How do I get started investing?

[cbfalcon 824]

I'm a total idiot about this stuff, but I don't want to hire an investment guy. I'd rather just do it on my own.

 

I'm looking for something with compounding interest that I can set up myself online and just have it draft money from my bank account however often I want it to. I'm sure that's what they all do, but still....

 

I'm looking to start by putting a few grand in, then maybe $400-$600 a month.

 

What are some good options?

[mighty_thor 115]

I'm a total idiot about this stuff, but I don't want to hire an investment guy. I'd rather just do it on my own.

 

I'm looking for something with compounding interest that I can set up myself online and just have it draft money from my bank account however often I want it to. I'm sure that's what they all do, but still....

 

I'm looking to start by putting a few grand in, then maybe $400-$600 a month.

 

What are some good options?

 

What are you saving for? Retirement? College education? There are different tools for different kinds of savings. Do you want to invest in stocks that you pick out? Do you have a goal? It may be worth it to sit down with a financial analyst to just set up a plan. There is plenty of free info on the internet to map it out on your own if you have the time.

[pingpong 0]

Tip #1...don't think it is so easy that you can do it yourself. Find someone that knows what they are doing to advise you on what to buy. Taking stock tips from a football message board is a bad idea IMO.

[edjr 5,547]

Tip #1...don't think it is so easy that you can do it yourself. Find someone that knows what they are doing to advise you on what to buy. Taking stock tips from a football message board is a bad idea IMO.

 

 

Everyone here is an expert at eveything. You mind your focking p's and q's buddy

[cbfalcon 824]

What are you saving for? Retirement? College education? There are different tools for different kinds of savings. Do you want to invest in stocks that you pick out? Do you have a goal? It may be worth it to sit down with a financial analyst to just set up a plan. There is plenty of free info on the internet to map it out on your own if you have the time.

 

I don't feel like picking out my own stocks. My only goal is saving up money.

 

We have no kids and don't know if we will ever have them. What are the benefits of a retirement account as oppose to just saving and investing normally? Aren't there usually large penalites for accessing that money?

 

So ideally I'd just save, save, save.

[parrot 789]

I don't feel like picking out my own stocks. My only goal is saving up money.

 

We have no kids and don't know if we will ever have them. What are the benefits of a retirement account as oppose to just saving and investing normally? Aren't there usually large penalites for accessing that money?

 

So ideally I'd just save, save, save.

 

If you have a 401k with matching you want to max that. It's guaranteed appreciation.

[cbfalcon 824]

If you have a 401k with matching you want to max that. It's guaranteed appreciation.

 

That'd be cool...But I don't.

[phillybear 364]

Lottery tickets.

[parrot 789]

That'd be cool...But I don't.

 

[wooderson]It'd be a lot cooler if you did.[/wooderson]

[mighty_thor 115]

I don't feel like picking out my own stocks. My only goal is saving up money.

 

We have no kids and don't know if we will ever have them. What are the benefits of a retirement account as oppose to just saving and investing normally? Aren't there usually large penalites for accessing that money?

 

So ideally I'd just save, save, save.

 

You probably want to do a little of both. Try some investing and put some in an IRA. How much you do of each is dependent on your goals, age, income and other factors.

 

There is the traditional IRA vs the Roth IRA

 

Traditional IRA

Tax deductible contributions (depending on income level)

Withdraws begin at age 59 1/2 and are mandatory by 70 1/2.

Taxes are paid on earnings when withdrawn from the IRA

Funds can be used to purchase a variety of investments (stocks, bonds, certificates of deposits, etc.)

Available to everyone; no income restrictions

All funds withdrawn (including principal contributions) before 59 1/2 are subject to a 10% penalty (subject to exception).

 

Roth IRA

Contributions are not tax deductible

No Mandatory Distribution Age

All earnings and principal are 100% tax free if rules and regulations are followed

Funds can be used to purchase a variety of investments (stocks, bonds, certificates of deposits, etc.)

Available only to single-filers making up to $95,000 or married couples making a combined maximum of $150,000 annually.

Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).

 

But you really should sit down with someone if you don't have a clue on what you are doing.

[Patriotsfatboy1 1,432]

I set up an account with a broker for normal investments when I was younger. I had money taken out of my checking account each month and invested into mutual funds that were diversified (4 separate funds). That money was in addition to my 401k, which I max out each year. I don't move those investments around too much and I typically don't do much with stocks. If I were to want to buy invididual stocks, I would probably go with an e-Trade type of account since the brokerage fees for the value that I get from the broker.

 

When I had kids, I did a similar thing with their 529 plans. I currently have money taken out each month that is invested into their individual 529 plans (I have two kids). I also have enough cash on hand to deal with 3 months of no income, in case of emergency.

[hellothere 1]

also if you don't want to micromanage too much, for whatever reason. you might check out some of the target retirement funds. most of the big firms have them available to buy as mutual funds. Vanguard, Fidelity, T.Rowe Price. they are meant to be all inclusive retirement vehicles, they spread your money (how they and a lot of 'experts' agree) is the most beneficial way and adjust every year as you go towards retirement. easy way to get started if you want really easy just invest and forget about it if you don't want to track too much, or at least a good base for someone new i think.

