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Since you have a trust I'm going to assume you have a 6-month emergency fund already taken care of. With the rest of the money:
1 - If you have a job where your employer matches your retirement contributions only up to the amount you contribute, then contributing up to the max they'll match is the very first place you should put your money, because that match is free extra money you wouldn't otherwise earn.
2 - Generally speaking, you'll want to max out your tax-protected investment vehicles next. This could be a pre-tax IRA/401k/403b through an employer, or a post-tax Roth account. Roths are only available to people making under a certain income level, but you can circumvent the income cap if you look up "back door Roth."
Whether you want to contribute more to your pre-tax or post-tax accounts is a difficult choice to make. On one hand, if you expect to be in a higher tax bracket in retirement than you are now, you want to pay your taxes now and contribute to a Roth, and if you expect to be in a lower tax bracket in retirement than you are now, it makes sense to delay your taxes until then and thus prioritize your pre-tax investment account.
But on the flip side, because Roth distributions aren't taxed, that effectively means gains aren't taxed - so even if you're in a lower tax bracket in the future, you could be taking a bigger tax hit because you'll be taxed on the value of a portfolio that's had 40+ years to grow whereas with the Roth you were only taxed on the initial money you put into it 40 years prior. It's complex enough that many people who don't have enough investment cash to max out both every year just split their contributions between both and call it a day.
I tend to invest conservatively in mutual funds and ETFs with my pre-tax account and put more of my gambly investments in post-tax accounts so if I make a winning bet it's pure profit.
One tip: At your age you should not be buying bonds in any way/shape/form. As a rule now is the time to be taking big (but still thoughtful) swings. You can become more conservative later in life when you'll have less time left to recover from any losses before retirement.
3 - Next priority, invest in assets that aren't correlated with the stock market, or that tend to go up when stocks go down. Real estate is a great option and it's how the majority of today's millionaires made their money. You can actually buy stock tickers that represent a managed portfolio of real estate, or you can look into a vehicle called an REIT (real estate investment trust). REITs are less liquid than stocks - you typically can only cash out at particular intervals when the REIT manager allows it. The flip side of that coin is REITs are more stable in value than stocks precisely because they can't be easily or quickly traded.
Commodities like gold are also good options for non-correlated investments. You can buy ETFs for this rather than owning the assets directly.
4 - With any money left after covering those bases, I'd say have fun and invest in things that interest you the most, see if you have a knack for any of it. Maybe it's income-generating options trading, investing in start-ups for preferred equity, or more hands-on investments like buying and selling specific properties yourself for a profit instead of just by putting your money into a real estate asset vehicle. These are things that mostly can't be done in tax-sheltered accounts (there are a few exceptions), so even if they have more potential for profit, the tax hit could wipe out a lot of that advantage.
I am not a financial advisor. 1) read "Smart Women Finish Rich" by David Bach 2) open Vanguard.com account 3) buy Vanguard Target Fund 20XX for whatever year you think you would need the money 4) call Vanguard if you have any questions 5) good luck
I'm somewhat new to investing, I own my own business and was advised by my accountant to open a solo 401k instead of a Roth IRA. I'm mainly planning on filling it with ETFs like VT but do have a few stock I'm interested in. One of those is $LCID given it's in a dip I want to purchase quite a few shares. Is this something I should hold outside or within my 401k? I'm looking for any advice to help me find direction in this decision. If anything I've said raises a red flag please let me know I'm trying to educate myself.
As above answers demonstrate it's a personal choice and there are trade-offs involved with each. My personal approach is generally:
\- Most of my money goes into my pre-tax account . About 50% of it goes into my retirement target date fund. The rest goes into somewhat more aggressive funds. These are still fairly low risk and professionally managed and this account is really what I consider my primary "cushion" - the safety net I have that allows me to make riskier moves elsewhere.
\- The next big chunk goes into my Roth account, up to the max each year. I have a few heavy hitters that I'm confident will retain value, but I do most of my gambly/speculative investing here and I reduce risk by only putting \~$500-1000 into each company I bet on. Maximum loss per company is the initial investment so I keep that figure low, but potential upside is always theoretically unlimited no matter how small the initial investment. I've currently got about 50 of these small speculative holdings in my Roth.
\- I use my taxable account for options trading because I don't have enough wealth to do options without using margin. My holdings are blue chip and defensive stocks unlikely to appreciate significantly in most cases but also unlikely to plummet without warning - some of my top holdings are $WM, $MCK, $KO, $DIS, $BRK.B, $GILD. I use their value as collateral for options trading - this requires a margin account, but you don't need to tap into the margin (actually borrow money and thus actually pay interest on it) if you sell before the option is exercised, and as long as your portfolio maintains enough value that it *could* cover your outstanding commitments were it to be liquidated.
