Comments on: Hedge Against Your Bills by Owning the Company http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm Building Wealth through Saving and Investing Sun, 21 Mar 2010 05:04:40 -0400 http://wordpress.org/?v=abc hourly 1 By: paulette http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-36016 paulette Sun, 18 May 2008 01:35:28 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-36016 Its sounds good to prospect owning a company. But of course the bottom line is still the buying capacity of a person. Its sounds good to prospect owning a company. But of course the bottom line is still the buying capacity of a person.

]]> By: Dividend Growth Investor http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35896 Dividend Growth Investor Fri, 16 May 2008 18:26:17 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35896 Well, you could actually "hedge" your gasoline exposure right now by buying the United State Gas ETF ticker UGA ( if you don't want to trade in gasoline futures). I expect to use about 500 galons of gas in one year. Which at 3.50-4.00 equals to $1750-$2000. To hedge myself against any further price increases I could buy 30-35 shares and I am hedged for my gas consumption for one year. Well, you could actually “hedge” your gasoline exposure right now by buying the United State Gas ETF ticker UGA ( if you don’t want to trade in gasoline futures). I expect to use about 500 galons of gas in one year. Which at 3.50-4.00 equals to $1750-$2000. To hedge myself against any further price increases I could buy 30-35 shares and I am hedged for my gas consumption for one year.

]]> By: johnnycanuk http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35609 johnnycanuk Wed, 14 May 2008 04:25:59 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35609 This is an old strategy. Do not consider it as a hedge against your bills--you may deceive yourself by spending more in the hope of increasing dividends. Best advice--invest in the fund companies and banks-not the funds they sell. This is an old strategy. Do not consider it as a hedge against your bills–you may deceive yourself by spending more in the hope of increasing dividends.

Best advice–invest in the fund companies and banks-not the funds they sell.

]]> By: Vancouve real estate http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35509 Vancouve real estate Tue, 13 May 2008 08:21:33 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35509 I also think this is a good strategy and I am big believer in it. I would be just more careful. Working like <a href="http://jaybanks.ca/richmond-bc-real-estate/steveston-homes.php" rel="nofollow">Steveston real estate agent</a> I have quite a good survey about real estate market so I have decided to invest in it. It was also kind of hedging since prices were rising last decade and nobody thought that it could be just a bubble.(it could be same with oil prices) Anyway I still think it is good strategy but be careful. I also think this is a good strategy and I am big believer in it. I would be just more careful. Working like Steveston real estate agent I have quite a good survey about real estate market so I have decided to invest in it. It was also kind of hedging since prices were rising last decade and nobody thought that it could be just a bubble.(it could be same with oil prices) Anyway I still think it is good strategy but be careful.

]]> By: FinancialJungle http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35505 FinancialJungle Tue, 13 May 2008 05:31:52 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35505 Money is fungible, therefore it's not necessary to match all sources of your expenses to your income. Having said that, I agree with MDJ that it's a good idea to at least hedge some of your expenses. If you drive a lot, why not own a few Canadian Oil Sand shares to offset the escalating gas prices? Money is fungible, therefore it’s not necessary to match all sources of your expenses to your income. Having said that, I agree with MDJ that it’s a good idea to at least hedge some of your expenses. If you drive a lot, why not own a few Canadian Oil Sand shares to offset the escalating gas prices?

]]> By: Four Pillars http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35500 Four Pillars Tue, 13 May 2008 03:07:23 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35500 I think Smithers is troll - MDJ has always had lots of ads - if anything there are less now than in the past. Mike I think Smithers is troll – MDJ has always had lots of ads – if anything there are less now than in the past.

Mike

]]> By: FrugalTrader http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35483 FrugalTrader Tue, 13 May 2008 00:36:36 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35483 smithers, i'm sorry you feel that way. Ads have always been and always will be a part of blogging. The goal is to have ads "around" the content, not "within" it. If the ads really do bother you that much but you still enjoy the content, I would suggest that you subscribe to the RSS feed. That way, you'll get strictly content. FB, thanks for the backup. :) smithers, i’m sorry you feel that way. Ads have always been and always will be a part of blogging. The goal is to have ads “around” the content, not “within” it.

