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Started By
Message
Help a young buck become a savvy investor
Posted on 10/30/14 at 9:49 am
Posted on 10/30/14 at 9:49 am
I've rarely posted here. I'm 24 years old and just 6 months removed from college and into the professional world. I'm trying to start saving now and want to sstart buying stocks.
Right now, I get paid $1,300 every 2 weeks after taxes. I live with my parents now so I don't pay rent, and my car is paid off, no student loans. So monthly expenses are minimal (gas, groceries, insurance). I've been experimenting with whatto put into savings each check, and right now I do about $800. I've found that I spend just about everything I don't put into savings, just bad habits. I've saved up a lot though. I'm going to open a Roth IRA at the end of the year, and put in $5,500 then start having money taken out monthly, to his the 6000 limit next year. I can't put money into my company's 401k yet.
So I'm thinking about investing in stocks. Start small and take $100 a paycheck and put it towards an investing account. Get my feet wet, learn a little on my own, and plus it would be a better way to spend my money than on the random purchases I currently burn through. Is this smart or should I go through a personal investor? Also, what site should I use to buy stocks and such?
Forgive me if I'm a noob and asking dumb questions, I really don't know much. Just trying to learn.
Right now, I get paid $1,300 every 2 weeks after taxes. I live with my parents now so I don't pay rent, and my car is paid off, no student loans. So monthly expenses are minimal (gas, groceries, insurance). I've been experimenting with whatto put into savings each check, and right now I do about $800. I've found that I spend just about everything I don't put into savings, just bad habits. I've saved up a lot though. I'm going to open a Roth IRA at the end of the year, and put in $5,500 then start having money taken out monthly, to his the 6000 limit next year. I can't put money into my company's 401k yet.
So I'm thinking about investing in stocks. Start small and take $100 a paycheck and put it towards an investing account. Get my feet wet, learn a little on my own, and plus it would be a better way to spend my money than on the random purchases I currently burn through. Is this smart or should I go through a personal investor? Also, what site should I use to buy stocks and such?
Forgive me if I'm a noob and asking dumb questions, I really don't know much. Just trying to learn.
5
Posted on 10/30/14 at 9:51 am to Tigerfan56
Go to vanguard . com
Buy as much VTSMX as you can every month
Be happy
Buy as much VTSMX as you can every month
Be happy
This post was edited on 10/30/14 at 9:51 am
Posted on 10/30/14 at 10:19 am to jimbeam
quote:explain this please kind sir
VTSMX
Posted on 10/30/14 at 10:42 am to TechDawg2007
VTSMX
quote:
Created in 1992, Vanguard Total Stock Market Index Fund is designed to provide investors with exposure to the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks. The fund’s key attributes are its low costs, broad diversification, and the potential for tax efficiency. Investors looking for a low-cost way to gain broad exposure to the U.S. stock market who are willing to accept the volatility that comes with stock market investing may wish to consider this fund as either a core equity holding or your only domestic stock fund.
Posted on 10/30/14 at 10:44 am to Danny Woodhead
Basically exposed you to the whole market
If you were to take $100 from each paycheck and dump that into one particular stock, you would be exposed to much more risk, as well as potential return
If you were to take $100 from each paycheck and dump that into one particular stock, you would be exposed to much more risk, as well as potential return
Posted on 10/30/14 at 10:54 am to Tigerfan56
Stay at home as long as you can. Save save save. Invest invest invest.
Posted on 10/30/14 at 10:55 am to jimbeam
What is the fee for that fund? My current ROTH has a one time 4% fee for any deposit in the fund through Raymond James. I think I'm getting boned
Posted on 10/30/14 at 10:55 am to I Love Bama
quote:
Stay at home as long as you can. Save save save. Invest invest invest.
Posted on 10/30/14 at 11:01 am to TigerTatorTots
I think the admiral shares are like 0.05%
Posted on 10/30/14 at 11:03 am to jimbeam
You need $10,000 to start that right?
Posted on 10/30/14 at 11:04 am to TigerTatorTots
Yea once you hit 10k it kicks in. I think it's .17%ish until then
Posted on 10/30/14 at 11:06 am to Tigerfan56
quote:
So I'm thinking about investing in stocks. Start small and take $100 a paycheck and put it towards an investing account. Get my feet wet, learn a little on my own, and plus it would be a better way to spend my money than on the random purchases I currently burn through. Is this smart or should I go through a personal investor? Also, what site should I use to buy stocks and such?
If you are only going to be doing $100 per month, you'll get killed with trading fees if you buy individual stocks using most sites.
For what you are talking about, if you don't go with an index fund, you might want to look into loyal3.com. You can invest smaller amounts and its commission free (the catch is that your trades aren't real time and the selection is limited to stocks supported by the platform, although there are many good choices that are supported).
I have my "real" account elsewhere, but I started using Loyal3 sort of as an experiment on myself to see how much money I could save without really noticing it. I have about $150 a month being invested automatically, and then I probably do another $100 or so each month as one-time investments (for instance, anytime I don't have to pay for a meal I'll invest $10 or $25 instead).
This post was edited on 10/30/14 at 11:07 am
Posted on 10/30/14 at 11:07 am to jimbeam
Jesus, I need to switch to vanguard...I'd be gaining almost 4% just by not having to pay as high of fees
This post was edited on 10/30/14 at 11:08 am
Posted on 10/30/14 at 11:38 am to TigerTatorTots
quote:
I think I'm getting boned
you are...and badly
move to Fidelity or similar, buy many ETFs at ZERO fee (other than the very small expenses by the ETF itself).
best for a novice would be a total market type ETFa
total market ZERO commission .07% expense
This post was edited on 10/30/14 at 11:42 am
Posted on 10/30/14 at 11:46 am to Ole War Skule
I opened it when I was 16 so I just went through my dad's financial adviser since I had no clue what to do. Fast forward 9 years to now where I am learning more and more, that 4% seemed too high and raised a red flag
Posted on 10/30/14 at 11:49 am to TigerTatorTots
nothing to apologize for...what you did was very positive, much more than most would have done, but now you can find better ways to do it..you're FAR ahead of most already
Posted on 10/30/14 at 11:55 am to TigerTatorTots
Yew I have some stuff with EJ and wondering if I should just switch to my Vanguard account, just taxable not Roth
Posted on 10/30/14 at 12:03 pm to Ole War Skule
How hard is it to withdraw funds from my current ROTH and roll it into a Vanguard? I assume I'll have to pay a visit to my dad's financial adviser who started it for me.
Hoping I didn't re-rail this thread too much. At least the OP can learn from my situation.
Hoping I didn't re-rail this thread too much. At least the OP can learn from my situation.
Posted on 10/30/14 at 12:05 pm to jimbeam
story on how their comp creates conflicts of interst
"Over 10 years, investors would have paid a whopping 13% of their initial $10,000 investment in fees, an incredible amount for what is arguably a commodity-like product. It's true, of course, that financial advice isn't free. Should it cost this much, however?"
"Over 10 years, investors would have paid a whopping 13% of their initial $10,000 investment in fees, an incredible amount for what is arguably a commodity-like product. It's true, of course, that financial advice isn't free. Should it cost this much, however?"
Posted on 10/30/14 at 12:08 pm to TigerTatorTots
quote:
My current ROTH has a one time 4% fee for any deposit in the fund through Raymond James. I think I'm getting boned
The rogering you are getting at 4% is pretty bad. He could at least have offered you some lube. Basically everyone will gladly take your deposit for free.
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