11. SUSTAINABLE CITIES AND COMMUNITIES

How I’d Invest $5000 Today If I Had to Start From Scratch – 69News WFMZ-TV

Written by Amanda



Life’s funny. We often don’t know as much as we really need to know until well after we really need to know it. In other words, hindsight truly is 20/20. Not only is this even true for investing, it’s especially true for investing.

With that as the backdrop, here’s how I’d do things if I were starting all over again with $5,000 worth of seed money — and all the cumulative lessons from the mistakes I made since my first foray into the market nearly three decades ago.

Half goes into a diversified index fund

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It’s advice most investors have heard over and over again, often resulting in eye rolls and groans. Not only is it a cliché suggestion, it’s the least interesting way to participate in the market. Nevertheless, your best first investment really is stepping into a long-term position in an index fund like the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) or the Vanguard Total Stock Market ETF (NASDAQMUTFUND: VTSA.X).

Reality: Your first goal as an investor isn’t beating the market; it’s simply not underperforming the market, trusting that in time, market-based investments in index funds will deliver good results. On average, the S&P 500 gains on the order of 10% per year, even if in most years it does considerably worse or considerably better. Time is key.

But isn’t playing defense — playing not to lose rather than playing to win — the fearful investor’s way of avoiding picking stocks? Perhaps, but know that an aggressive effort to beat the market by picking individual stocks is a tricky business that often leads to lagging it. Not even the professionals can do it consistently.

In its 2021 year-end report on the matter, Standard & Poor’s notes that nearly 80% of U.S. stock funds underperformed the S&P 1500 Composite Index. For the past 10 years, 86% of these funds lagged the index. For the past 20 years, 90% of mutual funds didn’t keep up with the broad market. So, if the pros can’t even do it…

Moral of the story? Start simple, and keep it simple.

Four smart stocks to start with

Index funds are the place to start, but they don’t have to be the place you finish. Once you’ve got this foundational piece of your portfolio in place, it’s easier to confidently stick with individual stocks even when they may be losing ground. The key is limiting yourself to names with real staying power.

Not that owning just four individual tickers is considered adequate diversification for the remaining half of this hypothetical portfolio, but these four stocks make for a great start to this end.

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) continues to be my favorite go-to name for nearly all investors. While its highest-growth years are likely in the rearview mirror, this parent to Google and YouTube, as well as the owner of the Android operating system, is still crushing it. In only two quarters since 2010 has its year-over-year revenue fallen, and one of those quarters is linked to the arrival of COVID-19 in the United States. That’s because it dominates the web search, online video, and mobile OS markets. As long as the world craves short-form video entertainment and relies on their mobile devices and needs a way to search the internet, Alphabet will have something to monetize.

I’m also a fan of Verizon Communications (NYSE: VZ) for a similar reason: As long as consumers depend on call phones and the wireless internet connections they offer, Verizon will have plenty of customers lined up to pay for their mobile service every month.

There’s little to no growth here, to be clear — Verizon is strictly viewed as an income machine. And I’d be sorely tempted to not reinvest its dividends in more shares of Verizon, but instead plug into its current, reliable yield of 5.2% to fund purchases of other stocks as they arose.

Bank of America (NYSE: BAC) handles two roles as the third individual stock pick for a new portfolio. One of those roles is driving cash. The current yield of 2.6% isn’t exactly thrilling, but it’s something to reap now while you hold on to the stock for its capital appreciation potential.

In this vein, the other role it plays is offering you exposure to the highly cyclical but highly worth-it financial sector. BofA ebbs and flows with the best of them, but it’s a best-of-breed name among banks with a solid long-term track record. Barring a complete societal collapse, the world’s going to always need a way to connect savers with borrowers and investors with corporations in need of capital.

Finally, I’d round out the launch of this new $5,000 portfolio with a piece of a fairly young company called Upstart Holdings (NASDAQ: UPST). Think of it as the indulgent, risk-seeking piece of your portfolio that at the very least makes things fun, and gives you something interesting to talk about at cocktail parties.