[cbfalcon 824]

This may be a dumb question, but how much to financial people cost?

 

Is it just an up front fee to set things up? A monthly fee?

[pingpong 0]

This may be a dumb question, but how much to financial people cost?

 

Is it just an up front fee to set things up? A monthly fee?

All of the above can be true.

You can pay a guy an hourly rate to sit down and essplain things to you.

You can also pay a guy a % of your portfolio on an annual basis to manage the contents.

You could also choose a guy who gets paid commission on your individual trades.

Shop around.

[mighty_thor 115]

This may be a dumb question, but how much to financial people cost?

 

Is it just an up front fee to set things up? A monthly fee?

 

You can have a guy just prepare a report and for you with recommendations with a 1 time fee.

[Korben Dallas 0]

We pay a guy $600 every two years, plus a nominal commission. He (they)handle everything, and I mean everything, from our checking account on.

Best marriage move ever and we seem to be saving heavily and have more spending money. Sometimes a little outside restraint helps a bunch.

[bjlmonster 0]

I believe it is best to work with a professional. You may have to pay some fees/commissions, but their professional knowledge will result in enough increased profits to offset the fees.

 

I work with Edward Jones and contribute a few hundy monthly to a couple of different mutual funds and periodically (when I can) to a Roth IRA. A % of each investment I make is taken out as a fee. At certain levels of funds in my account the fee will drop to a lower %.

 

I believe the key is working with a pro and staying the course. Market is down a bit right now, but I am buying as it will go back up.

[swirvenirvin 25]

No need for a professional, nothing a few hours of reserach won't tell you.

 

Start by opening up a Roth IRA for the max (either 4 or 5k) check to make sure you qualify.

 

So that is 10k a year right there for you and your wife.

[edjr 5,547]

No need for a professional, nothing a few hours of reserach won't tell you.

 

Start by opening up a Roth IRA for the max (either 4 or 5k) check to make sure you qualify.

 

So that is 10k a year right there for you and your wife.

 

yeah and watch it dwindle to nothing as the stock market crashes.

 

you can get a better yield from an ING type savings account right now than IRA roth.

[Patriotsfatboy1 1,432]

yeah and watch it dwindle to nothing as the stock market crashes.

 

you can get a better yield from an ING type savings account right now than IRA roth.

 

Not necessarily. The US market is tanking, but foreign markets, gold, bonds, etc. are doing just fine. That is why you diversify.

[swirvenirvin 25]

yeah and watch it dwindle to nothing as the stock market crashes.

 

you can get a better yield from an ING type savings account right now than IRA roth.

 

Dumb

 

I never said what to put the Roth iRA into. Hell you can open one in a CD, Money Market, Mutual Fund, Savings Account or whatever you want.

[KingofBeer 0]

yeah and watch it dwindle to nothing as the stock market crashes.

 

you can get a better yield from an ING type savings account right now than IRA roth.

 

You have no idea what you're talking about

[GutterBoy 2,277]

I didn't read much in this thread, but I would suggest opening an E*Trade account, have a monthly deposit go from your checking/savings into the account, and invest in a few mutual funds. You can find the 5 star funds for each category through the site. Depending on how soon you want to spend the money will determine what fund(s) you will invest in. Start now with a Balanced fund.

[GutterBoy 2,277]

You have no idea what you're talking about

 

 

Historically speaking, he's a dope.

[Riddlen 1]

you log out, grab a gmail account then grab a new screenname

[Bert 1,087]

Investing for dummies

[Quickolas1 80]

even Tiger Woods and Michael Jordan had a coach

[Yer mom 2]

Uncle Rico's tupperware

[thekris 0]

I don't really know what I'm doing yet but I've been doing as much learning and investing as I can afford to lately. I have just under 10% of my check going into my 401(k) for retirement, I've moved my savings account into INGdirect because the interest rate is much higher. It was 0.25% at my old bank and ING's is 2.9%!!! And mid-February I started taking $ from my checking acct every 2 weeks and putting it into Ameritrade. Bought 6 stocks, all from different sectors, and split it up pretty much evenly. And every month or so when I build up more $ into the account, if I can find the right price on a stock I like, I just buy up some more. And doing a lot of research online when I can. Don't know if it's the greatest investing strategy but I like it so far. HTH

[thekris 0]

And I also plan on doing some investing in the NBA playoffs. Best investment return I've had the past 2 years!

[CurleyQ 0]

Start investing with mutual funds in order to diversify and spread your risk. Suscribe to a newsletter for $100-$150 a year (ie.Funds Insight) in order to get an idea where you should be.

 

A couple family funds that are decent are Vanguard, T Rowe Price and Fidelity, but there are swo many funds, you have to sort through a lot.