If the ads really do bother you that much but you still enjoy the content, I would suggest that you subscribe to the RSS feed. That way, you’ll get strictly content.

FB, thanks for the backup. :)

]]> By: The Financial Blogger http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35477 The Financial Blogger Tue, 13 May 2008 00:05:23 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35477 Man, I wish I had 100K to invest in an oil company so the dividend pay for my gas!!! Another possibility is to work for one of its company :-) I decided the bank field so I don't have to worry about fees anymore. Hum... I wonder if I can take a part time job at Esso and save on gas ;-) I don't know what Smithers is referring too, I think that you still provide good financial content ;-) Man, I wish I had 100K to invest in an oil company so the dividend pay for my gas!!!

Another possibility is to work for one of its company :-) I decided the bank field so I don’t have to worry about fees anymore. Hum… I wonder if I can take a part time job at Esso and save on gas ;-)

I don’t know what Smithers is referring too, I think that you still provide good financial content ;-)

]]> By: smithers http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35474 smithers Mon, 12 May 2008 23:09:26 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35474 I used to read your blog for financial information, now I cant see anything but piles of adverts. Well done for selling out. Over and out. I used to read your blog for financial information, now I cant see anything but piles of adverts.

Well done for selling out.

Over and out.

]]> By: moneygardener http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35390 moneygardener Mon, 12 May 2008 16:38:50 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35390 I'm a big believer in this strategy. It makes loads of sense. I've described a gasoline hedge here: http://themoneygardener.blogspot.com/2008/05/hedge-yourself-gasoline-costs.html I’m a big believer in this strategy. It makes loads of sense. I’ve described a gasoline hedge here:

http://themoneygardener.blogspot.com/2008/05/hedge-yourself-gasoline-costs.html

]]> By: Dividend Growth Investor http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35377 Dividend Growth Investor Mon, 12 May 2008 14:28:26 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35377 I personally am hedging by buying Anheuser-Busch, the maker of budweiser , ticker BUD ;-) I do agree with you that owning shares in dividend achievers/aristocrats is one of the best ways to protect your savings against the eroding power of inflation.. I personally am hedging by buying Anheuser-Busch, the maker of budweiser , ticker BUD ;-)

I do agree with you that owning shares in dividend achievers/aristocrats is one of the best ways to protect your savings against the eroding power of inflation..

]]> By: FrugalTrader http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35371 FrugalTrader Mon, 12 May 2008 12:55:42 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35371 MunEcon, yes you are right. Of course it would have to fit in the individuals investment plan. However, there are some people who have done very well with a diversified dividend portfolio. MunEcon, yes you are right. Of course it would have to fit in the individuals investment plan. However, there are some people who have done very well with a diversified dividend portfolio.

]]> By: MunEconomist http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35370 MunEconomist Mon, 12 May 2008 12:49:37 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35370 I'm not sure if I believe in this agruement behind this nice idea. The reason for my objection is that this forgets about the scarity problem and the oppurtunity cost of making investments. Now if the investment in these recurring costs is the best investment for your plan then you have recieved a side bonus. If not then you are making a bad decision. This is just hasty decision on this rule of investing. Does my arguement hold up? I’m not sure if I believe in this agruement behind this nice idea. The reason for my objection is that this forgets about the scarity problem and the oppurtunity cost of making investments.

Now if the investment in these recurring costs is the best investment for your plan then you have recieved a side bonus. If not then you are making a bad decision.

This is just hasty decision on this rule of investing. Does my arguement hold up?

]]> By: FrugalTrader http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35363 FrugalTrader Mon, 12 May 2008 11:59:01 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35363 It might not be the greatest hedge, but it does offset "some" of the costs. It might not be the greatest hedge, but it does offset “some” of the costs.

]]> By: Four Pillars http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm/comment-page-1#comment-35356 Four Pillars Mon, 12 May 2008 10:37:58 +0000 http://www.milliondollarjourney.com/hedge-against-your-bills-by-owning-the-company.htm#comment-35356 Interesting idea in theory although I'm not sure if you can really hedge a personal expenditure with a stock all that well. Interesting idea in theory although I’m not sure if you can really hedge a personal expenditure with a stock all that well.

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