Community >> View Post
Post By

Member Since: Sat May 17, 2008
Posts: 16,670
In Reply To

Location: Saint Louis, MO
Member Since: Sat May 17, 2008
Posts: 2,152
Subj: Re: Investing in stock
Posted: Thu Feb 08, 2018 at 02:48:20 pm CST (Viewed 476 times)
Reply Subj: Investing in stock
Posted: Thu Feb 08, 2018 at 09:48:59 am CST (Viewed 413 times)

Previous Post

Over the past year or so I've dabbled with the idea of investing in stock (partly in the hopes of reaping financial gains; partly to diversify my income).

As a complete newbie to all of this, are there any beginners guides or other literature that you guys can point me to that'll help get me started?

When I first started looked I sort of fell into the world of it through the internet. Reading articles and the like.

That was one I found after the fact, or an older version of it that gives a heads up.

It really depends on your goals more than anything and what you already have put away for security and the like. Do you have a 401k, looking to put in an IRA or just an account to grow and have a bit more put away doing things?

I do recommend looking into Vanguard or similar companies indexed funds more than individual stock trading. They perform much better and have lower fees. Vanguard started it, but there are others doing it now.

They are good for retirement accounts, but they have a few other investment types that help with regards to just growing wealth. I think they are called Life Strategy mutual funds, they are different blends of stocks and bond index funds that attempt to be an all in one portfolio.

I have had good experience with Vanguard.

I will say a caution though, diversifying income is a good goal or having your money do more for you. Getting rich (not saying you are going for that) is difficult and is more about luck and timing than anything. If you are just getting into it, and the market behaves to historical norms, than the indexed funds will outperform individually managed funds and get about a 7% return on average (hopefully per year) and you do not lose much to fees.

You will pay taxes on investments but generally they are not too bad unless you have large numbers. And when withrdrawn, the longer you have the money in the market the lower the rate you pay on things anyway.

Also keep in mind that many funds have an account minimum. Say $1 to 5k depending on what we are talking about.

I would strongly recommend indexed funds, particularly if you are planning on having the account for five or so years. There are some that even specialize in dividends. At the start they just sort of feed in but if you have enough money invested than you could eventually get some nice checks from those sources. Although being patient is key, unless you have a fair bit of money upfront.

Look Raist bunnies...
Posted with Mozilla Firefox 58.0 on Windows 7
Alvaro's Comicboards powered by On Topic™ © 2003-2018 Powermad Software
All the content of these boards Copyright © 1996-2018 by Alvaro Ortiz and Dave Galanter. Software Copyright © 2003-2018 Powermad Software