Joined: 08 Oct 2011
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Joined: 12 Jun 2011
Posts: 119
 Posted: Sat Oct 08, 2011 7:24 pm?? ?Post subject: |  |
| It's all about risk and reward -- the sources that have the highest historical gain have also had the most short-to-medium-term risk. What's the plan for the money you'd like to invest? Is this for retirement in 30+ years, home down payment in < 10 years, or something else? Are you looking to invest in a tax-advantaged account such as 401k or IRA, or a taxable account?
I suggest that you explain what your goals are, and read up on the wiki: http://www.bogleheads.org/wiki/Getting_Started Last edited by zaboomafoozarg on Sat Oct 08, 2011 11:34 pm; edited 1 time in total | |
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Joined: 02 Feb 2008
Posts: 1643
Location: Illinois
| Posted: Sat Oct 08, 2011 7:58 pm?? ?Post subject: | |
Welcome to the forum  .
Here is a good place to start your real education on investing, Investing Essentials: A Primer -- http://investingroadmap.wordpress.com/ . Skip the day trading. Look for low-expenses, broad diversification, and tax efficiency using index funds. Do you have access to a 401k at work? If not, think about opening an IRA at Vanguard to start. | |
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Joined: 08 Oct 2011
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Joined: 04 Sep 2011
Posts: 27
Location: Sunny Arizona
| Posted: Sat Oct 08, 2011 8:24 pm?? ?Post subject: | | ||
I would invest $5k into a roth IRA for this year and another $5k at the beginning of next year. The advantage of the Roth IRA is that you can withdraw the contributions if there is an emergency. You may want to look into target retirement or life strategy (growth) funds offered by Vanguard for a one fund choice. | |||
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Joined: 27 Feb 2007
Posts: 4695
| Posted: Sat Oct 08, 2011 9:44 pm?? ?Post subject: Re: where to start for a 22 year old | | ||
Hello saied and welcome to the forum, Unfortunately there is no real way to invest in the stock market in a safe way and be sure of a return >1%. Some years the stock market goes down a lot. In 2008 for example the s&p 500 lost 37% and other markets (emerging markets) did worse. As they say, you pay your money and you take your chances. If you want to guarantee a return of 2.75% you could invest in 7 year pen fed cds.
As far as the stock market goes, the two funds I would recommend are the Vanguard Total Stock Market Index (VTSMX) and the Vanguard Total International Stock index (VGTSX). Probably in a 70/30 ratio. There is also this fund:
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Joined: 14 Dec 2010
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Joined: 28 Feb 2010
Posts: 737
Location: San Fran Bay Area
| Posted: Sat Oct 08, 2011 11:14 pm?? ?Post subject: | |
| Welcome to the forum.
Take your time. You are off to a good start with your savings. At this point in your investing life cycle, your SAVINGS RATE is much more important than investment rate of return. Once you have a bigger nest egg - your rate of return will be more important. But at this point - not so much. Wealth is accumulated by spending less than you earn, not by hitting a jack-pot on the stock market. So don't gamble, try to pick the next Google or Apple - and risk losing it all. Take the recommended slow and steady approach. Read the Investing Startup Kit here: http://www.bogleheads.org/wiki....art-up_kit Consider a simple 2 or 3 or 4 fund portfolio. Keep it very simple! Write up your plan. http://www.bogleheads.org/foru....hp?t=69802 You can revise it as you learn - but don't change it based on market news - only change it based on new personal knowledge and personal circumstances. Pick a Lazy Portfolio to start: http://www.bogleheads.org/wiki/Lazy_Portfolios Nobody knows which will do best over the next 3/5/10 years - so just keep it simple until you have a very very very good reason to get more complex. Start conservatively - mostly bonds - say 25% stock/75% bonds - until you get some cushion built up - donno - say $100k - and you get some experience watching the wiggly lines on the charts. Then switch to "age in bonds" when you have >$100k Look into the Core Four: http://www.bogleheads.org/foru....hp?t=10413 Perhaps something like:
Phew - I've written too much. good luck. | |
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Joined: 08 Oct 2011
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Joined: 02 Feb 2008
Posts: 1643
Location: Illinois
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Joined: 08 Oct 2011
Posts: 5
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Joined: 02 Feb 2008
Posts: 1643
Location: Illinois
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Joined: 08 Oct 2011
Posts: 5
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Source: http://www.bogleheads.org/forum/viewtopic.php?t=83874&start=0&mrr=1318169934
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