- 10 months ago
- Wedding: October 2019
If you learnt it on your own, how did you do it?
If you learnt it on your own, how did you do it?
My boyfriend recently picked up an interest in it after he signed up for a Robinhood account. He uses that stock market channel on tv (do not remember which one it is!) and Investopedia, but his biggest resource is articles and podcasts on the website Motley Fool. He’s gotten really knowledgeable about it, does his homework on his investments several hours a week. I’m proud of him.
Start by tracking what you have and where your 401k money is getting invested. You can follow several of the more popular personal finance bloggers. It also helps to understand all the different financial instruments available, so you can look these up in investopedia. Would recommend online courses too on coursera. Do you have an investment account like Fidelity or E trade?
Get an account on Mint or Personal Capital so you can track all your accounts in one place.
techmom : I have a 401k account through work with fidelity. I just do a target date retirement fund there. I know I can just increase my investment there but I’m looking to do it on my own for short term savings (1-3 years). It looks like US savings bonds will be the best option for this duration? Do you invest in those?
I never really got into it, past investing in stocks when we first started out, but my husband is on top of it. I think the only way to really learn is to try different strategies you may read about or come up with and see what happens. He started 10 yes ago with picking individual stocks, then learned to do options and strategies with that, then strategies with funds, and more about alocations…until he’s settled on some combo of everything he’s learned that works for us. I’d say it took about 3-4 years of learning and trying different methods for him to get the hang of how he wanted to invest. His latest favorite read is https://earlyretirementnow.com/ . He does the research and tracking, and we’ll occasionally discuss and big change in investment method (such as stock to bond ratio, or investing another lump sum, or how to minimize tax implications, etc)
I started last year after I won some money on a scratch card lol. My dad is extremely knowledgeable about investments and finance, so I’ve asked him a lot of questions and he’s given me great advice. He also referred me to one of his financial advisors and has been handling it for me.
chillbee29 : Right now, a savings account (look up best savings or even short term CD rates on Bankrate) will get you a comparable rate to US treasury bonds of a longer period. Treasury bonds are extremely safe, so they typically offer lower rates. Savings, CDs and other FDIC insured instruments are also pretty safe.
I’d stay away from investing in the market right now, because it’s unclear what the market will do, or if there’s further correction likely. If you’re thinking longer term, 5 years or above, then investing makes sense.
For current investments, I’m doing short term (savings and 4 wk treasury bills) because an interest rate hike seems likely this year, which will raise interest rates further. This way I have flexibility to reinvest into a higher rate of return.
On 401k, I do target dates as well. I try to stick to Vanguard, which had the lowest fees. Fees can really eat up 401k gains if you’re not careful.
pinkshoes : Thanks, I’ll check this out!
peachybee88 : I wish I had that! No one among my family or friends invest
techmom : Thanks, that’s a lot of useful info! Fidelity has a fixed flat fee so it doesn’t increase based on the amount in the 401k which is really good.
I already save in a high yield savings account where I get around a 2% return rate. I was trying to see if there were any low to moderate risk investments that would give me a higher rate of return. Someone I know said they invest in mutual funds which gives them a return of more than 5% but I guess that’s not a guaranteed thing so it may not necessarily be “safe”
ETA: CDs in my banks and credit unions are between 2-3.3%
I would also consider unlisted property funds where the distribution is decent. Here in Australia a 7% distribution would be quite decent and attractive (I’m considering options now) and of course any valuation uplifts are a plus. Another option for us is to put excess cash in a mortgage offset account so you’re paying less interest on your mortgage (not sure if you have the same), so that’s close to 4% a year.
I agree markets are too volatile at the moment and I do think there’s further downside to come.
As for where I learnt about investing, my parents have been investing in the stock markets since the early 90s, so that’s really how I got interested, did a degree in it and now work in the industry.
I certainly plan to teach my kids to invest from young, perhaps picking stocks and various investments to put their $10 in or something as a game lol..
chillbee29 : Well, if you’re willing to weather short term ups and downs then you could try something riskier. As long as you don’t need the money soon (next 3 years), you should be okay. Vanguard ETFs are good for this. For me, personally, my next investment goal is an investment property, so I know I’ll want liquid funds in around 1-3 years. So my strategy is to go lower on risk. ‘Extra’ money will, in theory, go into the market, using diversified stocks, and ETFs. But my risk appetite is low right now, I’m half expecting a recession.
missyjz : Thanks, I’ll look to see if there’s any mortgage offset account
techmom : I WAS saving up for a house but decided a condo was a lower risk investment because if I had to move for whatever reason, I could easily rent it. Both SO and I are in our late 20s and we don’t know if we’ll be working at the same place all our lives. If a good job opportunity comes by tomorrow, I don’t want the property to limit our career options. I still haven’t made up my mind though so it looks like it makes more sense to wait it out right now and see how things look in 2020 and take it from there.
A sibling self taught himself at about age 20 by reading the business pages of the newspaper and then personal finance books. He tried to give me some advice, but I did not listen. In my 30s, I read Personal Finance for Dummies and opened a retirement account.
chillbee29 : We consult on purchases and I stay informed but he’s done a lot more homework than I have and I trust his judgement. We do have an already agreed-upon amount that’s okay to put into our portfolio – adding to our savings comes first. We’re not doing anything more right now like a retirement account or 401k, we’re saving that for when we get married and can have joint accounts.