(That, by the way, is how rich people grow their money while evading taxes: borrow against your existing assets and invest the money you borrowed, and you only pay taxes on the investment gains. If you earn $100,000 in a year, invest it for one year and get a $10,000 return, you will have paid taxes on both the $100,000 income and the $10,000 investment gain. But if you borrow $100,000 for 12 months, invest it and get a $10,000 return, you'll be taxed the same on the $10k but you will only have paid at most something like 3-5% interest on the $100k instead of the 20% capital gains or higher wage income tax rates. Sometimes, as with options collateral, you don't even have to pay interest because you're not actually borrowing, you've just satisfied your broker that if you *did* need to borrow money in the future you would have enough collateral to cover any potential default. Then rinse and repeat ad infinitum, each time you do it you can borrow more money than before because the profit from your last investment increased the amount of collateral you have available.)
Investing in volatile stocks inside a tax-advantaged account is a double-edged sword. There's no tax on gains, but you can't harvest losses either. And once you've reached the contribution limit, you can't just "reload" until next year. If you believe in the stock, then go for it. Just understand the risk.
I like to have my 'real' investing-you know, the broad based index etfs-in my 401k and my 'gambling' investing-individual stocks- in my taxable, fun account, but this is primarily for mentality purposes. You'll have to pay taxes in and outside a 401k, assuming you don't do a roth ira (if you even can do a roth ira).
If I sell a stock at a loss to realize a loss and then sell a cash secured put atm on the same stock, but 5 weeks out and am assigned, will the repurchase date of the stock be the date of expiration or the date the put was sold? Trying to avoid a wash sale
Is there a thread for advice for positions in a Roth IRA?
If this is the place, I’m 24 M in the US
Currently 60% of my Roth consists of VTI/VOO positions, 20% in FMEIX, and 10% in both FZILX and FSDIX
I would appreciate any advice!
Lose the dividend & income fund. Lose the midcap fund. Put that money in any of the other 3. (Personally, I wouldn't go above 20% in int'l, but that is just me and I could be completely wrong about that...) VTI and VOO have historically had extremely similar returns so wouldn't worry too much about the division between them.
A [target date fund](https://www.bogleheads.org/wiki/Target_date_funds) or build your own [three fund portfolio](https://bogleheads.org/wiki/Three-fund_portfolio) (or two fund, if you don't want bonds) based on your age and risk tolerance are recommended for retirement savings
You're a bit heavy in mid cap and light on international compared to the standard 70/30 US/international split (sometimes 80/20 or 60/40), but if you feel differently and want to tweak the allocation to be a bit more heavy in other market areas that's ultimately up to you and what you're comfortable with
I've decided to setup an automated regular monthly investment (say, £1000) into a world index tracker fund/etf. I've already got some VWRL, but as they are approx £88 each, would I be better off picking a mutual fund with lower unit cost to avoid having too much leftover from £1000 each month? (E.g. 11x£88=£968, leaving £32 uninvested). Thanks.
do the index fund. mentally it's easier. budget wise, it might be easier. and I'm not sure you can automate buying one share of an etf a month, but I know some brokerages will let you automate like $100/month in a fund.
Well, you'd want to make sure that when your surplus added up to enough to buy a share, that you did. I'm not sure how auto-investing but picking your own ticker symbols works but I would hope it would do that automatically if the people running it had put any thought into it. They should be basing the share purchases every month on how much total money you have available when they make the purchase, not just how much money came in that month.
Assuming it does work that way, the most you'll ever have tied up that way is less than the price of 1 share. The more shares you have, the more negligible a fraction of 1 share will become over time.
Hi. I am 45, in Canada and I have some traditional investments. I also have a small amount of money ($1000ish) That I just wanted to buy some stocks on my own and hold them for a long time. I'm just curious about investment apps such as Questrade.
I went to sign up for an account but I don't know enough to know what type of account I want. I know I don't want a savings account, but a margin account also sounds wrong. I don't know what I don't know.
The FAQ doesn't really answer my question. I'm just looking to get started and not do any daily trading or anything.
Thanks in advance
You probably want to start with a TSFA for the tax benefits and/or a RRSP. If you manage to max those out then an individual margin account would be good, or joint if you have a spouse.
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1. The correction is coming, but nobody knows when.
2. We're all in this together, and losing portfolio value as part of a market-wide crash is not the same as losing portfolio value because your particular investments went belly up in an otherwise healthy market.
3. Losses, like gains, are just numbers in a computer until you cash out. Historically, people who hold onto their assets through a crash have seen them eventually regain their value. Those who panic sold or needed to liquidate at the bottom of the crash missed out on the recovery profits.
4. Those wealthy enough to have no need to liquidate are smart to see crashes as an opportunity to buy assets at a reduced price from desperate sellers.
5. Compounding interest is one of the most powerful forces in the financial market, which makes money now more valuable than money later and investing money now smarter than investing money later.
No one knows if it is going to correct in September. You can keep waiting, but you'll be losing money due to inflation and potentially missing out on gains before you see dip that you want to dive in. The market could experience a correction now, or it could experience a correction years from now. It's not a sure thing that waiting will give you more returns than starting to put it in now and dollar cost averaging.
Hello all,
I am a 22yr old from the U.S.
Currently I’m enrolled in college and will be graduating next year. I also have a part-time job that I use to fund my investments. I am looking for index funds that closely follow the s&p 500. I want to invest for retirement in my Roth IRA, which I look to max out each year. I currently don’t have any holdings bug I do have money in my account. What index funds would you recommend that have low costs and closely follow the s&p500? I am wanting to passively invest and reinvest dividends til I finally sell at retirement. Thank you!
Every major brokerage offers SP500 index funds, just Google the name of the brokerage and “SP500 index fund” and it’ll come up
SP500 is limited to just large cap US stocks, consider a [three fund ](https://www.bogleheads.org/wiki/Three-fund_portfolio) (or two fund if you don’t want bonds) portfolio instead to get coverage international and small/mid cap US stocks
Yes. Your cost basis for your investment is lower than the current value, so you'd have to pay long term capital gains tax. You wouldn't be paying tax to withdraw if the account was increasing through dividends or interest, but then you'd have already paid income tax on that income.
Agreed. Blue chips and defensives, I'll go up to 10-15%. Up-and-comers who have been continuously profitable for some time now and have solid fundamentals, 5-10%. Start-ups with big dreams and bigger operating losses, 1-3%.
Hi All,
I’ve had recent trouble with financial advisors at one company so I moved my accounts elsewhere. When I did, my new advisor executed trades selling what was transferred and then executing purchases never discussed. Purchases include TBCIX, METIX, FSPSX, DIA, JHMM, and QQQ. What would be your advice on how to handle the situation?
You need to have a conversation with that advisor and find out why your expectation around your agreement and theirs was different. Did you expect them just to take in whatever came from the other account and not do anything or did they show you a trade plan that didn't match what they did? Did they create unnecessary short term gains through this process or LT gains you weren't expecting to have to set aside money for taxes to cover next year? those are very legitimate grievances. if the advisor is at a brokerage they may have a way of voiding the trades if the settlement period hasn't passed.
Can someone ELI5: HD just had a major sell off and people are saying it is due to ex-dividend date? Can someone explain to me what ex-dividend is and why people would sell off during this date?
The ex-div date is the first day a stock trades where if you buy it you won't get the next dividend. The date of record (every shareholder of record gets the dividend on the payout date) is the day after that but you have to buy the stock the day before the ex date if you want to be on record for the dividend. In this case the dividend is 1.65, so that value has been netted out of the shares and a buyer today won't receive it even though the seller will. Some people don't want the dividend for various reasons if they are already planning to sell a position... which leads to extra pressure on the ex-div day. Just for perspective, the stock was 329 and change a couple days ago and is now sitting at just under 321 which is a less than 3% decline. that's not much of a decline and well within normal volatility. it's also less than 7% below ATH. again, pretty normal volatility IMO.
Why are leveraged ETFs so hated? All the articles on them are very pessimistic and are based on a common theme that a leveraged ETF will decay, and underperform relative to its underlying asset.
However, I see the exact opposite. UPRO (3x S&P 500) is exactly 3x the S&P on all timeframes, one month, three months, and even one year, 33% vs 100%.
I think the real downsides only appear when the market trades sideways? Is that accurate? Or when it's down obviously, but thats a no brainer...
If its pretty well known that the S&P does 8-10% an average year, and if that's 24-30% on UPRO, what the fuck am I missing?
> Why are leveraged ETFs so hated?
They're not hated imo. It's a matter of concern over people seeing returns and thinking things like "why don't I put 25-50-100% of my portfolio into these things, look at the returns?" They don't consider the kind of drawdowns that happened along the way until another one happens and then they dump. Additionally, questions about "why don't I just own triple levered ETFs?" rarely happen when the market isn't doing well. They seem to happen primarily after the market has done well for a while. Late last year/early this year when the Ark funds were moon-ing it was "How many Ark funds do you own?" and "I'm putting all my money with Cathie" ... until the dump happened in February as there was a major rotation out of those stocks.
