Posted by
Message
Theblairs02
LSU Fan
Member since Sep 2019
317 posts

Looking for advice

I am 19 and I like to think I make good money for age. College wasn’t for me and work a full time job and part time job. A couple of months ago I started investing on Schwab and started a Roth IRA. I have ~2k invested into a Roth IRA. I am very new to this and think I am doing something wrong. All I have invested into was a ETF into the S&P500 and to be honest I am not very satisfied by the returns. I have asked multiple people I trust and even called Schwab help lines on advice if a Roth IRA was the right choice for a long term investment or if something else would be better, but I can’t get the same answer from someone twice. I’m sure a Growth ETF probably wasn’t the best option either. Any advice is appreciated, please speak to me like I’m dumb.
This post was edited on 1/13 at 11:58 am


WDE24
Yale Fan
Member since Oct 2010
50771 posts
 Online 

re: Looking for advice
ETF ina Roth is good idea in my opinion. Which one?

Consistency of investing over time will lead to life changing returns for an account you won’t use for another 40+ years. Do not be concerned with 2 month returns.


PhiTiger1764
LSU Fan
Lurker since Aug 2003
Member since Oct 2009
12627 posts
 Online 

re: Looking for advice
You have only been invested for 2 months. The market has been pretty flat since November. It would not surprise me if your return is just barely above 0% or even slightly negative.

That is normal.


Replies (0)
Replies (0)
90
Theblairs02
LSU Fan
Member since Sep 2019
317 posts

re: Looking for advice
Roth Contributory IRA. The symbol is SPYG. SPDR S&P 500. Idk if I’m answering your question right. I swear I’m trying to learn lol
This post was edited on 1/13 at 12:09 pm


WDE24
Yale Fan
Member since Oct 2010
50771 posts
 Online 

re: Looking for advice
Read about the boglehead 3 fund approach. It might be the right strategy for you. Still, 2 month returns aren’t what should concern you with your Roth investments regardless.


LINK
This post was edited on 1/13 at 12:16 pm


Replies (0)
Replies (0)
30
anc
Member since Nov 2012
15543 posts

re: Looking for advice
Zoom out. These aren't the best market conditions.

I wish I would have started when I was 19.



buffbraz
LSU Fan
Member since Nov 2005
5504 posts

re: Looking for advice
Concentrate on saving percentage and habits, not overall return at this point. Head over to “The Money Guy” website and go through their free deliverables and/or take the short course on investing/personal finance(not day trading). Become a financial mutant at 19 and you will be wealthier than all of your peers in the years to come. I wish I had started at 19. Time is on your side.


Replies (0)
Replies (0)
20
PlanoPrivateer
LSU Fan
Frisco, TX
Member since Jan 2004
2571 posts
 Online 

re: Looking for advice
That is a good choice. Every time you get a raise increase the percentage of your wages you put in.

Does your fulltime job offer a 401K? If so, participate by putting in as much as they will match.


TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
37252 posts

re: Looking for advice
50% of my Roth is invest in the S&P 500 (fxaix)


Replies (0)
Replies (0)
00
Theblairs02
LSU Fan
Member since Sep 2019
317 posts

re: Looking for advice
So my full time job is kind of just my money maker right now. I work at UPS at night and plan to do that full time once I turn 21. They have a great 401K. I am about to talk to someone at UPS because they also give, I believe a 5% discount on UPS stock so that interested me as well.


TD SponsorTD Fan
USA
Member since 2001
Thank you for supporting our sponsors
Advertisement
Tomcat
LSU Fan
1825 Tulane
Member since Nov 2004
356 posts

re: Looking for advice
Invest in your company’s 401k. I heard somewhere that if you invest approximately 7% in your 401k, your take home pay will be about the same, because it’s taken out pretax. I’m sure someone here might have more accurate information than I just gave. You should at least invest what the company is going to match in your 401k.


Replies (0)
Replies (0)
10
Turf Taint
LSU Fan
New Orleans
Member since Jun 2021
1941 posts

re: Looking for advice
You are starting out great! Well done.

