Advisory Service
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Don't invest in IPO because they are highly risky.
Let put it this way, if you are investing 14.99 or below each share, you are playing with fire.
Definitely don't think that buying penny stock would be a bargain. The big companies are easier to own IPO than for investor that want to invest part of it.
Now.. if you want a good manager of your investment, I know a person that can do it. |
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rhsaunders
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It impresses me as unwise. You are talking about putting a lot of eggs in one basket, and you will have to pay heavy taxes on any funds that you pull from the IRA. But you may be able to have the IRA purchase the new stock, which would at least save you the tax hassle. |
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beenthere
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It sounds like you do not know the market well enough to be playing with your safe money. Keep two accounts: one with the money you need for current and future savings, the other for play money which you don't care if you lose. Then use the play money for stocks that have been recommended and that you have researched. Don't ever use the secure money to rescue yourself when the play money has been lost. |
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Laissez-Faire Guy
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I'm assuming you are not of retirement age.
In that case, I can only say DON'T DO IT!
You will be taxed and penalized up the whazoo.
First, there will be an instant 10% Federal tax penalty. Then you will be paying normal income taxes on that $50k the year you withdraw it. That of course will be taxed at the higher income tax bracket it will thrust you into. Then, depending on where you live, there may be a state income tax and even a state penalty.
Taking this money out early could easily cost you between 40% and 50% of your money in taxes and penalties. Are you that confident of your investment that it will guarantee a return of 100% of the $25k to $30k you have left over to actually invest? Because that's what you'll need JUST TO BREAK EVEN. |
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krism
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IPO are always gambles, especially technology. Invest a little, but don't bet it all. Vonage IPO is a study in an IPO gone badly.
Also, you must know all the rules that accompany your IPO buy. Sometimes there are lock-up periods, where you must hold the stock until a certain date. Small investors have been hung out to dry because if this lock-up period.
Be very careful. But if you do your homework and you want to risk this in the highly volatile IPO market, try a little, but not alot. If you make money cool, if you loose money, it is not catastrophic. Don't worry either way, it is a volatile market
Good Luck |
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Gatsby216
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Do not take this risk. Concentration in any single investment is too risky.
Think how you would feel if you lose it all.
Also since you are saying you are new to this type of investment it leads me to believe you heard about this through some non-standard channel, as IPOs are genearaly not offered to the "masses", just larger broker customers.
a> |
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Common Sense
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A. You can buy this within your IRA. Don't cash out.
B. It's totally nuts to put more than 2% of your assets at risk with any one equity. Add in the fact that you know nothing about the stock market and it's an IPO... That's not investing..... it's pure gambling.
You are on the road to making the biggest mistake of your lifetime. Nobody can "know" an IPO (or anything else) will do well. Put $500 to $1000 into this (MAX). Read some good books on investing. Once you understand investing you can add to your position as it goes up... with protective stops above what you paid for it. NEVER DOLLAR COST AVERAGE INTO A STOCK GOING DOWN.
Don't enter any position without a well thought out exit plan.
BTW: Did I say this was nuts to do? |
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Formerly known as Frank Castle
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You cannot invest in IPOs with only 50K.
You really need to be a millionaire to make those kinds of investments. |
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Kris Z
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Stupid is as stupid does !!!!!!!!
If you want to waste money be my guess, this is not investing this is gambling. If you want to go to vegas and blow your money go ahead. But investing is constantly stuyding and contributing to your investment. Also not all your eggs in one basket.
Don't worry if your new you won't be investing (gambling) for long you'll be broke. |
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clncarplz
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Can you afford to lose the 50K? If not don't do this. Diversify you investments using only what you can afford to lose. Now if you want to have a return of $1,000 per month for one year I can guarantee it for an investment of only $1,3000. Think! |
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Swaminathan P
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investment on future is always be wise man's investment.
you have not done any wrong. |
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