🌎 Anybody do any investing?

[sean]

I need to make some extra money for late; so I've been thinking of getting into some investing. Yes, I know the risks. And I'm not talking about becoming a Wall Street magnate or anything like that. I'd just like to start putting some money into something that will grow and allow me to live a bit better when I retire. I have a 401k, but I'd like something else to go along with it. I have a savings account that draws interest, but it's not a lot.

So does anyone have any tips on where to start or who to contact or anything like that? For starters, let's stay very, very small and say $1000. That can go higher the more I can save. It would be more, now, but life has decided to hit me with some unexpected expenses (home-wise, health-wise, etc.) so I just have to work with what I have.

Thanks in advance!

 

[Krimson]

I need to make some extra money for late; so I've been thinking of getting into some investing. Yes, I know the risks. And I'm not talking about becoming a Wall Street magnate or anything like that. I'd just like to start putting some money into something that will grow and allow me to live a bit better when I retire. I have a 401k, but I'd like something else to go along with it. I have a savings account that draws interest, but it's not a lot.

So does anyone have any tips on where to start or who to contact or anything like that? For starters, let's stay very, very small and say $1000. That can go higher the more I can save. It would be more, now, but life has decided to hit me with some unexpected expenses (home-wise, health-wise, etc.) so I just have to work with what I have.

Thanks in advance!

How long are you looking to leave it alone? There are a lot of variables in investing with the biggest being time and how comfortable you are with risk. For most people who are looking for long term the easy and relatively safe long term would be the SP500 which averages around 10% over time so double your money every 8 years or so but some years you make 20% some years you lose 25%. Day trading is just gambling unless you're really knowledgeable and then it's gambling with educated guesses.

 

[sean]

Basically I just want to get some money working and just leave it alone until I retire (currently 54). I've read a tiny bit about mutual funds, but don't really know a lot about it. So I don't know if that's something I should look further into.

I just upped my 401k contribution another 2%. When I was at Home Depot, I had it at 20% (started at 10% and went up a little bit every year until it hit 20%). At my current job, I started at 10%, then it went up to 13% in March (I started in March of last year). I had it set to go up 3% (maximum allowed) every year until it hit 20%. But I just bumped it up to 15% and set the maximum at 25% (going up 3% every year until it hits max).

And I have a thing on my HSA where they'll invest some it for me, but I don't get to pick what they invest it in. And it's only anything over $1000. So the initial $1000 is still there, but anything above that would get invested. Again, on what THEY put it in. I think I can pick the TYPES of investments, but not the companies or anything like that.

 

[Krimson]

Basically I just want to get some money working and just leave it alone until I retire (currently 54). I've read a tiny bit about mutual funds, but don't really know a lot about it. So I don't know if that's something I should look further into.

I just upped my 401k contribution another 2%. When I was at Home Depot, I had it at 20% (started at 10% and went up a little bit every year until it hit 20%). At my current job, I started at 10%, then it went up to 13% in March (I started in March of last year). I had it set to go up 3% (maximum allowed) every year until it hit 20%. But I just bumped it up to 15% and set the maximum at 25% (going up 3% every year until it hits max).

And I have a thing on my HSA where they'll invest some it for me, but I don't get to pick what they invest it in. And it's only anything over $1000. So the initial $1000 is still there, but anything above that would get invested. Again, on what THEY put it in. I think I can pick the TYPES of investments, but not the companies or anything like that.

Man at 54 it's hard to make money without crazy risk. Compound interest just doesn't have time to make it and the market is too fickle to risk anymore than you can gamble with. I'd advise you to put up some cash and wait on real estate deals.

 

[sean]

Man at 54 it's hard to make money without crazy risk. Compound interest just doesn't have time to make it and the market is too fickle to risk anymore than you can gamble with. I'd advise you to put up some cash and wait on real estate deals.

Yeah, I know. But I'm not looking to make a ton of money in this. I just want to supplement what I'd already have, nothing extravagant. I'll have plenty to live on with my 401k (+ social security if I even file for it). But I'd just like a bit extra for mostly hobbies.

 

[Bamaclam]

I agree with Krimson. An ETF that mirrors the SP500 that returns on avg of 10% per year. In14 yrs the future value of your $1000 investment would be $3797.49. The key is park it and don't touch it. You can't time the market. When the market pulls back you can all ways add a little to it. You still have a long horizon for money to invest and let the market work. In 20 years, that $1000 will turn into $6727.50. There are several platforms you can open to self-direct investments. They are all very simple to use and can be as complex as you wish to get. I use a Fidelity account. You simply create an account online; you associate your standard bank account to it and transfer funds into it. Initially it will take 24-72 hours for those funds to be available. You can actually park it in cash and get rate in the 3.94% range currently. Better than what you will get at your local bank in a standard savings account. One good way to do it is say move your $1000 into the cash account and then over say the next four months you buy $250 of an SP500 fund. You can ease in and over the next four months you smooth out any major moves in the market. This is a term called dollar cost averaging. It is a good way to invest consistently over predetermined intervals. Over time your ups and down are smoothed out and will more closely mirror your desired 10% year over year growth. So if you were you put $1000 in an SP500 fund on Jan 1st every year for the next 14 years, in 14 years your $14,000 investment would be worth $30,772.49. at the end of 14 years you retire and stop the annual additions but keep the money in the fund. In another 6 years this investment would be $45,054.00. I'm not advising you on any course of action. I'm just giving you some examples of how the time value of money operates. Hope this helps.

 

[Brandon Van de Graaff]

I agree with Krimson. An ETF that mirrors the SP500 that returns on avg of 10% per year. In14 yrs the future value of your $1000 investment would be $3797.49. The key is park it and don't touch it. You can't time the market. When the market pulls back you can all ways add a little to it. You still have a long horizon for money to invest and let the market work. In 20 years, that $1000 will turn into $6727.50. There are several platforms you can open to self-direct investments. They are all very simple to use and can be as complex as you wish to get. I use a Fidelity account. You simply create an account online; you associate your standard bank account to it and transfer funds into it. Initially it will take 24-72 hours for those funds to be available. You can actually park it in cash and get rate in the 3.94% range currently. Better than what you will get at your local bank in a standard savings account. One good way to do it is say move your $1000 into the cash account and then over say the next four months you buy $250 of an SP500 fund. You can ease in and over the next four months you smooth out any major moves in the market. This is a term called dollar cost averaging. It is a good way to invest consistently over predetermined intervals. Over time your ups and down are smoothed out and will more closely mirror your desired 10% year over year growth. So if you were you put $1000 in an SP500 fund on Jan 1st every year for the next 14 years, in 14 years your $14,000 investment would be worth $30,772.49. at the end of 14 years you retire and stop the annual additions but keep the money in the fund. In another 6 years this investment would be $45,054.00. I'm not advising you on any course of action. I'm just giving you some examples of how the time value of money operates. Hope this helps.

I've been using Fidelity for several years now... it's easy to use/navigate. 99% of the time, I just use their app on my phone.

 

[TerryP]

The diversity of the investments made with members on this forum... (yes, word play.)

 

[alabama mike]

I strongly recommend you talk with Fischer Investments or Edward Jones. The market is going to fluctuate but the key is leaving the money invested until you need it. You will be taxed on the amount you withdraw when that time comes. I rolled over into an IRA, my sick days, vacation days and money I had been putting in a tax deferred account for years. I do not plan on touching that for at least another 10-12 years. Talk with a professional, it will cost you nothing but a little time in your schedule.

 

[TerryP]

@It Takes Eleven I'll throw this in here.

Suppose a guy invests in gold and cash. And hoarded it.

 

[It Takes Eleven]

I’m big on index investing, another question has been exactly what is your time horizon for needing the money? If it is more than five years, then I would consider setting up a Roth IRA or exercising a Roth option under your 401(k). Anything you earn in that Would not be subject to tax. I have held steady on my stock index investments through each down cycle since I started investing in 89. About three years ago, I dialed back my exposure as I was nearing retirement, still about 65% in stocks. So as we’ve had some volatility over the last few years, my returns have been dampened as have my losses. In my retirement years, I plan to first start taking distributions from my cash equivalent and bond investments and slowly build back the percentage of stocks that I hold. The greatest risk is having a big market correction just before or just after your retirement. The longer you’re in your retirement years, the less impact it would have on you. The key thing to remember about a Roth is that you do not have access to your funds, penalty free for the first five years.

