I’m a big fan of mutual/index funds because it’s almost like I can park my money there and then “set it and forget it.” The market is constantly going up and down, and mutual funds are great because they’re made up of small stocks, so even if some go under for a bit, the others in the fund make up for it. Additionally, if you’re investing just for fun (non-retirement, non-educational, non-HSA), then I think it’s good to stray away from individual stocks unless you’re okay with losing everything you’ve invested in it.
This is a great tip I want to learn more about index funds so I could start investing! Thanks!
Hi @Keshira! Here's a great resource on the basics of index funds: https://www.nerdwallet.com/blog/investing/how-to-invest-in-index-funds/
Now, I'm not a money management expert by any means, but I find that index funds work best for me. Imagine a pie (index fund) that's made up of all different kinds of slices (individual stocks). Some slices may fluctuate and get bigger over time, and others might change and actually decrease in size, but overall the pie is still intact.
Compared to this sliced pie, a whole and uncut pie (individual stock) has a higher chance of losing chunks (value) at a time, and you may end up losing the entire pie due to unforeseen circumstances. At least, that's how it was explained to me when I learned about investing.
Also robo-investing works for some people (currently, I have a robo-investing account with Ellevest –> https://www.ellevest.com/). It takes the guesswork of choosing those different investment options out of the mix and does it for you.
What would you consider is an ''ideal'' amount to start investing? I have seen people in different communities say you need to start with at least 5 grand if not more but sometimes that is hard to manage and budget. Great post!
What would you consider is an ''ideal'' amount to start investing? I have seen people in different communities say you need to start with at least 5 grand if not more but sometimes that is hard to manage and budget. Great post!
Great question, Violeta! A common misconception is that you need hundreds (if not thousands) of dollars to start investing. When it comes to investing, I think to myself "is this money something I can afford to part with if the market takes a downturn?"
It also depends on what you're looking to invest in, as some investment options require a minimum.
Does anyone have any opinions on managing where investments are located? What are the positives and negatives of maintaining all investments at a single firm versus spreading out investments at multiple firms?
In response to the question by Aaron G.
Does anyone have any opinions on managing where investments are located?
I prefer to have all my investments located in a single firm as much as possible. The reason for this is the more accounts, the more I have to remember. Also if you have a reputable and fairly large firm, you will have access to just about any fund that is available. Now sometimes certain funds will have an extra charge when you buy their fund outside of their firm, but the charge is minimal in the big picture. So honestly there isn't much of a benefit to having several accounts unless you just want to separate you money in a certain way to make it hard to transfer?
Thanks for sharing your opinion Micky H. I can definitely see the benefit of simplifying where investments are located. In my case, I'm stuck with managing my employer-sponsored 401(k) separately. I'm trying to see if I can direct employer contributions for my employer-sponsored HSA to my preferred HSA. I'm in the process of transferring investments from Franklin Templeton to Fidelity. When I'm done, at worst, I'll have investments in my employer's 401(k), my employer's HSA, Vanguard, and Fidelity. I guess I need to decide if it makes sense to combine my Vanguard and Fidelity accounts.
Thanks for the info. I am learning more and more everyday about investing
Thanks for the info. I am learning more and more everyday about investing
I think the biggest thing when it comes to investing is doing something, learning from it, and continuing to do things based on what you've learned. As long as you can avoid the major mistakes and you have time on your side, you should be able to do well.
have emploee match, but decided to vanguards index. vangrard in my accound has better returns. vxus , vti, vv , vgt, vbr
have emploee match, but decided to vanguards index. vangrard in my accound has better returns. vxus , vti, vv , vgt, vbr
I certainly hold Vanguard in high regard, but I sure hope you are taking part of your employee match because none of the funds below have returns that are better than a match. I specifically say match because it is a match. I put in a $1 and they match it to a certain percentage. Most commonly they will do a full 3% match. So let's say 3% of your paycheck amounts to $300, then they match $300 which is a full 100% return, which none of the the funds will beat within a year.
Of course once you meet the match by all means you should invest back in your Vanguard funds.
As long as you understand the fee structure and you are neither charged too much on the front or the back of the transaction. Keep an eye out on those fees and your taxes.
@Bennie L. I'd put enough into the employer's fund to get their full match and put anything above that you want to invest into Vanguard. Even if the employer account has higher fees and/or lower returns, the match should mean a better return for you.
And with many firms offering $0 fees, it helps!
I’m looking to invest in the stock market. Which stock is best to invest in and is now the best time to invest. There’s a lot worry about due to covid 19
I’m looking to invest in the stock market. Which stock is best to invest in and is now the best time to invest. There’s a lot worry about due to covid 19
unless you have money you're okay with losing, i don't know if individual stocks are the best. i follow that too. here are a few articles to get you started! https://www.saverlife.org/category/investing
i really liked this one about low-risk investing:https://www.saverlife.org/money-101/how-can-i-get-started-with-low-risk-investments
My friend recommended investing in airlines now since stocks are cheaper now and eventually, after COVID, it'll rise again- hopefully. I invested in like 3 shares of American Airlines. I'm very new to investing as well but slowly just playing around with a little money on Robinhood.
Buying and selling is gambling, buying and holding is investinhg
What would you consider is an ''ideal'' amount to start investing?
Yesterday. Today is second-most-ideal.
This is some good starter information. I have always been hesitant to use traders apps, but I think it I feel better about trying it out now. My employer doesn't offer a 401K, so I am 100% on my own… :/
I’m looking to invest in the stock market. Which stock is best to invest in and is now the best time to invest. There’s a lot worry about due to covid 19
Buy SPY, it's the S&P 500 you'll make 8% a year. Don't try to time the market, just setup a time to invest money monthly into it and whether it's up or down at the time won't matter.
I like to invest in mutual funds. They have a fund manager that assures me that they are in good hands.
