Investing

[SavageTaker]

So I decided to open an account with TD Ameritrade so I could start investing. Anyone else here an investor of sorts?

So far I've bought some Sony stocks and I'm thinking about buying into a mutual fund, just not sure which one.

Anyone got any tips or if you just want to share some knowledge please do so .

 

[Lee]

You've just bought Sony shares now? Now would be the time to sell, Sony rarely make a profit and after their E3 showing I imagine this would be the peak.

 

[SavageTaker]

Hmm, I see... What stocks would you recommend buying then?

 

[Lee]

I just know about how this is the peak time for gaming stocks, your Sony stock may peak again in November.

 

[SavageTaker]

That's what I was thinking since I read an article that the PS4 will be coming out in their 4th quarter. I'll hold on to them for now and hope that they don't decline too much.

 

[JGlass]

It's always been my understanding that if you want to play the stock market then you better be prepared to spend big. I don't think many people make a bundle on stocks if they're only investing a couple hundred dollars every month.

I have no idea how much money you plan on investing, but the smart option is almost always the least sexy option. Bonds are safe bets, index funds are fairly low risk, and investing in developing markets is a pretty good bet too.

I'm no expert, but my advice to you is to not look to win big in the short term, which is what a lot of people are looking for when they get into stocks. It's called investing because your money is supposed to grow over time, and that's what you should be looking to do. You don't need to be a millionaire when you're 25, but it would be nice to have that kind of money when you're 45 and you're looking to take a European vacation or send your kid to college or buy your dream house.

 

[SavageTaker]

Great advice. The main reason why I want to get into investing is because my grandma is retiring very soon and all she's going to have is her social security check. She doesn't have a 401k, IRA's or anything else.

When I'm her age I would like to know that I can retire comfortably knowing that even if my social security check doesn't cover all of my expenses, I've made smart investments throughout the years that will help me in the long term.

Like you said though, I don't need to be a millionaire by the age of 25, it would be pretty cool to be one, but it's not a necessity. I'm starting off small right now but want to build on that so in 40 years I can say that I made wise investments and can retire without worrying how I'm going to pay for things.

 

[Con T.]

Has the joke about Jews being good with money been made yet?

No? Well, let me boost the stereotype by adding my two cents. Usually, your best bets are the ones that will cost the most. You want to pick something that you know will be in business in twenty years. Personally, I'd but stock in Apple, but the truth is, unless you're a multi millionaire, you probably won't see an exhorbinant amount of money coming outnofnthe stock market.

Also, buy some WWE shares. That's a great, great, great investment.

Ok, no, it isn't

 

[SavageTaker]

Some stocks I was looking at were Google, Coca-Cola, Pepsi, ExxonMobil, Johnson & Johnson and Wal-Mart. Also, as I mentioned earlier I want to buy mutual funds, I'm just not sure which one.

 

[JGlass]

Has the joke about Jews being good with money been made yet?

No? Well, let me boost the stereotype by adding my two cents. Usually, your best bets are the ones that will cost the most. You want to pick something that you know will be in business in twenty years. Personally, I'd but stock in Apple, but the truth is, unless you're a multi millionaire, you probably won't see an exhorbinant amount of money coming outnofnthe stock market.

Also, buy some WWE shares. That's a great, great, great investment.

Ok, no, it isn't

Hey, do you want to come over to my house and compare portfolios?

Some stocks I was looking at were Google, Coca-Cola, Pepsi, ExxonMobil, Johnson & Johnson and Wal-Mart. Also, as I mentioned earlier I want to buy mutual funds, I'm just not sure which one.

Mutual funds are good, but you're going to have part of your earnings taken by the fund manager. An index fund is essentially the same thing as a mutual fund, but instead of buying several stocks from the same group, you buy the entire index, which is lower risk because even if one stock completely tanks you still have the rest of the index to recover with, and the entire index is extremely unlikely to crash. It's relatively low-risk for a pretty moderate reward, which is a nice opportunity.

A little more advice is to assess your risk tolerance. Since you're young you can afford to lose more, but you might not be able to handle it psychologically. That's not a knock on you or anything, most people can't stand losing anything, and losing money sucks in particular. It's probably good that you seem to be investing pretty aggressively now so you can figure this type of thing out.

 

[George Steele's Barber]

You sound like someone who wants to invest for retirement but is using more of a short term strategy.

Do you have a 401(k) at work that you can invest in?

