Investing tips for a newbie?

[kingfc22]

I'm very interested to see what people advise to do as well.

[Greyroofoo]

So right now I have about $10,000 I want to invest. However there also seems to be about 10,000 ways to invest it.

So I implore you wise sages here at FOFC for any investing advice.

I really just want a place where I can put it for a couple years (or more) and earn interest, instead of letting it sit in my checking account earning nothing. I do not need to touch this money for the forseeable future. I also don't want to put it in some high-risk stock where I can lose money.

So is CoDs the answer? Mutual Funds? Money Market? Should I go through one of the many firms I see advertised on TV? :confused:

[Desnudo]

Interestingly $10,000 is just the amount I need to transfer several million dollars from my Nigerian bank where it was invested in oil to the USA. Please let me know if interested and God Bless you.

[Eaglesfan27]

Interestingly $10,000 is just the amount I need to transfer several million dollars from my Nigerian bank where it was invested in oil to the USA. Please let me know if interested and God Bless you.


:D

[st.cronin]

What do you want to do?

Are we talking about retirement? College fund for a kid? Speculating?

"Investing" is too broad a concept; you have to narrow your focus.

[SunDevil]

I would like to hear more about the retirement angle. I do not mean to hijack the thread, but if someone would like to impart some wisdom, I would appreciate it.

[Bubba Wheels]

Buy low, sell high.

Go with mutual funds. Divide your money into 5 categories. Invest 20% into aggressive, 20% moderately aggressive, 20% foreign stock markets, 20% bonds (to hedge against downturns), 20% into a 500 (top companies) index fund. Talk to a Fidelity guy on the phone about it (used to be free) and stay with no-load funds. Rebalance to 20% every couple of years.

[Greyroofoo]

What do you want to do?

Are we talking about retirement? College fund for a kid? Speculating?

"Investing" is too broad a concept; you have to narrow your focus.

basically to have more money than I do now. Right now I'm 21, single, debt-free, and in the air force. As I see it right now, I have 3 choices of what to do with the money:
1. Let it sit in my checking account earning virtually no interest.
2. Invest it and have more than the 10k when I do decide to spend it.
3. Blow it all on strippers and alcohol.

While I dream about option 3 I feel option 2 is the wiser choice. As I said before, I have no plans on spending it now but may use it later (maybe to buy a new car or something). I feel that if I invest it now I'll have more than the original 10k to use. So I guess I pretty much want "free" money.

[gstelmack]

$10K is nice because it's the minimum for a lot of funds.

CDs are one option, if you think you might want access to the money in 6 months or a year. Interest rates can vary widely, so check with your bank and shop around.

Index mutual funds are a good choice for longer investments. Fidelity has some excellent funds with low expenses, as do Vanguard. I'd recommend checking http://clarkhoward.com/ for some basic investing advice.

[moriarty]

basically to have more money than I do now. Right now I'm 21, single, debt-free, and in the air force. As I see it right now, I have 3 choices of what to do with the money:
1. Let it sit in my checking account earning virtually no interest.
2. Invest it and have more than the 10k when I do decide to spend it.
3. Blow it all on strippers and alcohol.

While I dream about option 3 I feel option 2 is the wiser choice. As I said before, I have no plans on spending it now but may use it later (maybe to buy a new car or something). I feel that if I invest it now I'll have more than the original 10k to use. So I guess I pretty much want "free" money.

Well, I personally am tempted by #3, but I agree with putting it in a mutual fund. At your age (assuming you won't need to touch the cash soon) I'd put it in an aggressive mix. You're young enough you can wait out the downturns in the market. You can get relative percentages from many websites. The mix someone mentioned above will work (although 10% for bonds is a bit conservative for my taste). You can usually get free advice from whichever brokerage firm you choose to invest with, or you can go see a financial advisor (for a fee of course).

If you want something really simple, invest in a spider account (which basically mimics the S&P 500). History says your rate of return will be much better than a checking account (and needless to say strippers).

[st.cronin]

I would say CDs as well. Dull, but probably most suitable for your situation. If in a year or whatever you want to put it in a house, that will be easy enough to do.

[terpkristin]

I'm in a similar boat to you, Greyroofoo, but a little older (26) and I have a mother who is crazy about investing and giving me tips on what to do with my money.


