- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
I know NOTHING about investing...help me get started with the basics
Posted on 11/30/16 at 6:32 pm
Posted on 11/30/16 at 6:32 pm
I literally know nothing about investing...no one in my family comes from the kind of background where they would know anything about it, I (probably stupidly) avoided any kind of accounting/finance class that I could take, I've never read a book on it, and I just recently started working at a job where I would have anything left over at the end of the month.
I'm looking for a) opinions from this board, as collectively you all seem to know what you're talking about most of the time, and/or b) good books/resources to read on the topic.
As of now, I probably have about $500 a month that I could invest...no, it's not a ton, but right now it sits in savings and collects about $0.36 of interest per year. I also put about $150 in a 401k every month but that's not adding up quickly and I'm sure there are better options out there.
Based on these figures, what would be the best way to get started on investment? Any information you have (where to put it, how to monitor it, whether (or how long) it has to sit before it's accessible, etc.) would be great.
Thanks!
I'm looking for a) opinions from this board, as collectively you all seem to know what you're talking about most of the time, and/or b) good books/resources to read on the topic.
As of now, I probably have about $500 a month that I could invest...no, it's not a ton, but right now it sits in savings and collects about $0.36 of interest per year. I also put about $150 in a 401k every month but that's not adding up quickly and I'm sure there are better options out there.
Based on these figures, what would be the best way to get started on investment? Any information you have (where to put it, how to monitor it, whether (or how long) it has to sit before it's accessible, etc.) would be great.
Thanks!
This post was edited on 11/30/16 at 6:35 pm
9
Posted on 11/30/16 at 6:34 pm to zacata88
If you outline your goals of saving/duration, it would be helpful. Saving for retirement, saving 3 years for a down payment on a house, etc.
Posted on 11/30/16 at 6:38 pm to Ric Flair
I would ideally like to put some in a "long ways down the road" retirement type fund, as well in some in a more of a quicker, few-years type of return situation. I don't know how reasonable this is or what kind of options are out there for either scenario.
Posted on 11/30/16 at 6:53 pm to zacata88
quote:1) Buy low, sell high.
.help me get started with the basics
2) Only buy stocks that are going to go up.
3) Don't lose money.
Posted on 11/30/16 at 6:54 pm to zacata88
Avoid stocks. Watch Martin Shkreli's intro to finance videos on YouTube.
Posted on 11/30/16 at 7:12 pm to zacata88
1) Google "Vanguard"
2) Open Roth IRA
3) Buy $1,000 worth of a Target Retirement mutual fund based on your retirement date plus 10 years.
So if you're retiring in 2045 then buy the 2055 target date fund.
4) Invest $458.33 per month (that's the max you can contribute per year).
5) Put the other $40 in RobinHood (an app) to learn how difficult it is to buy stocks without losing too much money.
2) Open Roth IRA
3) Buy $1,000 worth of a Target Retirement mutual fund based on your retirement date plus 10 years.
So if you're retiring in 2045 then buy the 2055 target date fund.
4) Invest $458.33 per month (that's the max you can contribute per year).
5) Put the other $40 in RobinHood (an app) to learn how difficult it is to buy stocks without losing too much money.
This post was edited on 11/30/16 at 7:13 pm
Posted on 11/30/16 at 8:07 pm to TheOcean
quote:
Avoid stocks
Posted on 11/30/16 at 10:34 pm to zacata88
quote:
As of now, I probably have about $500 a month that I could invest...no, it's not a ton, but right now it sits in savings and collects about $0.36 of interest per year. I also put about $150 in a 401k every month but that's not adding up quickly and I'm sure there are better options out there.
How much do yo make per year? $500/month is enough to fully fund a Roth IRA each year.
If you make too much to contribute to a Roth IRA, just up your 401k contribution from $150 to $600 or so. It'll start to add up a little faster.
As far as the actual investing, just stick with a target fund and dollar cost average for now. If you want to get into stocks, start watching them for a couple years first.
Posted on 12/1/16 at 10:37 am to TheOcean
quote:
Avoid stocks
Why avoid stocks? If he's young, wouldn't stocks be better for retirement, at this point?
