Hello, guys! I have a question, Where do you invest your money? A friend of mine told me about investing my money to earn more profits than keeping it in the bank. I really don't know anything about it but I want to give it a try. What would you suggest? Do I need a financial adviser? Thanks!

 

If it was me first of all I would see what you can afford to set aside and live without before you look into investing anything. That way if things go south you aren't hurting yourself at all. There's some good threads floating around though I remember seeing just do some searching and you should answer some of your questions. Cheers.

 

Open an account at a low cost investment house - for example, Vanguard. Start putting money into a mutual fund or two. Don't sweat the short term - think long term and dollar cost averaging and watch the money grow over time. I would not leave a lot in a low interest bearing savings account. If mutual funds scare you, you can always buy CD's and do better then a savings account.

Automatic transfers from your bank to the mutual fund are nice. $50 or $100 a month and you never notice it.

 

do yall have anymore advice on starting investing?


Ive been reading up alot on the different types of investments, and I understand them each individually, but comparing one to the other is a different ball game. I dont know which ones right for me. I currently draft 100 a month into a low interest savings account that is not doing me any good and I would like to move that money elsewhere.


thanks guys

 

Right now I think its best to put it in a shoe box. I know that's not what you want to hear. I wouldn't/don't have money in anything I cant pull out in less then 3 days without a penalty. Even then, if its not on your personal property, your not entirely safe from losing it.

If you have an employer matched 401k, match them on the max amount you can to yield the best possible outcome with the least amount out of your pocket. That way your only losing part of that total money when the market crashes again and hopefully not any of your actual matched out of pocket.

 

S2Ki is certainly the first place I thought of for financial advice...

BTW, "financial advisers" are recent history or drama graduates who can't find jobs. Trained to read scripts.

-- Chuck

 

There actually is some great advice available here on this forum. There were several members who were very knowledgeable and used to post helpful information and also respond to posts and even PM's sharing their knowledge and education. There are many very successful people who use this forum and people who are starting out need to be able to network somewhere, somehow, and may not have many avenues through which they can solicit.

 

Some of the answers here confuses me First of all I don't have that much money to invest but if I'm in your position I would invest rather than keep my money in the bank. It's a matter of choosing the right business venture.

 

for 99% of people, picking a low fee index ETF or 2 is the best way to go. Grab a general market index like a DOW/NASDAQ/S&P fund and then maybe one that focuses on an individual market sector that you think is ripe for growth. Shares in these funds are readily sell-able meaning the money is liquid enough when you need cash or want to put it into something more aggressive. As mentioned earlier in the thread, Vangaurd makes some very well known low fee funds.

Personally I keep about 2/3 of my investments in indexes, and mess around with individual stocks on the last 1/3. It baselines me to market risk and I'm not being too aggressive on any one stock that way.

 

you have that right about financial advisers especially drama grads