Simply put, Upstart does what the traditional credit bureaus like TransUnion and Equifax should have been doing a long time ago: using an artificial intelligence algorithm to determine an individual’s creditworthiness rather than reducing people to a score based on misguided metrics (which often paint an incorrect picture anyway). Upstart’s approach leads to 75% fewer loan defaults than most banks’ current loan-approval regimen, or said another way, it green-lights 173% more loans without increasing the loan-loss rate. Helping lenders make more (but lower-risk) loans is the big reason revenue is projected to grow to the tune of 48% this year.

Common sense is still king

These are just five suggestions, of course, and not yet a complete portfolio. The Motley Fool recommends owning a portfolio of at least 25 different stocks, and while devoting half of the hypothetical $5,000 to an index fund technically checks off that standard, four names still isn’t enough to fully round out the individual-stock half of your holdings. I’d aim for at least a total of 10, but you can tack those on in time.

Whatever the case, the one thing worth adding to this “getting started” discussion is plainly saying a little common sense goes a long way even if you’re not an investing veteran. Namely, if something sounds too good to be true, it probably is too good to be true. Steer clear.

And, although the constant news coverage of the stock market makes it seem like you should forever be buying and selling something, this really is a long-term game, won by people who play it as such. That means having the willpower to leave your portfolio alone even when things are getting a bit uncomfortable. That’s because time — not stock-picking prowess — is an investors’ best ally, even if you’re not starting out with a fortune.

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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. James Brumley has positions in Alphabet (A shares). The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Upstart Holdings, Inc., and Vanguard Total Stock Market ETF. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

If you know of local business openings or closings, please notify us here.

PREVIOUS OPENINGS AND CLOSINGS

· Hunter Pocono Peterbilt plans to move Pocono Township operations to Stroudsburg

· Coal Winery and Kitchen at 81 Broad St., Bethlehem, has closed as its owner searches for a new location for the business, according to its Facebook page. 

· Lowhill Township supervisors approved a 312,120-square-foot commercial warehouse and distribution center on a 43.4-acre tract on the west side of Route 100, south of the Kernsville Road intersection.

· The Mint Gastropub at 1223 W. Broad St., Bethlehem, announced that it has temporarily closed to undergo a merger with a “well-known restaurant group” from Bethlehem.

· The Slatington Farmers Market opened its 28,000-square-foot showroom, which includes space for 53 vendors, as well as a 4,000-square-foot event space.

· St. Luke’s University Health Network opened a new pediatric inpatient unit next to the eight-bed pediatric intensive care unit at St. Luke’s University Hospital – Bethlehem.

· 25th Asian House opened at the location of the former Tin Tin Chinese restaurant in the 25th Street Shopping Center in Palmer Township.

· The Chick-Fil-A in Broadcasting Square shopping center in Spring Township was razed to make way for a new, expanded facility for the popular chicken sandwich restaurant.

· Plans for drive-thru locations of a Chipotle and a Starbucks at the intersection of Ivy League Drive and Kutztown Road were rejected by Maxatawny Township planners.

· Cumru Township plannes reviewed preliminary plans for NorthPoint-Morgantown Commerce Center, a 738,720-square-foot warehouse to be built on 75.2 acres at Morgantown Road (State Route 10) and Freemansville Road.

· Kutztown University has plans to expand its historic Poplar House to 13,161 square feet with an addition around its side and back, but keep the 129-year-old structure intact.

· A wine store and beverage outlet could be coming to a new two-unit building along the commercial strip of Blakeslee Boulevard Drive East in Lehighton, Carbon County.

· ChristianaCare, a Delaware health care organization, has announced it will buy the former Jennersville Hospital in West Grove, Chester County.

· Garden of Health Inc. celebrated the opening of the food bank’s new warehouse at 201 Church Road, North Wales, in Montgomery County.

· Silverline Trailers Inc. opened its first location in Pennsylvania and in the Northeast at 223 Porter Road, Pottstown, where it sells utility, cargo, dump, equipment and car hauler trailers. 

· A new smoothie and bowl restaurant, Sips & Berries, opened at 285 Maple Ave., Harleysville, in Montgomery County.

· Terrain on the Parkway offers 160 new 1-, 2- and 3-bedroom apartments at 1625 Lehigh Parkway East in Allentown. 

