offered by companies to their shareholders as a way to buy stock directly from the company (usually through a transfer agent) in very small amounts to large amounts, and usually on a monthly basis if desired. The plans also reinvest all or partial dividends paid (it's up to the shareholder) into more stock, thus the name "Dividend Reinvestment Plan."

Now, we know Drip or DRP isn't a very Foolish name, but for now it gets the point across: You're reinvesting dividends, but you're also "dripping" money into your holdings every month, ideally. Drip... drip... drip.... And that adds up over time.

The advantages of such plans are numerous, the most obvious of which being: You don't need a large amount of money to start. You can open an account with as little as one share of stock. Let's look at some other "perks."

Investing Through DRIPs

Investing Through DRIPs


Companies offer DRPs as a way for their shareholders to buy stock directly from the company (usually through a transfer agent) in very small to large amounts, and usually on a monthly basis if desired. These plans get their name from the fact that they also reinvest dividends paid, using these dividends to purchase more stock. Thus the name "Dividend Reinvestment Plan." The specifics of whether or not you have to reinvest the dividends depends on the plan.

4 Stocks That Took a Hike

4 Stocks That Took a Hike
By Rick Aristotle Munarriz February 11, 2008

7 Recommendations

I love to kick off the new trading week by taking a quick peek at companies that have just raised their dividends, because any company that's easing up on its pocketbook probably has improving fundamentals to back up that generosity.

Looking for a discount Brokerage firm?

Given the number of sites on the web regarding dollar cost averaging, I decided to discuss one of the brokerage firms that provide such service.. You can purchase stock and mutual funds on a monthly basis. There are lots of these types of firms out there, but cost associated for each transaction can add up. You may want to check out a discount broker for such use as DCA.. I recommend Sogotrade.

Tax Secrets

A small pdf file download of tax secrets.

15 minute retirement plan

A nice and easy steps to follow and learn about retirement plans.. a small pdf file to download.

What is Risk

Simply define risk as uncertainty: the possibility that an outcome might be different than what is expected. Risk according to Emmett and Therese Vaughan Risk is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.

Mathematical Illusion: Why Dollar-Cost Averaging Does Not Work

Contributions

Mathematical Illusion: Why Dollar-Cost Averaging Does Not Work
by John G. Greenhut, Ph.D.

Executive Summary In spite of the weight of evidence provided in academic literature against the strategy of dollar-cost averaging, DCA continues to be practiced by investors and recommended by financial advisors. Beyond its psychological appeal, the popularity of the approach can be said to stem from simple illustrations that show DCA resulting in greater stock holdings across a stock market cycle than is achieved by a one-time, lump-sum investment. Alternatively presented, the average cost per share purchased under DCA is demonstrated, by example, to be less than the average price of stock over its cycle. This paper challenges that illustration. It shows that variations in stock prices should not follow the mathematical pattern assumed in the examples. In fact, the price movement should follow a particular mathematical form that yields the same number of shares purchased, whether by DCA or lump-sum investing. Absent any benefit from stock price volatility in reducing average cost, the performance of DCA rests on the trend in stock prices, with DCA outperforming in downward markets and lump sum outperforming in upward markets. Since the latter case is the norm over time, customary empirical findings in the finance literature of underperformance by DCA are explained. The theory in this paper is confirmed by examining a broad sample of stocks, contrasted over the high-growth trend in the second half of the 1990s against the general market malaise over the following half-decade. In the absence of this trend, DCA and lump sum provide equivalent results. John G. Greenhut, Ph.D.

Dollar-Cost Averaging (DCA)

Dollar-Cost Averaging (DCA)

	The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high. Also referred to as a "constant dollar plan".
	Eventually, the average cost per share of the security will become smaller and smaller. Dollar-cost averaging lessens the risk of investing a large amount in a single investment at the wrong time. In the U.K., it is known as "pound-cost averaging".