Investments?

Dozerboy

Dozerboy

Detailing Reject
Need some tips from y’all that are into this stuff. With the market like it is right now it seems like a good time to start, but I don’t even know where to begin. The only app I know of off the top of my head is Etrader. Anything better out there? If the price of airlines, hotels and etc it almost seems like an easy low risk opportunity. I maxed out my IRA and work don’t offer 401k, so I got to find something to do with my money. Other then toss it in a savings account I’m not ready to jump into Real estate.

Thanks


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The Driver said:
Real estate, unless your prepared to do ALOT of homework be VERY careful with the market.
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Any suggestions other then becoming a land lord? I have enough on my plate then to deal with renters.

I’m not looking to be the next Gates. I would just throw out there what I can afford to lose and let it ride.


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Try funding a ROTH IRA in addition to the traditional. Whatever you put in is after-tax, and thus tax-free when you pull them out. It`s worth doing the homework (to me), but also consider mutual funds. That doesn`t leave you as at much risk than if it was single stocks. Finding a good investment pro is key as well who can teach you what`s going on.

Gordon
 
gordonjuan said:
Try funding a ROTH IRA in addition to the traditional. Whatever you put in is after-tax, and thus tax-free when you pull them out. It`s worth doing the homework (to me), but also consider mutual funds. That doesn`t leave you as at much risk than if it was single stocks. Finding a good investment pro is key as well who can teach you what`s going on.

Gordon
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You cant MAX both a traditional and a Roth IRA. FYI to the OP. You have a total IRA max ($6000 if under like 50) $7000 if older than 50.

https://www.irs.gov/retirement-plan...yee/retirement-topics-ira-contribution-limits

As to WHAT to buy, that is something you dont want just anyones advice on man. I can give you one resource that may help some but by all means it isnt the end all be all. He has a very popular book called "The Simple Path to Wealth"

https://jlcollinsnh.com/stock-series/
 
The best investment I made decades ago was hiring a good team to do my investing and diversification. I`m only down 7% with a conservative investment strategy with low beta rankings. Yes, They will be adding large cap stocks since they are on sale!
A good professional can work with your tax person and save you money again when capital gains overwhelm you!
 
John U said:
The best investment I made decades ago was hiring a good team to do my investing and diversification. I`m only down 7% with a conservative investment strategy with low beta rankings. Yes, They will be adding large cap stocks since they are on sale!
A good professional can work with your tax person and save you money again when capital gains overwhelm you!
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This.
 
Real estate ,while normally a good investment in "normal times" was not for many with the start of the Great Recession in 2008-2009 and saw their home that they bought at a "hot market" price before the collapse of the housing market depreciate in value and having a negative equity and making house payments on something that was not appreciating, hence they were loosing money, albeit they had a home to live in.

Investments take on a lot of different meanings, and by that I mean most individuals see it as something you will make money on as an appreciable asset; IE whatever you bought and own should increase in value over time. That is subject to what the market is willing pay for the asset you bought or own and a simple economic principle comes into play: the law of supply and demand. As one financial adviser told me, "The market is driven by two things: fear and greed."

Making investments on your own is pretty heady stuff and requires a lot of research and time to do it properly. I will give you a couple of good reasons to use a financial adviser.
One, if they are certified or registered, they have the know-how and training to do so.
Two, they have software and programs available to them that you do not. It is a stacked game and the milliseconds of time for the release of economic information that effects the market allows syndicated investment firms to make money based on their specific analysis and program analytics, which is why you pay a fee for their services.
Three, they may have portfolios and investment strategies based on your risk-tolerance so you can sleep at night and not worry about your investments; they do the worrying for you.
That said, all this is thrown out the window with the current pandemic and its effect on the overall USA and world economy. We are in uncharted economic waters and if anyone can predict how our US economy will come out from this, it is anyone`s guess. If it goes from bad to worse and we start a recession or even a depression, then hard assets are the investment vehicle of choice; AKA precious metals like silver, platinum, and gold.

One gentleman told me that in a depression, the only two forms of money are whiskey and bullets. Given the panic buying of both of these items in mass quantities here in my conservative, but hard drinking and sport hunting, state of Wisconsin over the last few days, that jocular advice takes on a whole different consideration given the current state of affairs in this society and nation.
 
Real estate is going to be amazing if you have the capital, with rates this low it`s an excellent time to buy or if you own already to refinance and get a lower rate. If I had some rental properties I`d re-fi in a second, as far as the problem of dealing with the headaches, looking into property managers. They take a cut but allow you to live your life and simply collect a check for the most part.

As far as the market, DO NOT just play the hope it goes well or I heard from a friend game, it never works out. You NEED to know that stock like the back of your hand, patterns, future projections, external effects and to a degree common sense.
 
I retired very young and have lived off my investments for decades; they`re my only source of income. It`s not as easy as many would have you think and the vast majority of people who are "active investors" underperform the broader markets and should just stick to Index Funds. The vast majority of my $ has been managed by highly experienced Pros with good track records whom I`ve known for ages.

Remember that *people lie*. All the time. It`s hard to imagine just how untrustworthy people involved in Investing can be. Even people you`d expect to be 100% stand-up. Even when "lie" might not be the exact right term, it can be a fine line between truth/fiction.