I can't give you specific recommendations about how to parcel out your funds, but I do recommend you give www.fool.com a good look. It's a wonderful site for n00bs and pros alike on investing. I visit it almost everyday, and I know my mom uses it almost daily as well...

/tk

[cartman]

Please, stop by for a free consultation. I have many happy customers. My main product is the Cartman Index Fund. $10,000 minimum investment.

Past performance is not an indicator of future returns. Some investments may decrease in value. In case of an erection lasting longer than four hours, seek medical help immediately

http://images.southparkstudios.com/media/images/616/616_image_17.jpg

[SnDvls]

since you still want to have some freedoms with access to the funds. And I presume you will want it in a few years for a large purchsase as you said (car or house) even though they don't earn a ton of interest it's much more than a savings or checking account I'd go the CD route as well.

I"m 30 and just started my own IRA. I own a home (mortgage payment) and have no 401k plan at work and neither does the wife. I have also set up a 529 for the little one. It's a pretty agressive IRA, but has enough of a buffer so as to not risk all of the funds in one area (diversity). Since you are in the military if you are an officer you could go with USAA, but watch out for annual fees for accounts...generally the annual fees are $40 or less per account.

[sabotai]

Let's try and make some money! MAD MONEY!

[digamma]

Vanguard has some really good options for first time investors. Their funds usually have the lowest fees when compared to places like Fidelity and T Rowe, etc.

[terpkristin]

Vanguard has some really good options for first time investors. Their funds usually have the lowest fees when compared to places like Fidelity and T Rowe, etc.

Agreed.
I currently have a Fidelity account, and will probably do something with Vanguard in the forseeable future.

/tk

[SirFozzie]

I'd go to vegas and put it on black.

[Marc Vaughan]

Greyroofoo - things to bear in mind before investing:

* Is there a chance through this that I will lose all or some of said money, if so can I afford to (ie. if you can't afford to lose it be more conservative where you invest it).

Secondly do you own your own house? - if not then investing in that might be an idea as at the moment you're giving someone rent and getting nothing back.

[Icy]

Greyroofoo - things to bear in mind before investing:

* Is there a chance through this that I will lose all or some of said money, if so can I afford to (ie. if you can't afford to lose it be more conservative where you invest it).

Secondly do you own your own house? - if not then investing in that might be an idea as at the moment you're giving someone rent and getting nothing back.

Second option would be the best one if you would live in Spain. Here the banks give you like a 1% interest, the stock market is always risky and on the other hand, in the last 5 years, the houses price grew a 30% in Spain (its slowing down a bit now, but still a growing at least a 10% per year).

So what i do is to invest on real state, my business is so unstable (internet related), so i can win a lot now and maybe nothing in the future. I need to be ready and for that i'm buying as much real state as i can (by now two homes in my city and one at the East Coast, close to the beach) and then i rent them. The mortages are paid by the rents money so in 20 years once the houses are full paid, i'll get a good retirement money from the rents or can even selling some if needed. Also i just bought the house in the beach to rent it on summer to north European tourist (that pay in 3 months almost the full year mortage) but we can go there and enjoy too in the non standard holidays where we won't rent it.

Of course that is for Spain, i don't know how is the real state business in USA so maybe this doesn't apply but i think real state is a good business everywhere, it can go up or keep stable, but almost never goes down. Also you will need a home in the future so you can start now.

[Desnudo]

I would say CDs as well. Dull, but probably most suitable for your situation. If in a year or whatever you want to put it in a house, that will be easy enough to do.

I agree. If you're looking at a short term window and don't want to risk the principal, then your options are limited. A mutual fund isn't worth the fees or the risk if you are only going to keep the money invested for a year or two.

Another easy option would be to put the money on Tom Brady winning the 2006 NFL MVP Award.

[IwasHere]

So right now I have about $10,000 I want to invest. However there also seems to be about 10,000 ways to invest it.


Where did the money come from?

If this is sometype of gift, then you should really think about enjoying it. Please don't stick it in some type of retirement program where you will not see it for 30+ years. Or, worst yet, put it in your checking account and watch it slowly vanish on little odds and ends that you will never remember.

Have fun with it. Take a 2-Week cruise with your sweetheart, buy a timeshare in Cabo, or make a pilgrimage to Christ's birthplace.

You are only young once, and you really should try to enjoy your youth.

