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Stocks Investment

Wylted
Posts: 21,167
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5/15/2016 9:51:36 PM
Posted: 6 months ago
At 5/15/2016 9:40:49 PM, XLAV wrote:
Does anyone here invest in stocks? If so, care to share any tips/advices/opinion?

No generic advice is good, but I'd put your money in some index funds until you learn a little more. Something like 60% in the S&P 500 fund, 20% in a foreign index fund in some emerging markets, and 20% in a small caps stock fund. This is assuming you will keep the money in the market for a while. Atleast 10 years.

Even when you do learn more, just focus on individual stocks, buy and hold until you know how to find the hidden fees in privately managed funds. They sometimes will advertise like a 1/2 percent fee, but hidden in the mutual fund are some fees such as transaction fees and what not that can go up to lile 5% while they are advertising a fee of .05%.

The number one thing to consider when investing is how to avoid taxes. A Roth IRA can help you avoid some of that. The number two thing you want to do is eliminate fees as much as reasonably possible, which is why most mutual funds suck.

The number 3 thing is you want to look at profitability and if you want the money out soon, look at volatility.

Before you invest buy a Dave Ramsey, Suze Orman or maybe Ric Edelman book. They should teach the basics, such as portfolio management, how to avoid taxes, and common sense stuff like how much to keep in your emergency savings account
Wylted
Posts: 21,167
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5/15/2016 9:53:20 PM
Posted: 6 months ago
Some new economists are actually advocating for people to live avove their means and not invest if they expect they will go into a higher income bracket. That might be a fun strategy
Wylted
Posts: 21,167
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5/15/2016 9:55:07 PM
Posted: 6 months ago
At 5/15/2016 9:52:56 PM, XLAV wrote:
Thanks, Wylted.

Also, if you want tp get rich off stocks the only way to do it is to become a hedgefund manager. So if this is anything beyond personal finance for you, I'd forget about it, unless you actually want to become a hedgefund manager
Raisor
Posts: 4,468
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5/17/2016 6:49:08 PM
Posted: 6 months ago
At 5/15/2016 9:52:56 PM, XLAV wrote:
Thanks, Wylted.

I second wylteds advice.

Also a lot of good advice on bogleheads and reddit/r/personal finance.

Vanguard has a lot of index funds and has low fees.

Prioritize tax advantaged accounts too. 401k if it is available and Roth ira. Those are retirement funds but there some ways you can access funds without penalty before you hit the retirement age.
Raisor
Posts: 4,468
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5/17/2016 6:50:12 PM
Posted: 6 months ago
At 5/15/2016 9:53:20 PM, Wylted wrote:
Some new economists are actually advocating for people to live avove their means and not invest if they expect they will go into a higher income bracket. That might be a fun strategy

How does that make sense?
Wylted
Posts: 21,167
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5/18/2016 11:40:28 AM
Posted: 6 months ago
At 5/17/2016 6:50:12 PM, Raisor wrote:
At 5/15/2016 9:53:20 PM, Wylted wrote:
Some new economists are actually advocating for people to live avove their means and not invest if they expect they will go into a higher income bracket. That might be a fun strategy

How does that make sense?

I looked into it, and don't like it because people tend to be overly optimistic about their future, doing it would be to obtain morebquality years of life, and the goal is not to get rich.

For example if you were to make 50,000 a year for ten years and then know you are going to make 150,000 a year the ten years after that, then it might increase your overall auality of life to maybe go into debt to live a 100,000 a year life style the yearsbpreceeding the ten high income years. Ofbcourse it requires you to live on 100,000 a year when you make 150,000 and this ignores calculations you'd have to do to know how much interest you'll pay on the debt, but I think you get the point
Deb-8-A-Bull
Posts: 2,181
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5/18/2016 11:51:46 AM
Posted: 6 months ago
At 5/15/2016 9:40:49 PM, XLAV wrote:
Does anyone here invest in stocks? If so, care to share any tips/advices/opinion?

Under any circumstances.
( Past behavior is not a prediction for future behavior. )
Raisor
Posts: 4,468
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5/18/2016 4:41:23 PM
Posted: 6 months ago
At 5/18/2016 11:40:28 AM, Wylted wrote:
At 5/17/2016 6:50:12 PM, Raisor wrote:
At 5/15/2016 9:53:20 PM, Wylted wrote:
Some new economists are actually advocating for people to live avove their means and not invest if they expect they will go into a higher income bracket. That might be a fun strategy

How does that make sense?

