Need Advice for First Time Investor

I’m in my early 30s. I don’t have real estate $ to invest. But I’m interested in stocks etc. I will look at the pinned thread. Thank you

Use your tax advantaged accounts.
Invest in low expense ratio index funds. Dont try to beat the market.
Read J.L Collins' 'The Simple Path to Wealth"

In tax advantaged accounts (IRAs, 401Ks, HSAs, etc.), no. In taxable brokerage accounts, it depends on whether you sell and/or what the dividends and capital gains distributions might be. Look to broad based ETFs with low expense ratios.

What RED BEER posted is good advice. And most of all, when others are talking (screaming & crying) about selling because they’ve gotten emotional over something they’ve heard or read, IGNORE that (bad) advice. Learn to not be emotional and try to invest at least a steady amount periodically. You’re young enough that the ups & downs of the market won’t matter in the long run.

Good luck.

quote:

---

Ignore the get rich quick guys, usually if they are trying to convince you of some sure fire way. They are looking for another sucker to dump their bags on

---

Exactly, investing is long term IMO. You gotta be able to ride the roller coaster.

Bitcoin

Focus on eliminating fees and taxes. Max 401k and Roth.
Be patient.

Generally, conventional advice/wisdom is wrong/worthless. Rental properties(at least excluding multi-units) are mostly unprofitable. You might be able to profit by financing recent constructions and occupying them @ rents high enough to make the mortgage + PMI + insurance + property taxes a wash, or at least close to it, and holding. But even then, you’re essentially playing the market and won’t make money until selling, which better be prior to depreciation becoming an issue. And there's always a risk you'll buy in at the wrong time and the market collapses/you're then deep underwater and it's not something you live in. But if you are able to buy when the market is down and can float liabilities with rental income for x years and sell when the market balloons, I suppose you could make considerable gains

Raw unimproved land in areas that have potential for development creep is far and away the best realty investment. It's also profitable if you own a large enough tract to lease to a hay producer(also saves on taxes via ag) while holding

Treasuries/Muni's only protect your cash vs inflation

You can make money in commodities, but you better damn well know the industry. And I don't mean as in how it typically trades, but the real life implications, as there are events where you can make huge gains. i.e. when oil went negative during COVID, it was a once in a life time opportunity. Because if the gas station starts paying you to fill up your tank, society is finished

Stay the hell away from corporate bonds and REITS(this one esp)

Mutual funds and ETFs are probably safe investments long-term, but you're looking at 15+ year windows

Dividend bearing stocks are fool's gold. You'll obviously make income via coupons, but market gains are unlikely

When investing in securities, understand the market for the company's stock. Something like snapchat is only going to be purchased by someone under the age of 30. Consider the price point where the majority of that market gets priced out vs where the long-term holders likely to start to sell. Also consider the expendability of a company/it's products when looking for long term investments. If a company has been around long enough to become a staple of american/global culture, with no replacement in sight, it's probably a good investment. Particularly if it's currently priced lower than its historical average relative to the composite indexes. This is also highly relevant when looking at emerging companies and their long term stickiness/prospects, or the likelihood they’ll stick around and still be relevant enough in the life of the 25 year old today to commit his capital to them as an investment 20 years from now, to which the seriousness of the products/industry they’re involved in and overall general reputation is critical

Oh and if you think a timber stand is a solid investment, you'll be lucky if the guy from the lumber company doesnt take your house as well

SLI

ANYBODY INVEST IN GOLD/SILVER STOCK?