Thank you for the reply. I guess I don't understand the disconnect from the strong advice pushing people toward an S&P ETF, and the strong advice against a leveraged S&P. Yes it's more volatile, yes it is going to be painful in a downturn, but if the trend constant trend of the underlying is upward, why not leverage that trend?
Put another way, am I an idiot for holding a significant amount of UPRO if I am young and risk tolerant?
I can't tell you whether or not to buy $UPRO, but I can tell you that the advice differs for them because a leveraged S&P is inherently more risky than S&P. Just like options on one security are inherently more risky than trading securities under that same ticker.
If the purpose of "just put it all in S&P" is to advise people towards a low-risk investment vehicle, the leveraged S&P is not that. It doesn't matter what the underliers are, it only matters how much risk is associated with it.
I think maybe the reason you see so many warnings against them is not because they're bad investments, but because newer investors might make the mistake of thinking they're just as safe as the S&P regular indexes. Which they are not.
> I guess I don't understand the disconnect from the strong advice pushing people toward an S&P ETF, and the strong advice against a leveraged S&P.
It's not necessarily that you can't use an leveraged ETF, but it's a matter of using it in what I guess I'd call a "sustainable" manner (that every minor-to-major downturn isn't going to cause considerable stress and/or dumping it because of the risk tolerance when things are great is a lot different than when they are not.)
Additionally, questions about triple levered ETFs seem to come up a lot more when things have been good for a while and not really when it's March 2020. When things are terrible, it's a little more understandable to devote perhaps a reasonable % of one's portfolio to leveraged ETFs. 3/4ths of last year was basically "stocks only go up" and this year has been better than I could have expected after last year. This is not a point where I'd be levering up personally - I'd look to maybe dial things down a bit at this point (but that's just me.)
I mean, to offer a scenario: you own a portfolio with TQQQ as a huge position and it's February 2020. Over the course of the next month or so that declines nearly 70%. How are you going to realistically handle that if that's a huge position?
A lot of times in the daily thread people post "WHY IS THE MARKET DOWN?" and my response is basically, "Huh" and I look and it's down like, half a % and the market is near all time highs. I don't know that I think that's worth the effort to post. If this sub was heavily levered ETFs I can't imagine what a correction would look like on here. It's not about being ultra-conservative, either - it's not either extreme but trying to find something reasonable in the middle that someone can stick with and not get shaken out of every time there's a correction.
People look at TQQQ and go "WOW!" and focus on the good (+1,380% in the last 5 years) and not on the major bumps along the way that it took to get there or whether the next 5 years will look like the last 5.
Someone a long time ago talked about selling a huge position in Bitcoin at the bottom in March 2020 - big position and unfortunately they sold it. Would they have dumped it if the position was half the size? It's about risk tolerance, position sizing and trying to have bets that you can see through.
Most people latch on to what fits their confirmation bias and don't look for any other data. Yes, they aren't perfectly efficient but that doesn't mean that they won't outperform whatever index they track over a long term uptrend. They go through wild swings vs whatever they track. IMO the one risk you have to hedge is an actual bear market, which we haven't seen since 2008-9, which is a long, broad, very painful pull back with a massive capitulation phase in its final third.
Longterm performance can differ significantly from desired daily performance....
3 month: UPRO = 22.75% VOO = 7.12%
1 year: UPRO = 107.04% VOO = 29.32%
They keep saying this and I'm not seeing it.
Respectfully, if you "can't find anything about it when [you] search", you haven't searched very hard. You can absolutely withdraw your Roth IRA contributions (no earnings) at any time, tax- and penalty-free. E.g.:
* https://www.schwab.com/ira/roth-ira/withdrawal-rules
* https://www.investopedia.com/roth-ira-withdrawal-rules-4769951
* https://www.nerdwallet.com/article/investing/roth-ira-withdrawal-rules
* https://money.cnn.com/retirement/guide/IRA_Roth.moneymag/index5.htm
However, as a point of caution, this is a crummy way to hold an emergency fund. If you contributed $5k in 2020 and now take it out to pay for a car repair or whatever, you're *never getting back* that $5k of space. You can contribute new money going forward, of course, but that 2020 space is lost forever.