The time ahead of you to growth that money is powerful.

The 25yo, 35yo, 45yo, etc. future you will have more $ than the 19yo you can imagine.

Auto-invest in it regularly (monthly) if possible
Stay the course no matter what the market returns are

Becoming a millionaire and probably sooner than you realize is absolutely possible, especially starting so early.

Good luck!


makersmark1
Auburn Fan
earth
Member since Oct 2011
11821 posts

re: Looking for advice
Time in the market does better than timing the market.

If you continue to invest, time is your best friend.

Churning an account leads to high transaction costs.



Replies (0)
Replies (0)
30
GulfCoastPoke
Oklahoma State Fan
Port of Indecision
Member since Feb 2011
1032 posts

re: Looking for advice
Be sure you’re keeping a watchful eye on fees from both the funds you buy and the institutions you use.

If, at 19, you are already investing and also seeking out advice then I encourage you to learn as much as you can via books, podcasts, sites, etc. There is a wealth of info out there and over time adopting habits and techniques will yield a big difference.


Replies (0)
Replies (0)
00
Theblairs02
LSU Fan
Member since Sep 2019
317 posts

re: Looking for advice
I do auto invest weekly for now. It really isn’t a problem for me because I do not spend a lot at all, only necessities for the most part. I guess my only issue is I am paranoid am I investing in the right thing for good long term retirement type options. Right now it’s just a S&P 500 ETF. I’m considering getting a financial adviser soon because I feel right now while I’m still new in the market I want someone to pretty much tell me where to put my money and why.
Thanks for the advice


Jag_Warrior
Virginia Fan
Virginia
Member since May 2015
2363 posts

re: Looking for advice
At 19, at least for a good percentage of your allocation, a broader market growth ETF would be appropriate. And DO NOT sit and look at your returns over short periods of time. You’re investing, not trading (two ENTIRELY different things).

Keep doing what you’re doing and even more of the same. I’m going to assume (since you sound like you have your head on straight) that you’re avoiding impulse consumer debt. Rock on, young buck!


Replies (0)
Replies (0)
30
Jag_Warrior
Virginia Fan
Virginia
Member since May 2015
2363 posts

re: Looking for advice
You don’t need a financial advisor at this point. Read and learn on your own right now. As others have mentioned, head to some trusted and informative sites, like Bogleheads and Money Guy, among others. Avoid the fly by night, get rich quick sites.

As was mentioned, it’s time IN the market (not timing the market) that makes the most positive difference.


Replies (0)
Replies (0)
20
Turf Taint
LSU Fan
New Orleans
Member since Jun 2021
1941 posts

re: Looking for advice
Look up 3 fund strategy (Vanguard Bogleheads).

It’s Simple, risk is spread broadly, low cost (index funds…look that up but low cost, never ignore the cancer to portfolio value that high expense ratios present), stay the course (don’t let bad markets change your behavior) and keep the auto investing going.

Easy Peasy.



Replies (0)
Replies (0)
00
Turf Taint
LSU Fan
New Orleans
Member since Jun 2021
1941 posts

re: Looking for advice
LINK

Here you go…nice summary of 3 fund strategy by Vanguard Bogleheads


Replies (0)
Replies (0)
00
buffbraz
LSU Fan
Member since Nov 2005
5504 posts

re: Looking for advice
You do not need a financial advisor for investing in 1 or 2 index funds. You would be wasting you money hiring someone to buy index funds when you can do it automatically every month with no fees.

S&P index fund is fine for now. Worry about automatic investing, and getting your savings rate up as quickly as you can.

Read or listen the “the Bogleheads’ Guide to Investing” and/or take the Money Guy investing course. You can keep it simple for many years and over time complexity will find you and maybe at some point in the future you will need a FA but not now. It will just eat away at those returns which is what you were asking about in the first place.



first pageprev pagePage 1 of 2next pagelast page

Back to top

logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram