Freeper Help Wanted
Posted on 08/12/2009 1:15:30 AM PDT by Slings and Arrows
I would very much like to learn how to invest my money in an informed manner - stocks, bonds, commodities, money markets, etc. The problem is that I don't know where to start.
Can any Freepers please recommend any books, websites, etc., that could help me get started? Assume that I'm starting from zero (not Zer0): I need to learn the language, the definitions, the data investors use in picking their investments, everything. I'm not looking to get rich overnight (although I wouldn't object); what I'm looking for is how to create a stable, long-term personal investment strategy.
Any help is appreciated.
Come to my house and listen to one of my relatives. All the answers and all the right decisions made for you, all at no charge. And you don’t even have to ask... /s
I spend my day listening to CNBC, reading financial books, etc. and darned if I have any expertise.
I understand economics but to invest, forget it. The only way I've ever made any money is to work for it. Now, I just have it on measley interest but at least, I still have it.
If I had any long-term confidence in the economy and had years before retirement, I would dollar cost average into a Vanguard Stock Index fund and forget it.
I no longer have confidence in the American long-term economy.
I highly recommend reading “How I Made $2,000,000 in the Stock Market” by Nicolas Darvas. He details his often hair raising adventures in the stock market and you will learn the important psychology of trading.
Then, if you like his strategy, read his following book “You Can Still Make It In the Market” which goes into greater detail about his method.
http://www.bobbrinker.com/books.asp...Many folks appreciate Brinkers investment advice and many don’t. Either way this is an excellent list.
We must be related. ;^)
OK, I called that wrong.
Is there a thread where he discusses them?
A: Start with a large fortune.
Freeper Help Wanted
Ah. That's a good sign. The opposition is clearly rattled.
My entire nest egg is here.
Right now, there is no safe place. Deposit it in a well-managed bank with FDIC insurance while you take time to learn.
Then read and read some more. There is a ton of free info on the web. Some of it is bunk, but if you read enough, you’ll learn to tell the difference. It will take a while to learn the terminology, the buzzwords.
Vanguard, Motley Fool, Morningstar, Yahoo Finance. Follow links. Google the words you don’t know. Absorb and think.
And then buy in gradually and with great thought. Spread your money, not too much in any one company or sector. Consider advice, but know that you probably know as much as the so-called “experts.”
Be thoughtful and conservative. It’s not just a political philosophy; it’s common sense.
And have fun.
Right now, there is no safe place. Deposit it in a well-managed bank with FDIC insurance while you take time to learn.
Then read and read some more. There is a ton of free info on the web. Some of it is bunk, but if you read enough, you’ll learn to tell the difference. It will take a while to learn the terminology, the buzzwords.
Vanguard, Motley Fool, Morningstar, Yahoo Finance. Follow links. Google the words you don’t know. Absorb and think.
And then buy in gradually and with great thought. Spread your money, not too much in any one company or sector. Consider advice, but know that you probably know as much as the so-called “experts.”
Be thoughtful and conservative. It’s not just a political philosophy; it’s common sense.
And have fun.
And I second Dave Ramsey.
Thanks for the assist!
I forgot about investopedia! I ran across it by accident. It’s very helpful.
Oh, I forgot to mention that while folks were losing 50% of their stock market savings last year, we only lost about 5% at Schwab. That’s saying more about Hubby’s skill than about Schwab, but their portfolio management tools helped him a lot.
Thank you very much. I’ll look into them. (I’m building up quite a list of things to investigate. Good!)
Bear in mind that with a “security” like a stock, you assume all risk and could possibly lose everything you put in. With an “insurance” product, the insurance company accepts all the risk.
With a fixed annuity your interest rate is guaranteed and your principal is never at risk. (Safest Annuity)
With an indexed annuity your ROI “Return on Investment” is tied to the S&P 500 or some other index. The worst that could happen is that you make $0 but your potential for gain is greater than a fixed annuity but like a fixed annuity your prinicipal is safe.
A variable annuity is a “security” and your principal is just as vulnerable as if your money was in stock or something else. However, your potential gains are higher but variables are risky.
Lets say you have $100,000 laying around. You can put into a fixed annuity with anywhere from 5-10 years with guaranteed interest rate of about %5 for certain period of time, then at a different rate. Compare to a CD with a rate of about %2 and you have to pay taxes on your gains every year.
Most annuities will offer you a bonus when you place your money anywhere from %5-%10 so when you deposit your money you will actually have $110,000. Because of this if you decide you want to pull your money you would have to pay a surrender charge. Bear in mind that the surrender charge is trade off for the safety. You have access to %10 of your money penalty free every year. You can also “annuitize” your account at some point and you will be given a guaranteed income for life even if you exhaust all the money in your account. You will pay taxes on your gains as the money is taken out. This gives your money a better chance to grow by not taking taxes out every year.
There is more but this is annuities in a nutshell.
Your money can do 1 of 3 things.
It can grow.
It can stay the same.
It can be lost.
With an annuity I can eliminate two of those.
TheArizona
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