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Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by Lovelyone777
Can you please explain ? Do you mean adding to my portfolio or to the stocks already purchased ? I just want to start small until I gain a bit more knowledge. Definitely would have no issues adding anything.
Start a systematic investing / savings plan.
x goes into your acct every week / month / qtr or yr.
Every paycheck makes sense for most. I always did 20%, but when I could, I contributed 50%+ to my accumulation / investment fund.
Do you have an employer match / stock purchase program?
Bonuses?
Annual windfall?
Retirement / IRA accts? We know nothing about your overall wealth and objectives, so our guidance is limited by what we don't know.
example... Age 17 I began working for an employer who assisted us in buying company stock every 4 months at a 25% discount. That stock increased in value many, many times over the next 50 yrs. It bought my homes, investments, vacations, speculation. Every paycheck I deposited the max available. I also started IRA's that I invested on my own. Today there is Roth IRA and 401k, that has many benefits, including future tax free distributions. I started my own kids in their Roth IRA's at age 12, and they had enough to pay for college (if they had chosen to use the funds for that). They instead, borrowed college money at 2.7%, so their investments could continue to grow.
As mentioned above.
A systematic investment to a Growth ETF / managed fund is probably a good place to start. But you really need to educate yourself on where you want to get, and how you will achieve that goal. It starts with the idea, leading to the incentive, followed by the informed action. = results (eventually)
Thanks for your replies, they really help. Just have to do research on what to buy, then I will be set lol.
I would suggest staying away from individual stocks and going for a fund that has a lot of diversification. I would also suggest not reading the elaborate post above when you are brand new. Start at the beginning. Right now, you just want to set up an account. Maybe even start with a government money market to get the hang of using the site. I like Fidelity, although an amateur mind find it a little complicated. I actually use several sites and find it to one of the least complicated but I worked in this industry so I know my way around it.
I am setting up both of my kids (late teens) with Fidelity accounts. I think you can do it if you start with a small goal. Every brokerage has different requirements so just pick a brokerage and familiarize yourself with their set up. Baby steps.
Keep it simple. If you don't need the money for 10+ years just buy VTI and forget it. It's basically a no cost tax efficient way to participate in the stock market.
as much as you can is the answer to how much should i invest .
for one thing , every investor has a trigger point and a dollar amount where our brains go from rational and logical to hating losing money more then making it .
that causes poor investor behavior ….so until you have enough invested where your brain pounds you in a down turn to run , you don’t really know your own pucker factor as an investor
I guess I differ on the opinion of not holding individual stocks for a beginner as it's a teachable event. I have 3 kids and they all have their own UTMA accounts. They hold index based mutual funds but I also asked them what stocks they would like. Initially they all own Disney. Well Disney has taken a beating the last few years. Hopefully dis will recover but if not they can learn how the individual stock really dropped in price versus how the index did in comparison.
I put $20 into their account every month and birthday money etc. It's not big holdings but one day it'll be theirs to manage on their own. I don't mind if they make a mistake because of they learn that early in life, maybe they won't repeat it as they get older.
If your employee has a 401k program with matching funds, that's your best first step. Be aware however you can't withdraw them without penalty usually until you are older.
Choose a fund (a collection of stocks), not individual stocks. Whatever you do, don't use the "Stock Market Picking Game" selections in this forum.
I suggest an index fund, which is a more diversified selection of funds. Be aware of your risk tolerance (how much can you afford to lose or gain). Some have greater chance of return, with of course greater chance of loss.
Remember equities are meant for long term investments, don't let short term loses upset you.
Also look at management fees. You don't want your investment gobbled up by fees.
OP, in this thread there is lots of good advice on "what to do" (which funds to start with).
Once you've started, I recommend learning the "why to do it." By "why", I don't mean "invest for the future" (that's a given) but rather why you want a diversified portfolio and what the elements of a balanced portfolio consist of and why it is important to have diversification.
You can do a search and find several threads on C-D on good books to read for people getting started in investing; I suggest you spend time reading & learning. Do you commute to work? Consider listening to an audio book on investing while you drive to work.
I suggest you start with "A Random Walk Down Wall Street" by Burton Malkiel (professor at Princeton). There are many editions, because the book has been so popular over the decades. It doesn't matter if you get the most up-to-date version. And listening to it as an audio book while driving to work or working out in the gym is a good idea.
OP, in this thread there is lots of good advice on "what to do" (which funds to start with).
Once you've started, I recommend learning the "why to do it." By "why", I don't mean "invest for the future" (that's a given) but rather why you want a diversified portfolio and what the elements of a balanced portfolio consist of and why it is important to have diversification.
You can do a search and find several threads on C-D on good books to read for people getting started in investing; I suggest you spend time reading & learning. Do you commute to work? Consider listening to an audio book on investing while you drive to work.
I suggest you start with "A Random Walk Down Wall Street" by Burton Malkiel (professor at Princeton). There are many editions, because the book has been so popular over the decades. It doesn't matter if you get the most up-to-date version. And listening to it as an audio book while driving to work or working out in the gym is a good idea.
Hi, I read "Investing Stocks for Beginners", but I can definitely look into the book you've recommended as well. A different perspective wouldn't hurt.
If your employee has a 401k program with matching funds, that's your best first step. Be aware however you can't withdraw them without penalty usually until you are older.
Choose a fund (a collection of stocks), not individual stocks. Whatever you do, don't use the "Stock Market Picking Game" selections in this forum.
I suggest an index fund, which is a more diversified selection of funds. Be aware of your risk tolerance (how much can you afford to lose or gain). Some have greater chance of return, with of course greater chance of loss.
Remember equities are meant for long term investments, don't let short term loses upset you.
Also look at management fees. You don't want your investment gobbled up by fees.
Great advice ! Thank you ! We have a 401 K program at my job, but I have not contributed to it lol.
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