I looked into it, and don't like it because people tend to be overly optimistic about their future, doing it would be to obtain morebquality years of life, and the goal is not to get rich.

For example if you were to make 50,000 a year for ten years and then know you are going to make 150,000 a year the ten years after that, then it might increase your overall auality of life to maybe go into debt to live a 100,000 a year life style the yearsbpreceeding the ten high income years. Ofbcourse it requires you to live on 100,000 a year when you make 150,000 and this ignores calculations you'd have to do to know how much interest you'll pay on the debt, but I think you get the point

Ok I get the general line of argument, but there are a litany of factors that suggest that the utility calculation will not be net positive e.g. Compounding interest on debt vs savings, lifestyle creep and diminishing returns, rising costs during midlife (read: children and agin parents), the risk you allude to of making such a long term prediction...

I think you are probably referring to that stupid article that ce out a while ago about how people should spend all their money in their 20s and just plan on making a lot more money later in life. The whole argument takes a valid point about pursuing valuable experiences and not being afraid to spend money on things that make your life better an pushes it way beyond reason.
Wylted
Posts: 21,167
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5/18/2016 5:03:55 PM
Posted: 6 months ago
At 5/18/2016 4:41:23 PM, Raisor wrote:
At 5/18/2016 11:40:28 AM, Wylted wrote:
At 5/17/2016 6:50:12 PM, Raisor wrote:
At 5/15/2016 9:53:20 PM, Wylted wrote:
Some new economists are actually advocating for people to live avove their means and not invest if they expect they will go into a higher income bracket. That might be a fun strategy

How does that make sense?

I looked into it, and don't like it because people tend to be overly optimistic about their future, doing it would be to obtain morebquality years of life, and the goal is not to get rich.

For example if you were to make 50,000 a year for ten years and then know you are going to make 150,000 a year the ten years after that, then it might increase your overall auality of life to maybe go into debt to live a 100,000 a year life style the yearsbpreceeding the ten high income years. Ofbcourse it requires you to live on 100,000 a year when you make 150,000 and this ignores calculations you'd have to do to know how much interest you'll pay on the debt, but I think you get the point

Ok I get the general line of argument, but there are a litany of factors that suggest that the utility calculation will not be net positive e.g. Compounding interest on debt vs savings, lifestyle creep and diminishing returns, rising costs during midlife (read: children and agin parents), the risk you allude to of making such a long term prediction...

I think you are probably referring to that stupid article that ce out a while ago about how people should spend all their money in their 20s and just plan on making a lot more money later in life. The whole argument takes a valid point about pursuing valuable experiences and not being afraid to spend money on things that make your life better an pushes it way beyond reason.

I think I heard it in the podcast freakonomics, and I was reading a personal finance book from Ben Stein that reccomended it.

The things you mentioned are valid and the system may work for people who can always act perfectly logical and not allow things like lifestyle creep to happen, but we're human so we should adopt systems that allow us to make more mistakes.
Blade-of-Truth
Posts: 5,036
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5/18/2016 6:36:48 PM
Posted: 6 months ago
At 5/15/2016 9:40:49 PM, XLAV wrote:
Does anyone here invest in stocks? If so, care to share any tips/advices/opinion?

Yup, I have an etrade account that I opened a few years ago and still operate. Feel free to PM me if you're serious, because I'm in the green and can certainly help you out if you have some money to invest in a few things. We'd need to discuss your investment strategy - whether you want to go for long-term investments with small but stable returns or play the short-game which is bigger risk but also bigger reward. We'd also need to discuss if you want to stick to one industry or expand your portfolio into several fields.
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XLAV
Posts: 13,730
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5/18/2016 6:41:20 PM
Posted: 6 months ago
At 5/18/2016 6:36:48 PM, Blade-of-Truth wrote:

Yup, I have an etrade account that I opened a few years ago and still operate. Feel free to PM me if you're serious, because I'm in the green and can certainly help you out if you have some money to invest in a few things. We'd need to discuss your investment strategy - whether you want to go for long-term investments with small but stable returns or play the short-game which is bigger risk but also bigger reward. We'd also need to discuss if you want to stick to one industry or expand your portfolio into several fields.