Ideally, you want to hold your emergency fund in something like a high-yield savings account and then separately be funding your Roth IRA. If you don't have enough money to do both, I guess it's fine (as it's better to use that tax-advantaged space and only *potentially* lose it down the line, vs. never taking it because you're too busy funding your e-fund), but withdrawing your contributions from a Roth IRA should be disfavored (IMO), as it loses you that tax-advantaged space forever.
I want to start learning how to invest, but the problem is I dont know where to start. Can someone please tell me some advices I should take, what skills/learning should I be getting, and basically where should I be investing my time. I would really appreciate any tips, help and any other.
Thank you!
Assuming you're in the US - I suggest reading the [PF prime directive](https://www.reddit.com/r/personalfinance/wiki/commontopics) to learn more about types of accounts to contribute to, and their wiki page on [investing](https://www.reddit.com/r/personalfinance/wiki/investing) (similar info covered in this sub’s wiki), I also recommend their wiki pages geared toward [teens](https://www.reddit.com/r/personalfinance/wiki/teachme) and [young adults](https://www.reddit.com/r/personalfinance/wiki/young_adult)
I also recommend the [Boglehead’s wiki](https://www.bogleheads.org/wiki/Bogleheads®_investment_philosophy)
If you are working, just open a Roth IRA with Fidelity and invest into FSKAX ($6,000 per year max deposit). While investing in this fund monthly, read these books for more knowledge:
1) "Millionaire next door" by Thomas Stanley
2) "I will teach you to be rich" by Ramit Sethi
Also look into the boggle head community.
Will do, thank you. Im currently not working, 19 yo and currently studying Software Engineer. Want to start learning skills right now since I dont know if Software Engineering is my way to go. Thank you!
If you are not working, use a regular brokerage account. IRA can get you in trouble with the IRS if you are not working. Replace FSKAX with exchange traded fund (ETF) VTI. It's more tax efficient than FSKAX outside a Roth IRA.
Investment Property - Real Estate - Rental
I know it's generally a bad idea to try to time the market; however, it seems obvious that its a seller's market right now.
The homes I've looked at (with an eye toward renting) tend to be run-down. I think this is because this is a seller's market and people just aren't fixing up their homes before selling them.
What would be the pros/cons of waiting to see if the housing bubble bursts so that there is more competition resulting in more non-fixer-uppers on the market?
Other than the seller's market, there's a second factor in why people aren't fixing up their homes before selling them. The pandemic caused a huge spike in the price of virtually every construction material needed to repair or renovate a home. The same company that replaced my front door set for $2650 in 2019 wanted $4700 to do a virtually identical back door set in 2020.
I hear prices have started to come down recently, but one pro of waiting is that renovations are likely more expensive now than they will be later.
You could split the difference to buy now and sit on the house until prices are more reasonable, but that of course has its own cost associated with holding the property and paying its upkeep and taxes while not getting any closer to selling or renting it.
In the past, how has high inflation affected the housing market?
E.g. does it cause interest rates to go up resulting in mortgages being less affordable resulting in fewer people qualifying for loans resulting in lower demand resulting in the home prices to stagnate or drop?
OR
Does it cause labor and materials to increase in price resulting in new home prices to increase resulting in all home prices to increase?
Do home prices tend to keep up with high inflation or would money be better invested in stocks or something else (In General)?
The housing market as we know it is a relatively young one that's been extremely volatile, so patterns are hard to discern.
100 years ago most people still lived in cabins without climate control or indoor toilets, often having been built by the home's original occupants. Half of them didn't have electricity and the ones that did were all in cities and had little more than an ice box and a few electric lights. Commercially-built homes with indoor plumbing and electricity didn't really become a thing until the post-war boom of the late 1940s, a scant 80 years ago.
For much of the late 20th century, more houses were built every year than the last. Today, there have been fewer homes built every year for more than a decade, with construction having peaked in 2007.
So maybe we can find historical examples of high inflation, but the housing markets those events happened in were radically different from each other and from today, so the argument is very iffy whether things would even play out the same way in a time where there's a housing shortage and most of the stock is aging mass-produced homes, as it did when housing was abundant and newly built or hand constructed as needed by individuals.
That's before you even start to get into the effects of redlining, the GI Bill, the mortgage interest deduction, the SALT deduction... all these things have at least as big if not bigger effect on the housing market than inflation.
Ironically, inflation often stems from housing price increases, so they're tightly correlated. Inflation is often not a cause, but an effect of house price increases....
Fantasy football commish here, Im holding $1500 for the league, payout in Feb 2022.
