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Started By
Message
I have a little bit of money to invest
Posted on 6/23/09 at 3:26 pm
Posted on 6/23/09 at 3:26 pm
Hey there, I have about $1200 I want to invest. I am trying to gather some advice as to where a good place to start investing would be?
What are the board's thoughts on sites like etrade, scottrade... etc?
Should I put my money into a Roth IRA, regualr account, etc?
I appreciate the help!!
What are the board's thoughts on sites like etrade, scottrade... etc?
Should I put my money into a Roth IRA, regualr account, etc?
I appreciate the help!!
4
Posted on 6/23/09 at 3:28 pm to keepAMERICAstrong
Roth IRA.
My account is with Schwab. Do some research on fees, etc
ETA: Wait for a pull-back before you buy anything.
My account is with Schwab. Do some research on fees, etc
ETA: Wait for a pull-back before you buy anything.
This post was edited on 6/23/09 at 4:23 pm
Posted on 6/23/09 at 4:18 pm to Bob Sacamano
Go to the boat and let it all ride on red. Double your $$.
Posted on 6/23/09 at 4:27 pm to guttata
quote:
Go to the boat and let it all ride on red. Double your $$.
hahaha I wish, thats a little above my risk tolerance though
Posted on 6/23/09 at 5:13 pm to keepAMERICAstrong
gotta be better than the market.
Posted on 6/23/09 at 5:16 pm to keepAMERICAstrong
I could be glib and say "become a day trader." But seriously, you need to have extra cash in the bank because stuff happens. 1200 is not enough to start taking risks while America is in transition from a capitalist to a European style socialist economy. Sit on your cash till you have more of it and you see what's going on.
Posted on 6/23/09 at 5:17 pm to keepAMERICAstrong
Do you have a car note or something like that?
Posted on 6/25/09 at 10:37 pm to keepAMERICAstrong
First, it doesn't really matter which of the discount brokers you use, as it seems you will not be involved in heavy trading. Now for the most important advice I can give you...
Put that money in a Roth IRA, which will grow tax free. Save more money than you have (you have more than you think believe me) and keep contributing to it. I take it you are young? Even if you can contrinute $100/month right now do it. You will be pleasantly surprised when you're 50. I know it seems a long way away but its not. Trust me, if you start saving now and contribute to this extremely valuable retirement tool on a regular basis you will never worry about retirement. Next.....
Don't buy individual stocks. Buy an index fund with a low fee, such as the Vanguard Total Stock Market Index fund which will always match the market returns and has ridiculously low fees. Over 80% of the mutual funds out there underperform the market. With this type of fund you will never have to spend a lot of time researching and worrying and know you will always match the market, which is better than 80% of the other funds out there. Finally.......
Read the books, "The New Coffee House Investor" and "The Bogleheads Guide to Investing". Both are very easy reads and will change your financial life before it begins.
Put that money in a Roth IRA, which will grow tax free. Save more money than you have (you have more than you think believe me) and keep contributing to it. I take it you are young? Even if you can contrinute $100/month right now do it. You will be pleasantly surprised when you're 50. I know it seems a long way away but its not. Trust me, if you start saving now and contribute to this extremely valuable retirement tool on a regular basis you will never worry about retirement. Next.....
Don't buy individual stocks. Buy an index fund with a low fee, such as the Vanguard Total Stock Market Index fund which will always match the market returns and has ridiculously low fees. Over 80% of the mutual funds out there underperform the market. With this type of fund you will never have to spend a lot of time researching and worrying and know you will always match the market, which is better than 80% of the other funds out there. Finally.......
Read the books, "The New Coffee House Investor" and "The Bogleheads Guide to Investing". Both are very easy reads and will change your financial life before it begins.
Posted on 6/26/09 at 12:03 am to Keeper (LSU)
quote:
Put that money in a Roth IRA, which will grow tax free.
Before you tell someone to do this, you should know their reasons for investing. If he will need access in the coming years to the money that he is investing, then a Roth IRA is not the right investing mechanism for him. Long term, however, a Roth IRA is the correct investing tool.
If you invest in a Roth IRA and want to take out your money prior to the maturation age then you will have to pay steep taxes.
quote:
Don't buy individual stocks. Buy an index fund with a low fee, such as the Vanguard Total Stock Market Index fund which will always match the market returns and has ridiculously low fees. Over 80% of the mutual funds out there underperform the market. With this type of fund you will never have to spend a lot of time researching and worrying and know you will always match the market, which is better than 80% of the other funds out there. Finally.......
I agree with this. Buying into an index fund is one of the best ways to diversify instantly and make returns near the markets overall return.
This post was edited on 6/26/09 at 12:04 am
Posted on 6/26/09 at 12:25 am to lynxcat
Gold. For the short term. Gold will rise as Obama tanks our dollar. Oil is good for the summer months but you may have already missed the boat on that one. I like the idea of letting it ride on red.
Posted on 6/26/09 at 1:56 am to BIGWORMK
If you are looking at fairly long term investment, then this is one of the best opportunities since the Great Depression. People will become wealthy individuals if they invest now--the problem is finding the income to invest during trying times.
I wish I had the money to invest now...
I wish I had the money to invest now...
Posted on 6/26/09 at 7:32 am to lynxcat
quote:
If you invest in a Roth IRA and want to take out your money prior to the maturation age then you will have to pay steep taxes.
Unless you take it out because:
You buy your first home
You become disabled
You use it for educational expenses
You have major medical expenses
You qualify for disaster assistance
You buy medical insurance after losing your job
and a few others.
Posted on 6/26/09 at 10:45 am to Tigris
This all really depends on several factors including your age, income, future planned events (graduate school, marriage, children, home purchase, etc), as well as your tolerance for unplanned events (lose job, become disabled, unplanned pregnancy, etc).
If you are young and have NO money saved/invested anywhere I wouldn't recommend a Roth just yet. The Roth is certainly one of the best investment vehicles available today but unless you are already settled into a career with a reliable paycheck I don't think it's a good move.
I opened a Roth three years ago because it was the "smart move" for the average investor. At the time I was planning to go to Law School and end up at Biglaw so it made sense. In the interim I realized my passion was in business and I now dedicate all my time and money into investing in real estate. My investment/risk profile has changed so much that I wish that money wasn't tied up in a Roth.
You never know when your situation in life will change, and unless you have enough cash to cover your expenses for at least six months with no income I wouldn't invest anything.
Just my humble opinion.
If you are young and have NO money saved/invested anywhere I wouldn't recommend a Roth just yet. The Roth is certainly one of the best investment vehicles available today but unless you are already settled into a career with a reliable paycheck I don't think it's a good move.
I opened a Roth three years ago because it was the "smart move" for the average investor. At the time I was planning to go to Law School and end up at Biglaw so it made sense. In the interim I realized my passion was in business and I now dedicate all my time and money into investing in real estate. My investment/risk profile has changed so much that I wish that money wasn't tied up in a Roth.
You never know when your situation in life will change, and unless you have enough cash to cover your expenses for at least six months with no income I wouldn't invest anything.
Just my humble opinion.
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