Related Posts
Any advice on my current Vanguard Portfolio ?
Mentor
More Posts
What's the best area to live in in SF proper?
Conversation Starter
Additional Posts in Finance
Anyone know what other fishbowls are like?
North Korea - the boy (country) who cried wolf?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
First identify what your investment goals are, short/medium/long term. Next understand what level of risk yours comfortable taking.
There are many investment vehicles to help, but a good starting point is a mutual fund or an ETF. I’d avoid individual stocks as a newbie. Plenty of resources out there to help guide you.
And try to avoid listening to the Jim Cramers of the world.
Okay okay cool what is your opinion about investing in bonds?
Buy SP index fund and dollar cost average in as much as you can each month. Don’t over complicate it.
Is it a bad advice? No. Is it perfect for everyone? Also no. But on average it is correct. So I would give a pass to the CEO.
You should be seeking investment advice from someone older than you who began investing at your age not those who are just beginning to think about investing like you.
Get out of debt first than research Jack Bogle.
Agree. Pay down high debt if any first will give you best return. Calculate your net worth to see where you are, then work to get that up. Of any extra cash to save, I’d say some mix of pay down debt plus you want some liquidity to throw into a Roth IRA. Invest in index funds for now. Research individual stocks that may be good individual investments
Max out your 401(k) every year. I did when I was 22 and now this account is going to take me thru my retirement.
If personally max my Roth IRA and not my 401k. The reason why is bc I can’t technically touch the 401k without penalty until I am 59 1/2. I like the option to not have that money tied up in case I want to invest in something big like a rental property. Decide what your long term goals are. If you can do that and still have money to invest elsewhere by all means do so
1.- understand what the purpose of this money is for. If it is for retirement and you are in the lower tax brackets (making less than $182k or $95k) max out your Roth IRA and then go heavy on your 401K.
2.- invest in SP index funds. Many 401Ks will offer all sorts of funds but they have high fees; index funds tend to have very low fees, as low as 0.05% for VOO
3.- if you are investing for non-retirement things such as buying a house, investing in an index fund will yield great returns. My favorite index is VOO.
4.- if you have debt at 7-8% or higher, focus on paying those down before investing. If the debt yield is low (under 4%) pay regular payments that include interest and capital and invest the rest following strategies from 1-3.
I am assuming you are talking retirement. If not, then that changes things, but some general rules of thumb ( and not specific advice as I do not know you or your personal situation):
1. Do as much Roth as you can, whether that is IRA or 401K or whatever.
2. Never miss a match
3. Right now you should be looking ta maximize growth, so some basic index funds are fine. I would get some small, some Midcap, some large cap, and possibly a little international, but don't over do it.
4. Bonds are not necessary at this age in a retirement account
5. Remember that the market going down is good for you (if you are contributing regularly) when you have a 40 year timeline because you are buying at a discount.
6. Do not try to time the market when it drops... just buy and hold.
7. Contribute as much as you can afford to do, but do not suffer from contributions.
8. At some point, 30, 40, whatever, get a professional advisor to help you. At 30 I would meet with someone to do an accumulation plan to make sure you are on a good track. At 40ish I would consider handing the reigns over to a pro who can make sure you do not misstep in the home stretch... kinda like bringing in a closer in Baseball.
Send me a direct message
There's a bowl for that...
https://joinfishbowl.com/bowl_v9sms7z91v
I started at 23 and now have 7 figures in my IRA at 59 - if you can - max out your contributions to a 401K or equivalent depending on where you work. Hopefully you work for a place that matches up to a certain percentage. My dad gave me the advice above and also said - just don’t look at it and keep contributing. That’s the best advice I have for you. Anytime I tried to invest on my own I would lose thousands of dollars. Do not give anyone money - no help and no loans. I did expecting repayment and I’m out quite a bit of money. So be smart. And do not spend beyond your means.
Have you heard of short term bonds ?
This should be my most preferable option if asked
Also I'd say anything with good dividend yields would be nice to have in your portfolio. Simple, but effective. Compound it with DRIP.
If your company offers a 401k, you should speak to one (or 2) of the free advisors. They would give you a better understanding since they know your salary, your target and you can share debt info.
Happy to help, you’re who our team works with a ton. We have a mix of well experienced and young guys who’ve been through what you’re experiencing now. Send a message if you like to connect with us.
You will not make money for at least the first 10 years. Even if you do, it will be by shear luck. So, do not invest all your savings. After 10 years and some terrible losses, you will be ready (hopefully).
Follow
Have you heard of forex?
There is very little downside to paying a small amount monthly into an ISA. It’s tax free, and will grow over time. There are many out there to choose from, I would recommend speaking to Rathbones. I just switched there from St James Place (please don’t touch them) and my money has grown well. Ps I have personal interest in Rathbones it’s purely my experience.