How do I start investing?

#1

Post by amotinga » Sun, Jun 27, 2021, 10:44 PM UTC

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.

Re: How do I start investing?

#2

Post by aazaa » Sun, Jun 27, 2021, 10:47 PM UTC

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

Re: How do I start investing?

#3

Post by amotinga » Sun, Jun 27, 2021, 10:52 PM UTC

aazaa wrote: post #2

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

updated

Re: How do I start investing?

#4

Post by andymoe » Sun, Jun 27, 2021, 11:07 PM UTC

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.

Re: How do I start investing?

#5

Post by blacksqr » Sun, Jun 27, 2021, 11:17 PM UTC

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

Re: How do I start investing?

#6

Post by WheelsAtLarge » Sun, Jun 27, 2021, 11:41 PM UTC

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.

Re: How do I start investing?

#7

Post by boulos » Mon, Jun 28, 2021, 3:08 AM UTC

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.

Re: How do I start investing?

#8

Post by murm » Mon, Jun 28, 2021, 8:36 AM UTC

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

Re: How do I start investing?

#9

Post by ruben81adelaide » Mon, Jun 28, 2021, 10:52 AM UTC

WheelsAtLarge wrote: post #6

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…

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.

Re: How do I start investing?

#10

Post by mtberatwork » Mon, Jun 28, 2021, 4:45 PM UTC

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...