Any company match? Profit sharing?

Do they have a DB plan?

Not a licensed investment advisor.

 

[SavageTaker]

Hey, do you want to come over to my house and compare portfolios?



Mutual funds are good, but you're going to have part of your earnings taken by the fund manager. An index fund is essentially the same thing as a mutual fund, but instead of buying several stocks from the same group, you buy the entire index, which is lower risk because even if one stock completely tanks you still have the rest of the index to recover with, and the entire index is extremely unlikely to crash. It's relatively low-risk for a pretty moderate reward, which is a nice opportunity.

A little more advice is to assess your risk tolerance. Since you're young you can afford to lose more, but you might not be able to handle it psychologically. That's not a knock on you or anything, most people can't stand losing anything, and losing money sucks in particular. It's probably good that you seem to be investing pretty aggressively now so you can figure this type of thing out.

I'm going to look into an index fund then and do some comparing/contrasting. And you're right though, right now I know I can lose and recover. Obviously I don't want to lose it all but that's why I'm starting out small and learn as I go. I know mistakes are bound to happen but the key I think is to learn from them so I don't make the same mistakes again.

 

[SavageTaker]

You sound like someone who wants to invest for retirement but is using more of a short term strategy.

Do you have a 401(k) at work that you can invest in?

Any company match? Profit sharing?

Do they have a DB plan?

Not a licensed investment advisor.

Well, yes and no. I do want to invest for my retirement but that's still 40+ years away (if I do wait until I'm in my 60's) so it's not my number 1 priority. Right now my goal is to really learn about stocks, bonds, mutual funds, index funds, etc. and see what are wise investments. Furthermore, I want to diversify my portfolio. I don't want everything to just be stocks because I understand how risky that can be. I've read articles on Investopedia and have learned it's good to diversify so if one thing goes wrong or whatever I don't lose everything I had.

As far as the 401(k), my job does have one which I do plan to invest in. So in that case everything I'm doing is not just short term, but there is some long term moves in there as well. As far as a company match, I know they used to do it years ago before the economic crisis, but I'm not sure now. That's something I'll have to look into. Regardless, I do want a 401(k) or IRA.

 

[George Steele's Barber]

Well, yes and no. I do want to invest for my retirement but that's still 40+ years away (if I do wait until I'm in my 60's) so it's not my number 1 priority. Right now my goal is to really learn about stocks, bonds, mutual funds, index funds, etc. and see what are wise investments. Furthermore, I want to diversify my portfolio. I don't want everything to just be stocks because I understand how risky that can be. I've read articles on Investopedia and have learned it's good to diversify so if one thing goes wrong or whatever I don't lose everything I had.

As far as the 401(k), my job does have one which I do plan to invest in. So in that case everything I'm doing is not just short term, but there is some long term moves in there as well. As far as a company match, I know they used to do it years ago before the economic crisis, but I'm not sure now. That's something I'll have to look into. Regardless, I do want a 401(k) or IRA.

Impressed that you're putting in the effort to learn about investing.

I will say that I think it is foolish for anyone to not save in a 401(K) if your company is matching. Also, find out if they have a Roth option. At your age (25ish), most experts would agree that you can save a lot of extra tax dollars in the long run if you start saving in a Roth 401(k) or IRA now.

As far as personal investing be careful. There are a lot of snakes out there but more importantly you need to be able to trust yourself and stick to your goals. It is too easy to do things like buy a cool toy when you make some money or sell low because you're scared when an investment drops.

Anyway, it's all gambling but the better educated you are the better you are most going to do. Good luck.

 

[Turd Ferguson]

I supported myself for awhile daytrading while I was looking for a job post-graduation.

I wouldn't recommend doing it.

Ever.

 

[Cena's Little Helper]

How old are you now? 17? 18? If you want to help your grandmother, go to college and use her as motivation to do well. After you get a well-paying job, give her $14K a year (neither you nor your grandma will have to worry about any federal tax incidence). This will probably double the amount of income she will receive from Social Security.

 

[SavageTaker]

How old are you now? 17? 18? If you want to help your grandmother, go to college and use her as motivation to do well. After you get a well-paying job, give her $14K a year (neither you nor your grandma will have to worry about any federal tax incidence). This will probably double the amount of income she will receive from Social Security.

18. I do plan on helping her with as much as I can. I also have my own expenses, but hopefully I'll be able to earn enough to support her and my mother.