Ivesting...stocks, mutual funds, IRA, etc. etc.

[bennychico11]

....except BRI because he failed his financial management test

:lol:

no, but seriously. I've been looking into getting into investments but all this stuff seems wayyy over my head. I just don't know where to start. Stocks seem appealing because it can be such a gamble and you get a better return...mutual funds would be easier but I still don't know where the first place to start is and I'm such a tight wad with my money I don't want to shell out $90 an hour or whatever to have a guy tell me where he thinks I should put my money.....I have a Roth IRA but I hate the bank I have it with right now and I just haven't been putting enough cash into it.

I even have the option to get a 401-K going at my company but I feel like I'm living pay check to pay check as it is and don't want to start putting more of my pay check into another place when it could be going towards payback loans, bills and to support my alcoholism.

I've been looking at the online broker companies like E-Trade or Wells Fargo. Does anyone here do stocks or mutual funds online on their own? E-Trade seems pretty popular but I've also read a lot of bad reviews about their customer service and such. Anyone have any advice on where to start...sites I should read up on that will give me a sort of 101 on the whole investing thing?

 

[AR Husker Fan]

Not to promote any particular site, but you could try hitting such sites as Fidelity.com or any other major, reputable brand. They all have articles that help understanding.

If I were to advise anyone on beginning investment (and I'm no expert on it - we have some on board who should jump in) I'd recommend a "safe" mutual fund as a start. Most companies post their 5- and 10-year rates of return of their funds, and show the mix of investments in each. They also tend to rate the funds' risk level. Find a moderate fund that has a historicially good rate of return and start there. Read and learn - you can then decide whether to, say, change to a mutual fund that has more equity than another, or get out of mutuals and place the money in CDs, etc.

I would NOT invest in stocks alone. Generally speaking, you get into stocks for a loooooooooong investment, or you think you can spot a stock that is going to suddenly increase. The latter is a real gamble - unless you spend considerable time actually studying the company you really are just betting, not investing.

As an example, I invested in a bio-tech company. I don't expect much of any movement on the stock. So why did I do it? Well, it's a company that has locked up most of the patents on aspects of stem-cell research. It hedges that by developing anti-cancer drugs that, while not taking the world by storm (none do) keeps the company comfortably in the black. In addition, the company - thanks to those patents - doesn't have to actually develop in the area of stem-cells. Rather, it "leases" out the information/rights to other companies. If that company hits it big, so does my investment.

Since I was able to get that stock for a song, I loaded up. If it hits, wonderful. If it doesn't, the cost was relatively negligable. But in either case, I knew going in that it was, at the very minimum, a 20 or 30 year investment.

 

[HuskerExpat]

Do not use E-Trade. They are in serious financial trouble, and could be declaring bankruptcy in the near future. Yes, all accounts are insured by SIPC for up to $100,000, but this is more about it being a pain for you to change your account in the near future when they go under.

As for specific investments, most people, experts included, cannot beat the return of the dow jones industrial average. So just by an idex ETF, like DIA or SPY or a similar index mutual fund, and then forget about it until you are ready to retire, or do whatever else with the money (though you should be considering it a long term investment).

 

[bennychico11]

thanks AR. I chatted with someone for a bit from Fidelity. They were very very helpful. He also suggested just getting a mutual fund or transferring my Roth into a mutual fund. Unforutnately it sucks that a lot of these places seem to have a monthly minimum on deposits. I might have to wait a bit until some of my debt starts going down first ugh

 

[BIGREDIOWAN]

thanks AR. I chatted with someone for a bit from Fidelity. They were very very helpful. He also suggested just getting a mutual fund or transferring my Roth into a mutual fund. Unforutnately it sucks that a lot of these places seem to have a monthly minimum on deposits. I might have to wait a bit until some of my debt starts going down first ugh

Hey I failed Financial Mgmt as it pertains to future values, present values, and other worthless values as you would need them in a business. Now my investment class I was very very good in. I have a site called investopedia.com where you can play and investment game and it helps you figure out if you really can read about things and then invest based on those things. Check it out and let me know. It gives you $100,000 in virtual money to play with. Fidelity really is the best do it yourself site because you can check out how the stocks have done and read up on alot of things. I've looked into doing it myself as well.

 

[cmb23]

thanks AR. I chatted with someone for a bit from Fidelity. They were very very helpful. He also suggested just getting a mutual fund or transferring my Roth into a mutual fund. Unforutnately it sucks that a lot of these places seem to have a monthly minimum on deposits. I might have to wait a bit until some of my debt starts going down first ugh

A friend of mine (who is a member here) is a financial planner and broker. Send a message to RYGOLF25 and see what he can do for you.

 

[Eric the Red]

....except BRI because he failed his financial management test

:lol:

no, but seriously. I've been looking into getting into investments but all this stuff seems wayyy over my head. I just don't know where to start. Stocks seem appealing because it can be such a gamble and you get a better return...mutual funds would be easier but I still don't know where the first place to start is and I'm such a tight wad with my money I don't want to shell out $90 an hour or whatever to have a guy tell me where he thinks I should put my money.....I have a Roth IRA but I hate the bank I have it with right now and I just haven't been putting enough cash into it.

I even have the option to get a 401-K going at my company but I feel like I'm living pay check to pay check as it is and don't want to start putting more of my pay check into another place when it could be going towards payback loans, bills and to support my alcoholism.

I've been looking at the online broker companies like E-Trade or Wells Fargo. Does anyone here do stocks or mutual funds online on their own? E-Trade seems pretty popular but I've also read a lot of bad reviews about their customer service and such. Anyone have any advice on where to start...sites I should read up on that will give me a sort of 101 on the whole investing thing?

I'm in the same boat exactly .. want to do something but don't know where to start....I have an IRA through an Edward JOnes guy and I know I'm paying out the a$$ in fees.....as a matter of fact, I don't even know all the fees. I know I had to roll over my retirement I accumulated from teaching and this was simply the easiest.........I am simply looking for a moderate mutual funds to invest in with low fees. I'm hoping over the next 25 years I build up a half million.

Am I on the right track?

 

[NU fan in Denver]

thanks AR. I chatted with someone for a bit from Fidelity. They were very very helpful. He also suggested just getting a mutual fund or transferring my Roth into a mutual fund. Unforutnately it sucks that a lot of these places seem to have a monthly minimum on deposits. I might have to wait a bit until some of my debt starts going down first ugh

Hey I failed Financial Mgmt as it pertains to future values, present values, and other worthless values as you would need them in a business. Now my investment class I was very very good in. I have a site called investopedia.com where you can play and investment game and it helps you figure out if you really can read about things and then invest based on those things. Check it out and let me know. It gives you $100,000 in virtual money to play with. Fidelity really is the best do it yourself site because you can check out how the stocks have done and read up on alot of things. I've looked into doing it myself as well.

aahh the classic present value, future value, tvm, annuities. A tough, but informative class.

 

[husker rob]

....except BRI because he failed his financial management test

:lol:

no, but seriously. I've been looking into getting into investments but all this stuff seems wayyy over my head. I just don't know where to start. Stocks seem appealing because it can be such a gamble and you get a better return...mutual funds would be easier but I still don't know where the first place to start is and I'm such a tight wad with my money I don't want to shell out $90 an hour or whatever to have a guy tell me where he thinks I should put my money.....I have a Roth IRA but I hate the bank I have it with right now and I just haven't been putting enough cash into it.

I even have the option to get a 401-K going at my company but I feel like I'm living pay check to pay check as it is and don't want to start putting more of my pay check into another place when it could be going towards payback loans, bills and to support my alcoholism.

I've been looking at the online broker companies like E-Trade or Wells Fargo. Does anyone here do stocks or mutual funds online on their own? E-Trade seems pretty popular but I've also read a lot of bad reviews about their customer service and such. Anyone have any advice on where to start...sites I should read up on that will give me a sort of 101 on the whole investing thing?

Chico-----here is my 2 cents, and i am not an expert and i did NOT stay at a holiday inn express last night either.

401K from the company you work with will most likely be a PRE-tax contribution. Meaning that they will deduct your contribution from your gross wage before income tax is taken out. Later on in life when you start drawing from the 401K in your retirement years you will have to pay tax on both the money you contributed and the money you made.

most companies will match up to a certian % of what you contribute, and add it to your 401K also. the company i worked for before i came back into the Army, contributed .5% for every 1% that i contributed up to 6%, meaning even if i contributed 10% of my gross wage, the company would contribute 3%

IRA's are post-tax contibutions meaning that you deposit money that has already had state and federal income taxes taken out. when you take the money out at retirement, you only pay taxes on the interest that you made.

both, 401K and IRA, most likely are involved with mutual funds. there are a lot of different ones out there that range from very low risk to very high risk. one thing to remember is that the lower the risk of loosing your investment the lower rate of return you are going to make on your money.......and the higher the risk of loosing money, the higher the rate of return.

look at the Mutual funds that the 401K or IRA offer, and research their track record. what is the APR over the last year, 5 years, 10 years, since inception, ect. and then decide which ones you want to put your money into.

look at how long you have until you are going to retire. if it is a short time then go with a low risk fund, if you have a long time to go before you retire then i would suggest starting with an aggressive fund, and then about 5 years before you plan on retiring move your into low risk investments.

hope that could help you out some

 

[rawhide]

buy low, sell HIGH, I'm a freakin' nurse watta I know

 

[BIGREDIOWAN]

thanks AR. I chatted with someone for a bit from Fidelity. They were very very helpful. He also suggested just getting a mutual fund or transferring my Roth into a mutual fund. Unforutnately it sucks that a lot of these places seem to have a monthly minimum on deposits. I might have to wait a bit until some of my debt starts going down first ugh

Hey I failed Financial Mgmt as it pertains to future values, present values, and other worthless values as you would need them in a business. Now my investment class I was very very good in. I have a site called investopedia.com where you can play and investment game and it helps you figure out if you really can read about things and then invest based on those things. Check it out and let me know. It gives you $100,000 in virtual money to play with. Fidelity really is the best do it yourself site because you can check out how the stocks have done and read up on alot of things. I've looked into doing it myself as well.

aahh the classic present value, future value, tvm, annuities. A tough, but informative class.

Yeah I know!!!! Next class..............................cha ching!!!!.............................FINANCIAL MGMT II!!!!! :madash :madash

 

[bennychico11]

thanks for the comments guys. I'm definitely going to refer to this as I continue with investing. I definitely wish I could jump into investing right now...but after some serious thought I think I need to pay off some bank loans before I do. Right now it feels as if I'm living paycheck to paycheck, and if I want to seriously invest I need to have a bit more cash freed up than I do now. But at least I have some ideas on where to start.

Any more opinions or links to a beginners guide on mutual funds, stock indexes, etc....feel free to post!

 

[AR Husker Fan]

thanks for the comments guys. I'm definitely going to refer to this as I continue with investing. I definitely wish I could jump into investing right now...but after some serious thought I think I need to pay off some bank loans before I do. Right now it feels as if I'm living paycheck to paycheck, and if I want to seriously invest I need to have a bit more cash freed up than I do now. But at least I have some ideas on where to start.

Any more opinions or links to a beginners guide on mutual funds, stock indexes, etc....feel free to post!

That's an excellent idea. The best way to invest is to first eliminate debt. That gives you the disposable income to actually invest.

 

[T_O_Bull]

....except BRI because he failed his financial management test

:lol:

no, but seriously. I've been looking into getting into investments but all this stuff seems wayyy over my head. I just don't know where to start. Stocks seem appealing because it can be such a gamble and you get a better return...mutual funds would be easier but I still don't know where the first place to start is and I'm such a tight wad with my money I don't want to shell out $90 an hour or whatever to have a guy tell me where he thinks I should put my money.....I have a Roth IRA but I hate the bank I have it with right now and I just haven't been putting enough cash into it.

I even have the option to get a 401-K going at my company but I feel like I'm living pay check to pay check as it is and don't want to start putting more of my pay check into another place when it could be going towards payback loans, bills and to support my alcoholism.

I've been looking at the online broker companies like E-Trade or Wells Fargo. Does anyone here do stocks or mutual funds online on their own? E-Trade seems pretty popular but I've also read a lot of bad reviews about their customer service and such. Anyone have any advice on where to start...sites I should read up on that will give me a sort of 101 on the whole investing thing?

The first thing to do is get into your companies retirement program especially if they will match your contributions. Then find a bank you trust and talk to their investment guy. It will be free until you actually start investing and then it won't even get close to being $90. an hour.

...T_O_B