Getting Started Investing

[auron]

Hi all,

I'm sure it's been asked before, but where do you start when learning to invest?

I've read these forums and basic literature regarding investing (stocks/bonds/assets) but can't say it really sunk in from just reading.

My Goals/Facts:
-Use a small portion of my disposible income to build wealth outside of my normal income.
-Medium/long term horizon
-25 years old high risk tolerance with the money I will be using
-I'm currently investing in a Target Date Fund (2050) with Vanguard to take advantage of my company's match on a Roth IRA
-Starting out small ($50-100/mo at most)

Any qualatative advice on where to start would be greatly appreciated.

[AccountantSalary]

When I first started investing back before the civil war, I started with mutual funds because they spread the risk, didn't require sophisticated stock market knowledge and were easy to get into and out of. Look for ones that charge no load (commissions), have a large number of funds and have low minimums. This will get your feet wet, earn you some money and allow you to learn about things like reading financial reports and prospectuses.

[Gina23]

Just went through this with my SO.

For her it clicked when she stuck to a budget and had money left over that she could physically see. Once she could see that leftover money and realized her lifestyle hadn't changed that much by sticking to a budget, there was a feeling of accomplishment. Once you get that, it's addicting in a sense. Once she got used to a budget, she was comfortable taking money out pretax and investing it.

You have to show yourself that you can live on a certain amount while still budgeting for upcoming trips, car maintenance, etc...

G

[snafu]

Aron, no one cares as much about your money as you. It's boring but very important to set goals. I believe 'investments' need a minimum of 5 years; less is speculating. Free seminars are sponsored by financial companies with salesmen trolling for clients. It's worth the hour or two to listen to these presentation, most valuable Q&A exchange and freedom to ask questions that help you understand but not yet buy... Most Mutual Funds [MF] have DCA [dollar cost averaging] programs making it easy to accumulate sums painlessly. A lot of people start with a low MER [management expense ratio] Index Fund like Vanguard, since you're familiar with that company.

When you've accumulated sufficient value in your Index MF, you could sell and use those monies to buy the equivalent ETF since they have only buy and sell fees, tiny MER. I presume you will continue to learn about Equities and Bonds to be comfortable evaluating the top ten holdings of any MF/EFT you might consider. That's when buying individual stocks gets profitable with an ameliorated level of risk.

[jpg7n16]

Aron, no one cares as much about your money as you.

I've seen this phrase used a couple times lately, but I'm not sure what you guys mean by it.

No one cares as much about my air conditioner as I do, but that doesn't mean I should learn more about it, how it works, or how to fix it.

I agree 100% with the rest of your post, I just don't get the point of this phrase. What do you mean by it?

[aditi]

just start to take small position and watch the market concentrically. you will get profit and many more to learn.

[Gina23]

I've seen this phrase used a couple times lately, but I'm not sure what you guys mean by it.

Agree, I only think this (overused) phrase only applies to whether you should use a financial advisor or not.

[jpg7n16]

Agree, I only think this (overused) phrase only applies to whether you should use a financial advisor or not.

Okay, are you saying that when talking about using a financial advisor, it applies? No one cares as much about your money as you do, so don't even consider the possibility of having professionals manage it for you? I would think the more you care about making sure your portfolio is managed correctly, the more open you'd be to the idea of an advisor...

No one cares about your car as much as you do, therefore don't even consider the possibility of having professionals do the maintenance for you. Does caring about my car turn me into a better mechanic?

It's just odd to me that people are willing to pay other professions to do things that you can learn to do yourself, but won't even consider the benefit of paying someone to run your portfolio for you. Maybe you consider it and it's not right for you. But what if it is?

For a person like the OP, caring can be an incentive to learn more. And obv OP wants to learn, so hopefully he'll get to a point where he doesn't need an advisor. For right now, I'd say stick with the target date fund while you learn. And check out Investopedia: The Webs Largest Investing Resource. Lots of good info there to help you learn.

[jasonbinary]

Before you invest, you should ask yourself a couple of questions. These questions could help you measure your readiness to invest money through a financial instrument. Even if people claim that it is wise to invest money at an earlier age, it is still wiser to gauge if you can handle the responsibility of handling your assets and diversifying them in the long run.

[rvtraveler]

Here is a link to a 1/2 hour show you may be interested in https://www.tastytrade.com/tt/shows/wdis

Plus other great info for traders.

[thesimplemoneyblog]

Investopedia.com is a good, quick resource when you have questions.

Also, most of the Motley Fool books are good to help you learn about including the Investment Guide for Teens.

[ccole]

I believe you can go online and some stuff about investing and from there you can get valuable ideas to start on.

[DividendInvestor]

Nice thread for Newbies

I am agree with col statement. you go online and do some research accourding your requirements. This is a great platform of searching.