New investor with $10k....what you got?
- Thread starter Flameout12
- Start date
Whatever you decide to buy, buy it in several smaller lots so you can dollar-cost average to a lower average cost. With today’s commission-free trades by almost all brokers, you can buy and sell in much smaller lots.
If you’re young, you might enjoy buying tech stocks during dips (Apple, Microsoft, etc), but if you’re older and enjoy income, then Business Development Companies that pay huge dividends (FDUS, SAR, HTGC, etc) might be your cup of tea.
Read Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Bogle). I know too little about your situation to provide a detailed response.
Don't seek investment advice from someone who is selling you something else. Be skeptical of advice received on sports message boards.
Don't seek investment advice from someone who is selling you something else. Be skeptical of advice received on sports message boards.
True, but FGF did have a thread back in March 2020, and some posters showed their investing chops and had some really good suggestions. The posters with Tesla recommendations were the big winners!
https://southcarolina.forums.rivals.com/threads/ot-stock-market-will-go-up-what-to-buy.326941/
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Flame, over the past 5 years, just 17% of mutual funds did better than the S&P 500 index. Most money managers do not perform better than the S&P 500 index. That has been the case for a long, long time. Warren Buffett, considered one of the greatest investors of all time, has instructed the trustee in charge of his estate to invest 90% of his money into the S&P 500 for his wife after he dies. The remaining 10% will be invested in short-term government bonds. Regardless, there are no guarantees. When the market goes down, most investments take a hit. If you invest your monies into a S&P 500 index fund, your investment will do better than most. If you go in that direction, two good etfs are SPY and VOO. Both pay a dividend currently of 1.54% and 1.56% respectively.
If you want to have fun and a little adventure, you can always invest in individual stocks and sectors of the market. Or, you can always blend the two approaches like going 80% into an index fund and 20% in individual stocks/sectors. But, any young person coming out of college, would be wise to just put in, say $1,000/month into an index fund and let the market do its thing. After about 20-30 years, based on historical results, that young person would probably become a multi-millionaire. Having said all that, I know little, and claim less.
If you want to have fun and a little adventure, you can always invest in individual stocks and sectors of the market. Or, you can always blend the two approaches like going 80% into an index fund and 20% in individual stocks/sectors. But, any young person coming out of college, would be wise to just put in, say $1,000/month into an index fund and let the market do its thing. After about 20-30 years, based on historical results, that young person would probably become a multi-millionaire. Having said all that, I know little, and claim less.
My best tip is to not take advice from anyone on sports board...
To build on Gamecock Stock's post, take a look at interview with Warren Buffett. Also, watch video about the power of compound interest. It supports Gamecock Stock's post.
A group of Wharton students wrote an interesting article about Jim Cramer's picks. Click here to read.
I hope you are taking full advantage of Roth IRA and employer-sponsored plans if available (Roth 401K if possible) and avoiding high-interest debt. Accumulating wealth is not complicated and middle-class Americans can do it.
If you've only got $10k, you best put it into a CD or something very safe. You may need it and you cannot afford to lose it.
Assuming you got all your debt paid off and have a few months-worth of expenses in your emergency fund?
I think it's high. I'm willing to roll the dice. I got burned years ago in mutual funds, but conditions are very different for me now.
Thanks!
I wouldn't trust the stock market at this point. Had a huge run up over the last couple years. With a democratic administration in place they are going to strangle things with regulations and tax increases. And you can see inflation already starting. Put it in something that guarantees a return, no matter how small,
Check out the XL series of ETFs that follow sector indexes. XLF finances, U utilities, K tech, they are SPDR ETFs. You can basically create your own S&p500 and choose your own weighting’s. Which is nice in a time like this where tech is getting ready to take a beating, and the s&p is top heavy with tech. Finances, utilities, energy, and consumer staples are good right now. Low cost, trades like a stock, and you can tailor your approach and still keep good quality investments in your portfolio.
I’m doing a lot of short term cd’s right now (6 months, 12 and 18 months). Interest rates for those aren’t too bad and I know I won’t be needing the money I put in them. I’ve bought a few stocks but my portfolio is pretty much the same as it’s always been. I like to play it safe with guaranteed returns.