· Lehigh Valley native Don Wenner is moving his real estate investment and finance firm DLP Capital from Bethlehem to Allentown at 835 W. Hamilton St.

· While Wells Fargo has been the leader in closing banks lately, it will hold a ribbon-cutting for its new downtown Allentown office at 740 Hamilton St. on June 30.

· If you’re in the market for sterling silver jewelry, minerals and semi-precious gemstones, C& I Minerals is now operating at the South Mall at 3300 Lehigh St. in Allentown.

· The Allentown-based utility company PPL Corp. bought a major Rhode Island utility.

· Ownership at Martellucci’s Pizzeria in Bethlehem has changed, but Paul and Donna Hlavinka and their family are running the pizza place at 1419 Easton Ave., just as it has been operated for 49 years. 

· Dr. Jacob Kasprenski’s new Kasprenski Family Eye Care opened at 1088 Howertown Road, Catasauqua.

· Josie’s New York Deli in downtown Easton closed early in the COVID-19 pandemic, but a June 13 Historic District Commission meeting approved a request for a new sign at its building at 14 Centre Square. 

· Zekraft cafe has opened its second location in the Easton Silk Mill in Easton. The first Zekraft restaurant was opened in Bethlehem. The restaurants’ menus change frequently, with a focus on local ingredients. 

· Manta Massage at 319 Main St., Emmaus, will hold its grand opening on July 10 starting at 11 a.m. 

· The former Iron Lakes Country Club, constructed in the late 1950s and early 1960s, will operate at 3625 Shankweiler Road in North Whitehall Township under its new name, The Club at Twin Lakes. 

· Prologis, a titan in the logistics industry, will own and operate three warehouses proposed in Upper Macungie Township at the former Air Products headquarters campus at 7201 Hamilton Blvd. 

· Lehigh Valley Health Network ceremonially opened its first Carbon County hospital — a $78 million, 100,578-square-foot facility at 2128 Blakeslee Boulevard Drive East in Mahoning Township.

· Pocono Township commissioners voted to accept Swiftwater Solar’s preliminary final plan for the $111 million, 80-megawatt field on a private 644-acre site on top of Bear Mountain that would include about 200,000 solar panels.

· Firetree Ltd. wants to expand its in-patient rehab operation at the former Sands Ford auto dealership at 440 N Claude A Lord Blvd. (Route 61), Pottsville.

· A Dunkin’ in Schuylkill County located at 400 Terry Rich Blvd., St. Clair, has become just the fourth location of the donut and coffee chain to go entirely digital. 

· The Conservatory music school in Bucks County will close after 34 years, and school officials say the COVID-19 pandemic is the cause. The nonprofit, located at 4059 Skyron Drive, Doylestown, will close June 30.

· A Popeyes Louisiana Kitchen and Arby’s will be built on the site of the former Ahart’s Market on Route 22 in Phillipsburg, New Jersey.

· Hunterdon County Chamber of Commerce offices and the Unity Bank Center for Business & Entrepreneurship will be located at 119 Main St., Flemington. 

· Honeygrow opens Quakertown location, next to Chipotle on Route 309, on June 3.

· Dunkin’ reopens remodeled restaurant at 1174 MacArthur Road in Whitehall Township

· Muse Modern Med Spa at 325 Fifth St. in Whitehall Township  will hold a grand opening June 4.

· Around Again, a consignment store, opened at 154 S. Main St., Phillipsburg

· Steak and Steel Hibachi, a restaurant in the works at 44 W. Walnut St., Bethlehem, still plans on opening late this summer. 

· Take It Outdoors Recreation Hub has moved to a spot along the Schuylkill River Trail at Riverfront Park in Pottstown, Montgomery County

· Pedego Electric Bikes has a new outlet in Lambertville, N.J. at 13 N. Union St.

· Amanda Vachris has opened a new Keller Williams Real Estate office at 15 St. John St. in Schuylkill Haven.

· Easton’s new West Ward Market will open Wednesday and be open on Wednesday’s through the summer from 3 p.m. to 7 p.m. The market, created by the Greater Easton Development Partnership, will sell fresh produce on 12th Street, next to Paxinosa Elementary School.