Maybe I'm biased (and an idiot
), but my retirement fund is about 99% stocks at this point. ETA: Op, do you have any company match for your 401k? If so, I would contribute up to that match before going the IRA route.
This post was edited on 12/1/16 at 10:38 am
Posted on 12/1/16 at 11:21 am to Epic Cajun
I'm assuming what he meant by avoid stocks is to avoid single stocks.
OP, the best thing is to open a Roth IRA through Vanguard, Schwab, or a couple other companies. They are very low cost, you can purchase Mutual Funds or ETFs for free or very cheap.
There's nothing wrong with buying a targeted date fund, they are just boring IMO. I'd buy a broad market mutual fund or ETF first and then go from there.
OP, the best thing is to open a Roth IRA through Vanguard, Schwab, or a couple other companies. They are very low cost, you can purchase Mutual Funds or ETFs for free or very cheap.
There's nothing wrong with buying a targeted date fund, they are just boring IMO. I'd buy a broad market mutual fund or ETF first and then go from there.
Posted on 12/1/16 at 2:36 pm to bayoubengals88
quote:
bayoubengals88
Very solid advice.
As was mentioned later on, see if your employer has 401k matching.
I would invest in this order:
1) 401k up to the maximum your employer will match
2) max out Roth IRA
3) max out 401k
Before trying to pick individual stocks, I'd recommend reading A Random Walk Down Wallstreet.
Posted on 12/1/16 at 3:10 pm to bayoubengals88
quote:
3) Buy $1,000 worth of a Target Retirement mutual fund based on your retirement date plus 10 years.
What's the reason for adding the 10 years?
Posted on 12/1/16 at 3:11 pm to CoolHand
Some good advice in this thread, thanks y'all. My employer matches 1%, and then half of the next few percent. I've never been able to figure out if this setup is worth maxing out.
This post was edited on 12/1/16 at 3:13 pm
Posted on 12/1/16 at 3:26 pm to zacata88
quote:
Some good advice in this thread, thanks y'all. My employer matches 1%, and then half of the next few percent. I've never been able to figure out if this setup is worth maxing out.
Assuming you are fully vested, a resounding (and really even if you are not) YES! Do 1% and also the "few percent" as well. That's free money.
Posted on 12/1/16 at 3:43 pm to zacata88
Them matching half of a percent is a 50% return on your money.
Posted on 12/2/16 at 9:57 am to zacata88
Good starting and possibly ending point too
This post was edited on 12/2/16 at 9:58 am
Posted on 12/2/16 at 10:44 am to meeple
quote:
What's the reason for adding the 10 years?
From what I've read adding 10 years gets you into some more aggressive growth type funds.
Posted on 12/2/16 at 1:33 pm to Ric Flair
quote:
saving 3 years for a down payment on a house
What's the advice for this?
Posted on 12/2/16 at 6:04 pm to zacata88
3x ETFs or gtfo.
But seriously, now that you have money, why don't you buy a finance text book from amazon and read at your own pace. There's tons of other reading material from successful investors, with tons of it aimed at beginners. It seems like you're looking for a financial advisor to just tell you what to do but it would be best to learn on your own so you can share ideas.
Investipedia is a great place to start by learning definitions and reading articles to basic questions you may have. The goal is to be financially literate and all of this is stuff you can do on your lunch hour and on your free time.
Browsing this board is also good for questions and reading daily threads. Case in point, click the stickied thread at the top and start reading those threads. The very first link is "new to investing".
But seriously, now that you have money, why don't you buy a finance text book from amazon and read at your own pace. There's tons of other reading material from successful investors, with tons of it aimed at beginners. It seems like you're looking for a financial advisor to just tell you what to do but it would be best to learn on your own so you can share ideas.
Investipedia is a great place to start by learning definitions and reading articles to basic questions you may have. The goal is to be financially literate and all of this is stuff you can do on your lunch hour and on your free time.
Browsing this board is also good for questions and reading daily threads. Case in point, click the stickied thread at the top and start reading those threads. The very first link is "new to investing".
This post was edited on 12/2/16 at 6:07 pm
Page 1 of 2
Back to top
Follow TigerDroppings for LSU Football News