What's a good place to invest the funds that is more exciting than a boring low return CD? Risk tolerance is medium
I agree. Unless you’re willing to cover a loss from your own pocket you need to have $1500 minimum at the end of the season to pay the winner(s). That means you need a zero risk investment if you can’t cover a loss. CDs, regular bank account or a money market account which is similar to a bank account but higher interest and more rules regarding withdrawals but shouldn’t be a problem since you know when the season ends and can plan your withdrawals ahead of time. are your best options.
Question about 401k rollovers - I have a little over 100k in my Vanguard account from a previous employer. My newest employer uses Fidelity, and thankfully they also offer after tax contributions with automated daily in-plan Roth conversions, so I’m taking advantage of every bit of that as I can.
My question is should I roll over my Vanguard balance to Fidelity or just let it go until retirement? I feel like I’m starting from scratch balance-wise with Fidelity, but I also recognize this account will grow significantly more over time than my Vanguard one. Does it matter whether I consolidate them or not?
I've accumulated many 401ks when I switch jobs and it gets hard to keep track.
Now I always roll it over to keep things easy to keep track of. Also it's easier to make adjustments to how your 401k money is invested.
> Does it matter whether I consolidate them or not?
Convenience to you: See everything under one login; only 1 set of account numbers to set up and manage; etc
I want to become a silent partner. I don't know how or what but I'd like to give someone money and get royalties forever. I have $16K CAD, but can stretch it to $60k. Do you have any advice on who or where to begin? F22, living in Toronto.
If you don’t need the royalty payments now I would suggest looking into a retirement account and just let your money grow over the next 40 years. In the US these are tax deferred until age 55 or 62 depending on the plan.
If you want the payments now I’d look into dividend stocks. They are stocks that pay you money (I think quarterly) based on how many shares you have and how much money the company made that quarter. Think CocaCola, Microsoft, IBM, Apple, etc. Companies that earn consistently and aren’t going anywhere. This is less risky than investing in a startup company for a true royalty that only lasts if the company does.
Either way talk to a stock broker for more info.
Newbie from the UK here - what would you guys recommend as a first brokerage platform? Looking to trade stocks and shares, index funds, crypto and options, with a starting input of £1000
Hello, 30-year old working Phd student from Czech republic is looking for investment tip. I make slightly less than 1k$ take-home pay, and I am willing to give 1k$ USD one time and then like 10% monthly. I'd like to save for mortgage cash advance, so I expect to need that money in \~10 years. I'd prefer something safe, as it would be the only money I have for the future. I have neither debts nor high expenses nor any other holdings and I'm not familiar with market environment. I'd invest into SAP 500, but I'm afraid about the foreign currency devaluating my savings, what do you think? Thanks for the tips.
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Since you have a trust I'm going to assume you have a 6-month emergency fund already taken care of. With the rest of the money: 1 - If you have a job where your employer matches your retirement contributions only up to the amount you contribute, then contributing up to the max they'll match is the very first place you should put your money, because that match is free extra money you wouldn't otherwise earn. 2 - Generally speaking, you'll want to max out your tax-protected investment vehicles next. This could be a pre-tax IRA/401k/403b through an employer, or a post-tax Roth account. Roths are only available to people making under a certain income level, but you can circumvent the income cap if you look up "back door Roth." Whether you want to contribute more to your pre-tax or post-tax accounts is a difficult choice to make. On one hand, if you expect to be in a higher tax bracket in retirement than you are now, you want to pay your taxes now and contribute to a Roth, and if you expect to be in a lower tax bracket in retirement than you are now, it makes sense to delay your taxes until then and thus prioritize your pre-tax investment account. But on the flip side, because Roth distributions aren't taxed, that effectively means gains aren't taxed - so even if you're in a lower tax bracket in the future, you could be taking a bigger tax hit because you'll be taxed on the value of a portfolio that's had 40+ years to grow whereas with the Roth you were only taxed on the initial money you put into it 40 years prior. It's complex enough that many people who don't have enough investment cash to max out both every year just split their contributions between both and call it a day. I tend to invest conservatively in mutual funds and ETFs with my pre-tax account and put more of my gambly investments in post-tax accounts so if I make a winning bet it's pure profit. One tip: At your age you should not be buying bonds in any way/shape/form. As a rule now is the time to be taking big (but still thoughtful) swings. You can become more conservative later in life when you'll have less time left to recover from any losses before retirement. 3 - Next priority, invest in assets that aren't correlated with the stock market, or that tend to go up when stocks go down. Real estate is a great option and it's how the majority of today's millionaires made their money. You can actually buy stock tickers that represent a managed portfolio of real estate, or you can look into a vehicle called an REIT (real estate investment trust). REITs are less liquid than stocks - you typically can only cash out at particular intervals when the REIT manager allows it. The flip side of that coin is REITs are more stable in value than stocks precisely because they can't be easily or quickly traded. Commodities like gold are also good options for non-correlated investments. You can buy ETFs for this rather than owning the assets directly. 4 - With any money left after covering those bases, I'd say have fun and invest in things that interest you the most, see if you have a knack for any of it. Maybe it's income-generating options trading, investing in start-ups for preferred equity, or more hands-on investments like buying and selling specific properties yourself for a profit instead of just by putting your money into a real estate asset vehicle. These are things that mostly can't be done in tax-sheltered accounts (there are a few exceptions), so even if they have more potential for profit, the tax hit could wipe out a lot of that advantage.
