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Money panel

JOHN McBAINE: 60, retired, Indian Shores

By Times staff writers
Published June 12, 2005

How did you get started in investing?

I started as a 19-year-old kid when I took my first salary at General Motors, investing in the General Motors stock saving plan in 1964.

What is your best investment so far?

My best investment in overall terms has been management of my GM stock plan with a number of investment options. A close second would be General Motors Hughes, now Direct TV.

What is your worst investment so far?

The first one that pops into my mind, many years ago . . . oil and gas limited partnerships without realizing the risk associated with them.

What have you learned about investing that you think all investors should know?

What I've learned is the power of time and the fact that you absolutely have to spend your own personal time to become knowledgeable enough to make your own informed decisions.

How would you describe your approach to investing?

My approach is a mixture of caution with some assumed risk.

How are you invested now?

I have 40 percent in municipal bonds, and that's become part of my revenue stream, and the 60 percent equity still in stocks.

What do you find the most difficult about investing?

My (biggest) difficulty is recognizing when it's time to lock a profit in and move out of a particular position and into something else. I tend to ride something too long.

What changes, if any, have you made in your investments in the past year?

My strategy has stayed intact that I've employed for a good many years. It will start to change in the future as some of my positions have results I am hoping for, and I move out of equity positions and into more fixed income.

Do you think now is a good time to invest?

I think just about every time is a good time to invest. The cycles up and down always seem to have individual stocks and investments that present an opportunity to invest in.

What is your goal for your investing?

I have a general goal of an overall size of the pot. If I achieve that goal, I'll move more into fixed income positions, which I can do with the GM plan. Increasing revenue without decreasing principal - that's my goal.

What is your biggest money concern right now?

The increasing property tax levels in the state of Florida.

Where do you get your investment tips?

Probably the Internet and magazines and newspapers.

[Last modified June 12, 2005, 00:38:17]