Interested in you guys opinions on here, This might sound crazy, but what would be some suggestions for a 51-year-old with minimal investment experience, I know it’s pretty late in the game, but would like to see what I could do to generate some extra income. I’ve worked hard and saved but no investments , but would like to see my money make some money in the next few years, any ideas??
Are we talking money for retirement or money that you might want to use in a few years.
If we're talking retirement, I would say open a brokerage account start a Roth IRA, invest up to the max and invest the rest into a regular account. With minimal experience, start with market ETFs/mutual funds. Any broker will have extensive learning resources to help you decide on the products to invest in.
If we're talking generating income today, I would say open a brokerage account and depending on your risk tolerance maybe look into some of the pipeline mlps that pay quarterly or some call writing etfs that pay monthly.
If we're talking appreciation and not worried about withdrawing money every quarter but maybe you want the money in a couple years, then I would say look into some market ETFs like the SPY or QQQ
All this could be done with the same brokerage account and you can mix it up.
Thanos was the hero
Thx for the input
Last edited by nitro26; 03-01-2024 at 03:48 PM.
Do you qualify for an HSA? You have to have a high-deductible health plan.
If so, contributing the max to HSA is a good option to reduce your taxes and build for future.
1. Contribute to 401k if you have that option. Pick Blue Chip, S&P 500 index funds.
2. Roth IRA’s as listed above
3. HSA if possible.
Keep asking questions and provide info about what you are currently doing. Lots of good people can provide info here.
Ditto everything boneil said! 51 is still young. Your risk tolerance is paramount in your decision making. Having worked hard for your money, its painful to lose some or all of it. There are no guarantees when dealing with the stock market.
You are still young enough to ride out some down times.
You should have asked this question 30 years ago. You might could have doubled your money 3 or 4 times. A recommended asset allocation is ~50-50 stocks-fixed income for a 50 year old, to manage risks. Time is your friend to ride out tough market times. I painfully remember back to November 2007, when the market and my 401K dropped 60% in 17 months. Then it took 3 1/2 years to get back to where it was. Some coworkers sold near the bottom, then missed out on the majority of the climb back up before getting in again. Don't think that can't happen again, no matter who the President is. The market has been on a tear, but at some point it will be on a decline. Understand and be willing to tolerate the risks.
Last edited by mossie3; 03-01-2024 at 03:00 PM.
I did this the last year or so. I used to invest years ago and got out pretty much except for my roth. With interest rates going up I have most of my monies in CD's for about another three years. I started a investing account and started buying some dividend stuff along with Amazon and some Tesla. I added to the dividend stuff a few hundred a month as well as putting my dividends back in usually on what was getting beat up at the time. In around a year my monthly dividends were close to a hundred or so a month.Originally Posted by boneil
I opened another Roth last year just for dividend stuff and my hope is to max out my contributions for the next eight to ten years as well as rolling the dividends back in. Trying to get it high enough so that the dividends will pay my monthly expenses at that point. So far I've contributed to it for two years. Some of this years contributions are sitting in my investing account waiting of some things to hopefully pull back a little. That is drawing five percent. My Roth dividends were 54 dollars this month but maybe it won't be long before the snowball starts building a little more steam.
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