· Ciao Sandwich Shoppe is adding a second location, this time on College Hill in Easton. Ciao plans to open at 325 Cattell St. in late summer. Ciao already operates in downtown Easton at 12 N. Third St

· Ma’s Crepes and Cakes will hold a grand opening and ribbon-cutting June 16 at 46 W. Broadway, Jim Thorpe. The celebration starts at 5 p.m., with the ribbon cutting at 5:45 p.m. 

· Bethlehem’s Back Door Bakeshop will reopen as a wholesale operation at 7 E. Church St. in the city’s historic district. The business was open for nine years as a retail outlet at Broad and Center streets, before announcing in March that it would close the storefront April 3 and “go back to its origins as a wholesale business.”

·The Beef Baron on Catasauqua Road in Bethlehem is closed indefinitely for renovations

· The Brothers That Just Do Gutters are opening a new location in Allentown at 1302 N. 18th St.

· St. John Chrysostom Academy, an Orthodox school serving grades 1-9 starting this fall, held a grand opening at its St. Francis Center, Bethlehem, campus.

· Easton Commons, a shopping center anchored by Giant Foods at 2920 Easton Ave., Bethlehem Township, has a new name: The Shops at Bethlehem.

· Carbon County is getting a taste of Brazil at Uai Brasil BBQ at 315 Lehigh Ave. in Palmerton.

· The Keystone Pub in Bethlehem Township, at 3259 Easton Avenue, has reopened after a lengthy and expensive renovation. 

· The Trading Post Depot opened at 401 Northampton St., Easton. The rustic furniture store makes custom tables for dining rooms, desktops, conference centers and more.

· The Easton area has a new gym: Homemade Fitness at 444 Cedarville Road in Williams Township.

· Il Gaetano Ristorante opened at its 665 Columbus Ave., Phillipsburg, location. 

· Ciao! Sandwich Shoppe to open second location on College Hill in Easton, replacing The Kettle Room

· Rene and Grisellies Benique have opened Ezekiel 47 Cafe at 10 S. Fifth Ave., off Fifth and Penn avenues, in West Reading. 

· Alter Ego Salon and Day Spa in Emmaus is holding a grand opening Sunday, May 22, from 11 a.m. to 3 p.m., with a ribbon cutting at noon. 

· Origen Latin Fusion has opened at the site of the former Tomcat Cafe in Sinking Spring, Berks County. 

· Sellersville Senior Residences will hold a ribbon-cutting ceremony May 24. The Bucks County affordable-housing community for adults 55 and older has 50 apartments, with eight allocated for people with behavioral health needs.

· The House and Barn in Emmaus has opened its Shed outdoor dining and cigar bar area. The House and Barn is at 1449 Chestnut St. in Emmaus.

· Realtor Amanda Vachris and the Schuylkill Chamber of Commerce will hold a ribbon cutting at Vachris’s new Keller Williams Real Estate office at 15 St. John St., Schuylkill Haven, at 4 p.m. on May 24.

· Il Gaetano Ristorante will hold a grand opening on Friday, May 20, at 5:30 p.m. The 665 Columbus Ave., Phillipsburg.

· First Commonwealth Federal Credit Union will hold a grand opening at its new headquarters in Trexlertown, 6126 Hamilton Blvd., on May 18.

· Vinyl Press Signs & Graphics has relocated within Emmaus. The new site is 15 S. Second St., not far from the former Sixth Street location.

· Pedro’s Cafe in Emmaus to close

· SV Sports (formerly Schuylkill Valley Sports) to close Quakertown location

· Flemington DIY will host a Grand Re-Opening on May 14 at 26 Stangl Road, Flemington. The celebration will kick off at 10 a.m. 

· Elpedio’s Ristorante at Seipsville opened at 2912 Old Nazareth Road in Easton. The restaurant is open Wednesday through Sunday.

· Uai Brazil opened at 315 Lehigh Ave, Palmerton, offering both a seated or buffet option. 

· Colombian Mex Restaurant opened at 107 E Union Blvd in Bethlehem, offering traditional Colombian cuisine. 

· Precision Ink opened at 161 W Berwick St. in Easton. 

· King Wing opened a location in Bethlehem at 129 E. Third St., serving wings and sandwiches.  

Source: wfmz.com

About the author

Amanda

Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai