Investing Question

Self

[marmar]

I am interested in learning how to invest on a small scale from the ground up,to start off with. If anyone can give me some good pointers it would be appreciated. Thanks, for your help before hand. Martha

[marmar]

I’m sorry this is my first time posting and I thought I had posted this in the General Chat section. Please locate to correct section..........sorry......

[Eric in the Ozarks]

Double tax free bonds.

[proxy_user]

Well, you’ll have to give us more info than that. Investment is based on the suitability to you income, assets, employment situation, age, etc.

[Berlin_Freeper]

diversify

[Uncle Miltie]

In this order, stepwise as you can accomplish each:

1) Set aside 6 months to 1 year of cash in a Federally Insured Bank.

2) Eliminate expensive debt (anything over, say, 6%, like credit cards, autos, etc.)

3) Take full advantage of 401K and IRA contribution limits.

4) Invest additional amounts outside of 401K and IRA in taxable funds.

5) For items 3 and 4, focus on the following in order:

a) Broad U.S. Stock Index fund, like Vanguard Total Stock Market Index.
b) Broad International Stock Index fund, like Vanguard Total International Index Fund.
c) Broad bond fund. This is where it gets tricky. Lots of different opinions here.

i. I prefer corporate bonds because I think government bonds have substantial quality downgrade risks.
ii. Most people would recommend an intermediate term bond fund.
iii. I don’t like even intermediate bond funds because I think interest rate increases are likely, so I am keeping my bond funds short.

7. Blend
a) Relatively Conservative: 30% U.S. Stock / 10% International Stock / 50% Bonds.
b) Relatively Aggressive: 40% U.S. Stock / 40% International Stock / 20% Bonds.
c) Pick how Conservative / Agressive you want to be, and blend accordingly.

8. Invest Continuously, and don’t look at performance. Keep your blend about right by investing in what has gone down in price and percent of your portfolio.

That’s my fast and loose thinking on the subject. Others will disagree.

[Paladin2]

BLOAT

[Bones Boy]

I recommend www.bogleheads.org

[Twotone]

Read a lot. When I first started, I subscribed to Money Magazine, which gave a lot of the basics of investing. I’m not sure that’s the one to take now, but I’m sure others here can suggest one that won’t cost an arm & a leg.

I’d certainly be very careful, as the economic situation is uncertain with many forecasting a collapse. Might want to just build a large cash reserve until we’re sure Obama is out of office.

[Uncle Miltie]

Dittos on anything by Bogle. He’s one of the most reasonable, approachable, correct modern investor resources a person can get. Bogle = Vanguard. I have most of my money with them.

[Retired Greyhound]

Buy low, sell high.

[andy58-in-nh]

There is no simple (or non-smartass) answer to your question. It depends in large measure upon your objective (your financial goal), your risk tolerance, your investment time horizon (how long until your goal is to be achieved?), your current financial resources (assets), and your existing obligations (liabilities), as well as the nature and duration of both.

If I were you, I would consider my answers to all of the above and then seek the advice of a financial planner who charges for his or her services based upon assets under management, and who therefore encourages a long-term, flexible strategy to meet your changing needs.

[ken in texas]

There are many reference tools available via your web browser.

The only advice I can provide is to watch what I do and then do the opposite or something different. /smile

[marmar]

Good info.....but I will narrow it down, I want to dabble in this, do I need a stockbroker. I have a 401K plan but that is not one I can decide how to invest. I have other things I want to try, but this is totally new to me. Thanks, for your time and help.

[outofsalt]

Excellent advice for a new investor.

For an IRA I would consider the Roth as my first choice.
Real Estate will rebound and if you've achieved numbers 1 & 2 I would say a livable home would be #3 (with roommates to help build equity).

(I would add metals of the second amendment variety;)

[TNoldman]

investing ideas

[marmar]

I like you........anyway, I needed to find a place where I could trust the info and FR is the place...Martha

[outofsalt]

Your bank probably provides investment services though they may have slightly higher fees. Ask them about opening a brokerage account and pick their brains on what investments you can avail through them. You can then buy online or through their brokers.
Initially you will only want a “cash” account! NO MARGINS! You will be told to use leverage (loans) to grow your portfolio, NOT FOR NEWBIES!
Stay safe by buying dividend paying stocks or corporate bonds until you have learned A LOT more. Research any company you wish to consider owning. Smaller companies carry more risk but could offer higher growth. Look at their balance sheets thoroughly for cash flow/debt. Look at insider trades. Look at institutional ownership. Way out of your league now but look to see if they have a large short-sale ratio. If you hold a stock for a year the proceeds are taxed differently from trading shares. There is so much you don't know at this point, keep it simple!
Take profits when possible! You'll never go broke taking profits!

[bruinbirdman]

Investing For Dummies, 6th Edition

yitbos

[bunkerhill7]

Buy Argentine War Bonds