I tried to help them. It is documented! Ironically Tesla is at its lowest point this year because of an Elon tweet and investment in bitcoin. He’s been known to tweet dumb stuff and the stock tumbles from time to time. Might be the perfect time to jump in it again though as rumors of a $25,000 Model 2 are heating up. With tax credits could be had in the US for as little as $19,000. Going to be a game changer when it happens.
So is it possible to create an account somewhere and just buy stock, or do you have to use a broker?
In reality, when you open an account you are using a broker. Even though you may never speak to a live person when you trade, the brokerage firm employs brokers that represent you. I haven’t spoken to a live person since I opened my Scottrade account 20 years ago. In that time I’ve placed about 700 trades.
There are so many questions to be asked.
- How old are you?
- Are you married? If so, do both of you work?
- Do you have children? If so, how many and what ages?
- Do you have an emergency fund?
- Do you have any non-mortgage debt?
- Are you funding retirement (e.g., Roth IRA, 401K/403B, 457)
- If you have children, do you plan to contribute to their postsecondary education expenses?
- Do you have adequate insurance coverage?
- What are your financial goals?
- What is your risk tolerance? You indicated, high!
- You wrote, "I got burned years ago in mutual funds." How?
In 1988, my college roommate bought a Dell computer. The rest if us had never heard of Dell, but we were impressed. In 2002, I started using Netflix, and really liked the concept--much better than Blockbuster. A few years ago, a friend bought a Tesla. I liked the look, build quality, etc. I am not a sophisticated investor, but I pay attention to well-managed companies that produce innovative or superior products and services that I like and understand. These situations represent investment opportunities that require further research.
Thanks....I'm comfortably retired with a small and manageable mortgage. I have excess savings (hence the $10k gamble). No outstanding debts or financial goals. Life is good, so the risk is almost 0.
I'm in your boat, Flameout. If anyone has ever seen the Dan Ackroyd/Eddie Murphy movie, "Trading Places", the last scene in that movie is one I can now identify with. Dan Ackroyd is on his boat with Jamie lee Curtis and a beverage in his hand. He yells to Murphy who is on the beach with his girlfriend and a beverage, saying, "Looking good, Billy Ray." Murphy yells back, "Feeling good, Louis".
This is the correct approach. I invested about 40% of my money in index funds and the rest in so-called blue chip stocks for the last 25 years. The index funds have done really well, as have a couple of the stocks (MCD, LMT), but the dogs of the group (GE, BAC, etc.) unfortunately make up the rest of the group. I'd be rich if I had invested in mutual funds/index funds the whole time.
GE has been the dog of the past 15 years.
Tell me about it. Welch and Immelt drove it into the ground.
I have a family member who enjoys playing the stock market. Some collect and trade baseball cards, some collect and trade stocks. It sounds like you want to collect and trade stocks. You have taken care of your responsibilities and can afford to lose $10,000. Have fun and good luck.
Of course you could invest in commemorative plates (Jeff Foxworthy).
If it’s really play money, options are where the most fun is to be had and profit to be made.
If not options, in almost all cases it doesn’t do much good to “time” the market, but with a large chunk of fun money you could take risks and try to time buys. Pick a stock like Tesla and just set a buy limit as you see it drop and a sell limit when you buy in. You’d be up $400 or so today, had you bought in over the last few days.
The guy who runs GE now, can't remember his name, did real well at Danaher. Has he been a bust at GE?
I just bought UVXY for a swing trade. Its as low as ive ever seen it and GME has started running again which might cause some volatility in the market as a whole.
This is solid advice. Find a company/product/service that people will have demand for in the future but don’t know it right now and you’ll always invest in a winner.
GME still has a short interest of about 30 percent — the wallstreetbets guys may be making another squeeze run. One guy says if they all hold and buy they could see a price of $5,000 or better. I don’t trust that they’d hold their shares when it gets into the $1,000 range. I’d ring that cash register whenever I hit a 100 percent profit.
If I had $10,000, I would split it and put half in IPOE and the other half into PSTH.
This person can help you and give you good advice, after all he is a gamecock.
https://www.reddit.com/user/Deep****ingValue/