 

[It Takes Eleven]

@It Takes Eleven I'll throw this in here.

Suppose a guy invests in gold and cash. And hoarded it.

Hoarding suggests a large savings rate, so they’re probably fine. If I had a large position in gold right now, I would pare it back.

Regarding hoarding cash, do they physically hold cash, or do they have interest bearing deposits?

If both gold and cash are physical holdings, then it sounds like someone whose investing philosophy is affected by their apocalyptic views on the domestic and world economy - and/or someone trying to conceal their assets to avoid taxation.

 

[TerryP]

is affected by their apocalyptic views on the domestic and world economy - and/or someone trying to conceal their assets to avoid taxation.

 

[sean]

I’m big on index investing, another question has been exactly what is your time horizon for needing the money? If it is more than five years, then I would consider setting up a Roth IRA or exercising a Roth option under your 401(k). Anything you earn in that Would not be subject to tax. I have held steady on my stock index investments through each down cycle since I started investing in 89. About three years ago, I dialed back my exposure as I was nearing retirement, still about 65% in stocks. So as we’ve had some volatility over the last few years, my returns have been dampened as have my losses. In my retirement years, I plan to first start taking distributions from my cash equivalent and bond investments and slowly build back the percentage of stocks that I hold. The greatest risk is having a big market correction just before or just after your retirement. The longer you’re in your retirement years, the less impact it would have on you. The key thing to remember about a Roth is that you do not have access to your funds, penalty free for the first five years.

None, really. I'm just looking to add something extra as a supplement; nothing really needed. I know my 401k will keep growing. And I know I can take part of my HSA and have them invest it. But I'd like to have even more for any just-in-case moments (or for hobbies if I want). I'm also hoping one of my hobbies can start making me a little bit of money, as well.

And as far as putting money into the market and leaving it alone, yes I know to do that. I know people that put money in and they kept messing with it and moving it around. And afterward, about a year later, they found that they lost a decent amount when they could've made some if they'd just left it alone. So that part I already knew (from other people's experiences).

The thing is, I just don't know anything about stocks vs. bonds vs. mutual funds vs. ETF vs. anything else. I guess I need to do what @alabama mike said and talk to a professional about all of it.

Thanks to all who replied. It's a lot of info I need to soak up and think about.

 

[TerryP]

Thanks to all who replied. It's a lot of info I need to soak up and think about.

Here's reality. If you want to make quick cash, it's likely outside of the law. Or politics.

 

[OldPlayer]

Investing is a long term effort, not a short term play. If you’ll get upset at “big” losses in the market levels after a week or three (like what happened when Trump announced his tariffs), don’t do it. Take your $1000 and make investments on paper first (a spreadsheet really) and follow the stock performance. Remember that it’s a long term effort so don’t get annoyed that your $1000 only moved to $1050 after a month.

What’s your strategy? Specific industries? Follow Nancy Pelosi (yes, you can follow her investments that have been uncannily lucrative)? I would avoid day trading (where you’re trying to make a fast fortune by cashing in on small gains).

 

[sean]

Here's reality. If you want to make quick cash, it's likely outside of the law. Or politics.

Not looking to make quick cash. I'm looking at putting money into something that will keep making more money that I can access later down the road...after I'm retired.

 

[Bamabww]

I'd just like to start putting some money into something that will grow and allow me to live a bit better when I retire.

(+ social security if I even file for it).

I may not understand what you mean, but why not file for your SS if you really want to live better (have more money) when you retire? That's money you have put away all your working life to help do exactly what you say you want to do. That will be more per month than your $1000 will ever produce for hobbies.

Good luck with your decision.

 

[sean]

I may not understand what you mean, but why not file for your SS if you really want to live better (have more money) when you retire? That's money you have put away all your working life to help do exactly what you say you want to do. That will be more per month than your $1000 will ever produce for hobbies.

Good luck with your decision.

Mostly I meant that the way it's going, there may not even be a social security to claim by the time I retire. I know sometimes things like that are said as a scare-tactic. But also, sometimes, there's truth in them.

I honestly wish I could get my social security in one lump sum and I'd invest that or put it somewhere that earns interest.