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Answer:
Dear J. O'Connor,
If
you are referring to the stock, we cannot tell you
whether or not to add it to your portfolio. That's
because the SEC's "know your customer" ruling requires
stockbrokers to know a number of things about clients
before making buy, hold or sell recommendations. These
things include one's net worth, annual income, age,
family financial responsibilities, goals and feelings
about risk.
For
a current opinion about Coca-Cola, I suggest you check
Value Line Investment Survey. This bible of
the investment world, updated weekly, will tell you
what an independent security analyst thinks about
the company's shares - whether they are timely or
not and what level of risk is involved. You may find
a copy at your library or visit: www.valueline.com.
If
the Cola you are referring to is the Cost of Living
Adjustment, then, yes. I think it's a positive, especially
if you are salaried.
COLA
is an annual adjustment made to one's wages in order
to offset a loss in purchasing power. It is measured
by the Consumer Price Index.
Incidentally,
the Consumer Price Index is used rather than the Producer
Price Index because the purpose of COLA is to offset
inflation as experienced by the consumer, not the
producer.
If
you receive a cost of living increase in your paycheck,
think twice about taking it for granted - or ignoring
it. Although it's there to help you deal with the
fact that milk and other everyday items have gone
up in price, use this opportunity to boost your net
worth.
$Tip:
Take at least 50% of the increase and put it into
savings or your BUYandHOLD account. As you probably
know, you can deposit any amount you wish into your
brokerage account.
This
no-brainer savings and/or investment plan(s) can be
used easily and effectively in other situations. For
example, when you pay off a car loan or your mortgage,
keep on writing the equivalent monthly check but now
put it into stocks, bonds, bank CDs or a money market
account. You were living without that dollar amount
for years...you can continue to do so!
At
www.dinkytown.net
you will find a number of easy-to-use financial calculators
that will show precisely how regular savings and investing
will grow your net worth.
Good
luck!
BUYandHOLD
does not recommend any securities. The security mentioned
above is being used for informational purposes only
and should not be regarded as an offer to sell or
as a solicitation of an offer to buy.
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