Dozerboy said:
I’m not looking to be the next Gates. I would just throw out there what I can afford to lose and let it ride.
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I`d *NOT* think about "what you can afford to lose" as that mindset is far too much like gambling for my taste, and Investing shouldn`t be akin to gambling (or to "trading" which is completely different).

If you want to DIY your investments, I`d sure do a *LOT* of studying, and I don`t mean just a month`s worth or even two. IMO, ETrade is often (usually?) a better stock to *own* than it is a means to invest your money (though my Financial Stocks guy pulled out of ETrade a while back).
 
dcjredline said:
You cant MAX both a traditional and a Roth IRA. FYI to the OP. You have a total IRA max ($6000 if under like 50) $7000 if older than 50.

https://www.irs.gov/retirement-plan...yee/retirement-topics-ira-contribution-limits

As to WHAT to buy, that is something you dont want just anyones advice on man. I can give you one resource that may help some but by all means it isnt the end all be all. He has a very popular book called "The Simple Path to Wealth"

https://jlcollinsnh.com/stock-series/
Click to expand...

Thanks for the catch and clarification Don. I should have put that in there and didn`t.

My clarification, I`m using pros and I`m not down like others. I don`t intend on leaving the markets anytime soon though. In it for the long haul - as anyone should be in the markets.

Gordon
 
The Driver said:
Real estate is going to be amazing
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Not necessarily. Housing is creeping up in value slowly, 3-5% a year, pretty close to mortgage rates. Unless you pay cash, the mortgage will keep you current with value. The glory days of flipping homes is past. (my neighbor is a flipper and starving for a good buy). I`ve been trying to buy another home (more garage needed) in Scottsdale (#1 housing market in the country). Even in a hot market when you see what the current owner paid (It`s in the listings)... many are selling below what they paid!!! I looked at a home the owners were selling for what they paid (2 yrs ago) after they sunk another $125,000 into it.... it still was not worth what they were asking because of the work it still needed!!! One I wanted (lakefront..yes in AZ) I had to walk away from..... running my own comps vs others for sale and sold on the same street made it $250K high.... before $150K fixing costs. It sold for list... If they try to resale it in the next decade they will take a loss.
 
I`m personally all about rental properties but that`s just me, as far as flips they do work but only if you have the inside track with a contractor and a realtor. If your an average Joe off the street it`s very hard to come out ahead, esp with no experience.
 
Accumulator said:
It`s not as easy as many would have you think and the vast majority of people who are "active investors" underperform the broader markets and should just stick to Index Funds.
Click to expand...

We all know people like that.... reminds me of a gambler. They are always "up" in the game, they never count a loss! :unsure:
 
John U- Yeah, easy to, uhm...play games with yourself. IMO there`s no such thing as "playing with the House`s money".

I`d equate Investing with, say...taking a rotary to BMW Jet Black. Fine for the right people, all three or four of `em ;)

And I hear you on Scottsdale! Man, it`s been like that since forever, my wife and I considered it back in the `90s only to decide that staying in OH was better for us.
 
Health-related investments might be a flash-in-pan opportunity. Remember that you want LONG-TERM gains, not short-term ones (due to the differing Capital Gains Tax rates). If it`s not gonna pay off at least 12 months from now I`d call it "Trading" rather than "Investing", and I don`t play that game. A year from now we may very well be over this whole Pandemic situation, at least with regard to impact on the Market, and profiting from a "V-shaped drop/rebound" is what I`d focus on.

There are indeed a lot of good investments that`re "on sale" now, but it`s still awfully early in this whole situation and I`m more about not making mistakes than finding big opportunities.

If somebody has debt (OK, other than a mortgage) maybe they oughta pay that off before doing any investing. Even with seemingly low/easy to handle rates, debt repayments that always happen can become a burden during downturns. Some think "that 5% rate is nothing, I`ll always make more than that and have the diff to spend!" but IME that`s, uhm...beyond optimistic. Personally, while I`ll use a HELOC since the house is otherwise paid for (and thus a huge investment sitting here not making any $ and we don`t have heirs to consider), I simply won`t go into any other kind of debt. Even with the HELOC, I won`t let its balance get higher than I can pay off if I really need to.
 
Accumulator said:
Health-related investments might be a flash-in-pan opportunity. Remember that you want LONG-TERM gains, not short-term ones (due to the differing Capital Gains Tax rates). If it`s not gonna pay off at least 12 months from now I`d call it "Trading" rather than "Investing", and I don`t play that game. A year from now we may very well be over this whole Pandemic situation, at least with regard to impact on the Market, and profiting from a "V-shaped drop/rebound" is what I`d focus on.

There are indeed a lot of good investments that`re "on sale" now, but it`s still awfully early in this whole situation and I`m more about not making mistakes than finding big opportunities.

If somebody has debt (OK, other than a mortgage) maybe they oughta pay that off before doing any investing. Even with seemingly low/easy to handle rates, debt repayments that always happen can become a burden during downturns. Some think "that 5% rate is nothing, I`ll always make more than that and have the diff to spend!" but IME that`s, uhm...beyond optimistic. Personally, while I`ll use a HELOC since the house is otherwise paid for (and thus a huge investment sitting here not making any $ and we don`t have heirs to consider), I simply won`t go into any other kind of debt. Even with the HELOC, I won`t let its balance get higher than I can pay off if I really need to.
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Well said.
 
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