Thanks, but is it possible(or advisable) for people my age (17) to start investing at stocks? I'm still trying to learn the ropes so I can immediately use the stocks to my advantage when I start earning or saved a lot of money.

And are you a stock broker or something?
Blade-of-Truth
Posts: 5,036
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5/18/2016 7:05:52 PM
Posted: 6 months ago
At 5/18/2016 6:41:20 PM, XLAV wrote:
At 5/18/2016 6:36:48 PM, Blade-of-Truth wrote:

Yup, I have an etrade account that I opened a few years ago and still operate. Feel free to PM me if you're serious, because I'm in the green and can certainly help you out if you have some money to invest in a few things. We'd need to discuss your investment strategy - whether you want to go for long-term investments with small but stable returns or play the short-game which is bigger risk but also bigger reward. We'd also need to discuss if you want to stick to one industry or expand your portfolio into several fields.

Thanks, but is it possible(or advisable) for people my age (17) to start investing at stocks? I'm still trying to learn the ropes so I can immediately use the stocks to my advantage when I start earning or saved a lot of money.

Oh, I thought you already had some money to play with. If this is the case, I'd dismiss the advice about buying books. Just start watching the markets, subscribe to Forbes and other business media outlets that discuss upcoming companies and groundbreaking tech. Those are the two things to watch, because you'll want to hop on them the second they go public in order to get the biggest return. I only do this myself for extremely rare circumstances, and am more of a long-term investor myself. I won't go into my portfolio details on a public forum but they're all stable companies that have maintained a certain success threshold for a few decades now. This has given me a solid IR ratio.

The best of the best is to get to a point in your life where you can be an angel investor (one of the first people inventors or upstarts come to for funding - wayyy before the 'going public' phase). For now though, the former path is the best option. Be sure to avoid this penny stock nonsense you'll surely come across too. It's bs, seriously, pay it no mind if you're wanting to be a serious investor.

The key though, getting back on topic, is to become an astute market watcher. I invest solely in American companies (go Murica') which makes it easier for me since I'm not having to pay attention to the global markets. Forbes is a great start, as is business insider. Patience is also key because you'll see these new companies or inventions as great investment opportunities but they won't be hitting the market for some time. That's why those secure, long-term investments are a wise start. You'll at-least have something to fall back on in the meantime.

And are you a stock broker or something?

No, but having holdings in the stock market is an everyday thing in my family. The E-trade account was a Christmas gift a few years ago and I was fortunate enough to have Warren Buffet give me some advice a few months afterwards at a luncheon that I attended with my family in Palm Beach. Of course I was like a giddy little school-girl the entire time, but I held it together long enough to grasp the basics he brought up after I told him about how I inherited a portfolio.

Look at the portfolios of the most successful stock investors, those are the people you want to emulate. I'm not saying to become a feeder-fish who jumps everytime they do, but rather forge your own path and listen to your instincts while also measuring the public opinions and doings of those who are more successful than yourself.
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Raisor
Posts: 4,468
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5/19/2016 3:12:44 AM
Posted: 6 months ago
At 5/18/2016 6:41:20 PM, XLAV wrote:
At 5/18/2016 6:36:48 PM, Blade-of-Truth wrote:

Yup, I have an etrade account that I opened a few years ago and still operate. Feel free to PM me if you're serious, because I'm in the green and can certainly help you out if you have some money to invest in a few things. We'd need to discuss your investment strategy - whether you want to go for long-term investments with small but stable returns or play the short-game which is bigger risk but also bigger reward. We'd also need to discuss if you want to stick to one industry or expand your portfolio into several fields.

Thanks, but is it possible(or advisable) for people my age (17) to start investing at stocks? I'm still trying to learn the ropes so I can immediately use the stocks to my advantage when I start earning or saved a lot of money.

And are you a stock broker or something?

Seriously don't fck around trading individual stocks unless you are fine losing your money. Dump your savings in a mix of index funds- this is extremely advisable at your age. On average every dollar you invest today will be two dollars by the time you are thirty.