Investing – how and when did you learn it?

posted 10 months ago in Finances
Post # 16
Member
876 posts
Busy bee

Saving and investing are two different things. If you have a concrete short-term goal that you need to sock away money for, go with your high yield savings account. You won’t be earning much on it, but you also won’t be at risk for losing any of it.

The rule of thumb is the higher the yield, the higher the risk.

Vanguard is probably your best option for investing. Low fees, easy to manage on your own, and a variety of funds to choose from. They have information about each fund online, including historical rates of return. Each fund is ranked 1-5, with 1 being not risky and 5 being the most risky. Choosing a high-risk fund is appropriate for long-term investments because they can ride out the market ups and downs. 

Post # 17
Member
8076 posts
Bumble Beekeeper

chillbee29 :  I talked to friends and did a lot of reading online and settled on investing in index funds. Good returns, wide market exposure, and low fees. I own index funds in my retirement accounts, daughter’s 529, and our taxable brokerage account.

Eta – I use fidelity. They held my 2 prior job’s 401k and they manage my state’s 529 plan. They have good customer service and local branches so it’s just easier for me to have our taxable account there too. 

Post # 20
Member
8076 posts
Bumble Beekeeper

chillbee29 :  I customize it with various index funds. I don’t know if my rollover IRA offers a target date or not, but I know my Roth 401k does but the fees are stupid. John Oliver did a great episode on saving and investment that’s worth checking out. 

Post # 21
Member
1257 posts
Bumble bee

Haha yes I’m half expecting a recession as well though of course a lot of factors at play. I’ve taken my super money (australia’s Retirement scheme is called superannuation and let’s you invest in basically all kinds of asset classes globally) out of equities and put in the property option. Will probs switch back when I feel like the market has somewhat bottomed out.

techmom :  

Post # 22
Member
14965 posts
Honey Beekeeper
  • Wedding: June 2011

TheSanguineRose :  401k and IRAs cant be joint, there’s not point in waiting.  especially if your company does a 401k match, then not having one now is just passing up free money. 

Post # 23
Member
8076 posts
Bumble Beekeeper

TheSanguineRose : echoing what pinkshoes said – they can’t be joint so better to get on it now. Even without a match you’ll get tax benefits and more time for the money to grow. Compound interest and time are your friends when it comes to retirement savings. I had a retirement account years before I started investing elsewhere. 

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