How do I start investing?

7 points by amotinga 4 years ago | 15 comments

how does one in US go about building investment portfolio? I have about 30k now and making more than I spend on living so Id like to save save and invest some. do I just walk into chase and ask for help?

also, 401k - can I only change settings in certain period? confused.

also, is there any way I can invest pretax? and if I can should I?

please help.

edit: goal is passive investing for comfortable retirement at appropriate age.

im happy working 9-5, not planning on getting rich. jaust want to save some so that I dont have to think about it when I can no longer work.

WheelsAtLarge 4 years ago |

It's very hard to beat index funds, few funds beat them year after year. So, call a mutual fund company(vanguard is very good) and tell them that you want to invest in index funds. They will guide you on what to do.

Add funds on a regular basis until you need it. It will grow. Keep in mind that the returns will be a wavy ride but ultimately it will be positive.

We are starting to hear criticisms on index funds but we have yet to find a better long term way to grow wealth for the individual investor. Specially for people that don't want to make finance there life's work.

ruben81adelaide 4 years ago | |

I agree, Vanguard is one of the best funds with low commissions. Nowadays there's no point putting your money in a bank account, so I looked into ways of investing the money. After carefully considering different options, I decided this was the best way to proceed with the minimum risk and with a good return.

Every month I transfer a bit, without looking if the stock goes up or down. The best goal is to invest intelligently for the long-term. Broad-based index have proven to be a good choice for long-term.

marketgod 4 years ago | | |

What you can look up is the MMM portfolio, Canadian Couch Portfolio and https://awealthofcommonsense.com/2014/02/worlds-worst-market...

mtberatwork 4 years ago |

1. Max out 401k and take advantage of employer matching. 2. Max out Roth IRA. 3. Invest in low cost index funds/ETFs.

Good overview: https://www.pbs.org/newshour/show/all-the-financial-advice-y...

imakwana 4 years ago |

Bogleheads Wiki is the definitive resource, Start from the Getting Started page: https://www.bogleheads.org/wiki/Getting_started

Once you grasp the essentials, you can deep dive further with the recommended reading list: https://www.bogleheads.org/wiki/Books:_recommendations_and_r...

boulos 4 years ago |

If your employer offers a 401k with a match, you should do it.

To invest outside of an employer fund, you can open an account with any number of firms, but many folks like Vanguard: they have low fees and aren’t trying to up sell you.

There’s a vibrant community at bogleheads.org (their wiki is probably more useful, e.g., the three-fund portfolio). I think there’s a subreddit at r/personalfinance or something that’s reasonable as well.

As others are saying: use simple index funds, maybe even start with just a target date fund if you aren’t comfortable building your own portfolio.

andymoe 4 years ago |

401k is pretax. Usually you can change settings whenever you like though it usually takes a pay cycle or two to take affect. Pay yourself first (invest/save automatically) and budget with the rest. If you have goals like buying a house don’t forget to save for those separately so you don’t have to dip into retirement funds early and get hit with fees and extra taxes.

murm 4 years ago |

I think this video[0] fits nicely to your situation. JL Collins lays out how to invest for your retirement using index funds, explained in simple and commonsensical terms.

[0] https://www.youtube.com/watch?v=T71ibcZAX3I

aazaa 4 years ago |

You've said nothing about goals. I'd say start there and work your way down.

amotinga 4 years ago | |

updated

runawaybottle 4 years ago |

I’m going to suggest wsb. Start with a small amount and try to have fun. Add more as you gain confidence and determine your risk tolerance.

cweill 4 years ago | |

Don't gamble more than you're willing or able to lose though!

blacksqr 4 years ago |

Research target mutual funds. They're all many people in your situation need.

kyawzazaw 4 years ago |

/r/bogelheads

3minus1 4 years ago | |

r/personalfinance for me. I got a lot of use out of the primers and guides they link to.