BTW. Take lots, and lots of pictures on your adventure.

[Greyroofoo]

Where did the money come from?


being in military dorms with only $150 worth of cable, cell phone, and car insurance bills each month (also "free" food and I don't pay rent) its rather easy to save money.

[IwasHere]

being in military dorms with only $150 worth of cable, cell phone, and car insurance bills each month (also "free" food and I don't pay rent) its rather easy to save money.
Cool, then invest away, since this is money you have managed to save on you own.

My rule for investing for my golden years is 10% of everything I make gets thrown into longterm mutual funds. But, this is money you can't touch for a very long time.

[Gary Gorski]

Let's try and make some money! MAD MONEY!

BOOYAH!

Lots of good options here - you need to weigh how soon you want the money, how much you want to make and how much you are willing to risk. If you absolutely don't want to lose the money check around your banks and credit unions and get a good CD. If you're willing to invest for a number of years and are willing to take on some risk mutual funds aren't bad either - again like others have suggested make sure you check out the fees and don't just throw it all into one mutual fund - get 4 or 5 (and make sure they are all different types - not 5 aggressive growth funds) and let the fund managers grow the money for you. Of course check out the funds too to see what their holdings are and what the fund manager's track record is. Also websites like www.thestreet.com and www.fool.com have lots of good info for DIY investors.

[Logan]

www.emigrantdirect.com

Pays like a CD, but treated like a regular savings account so its liquid. Currently at 4.5%, and increasing as rates go up.

[lynchjm24]

The S&P's number 1 rated stock. Aetna. AET.

[lynchjm24]

Plop the 10k down on UCLA moneyline @+145.



Where did you get +145, they are +125 at bodog.

[B & B]

Plop the 10k down on UCLA moneyline @+145.

The game starts at 7pm EST. Less than three hours later you have yourself
$24,500 dollars now to invest.

Take the $500 as personal use.

$450 dollars will get you a couple of grams and some whores who 'want to party'

Have fun.

You will wake up in the morning and feel shame.

Take the remaining fifty bucks and send it to a church/charity/youth ministry.

You will feel better about yourself.

Now you have 24,000 bucks to invest, but at this point I have to start charging you for consultation.

[B & B]

That was the line I bet on this afternoon just after 1:00 est. As with any financial market, odds are subject to change.
Straight Wager 03/25/06 13:27 ET
xxx.xx/xxx.xx Result: Pending
UCLA
MemphisU 03/25/06 (19:10 ET)
UCLA +145

[lynchjm24]

As with any financial market, odds are subject to change.
Straight Wager 03/25/06 13:27 ET



I'm curious about the financial market where a mere $450 will get you grams and mulitiple girls. That's quite a price :).

[Solecismic]

I've enjoyed using the Vanguard No-Load Mutuals. Sadly, I had to close just about all of them to make the down payment on our new house.

$10k is their minimum for accounts, but under that, they only charge $10 per fund per year. If you're conservative (never a bad idea), I'd pick something broad, like their Total Stock Market Index fund, and put it all in there. I've had a lot of success basing much of my investment on a GNMA fund and a REIT fund, but both of those are bad bets right now.

In your situation, sometimes a high-growth fund, which carries a little more risk, is worth while. I do keep some money in their Morgan Growth fund, which has done extremely well. But I think it's closed right now to new investment. They have other funds in that category, though, including a Growth Index Fund.

Some people like various foreign investments. There's an Asian fund and a European fund, among others. Those can be high risk, too.

Just go to the Vanguard web site and read about the funds, see what appeals to you. Don't obsess over past fund performance. It's largely irrelevant in the mutual world because fund managers weed out problem stocks over time. It's all about risk level and fund type. Bonds are less risky than stocks, but don't provide the same opportunity for large gains.

[B & B]

I'm curious about the financial market where a mere $450 will get you grams and mulitiple girls. That's quite a price :).


The Four fifty is for the candy and some flash cash. The whores are sure to follow. Apologies if that was vague.

[lynchjm24]

The Four fifty is for the candy and some flash cash. The whores are sure to follow. Apologies if that was vague.


It's ok, it was good advice. I got on board at +125.

[flere-imsaho]

A great website for reading up on the options (and they're not affiliated with anyone) is the very mis-named http://www.fool.com