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Money, Business & Finance Ground >> Need some investment tips

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8/17/12 8:52 PM
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TerrySilver
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8/17/12 8:53 PM
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TerrySilver
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i have some money i was wanting to invest. problem is i don't know how to invest. does anyone have any recommendations on what would be the best way to start out? Should i start with just a few hundred? should i go down to bank of america and invest with them? any tips would be much appreciated thanks.
8/18/12 6:05 PM
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Joe Ray
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Don't invest any money yet.

Take a few hundred bucks and go and buy lots of books on investing. Use your local public library and read what they have there.

You'll have to find the best investing style for yourself.

There are lots of different ways to play the markets. Find out what works for you and build your investment system around that.

Stick to what you know and understand and be very wary about venturing outside of that boundary.

Learn to read financial statements and what the various financial ratios mean.

8/18/12 8:02 PM
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TerrySilver
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thanks
8/19/12 8:25 PM
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Dysqo
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I agree with the original poster, its good to get yourself grounded on good investment principals. How about a mix of Jim Cramer and Suzie Orman.

Look I know both of them are extreme. Suzie focuses more on general financial things: debt, living within your means, etc. While Cramer is an individual stock selection type of guy; while he is extremely maniac some of what he writes is good.

Some of the best investments are knowledge, and then bad debt! After that things like a work savings plan / 401k are where you should start saving, investing, and learning. Most 401k providers are starting to provide more assistance and education, if you have those resources, you should explore them.
8/20/12 7:11 AM
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Andy the man
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ttt
8/21/12 7:35 PM
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LiveWire
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TerrySilver - i have some money i was wanting to invest. problem is i don't know how to invest. does anyone have any recommendations on what would be the best way to start out? Should i start with just a few hundred? should i go down to bank of america and invest with them? any tips would be much appreciated thanks.

Don't know how much money you're working with, but I would seriously consider working with a professional financial planner especially if you really don't have any of the basics.
8/21/12 11:27 PM
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TerrySilver
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Yea i was thinking of seeing someone, would bank of america have a financial planner in the bank to help me out?
8/22/12 1:17 PM
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Joe Ray
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I expect they would.

I would also expect them to provide that service for free if you have an account with them.

But always do your research before you go buying anything from them.
8/23/12 11:39 AM
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TerrySilver
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thanks for all the help guys
8/23/12 1:44 PM
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justin@gosscpa.com
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Justin Goss, CPA, MSA
What scares you most, 1) possibility of losing principle, or 2) possibility of coming-up short at retirement?
8/24/12 12:16 AM
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TerrySilver
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the possibility of coming up short at retirement
8/24/12 12:17 PM
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justin@gosscpa.com
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Justin Goss, CPA, MSA
First, keep at least six months expenses in cash, and if you have a family, buy life insurance. When these aspects are in place then start saving for retirement.

I strongly discourage you from trying to be a stock picker or trader, (I'll explain in the next post). Instead look into index mutual funds or etf's, such as the "Vanguard 500" and an investment grade bond fund.

A rule of thumb to determine the proportion of stocks to bonds can be obtained by subtracting your age from 100... Your age equals the percentage of your portfolio that should go into bond funds, and 100 less your age is the percentage you put into stocks. In this way you average out of riskier investments as you age... Trust me, you don't want to be 59 years old, with all your money in stocks, and see the market tank 40% in one year.
8/24/12 12:26 PM
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justin@gosscpa.com
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Justin Goss, CPA, MSA
Let me put trading in perspective... You'd be competing with the best traders in the history of the world, with the most sophisticated technology in the history of the world... You'd literally be competing with acres of super-computers. Suggesting you can trade, is like saying my girlfriend can compete in the NFL with no padding and no team and win the Superbowl.

I know this advice is boring, but it'll save you a lot of pain.
8/24/12 10:53 PM
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TerrySilver
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thanks for the great info
8/27/12 12:39 AM
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Twelve Gage
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Fightlogs.com, Owner
justin@gosscpa.com - First, keep at least six months expenses in cash, and if you have a family, buy life insurance. When these aspects are in place then start saving for retirement.

I strongly discourage you from trying to be a stock picker or trader, (I'll explain in the next post). Instead look into index mutual funds or etf's, such as the "Vanguard 500" and an investment grade bond fund.

A rule of thumb to determine the proportion of stocks to bonds can be obtained by subtracting your age from 100... Your age equals the percentage of your portfolio that should go into bond funds, and 100 less your age is the percentage you put into stocks. In this way you average out of riskier investments as you age... Trust me, you don't want to be 59 years old, with all your money in stocks, and see the market tank 40% in one year.

 I'd never heard the age subtracted from 100 rule before. Makes good sense. 
8/28/12 12:22 PM
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Mitch Rommel
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Buy many shares of Dynatox.
8/29/12 1:32 AM
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TerrySilver
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Hahaha!!! 442nd...Perfect.
9/3/12 4:11 PM
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cdmontgo
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bogleheads.org

Read the wiki. Browse the forums. Ask questions.

They will get you started with well diversified, low cost mutal funds. These are the basics which every investor should know. Investing can be as simple or as involved as you wish to make it. The information you'll get from the Bogleheads will be the best foundation for anyone who is looking to get started.

I'd stay away from fininacial planners. They are famous for giving you advice which is in their best interest rather than yours. Don't get me wrong, there are some good ones, but most of them are salesman.

I'd also be weary of investing through a bank. Banks are famous for trying to tack on fees at every chance, and banks fail all the time. Why deal with that headache. Stick with the investment firm which you think will be around. The three largest investment firms in the US are Fidelity, Vanguard, and T. Rowe Price. Any of those will do fine.

Learn how the fees work so you can better spot a bad deal. Vanguard is famous for having low fees.
2/26/15 11:05 AM
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Jody
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I am going the Mutual Fund route. I've got a TDAmeritrade account and am doing my own research.

Put back as much money as you can. Read the Prospectus on any Mutual Fund that you consider, and read any updates that you get from them.

There are different types of funds that focus on different things. Some are low risk funds that focus on bonds, others are higher risk funds that focus on stocks, and many focus on their own ratio of stocks and bonds.

When you read the Prospectus, find out who manages the fund and see if you can research him, so you can get a good scorecard on him (he is kind of like a guy that you pay to give you advice on sports bets to make. If the guy is wrong all of the time, you might want to find another person and thus, another fund).

Put back as much money as you can at the end of the week (or month). After 5 years, you may get to a point where you don't have to put back much money, unless you want to buy another fund and start padding it up. After 5 years with my first 2 funds, I will probably get a 3rd fund and start building on it, and so forth.

Diversification is key, too. Get different funds that focus on different things.

Good luck to you. Wish me luck, too.
3/31/15 2:05 PM
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hmb
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I've been wondering why no one ever gives this investment advice?

It's easy, requires little thought, and would give market returns with very low expenses.

BUY THE 30 STOCKS IN THE DOW. BUY MORE. WAIT. BUY MORE. DOWNTURN. BUY MORE. RETIRE. HAVE PLENTY OF MONEY.
3/31/15 2:10 PM
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hmb
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Oh, and DRIP dividends.
24 days ago
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ShlokEddy
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Invest in yourself, the time you have and the talent you have. This is the only way you will make money and grow your business otherwise everyone is going to rip you off.

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