Page 6 shop online at www.broadcasteronline.com October 4, 2011 DAVE SAYS: Is Online Trading Okay? Dear Dave, How do you feel about online trading for building a stock portfolio? Assuming that someone has done their homework on which stocks to buy, is there anything else to know about do-it-yourself trading? Kevin Dear Kevin, There’s one very important thing to know – don’t do it! This kind of thing is one rung below day trading on the ladder of stupidity. Here’s the problem. When most people talk about “doing their homework” on single stocks they’re just barely skimming the surface. And most of the time this involves just talking to their broke friends. There’s no way you and your gol?ng buddy are going to dig up and decipher the kind of solid, reliable information you’ll need to be successful at this kind of thing. I’d much rather go with a mutual fund that’s spent millions of dollars analyzing companies and doing real research. What you’re talking about is a million times riskier than using good growth stock mutual funds – selected by profession- als – with 90 to 100 different stocks. —Dave Investments using home equity? Dear Dave, Right now our debt is keeping us from investing. Do you recommend making investments with a home equity line of OF A Dodge Durango LE! SA SAVE OVER $ 12,000 Chrysler 300C NOW ONLY! MSRP $46,635 #5778 34,576 $ Citadel, AWD, rear DVD, V6 * Dodge Avenger MSRP $25,630 #5801 Heat Pkg., V6, u-connect, cold weather group SAVE OVER $ 8,000 MSRP $44,080 NOW ONLY! 31,079* $ 17,467* Jeep Wrangler SAVE OVER $ 6,000 Safety Tech Pkg., duel sunroof, 20” wheels 17,793* $ #5782 Sport 4x4, A/C, 6 speed manual Chrysler Grand Caravan Crew SAVE OVER $ 11,000 MSRP $28,730 #5809 22,813 MSRP $33,850 #5684 DVD, loaded * SAVE OVER $ 10,000 18,728* V6, sunroof, navigation Outdoorsman Ram 1500 SAVE OVER $ 15,000 NOW ONLY! MSRP $40,700 #5749 25,581* $ Ram Cargo Management, 4X4 Ram 2500 SLT SAVE OVER $ 14,000 NOW ONLY! MSRP $41,375 #5600 27,350* $ Big Horn Pkg., 5.7 Hemi, 4X4 Dave RAMSEY this kind of thing, but I’d advise investigating the deal very carefully. And it wouldn’t hurt to take a cold shower ?rst – just to make sure you wash off any car fever you may have. Some of the automaker offers are just another way for the company to ?eece drivers. But some manufacturers offer their employees programs that aren’t a traditional lease. A few of them offer the use of a highquality car for very little money per month and no hidden catches. In these cases it can work out pretty well. In some instances you’d lose more in value every month – even if you bought a car with cash – than you would pay out under a good employee program. Some companies even offer gas and more in the deal. Just make sure you check the details thoroughly. Use your head and a calculator – not your heart – when making the decision! —Dave Dear Stephanie, A few automakers do $ NOW ONLY! $ Leasing from your company? Dear Dave, I know how you feel about leasing a car. But what about the car leasing programs that auto manufacturers offer their employees? Stephanie Chrysler 200S NOW ONLY! MSRP $24,015 Dear Paul, Let me answer this very, very carefully. No! You don’t borrow on your home, Paul. You never want to put something as precious and important as your home in jeopardy just for the sake of investing. Follow the Baby Steps. First, get $1,000 in the bank to start your emergency fund. Second, pay off all debts from smallest to largest – except for your house – using the debt snowball. This will lead you to Baby Step Three, which is fully funding your emergency fund with three to six months of expenses. Once you’ve done all this you’re ready for Baby Step Four, which is investing in Roth IRAs and other pre-tax retirement. When you’re debtfree except for your house, you’ll ?nd investing is easy because you’ve freed up your most important wealth building tool – your income! —Dave NOW ONLY! #5822 NOW ONLY! $ SAVE OVER $ 13,000 credit? Paul *Sale price after rebate and a Hail of a Broadway Discount! 2720 Broadway, Yankton, SD 665-8033 • 866-268-9514 www.broadwaychrysler.com * For more ?nancial help, please visit daveramsey.com. Check Us Out Online @ www.broadcasteronline.com