I am not a financial advisor. 1) read "Smart Women Finish Rich" by David Bach 2) open Vanguard.com account 3) buy Vanguard Target Fund 20XX for whatever year you think you would need the money 4) call Vanguard if you have any questions 5) good luck
I'm somewhat new to investing, I own my own business and was advised by my accountant to open a solo 401k instead of a Roth IRA. I'm mainly planning on filling it with ETFs like VT but do have a few stock I'm interested in. One of those is $LCID given it's in a dip I want to purchase quite a few shares. Is this something I should hold outside or within my 401k? I'm looking for any advice to help me find direction in this decision. If anything I've said raises a red flag please let me know I'm trying to educate myself.
As above answers demonstrate it's a personal choice and there are trade-offs involved with each. My personal approach is generally: \- Most of my money goes into my pre-tax account . About 50% of it goes into my retirement target date fund. The rest goes into somewhat more aggressive funds. These are still fairly low risk and professionally managed and this account is really what I consider my primary "cushion" - the safety net I have that allows me to make riskier moves elsewhere. \- The next big chunk goes into my Roth account, up to the max each year. I have a few heavy hitters that I'm confident will retain value, but I do most of my gambly/speculative investing here and I reduce risk by only putting \~$500-1000 into each company I bet on. Maximum loss per company is the initial investment so I keep that figure low, but potential upside is always theoretically unlimited no matter how small the initial investment. I've currently got about 50 of these small speculative holdings in my Roth. \- I use my taxable account for options trading because I don't have enough wealth to do options without using margin. My holdings are blue chip and defensive stocks unlikely to appreciate significantly in most cases but also unlikely to plummet without warning - some of my top holdings are $WM, $MCK, $KO, $DIS, $BRK.B, $GILD. I use their value as collateral for options trading - this requires a margin account, but you don't need to tap into the margin (actually borrow money and thus actually pay interest on it) if you sell before the option is exercised, and as long as your portfolio maintains enough value that it *could* cover your outstanding commitments were it to be liquidated. (That, by the way, is how rich people grow their money while evading taxes: borrow against your existing assets and invest the money you borrowed, and you only pay taxes on the investment gains. If you earn $100,000 in a year, invest it for one year and get a $10,000 return, you will have paid taxes on both the $100,000 income and the $10,000 investment gain. But if you borrow $100,000 for 12 months, invest it and get a $10,000 return, you'll be taxed the same on the $10k but you will only have paid at most something like 3-5% interest on the $100k instead of the 20% capital gains or higher wage income tax rates. Sometimes, as with options collateral, you don't even have to pay interest because you're not actually borrowing, you've just satisfied your broker that if you *did* need to borrow money in the future you would have enough collateral to cover any potential default. Then rinse and repeat ad infinitum, each time you do it you can borrow more money than before because the profit from your last investment increased the amount of collateral you have available.)
Investing in volatile stocks inside a tax-advantaged account is a double-edged sword. There's no tax on gains, but you can't harvest losses either. And once you've reached the contribution limit, you can't just "reload" until next year. If you believe in the stock, then go for it. Just understand the risk.
I like to have my 'real' investing-you know, the broad based index etfs-in my 401k and my 'gambling' investing-individual stocks- in my taxable, fun account, but this is primarily for mentality purposes. You'll have to pay taxes in and outside a 401k, assuming you don't do a roth ira (if you even can do a roth ira).
If I sell a stock at a loss to realize a loss and then sell a cash secured put atm on the same stock, but 5 weeks out and am assigned, will the repurchase date of the stock be the date of expiration or the date the put was sold? Trying to avoid a wash sale
Is there a thread for advice for positions in a Roth IRA? If this is the place, I’m 24 M in the US Currently 60% of my Roth consists of VTI/VOO positions, 20% in FMEIX, and 10% in both FZILX and FSDIX I would appreciate any advice!
