I am an investment dummy. If you had 50K to invest for ten years what would you do with it?
I am an investment dummy. If you had 50K to invest for ten years what would you do with it?
Keep it in your pocket for the next 2 months. If you do invest right now, don’t put it ALL in the market, or it could hurt your feelings really quick.
Depends on what you know and don't know, depends on risk tolerance. If you know nothing then I would start reading. If you know about valuing a company but are asking specifically about taking advantage of the current events, you find companies you like and start building a position slowly. Understand that we might be in a recession. The market might go down a lot more.
Thanos was the hero
To be candid, what we would do is irrelevant as everyone’s situation is one-off.
For you, priority one is investor education. Perpetually invest in yourself. Factual information is key. Read Barrons and Wall Street Journal. Become an educated investor whom is well-informed on the risk/reward of the various classes of investments - don’t restrict yourself to equities. Don’t invest in what you don’t know or understand. Remember that for every investment (especially stocks), seller and buyer perspectives are diametrically opposed. Sellers, more often than not, are speculating or convinced that their position is going to decrease in value, while buyers are speculating or convinced that this position will increase in value. Who is right? Time will tell; but often, whomever was more well-informed. Understand?
Avoid ignorant, emotional and momentum investments - they all share the tendency to decimate investment portfolios.
Good luck...
Last edited by Neverest; 03-15-2020 at 07:41 AM.
That's what I was going to say. Do your DD, don't freak out, and don't get caught up in FOMO. As long as you don't mind holding, whenever stocks are cheap like this is the best time for a new investor to get in. You'll have more forgiveness when the bottom is reached. Keep your portfolio diverse and look at dividends as well.Originally Posted by Neverest
Agree with all the above posts. If you are going to buy stocks I sometimes will do screens from certain portfolios like dividend aristocrats, dividened achievers etc. since these are typically composed of high quality companies that have paid dividends for years. A list like that may give you a good starting point for some companies you may want to look at further. If you want to invest a certain way, like dividened growth etc., you can find the high ranked mutual fund that invest like this and then look at their portfolio holdings to see what types of companies they own.
Also, focus more on a smaller group of stocks whenever you start and know them well. You'll want to look at a several to find the ones you want to, but once you figure out a few, know everything about their financials and how news affects them. If you're going to try to do some trading have an average daily chart in your head of the companies that you own/want to own in order to buy and sell at the right time. Knowledge is key, as has been mentioned prior.
Why build a position slowly? I know the market may go down more, but, I do feel like it will rebound to levels as high as it was a month ago. I don't plan on playing the market. Just want to invest in a few and hold for at least eight to ten years. Right now I am only drawing two percent in a CD.
So, if I found a few to invest in, would opening an account with, say, TD Ameritrade be my first step? Then transfer money from my bank? How long would that normally take? If I wanted to also have a IRA with them can I have separate accounts?
If you are young, I would put it in a S&P 500 index fund and forget it. If you are old, I would put it in your pocket and don’t tell anyone you have it.
Just looked at your age. Max out a ROTH IRA in the S&P500 index fund for 2019 and 2020 and put thee rest in the same fund, only in a regular taxable account. Try to max that ROTH every year going forward. Maybe you can do it from weekly, or monthly payroll deductions?
Last edited by Bassin08; 03-15-2020 at 06:39 PM.
My advice would be to go with mutual funds instead of individual stocks. You MIGHT pay a little more in fees, but this would protect you from picking a single bad stock. Invest in: 1) large cap fund , 2 small cap fund, 3) growth fund and 4) international fund. Divide money between those with more in 1-2-3. Then, start investing a set amount every month until the full position is invested. I would start immediately with 10% per week--if market keeps tanking, you can slow this down.
Take a look at the Vanguard website. You can review all the funds and review the investment performance for each. Vanguard has some decent funds and relatively low expenses. At the very least, reading this website will give you some ideas. Finally, Vanguard can pull money straight from your checking account for easy transfers.
Why build a position slowly? Why not? I don't know of a reason to buy a position in one lump sum unless you have insider info and you know for a fact a stock won't go lower. I prefer to build a position with multiple buys because I know I won't pick the bottom.
and: Yes, yes, I think about a week maybe a little more from the application process to money has cleared and you can buy a stock, yes.
Thanos was the hero
Yes, apply for a new account with one of the major brokerages with trading privileges. Note that it’s not automatic as they evaluate you based on several criteria.
I’m not familiar with TD Ameritrade but would be surprised that it would take several days to fund with an electronic funds transfer.
Yes, you can have multiple accounts and have various privileges and restrictions with each.
If you envision or transition into an active trader, familiarize yourself with applicable short and long-term capital gains tax rates and wash sales.
Note that the Dow futures are down 1,000 right now. Be careful. It’s a jungle out there...
I use Schwab, but just recently re-opened a trading account. I've been inactive for the past few years. Previously I had used Scottrade and had no issues. I've not yet had any issues with the Schwab platform.
If I make a deposit Monday-Wednesday, the money seems available the next day. If I make the deposit on Thursday or Friday, it's available the following Monday.
1994 Ranger 492VS
2004 Optimax 225 - 0T920364
6" Hydro Dynamics Manual Jack Plate
24p Fury 4
24v 47" Lowrance Ghost / Lowrance HDS
Cash is king right now. I'd sit back with that 50 grand and wait for the bottom.
You could invest it in a 2020 Nitro with that kind of loot.
Reply With Quote