U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics > Investing
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 03-29-2010, 02:15 PM
 
Location: United States
2,497 posts, read 6,719,503 times
Reputation: 2255

Advertisements

Never invested in anything in my entire life. I have about $10K i got in an inheritance. I have no idea what to do with it. This Scottrade thing I see looks legit. Anyone have any pointers for me? I have no idea how any of this works and I don't want to get taken.
I'd like to make as much as I can with little risk...if even possible. Thanks.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 03-29-2010, 02:20 PM
 
Location: Aloverton
6,564 posts, read 13,047,882 times
Reputation: 10088
Yeah. Put it in CDs until you understand other forms of financial instruments and how they work. A lot of people will advise you to put it in this, or in that, and one person may give you a virtual (if inane) sales pitch for load American Funds, but you won't in most cases understand what they are advising until you read up on it, and most of them won't explain it to you (if they do, that's a plus). Plus, the market has regained a lot of lost ground anyway, and there is so much panic and doom and gloom that society may manage to actually create another market crash simply because they're such a bunch of cravens. In other words, if you were trying to time market entry, there's a chance this isn't the optimum time. That takes away any sense of desperate urgency to 'just get in'.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-29-2010, 03:53 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
27,133 posts, read 45,253,391 times
Reputation: 31365
Scottrade is for active trading of securities and equities.

You can do yourself a favor and get some conservative advice for initial investment, Cyber-trade for awhile with fake money (pretend) and see how you do BEFORE jumping into buying individual issues.

Bogleheads is a good spot to hang out (Vanguard users)
Bogleheads :: Index

Fidelity has many good no-load funds (similar to Vanguard). (both companies have good websites with adequate training info.) There are private magazines and e-newsletters to follow each company and advise investors.

There is a recommended reading list at bobbrinker.com and he does a 3 hr radio call-in show for 3 hrs on Sat and 3 hrs on Sunday. It is pretty basic, but informational.

Be diversified!!! (don't plow it into a single stock). Indexes allow more cushion for a fall, but grow more slowly.

Better know your stuff, as some financial adviser will show up and take that $10k off you hands and give you back $8k for their trouble.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-29-2010, 09:07 PM
 
Location: Alaska & Florida
1,629 posts, read 5,020,213 times
Reputation: 834
Join a stock simulator to learn how to trade stocks.

Once you feel comfortable, invest in stocks with your Scottrade account. There's no money in CD's etc. When you invest make sure you diversify to limit risk. I would recommend...RIG, AAPL, BAC, GS, LVS (when it goes back down to $16-17), and GOOG (once the China issue is settled).
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-30-2010, 12:34 PM
 
Location: Houston, TX
17,031 posts, read 28,235,979 times
Reputation: 16222
Agree with others that I'd park the money in CDs for 6 months to a year while you educate yourself on trading and the markets. I use Charles Schwab and they have a lot of research available on their website.

I like pipeline companies like KMP for generating cash...but they are considered master limited partnerships so there is some tax issues. Utilities are considered lower risk...SO.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-30-2010, 05:28 PM
 
939 posts, read 3,184,149 times
Reputation: 619
Quote:
Originally Posted by jc76 View Post
Never invested in anything in my entire life. I have about $10K i got in an inheritance. I have no idea what to do with it. This Scottrade thing I see looks legit. Anyone have any pointers for me? I have no idea how any of this works and I don't want to get taken.
I'd like to make as much as I can with little risk...if even possible. Thanks.
Scottrade is a legit company. As others have said, make sure you understand what your investing in. Keep careful records, you'll need them at tax time.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-04-2010, 03:04 AM
 
1,627 posts, read 2,892,220 times
Reputation: 2059
I have been learning allot about stocks. I went to www.dividenddetective.com I signed up for $5 for first month, thereafter, $15. However; lots of free stuff on the site.

I have decided to go the route of Dividend investing. Safe companies: McDonalds, Walmart, Johnson and Johnson, Proctor and Gamble, B & P, Heinz, Pepsico, Coca Cola, etc. You make 3 percent plus growth. On B & P dividend is 5.8%. You can sleep at nights and beat a CD.

I signed up with Scottrade. Going to buy a few books, read and become educated.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-05-2010, 12:04 AM
 
Location: LA
103 posts, read 187,099 times
Reputation: 91
You probably wanna learn more about the stock game first before investing all your $10k in trading stocks. YOUNG MONEY Magazine - Your Life...Right Now is a great source to learn about stocks.

My advice is may be start up slow with low risk..take half of that money $5k and put in mutual funds (can come in handy in a couple of years). You can then play around in stocks with the other $5k, or some of it. Notice I said play around, because trading stocks is never guaranteed so be ready to loose some or all of your money.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-05-2010, 12:24 PM
 
Location: Alaska & Florida
1,629 posts, read 5,020,213 times
Reputation: 834
You must understand the risks involved with investing, which include mutual funds. However, you need to invest with the intention of making money. It's a good time to invest now. The market has gone up a lot since its lows, but the recovery is only starting. You have $10,000, invest a minimum of $1,000 into each company. I would pick 5 stocks in different industries that are expected to grow. Some of the companies should be stable with low expected returns (MCD), while others volatile with high expected returns (C). I would personally stay away from mutual funds. You must educate yourself, but using a buy and hold strategy isn't something that should take months to learn. If you planned on day trading or trading options, that's a different story. Pick 5 stocks, I recommend...BAC, C, AAPL, RIG, GOOG. Set a target price for each stock, my target prices for the stocks above...21.00, 5.50, 300.00, 670.00. You need to spend about an hour each day checking the news of each stock. Don't expect to touch the money for at least a year. Your stocks may hit their target price in 1 month, 3 months, 6 months, 1 year, 2 years, or even longer. If any harsh news comes out that would derail growth in a specific stock, think about lowering your target price or selling it. The idea of buying and holding for 5 years without looking at the price is a horrible one, which was proven in March 2009. You have to constantly monitor the news for each company.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Investing

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top