 

Like somebody else said, get a brokerage account at Fidelity for instance where you can hold other funds than Fidelity (there are some thatr can't be bought in those accounts however). Stay away from LOAD funds.

 

Good luck!

[BMoney 0]

Dumb

 

I never said what to put the Roth iRA into. Hell you can open one in a CD, Money Market, Mutual Fund, Savings Account or whatever you want.

 

agreed...why let someone get some of your $$ of the top? these people arent much smarter than you are if u read and do research...

 

as for stocks..throw some money every month into e-trade or sharebuilder and just let it grow...

 

if stocks go up..u are happy...if they dont, u can buy more stocks and should be happy...just invest in stuff thats always going to be there...you lose $ and you learn a lesson..your investment guy loses money for u and u still owe him for a job not so well done and u have no idea why he lost the money...

 

proctor and gamble..budweiser etc...do it yourself, baby...

[BMoney 0]

even Tiger Woods and Michael Jordan had a coach

 

 

only because neither could read English...they didnt need help with their sports...

[remote controller 133]

I started out in an Investment Club in 1990. We have held our group together for 18 years. (National Association of Investment Clubs) These accounts are individually vested in your name. We have 12 meembers and each put in $50 a month 18 years ago. We now invest $100. The philosphy is to buy and hold blue chip stocks that pay dividends, and reinvest them. Each month a different member is in charge of the research. He brings his findins to the greoup and suggest what we should invest in. Then everyone else ets there chance to re-pimp what they researched previously. Being a member of the club, we pay no brokerage fees, and aren't required to meet minimum requirements others are required to meet. We did go out on a limb about 7 months ago and bought a bunch of gold. We rule at life!!! Investment Clubs are a great way to learn the ropes of the markets, and have a Party while you meet monthly. We also have wine, or Scotch tastings during our meetings. 4 members are now present via proxy, phone or net connection.

[BMoney 0]

I started out in an Investment Club in 1990. We have held our group together for 18 years. (National Association of Investment Clubs) These accounts are individually vested in your name. We have 12 meembers and each put in $50 a month 18 years ago. We now invest $100. The philosphy is to buy and hold blue chip stocks that pay dividends, and reinvest them. Each month a different member is in charge of the research. He brings his findins to the greoup and suggest what we should invest in. Then everyone else ets there chance to re-pimp what they researched previously. Being a member of the club, we pay no brokerage fees, and aren't required to meet minimum requirements others are required to meet. We did go out on a limb about 7 months ago and bought a bunch of gold. We rule at life!!! Investment Clubs are a great way to learn the ropes of the markets, and have a Party while you meet monthly. We also have wine, or Scotch tastings during our meetings. 4 members are now present via proxy, phone or net connection.

 

 

i did this also..the CurlyNight investment club...

 

didnt go as planned

 

 

 

 

[remote controller 133]

Women are kicking our a$$ in investment clubholdings!

[jocstrap 8]

IF you go to an investment firm, they will give you 4 mutual fund companies to choose from. VanKampen, GoldmanSachs, and two other big names. Then you have to decide if you want to go aggressive or not, and if so, what percentage. Then you have to choose if any of your 400-600 wants to go in the overseas market. Then you get another list of 4 companies for China. I've paid Edward Jones since 1999 for my own investments. 401k before that in mid 90's but lost on the tech/dotcom bust. They keep your money organized and I guess that's what I'm paying for. I've only tried 5 individual stocks - about 1-2k each time, about every other year. I have no clue what these mutual funds are doing, but is sure is fun to get each months statement.

 

I just bought a stock from my guy. First focking time ever putting my money on his word, and ACAS down $4 per share since i did this

 

I did just fine on my own with

 

Garmin (grmn)

Boeing (ba)

Flour (flr)

Chesapeake Energy (chk)

[Bert 1,087]

IF you go to an investment firm, they will give you 4 mutual fund companies to choose from. VanKampen, GoldmanSachs, and two other big names. Then you have to decide if you want to go aggressive or not, and if so, what percentage. Then you have to choose if any of your 400-600 wants to go in the overseas market. Then you get another list of 4 companies for China. I've paid Edward Jones since 1999 for my own investments. 401k before that in mid 90's but lost on the tech/dotcom bust. They keep your money organized and I guess that's what I'm paying for. I've only tried 5 individual stocks - about 1-2k each time, about every other year. I have no clue what these mutual funds are doing, but is sure is fun to get each months statement.

 

I just bought a stock from my guy. First focking time ever putting my money on his word, and ACAS down $4 per share since i did this

 

I did just fine on my own with

 

Garmin (grmn)

Boeing (ba)

Flour (flr)

Chesapeake Energy (chk)

 

 

Sounds like you need a better investment advisor. I also use Edward Jones and I have never had such crazy limitations.

[remote controller 133]

E.F. Hutton says............................................................................

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[Baby Jesus 0]

And I also plan on doing some investing in the NBA playoffs. Best investment return I've had the past 2 years!

Gambling on sports is always the surest bet.