Hello everyone, I've built a decent amount of savings over the years and I'm ready to start investing some of it. When it comes to personal finance and creating wealth, there is no better long-term investing strategy than the stock market. But how do I start investing? What do I need to know? Please help me. Thanks, alexasmith.
Nice job for your savings. Unfortunately money can't buy return on investment. The more it pays off, the riskier it is. And risk can take it all. There are safer vehicles than stocks (Shares), but less rewarding ... From safest to riskiest: - You can earn dividends from the government (Gov Bonds) - You can earn dividends from listed companies (Dividend Stocks) - You can earn / loose the difference between price fluctuations (Shares) Actually you will have to learn a bit. It's not enough to have money. Lots of people just lost it all. I really wish you to do otherwise. I don't invest in stocks. And most of us are (hopeless) gambler. So don't believe everything you read. Actually, follow your intuition. My advise is to learn about those three products, The basics. You have investopedia.com which has great informations. If you have questions, stuff you don't understand or opinions to ask, You're welcome there. But you ain't learn anything here. It's just a place to sharpen the edge of your thoughts. How much do you expect from your investments ? In terms of returns ? Let's say per year ? So you wanna do it yourself. And that's great ! But it takes time to learn ^^ If you're lucky enough, the stock market will crash this year. So that you would be able to begin to buy low. Actually there are many way to invest your money. We're as many ETs as methods, approaches. And we can't choose for you how to do so. But to start your own journey, I'd advise you to ask to yourself: - How much time can I afford to my investment ? - How willing I am to experience big swings in my portfolio ? Then with those answers, new questions. Actually, you're a bit mysterious.Yeah, I mean ... We need to know more about the way you envision that thing ! Hope it helps.
Just buy the SPY, S&P 500,...if you're interested in investing for the safe long haul. -- you run the risk of ruin if you start to try to choose the few handful of stocks that rise above and beyond the average. (If you want bigger, more aggressive, trading returns...then that's for another topic thread.)
I believe that the best way to "invest" over the long term if you are not trading, is dollar cost averaging. It works better in a IRA, Roth IRA or 529 savings account because of year end taxes. Pick a mutual fund that represents your risk tolerance, and buy the same dollar amount each month. When the market is lower, you will get more shares, when higher, you will buy less shares, but the same dollar amount. Over time you can add different funds and slowly increase your allocation. The issue I have with mutual funds are that many have internal high fees and you get a tax bill at the end of each year. Do this with ETFs can avoid the high fees and year end tax bill, but it is harder to buy $500/month in an ETF. The above accounts avoid the year end tax bill.
Trade, maybe, invest, I think it is always a good time to get started. I know someone that last year cashed in a mutual fund they bought 25 years ago in their IRA. They put in around $58,000 and now it's worth ~$250,000. That is a compound return of around 6%.
. to start with, [i hope you know ] you can get 1%+ in an online savings account as far as long term investing [your words] it all Starts with your Age, as to how much % you should have in the stock market [the older you get, the less % in equities (stocks)] dollar cost averaging is good, as mentioned, especially in this market, because my sources tell me, they don't know where it's going, or when marc
%% Invest regular AlexaSmith ,like, SPY,DVY, DIA or [SSO, leveraged, NOT as good a dividend.....]; or something like that-NOT a prediction. About the MOST helpful is free 10 day subscribe to IBD, i prefer the newspaper[paper edition] myself. Might as well get ,@ library, or buy all William O Neil's books. Smith & Wesson is a good IBD stock, but stay away from single stocks until you are very experienced.................................................................................. Wisdom is profitable to direct; planned sellers win.Panic sellers LOSE. If you pray , pray before you get in; worst way to pray, is ask God to fix your mess- but that can work-LOL This is an educational comment; NOT a prediction or investment advice......