Is it rightime to invest in stocks? (percentage, expenses, debt)

[HomesearchNorthDFW]

Hello,

I never invested in stocks. But i see people earning alot in stocks. so i thought of investing as well. But is it rightime to invest in stocks?

[mathjak107]

if anyone knew we would be multi billionaires . wall street would pay us a fortune. over the long term there never has a been a bad time .

there have been better times and worse times but in the end so far everyone who did not exhibit their own bad investor behavior did fine .

[mizzourah2006]

Originally Posted by HomesearchNorthDFW

Hello,

I never invested in stocks. But i see people earning alot in stocks. so i thought of investing as well. But is it rightime to invest in stocks?

depends on when you need the money. If you need it in 10+ years the only question you have to ask yourself is do you believe the market will be higher today or when you need the money? I know where I lean, but I can't answer for you.

[JohnKneedep]

All of your personal situation aside, it's never a bad time to invest in stocks provided you have a long-term plan.

[skeddy]

Call Vanguard, tell then you want to invest in index funds.

[Peasy973]

IMHO, there is never a right time. The right time for you to do it, is when ever you decide. I just opened an investment acct earlier this year for the first time after holding back for a number of years.

[Crashj007]

Originally Posted by HomesearchNorthDFW

I never invested in stocks. But i see people earning alot in stocks. so i thought of investing as well. But is it rightime to invest in stocks?

Not for you. Not just to borrow some money to invest in a stock some buddy suggested. Not to buy gold or silver or unobtainium mining stocks.
But it is time to begin to learn.
Start simple:
Define your goals: get rich quick, make money for a special trip, or put aside savings for retirement?
What is your timing: now , later, or when you retire?
How much can you risk or is it all budgeted now?
Study and learn what the market is about and discover where you think it is going to be in the future.
Remember, the smart phone didn't exist 10 years ago and now it is everyone's hand. Figure out the device or trend for 5 or ten years for now. Don't bet on a particular company, find the owner of the underlying technology.
Read. Real books and magazines and not online BS. They are too emotional.
Good luck.

[StealthRabbit]

The right time is JUST before everyone else invests in that stock (those who are doing the appropriate research). Thus some 'systems' (IBD) follow evaluations that lead to early indicators of institutional investing) + And SO MUCH MORE... I.e. are the fundamentals healthy and the growth projections sound?

Gotta know your stuff.

otherwise / dollar cost averaging... (continually buying quality stocks at fixed investment amounts) allows you to keep a lower than average entry price. (You enc up buying MORE shares when prices are low, fewer shares when prices are high).

Works very nicely on company purchase programs (If you are with a healthy / growing company!)

Lots of very good purchase programs out there.

[Bill the Butcher]

The best time was 20 years ago. Next best time is today.

[mysticaltyger]

Originally Posted by HomesearchNorthDFW

Hello,

I never invested in stocks. But i see people earning alot in stocks. so i thought of investing as well. But is it rightime to invest in stocks?

The question you need to be asking instead is "Is it the right time for ME to invest in stocks". We don't know your financial situation. But Dave Ramsey's 7 Baby Steps provide a reasonable guideline to see if you're actually ready:

Baby Step 1: $1,000 cash in a beginner emergency fund
Baby Step 2: Use the debt snowball to pay off all your debt but the house
Baby Step 3: A fully funded emergency fund of 3 to 6 months of expenses
Baby Step 4: Invest 15% of your household income into retirement
Baby Step 5: Start saving for college
Baby Step 6: Pay off your home early
Baby Step 7: Build wealth and give generously

https://www.daveramsey.com/baby-steps

I think there is some amount of leeway to invest a little bit if you have reached Step 3 and get a 401k match from your employer.

If you want to start investing in stocks, start with a broad based mutual fund. I normally recommend a mutual fund that holds some bonds, too. Something like Vanguard Wellington (VWELX) is a fund you can hold for your whole life. Over the last 20 years it actually beat the stock market's returns with less volatility. It may not always beat the stock market, but the lower volatility gives it a better sleep at night factor.

You need to understand that investing is boring. Even at a pretty optimistic 8% or 9% return, it's going to take a while to build significant wealth. The percentage of your income that you save/invest and your ability to invest consistently paycheck after paycheck is what will give you good results.

People who do well financially generally treat debt (other than a reasonable mortgage) as an emergency to be paid off ASAP. Then they invest at least 15% of their incomes in stuff like broadly diversified, low cost, mutual funds over a period of a decade or two (or more). Some people here suggest Index Funds. They are not bad, but being 100% in stocks is generally too volatile for most people. There is a balanced index fund that's 60% stocks and 40% bonds called Vanguard Balanced Index which is a reasonable option. I personally still like Vanguard Wellington better because it has significantly better returns with similar volatility.