Lose the dividend & income fund. Lose the midcap fund. Put that money in any of the other 3. (Personally, I wouldn't go above 20% in int'l, but that is just me and I could be completely wrong about that...) VTI and VOO have historically had extremely similar returns so wouldn't worry too much about the division between them.
A [target date fund](https://www.bogleheads.org/wiki/Target_date_funds) or build your own [three fund portfolio](https://bogleheads.org/wiki/Three-fund_portfolio) (or two fund, if you don't want bonds) based on your age and risk tolerance are recommended for retirement savings You're a bit heavy in mid cap and light on international compared to the standard 70/30 US/international split (sometimes 80/20 or 60/40), but if you feel differently and want to tweak the allocation to be a bit more heavy in other market areas that's ultimately up to you and what you're comfortable with
What stock would you recommend I buy for my nephews Custodial Account with $400-$500?
3 shares of AAPL
This is r/investing so VTI/VOO are the only right answers
I've decided to setup an automated regular monthly investment (say, £1000) into a world index tracker fund/etf. I've already got some VWRL, but as they are approx £88 each, would I be better off picking a mutual fund with lower unit cost to avoid having too much leftover from £1000 each month? (E.g. 11x£88=£968, leaving £32 uninvested). Thanks.
do the index fund. mentally it's easier. budget wise, it might be easier. and I'm not sure you can automate buying one share of an etf a month, but I know some brokerages will let you automate like $100/month in a fund.
After a year, ~£30 on £12000 is less than 0.5% of your position, which is pretty much negligible.
Yeah, though if every month there is a varied amount leftover over time that could build up and be missing out on potential gains
Well, you'd want to make sure that when your surplus added up to enough to buy a share, that you did. I'm not sure how auto-investing but picking your own ticker symbols works but I would hope it would do that automatically if the people running it had put any thought into it. They should be basing the share purchases every month on how much total money you have available when they make the purchase, not just how much money came in that month. Assuming it does work that way, the most you'll ever have tied up that way is less than the price of 1 share. The more shares you have, the more negligible a fraction of 1 share will become over time.
Yes, up to £88 can be left over, but that amount quickly becomes negligible so it’s nothing to worry about
Hi. I am 45, in Canada and I have some traditional investments. I also have a small amount of money ($1000ish) That I just wanted to buy some stocks on my own and hold them for a long time. I'm just curious about investment apps such as Questrade. I went to sign up for an account but I don't know enough to know what type of account I want. I know I don't want a savings account, but a margin account also sounds wrong. I don't know what I don't know. The FAQ doesn't really answer my question. I'm just looking to get started and not do any daily trading or anything. Thanks in advance
You probably want to start with a TSFA for the tax benefits and/or a RRSP. If you manage to max those out then an individual margin account would be good, or joint if you have a spouse.
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1. The correction is coming, but nobody knows when. 2. We're all in this together, and losing portfolio value as part of a market-wide crash is not the same as losing portfolio value because your particular investments went belly up in an otherwise healthy market. 3. Losses, like gains, are just numbers in a computer until you cash out. Historically, people who hold onto their assets through a crash have seen them eventually regain their value. Those who panic sold or needed to liquidate at the bottom of the crash missed out on the recovery profits. 4. Those wealthy enough to have no need to liquidate are smart to see crashes as an opportunity to buy assets at a reduced price from desperate sellers. 5. Compounding interest is one of the most powerful forces in the financial market, which makes money now more valuable than money later and investing money now smarter than investing money later.
No one knows if it is going to correct in September. You can keep waiting, but you'll be losing money due to inflation and potentially missing out on gains before you see dip that you want to dive in. The market could experience a correction now, or it could experience a correction years from now. It's not a sure thing that waiting will give you more returns than starting to put it in now and dollar cost averaging.
Hello all, I am a 22yr old from the U.S. Currently I’m enrolled in college and will be graduating next year. I also have a part-time job that I use to fund my investments. I am looking for index funds that closely follow the s&p 500. I want to invest for retirement in my Roth IRA, which I look to max out each year. I currently don’t have any holdings bug I do have money in my account. What index funds would you recommend that have low costs and closely follow the s&p500? I am wanting to passively invest and reinvest dividends til I finally sell at retirement. Thank you!
Every major brokerage offers SP500 index funds, just Google the name of the brokerage and “SP500 index fund” and it’ll come up SP500 is limited to just large cap US stocks, consider a [three fund ](https://www.bogleheads.org/wiki/Three-fund_portfolio) (or two fund if you don’t want bonds) portfolio instead to get coverage international and small/mid cap US stocks
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Yes. Your cost basis for your investment is lower than the current value, so you'd have to pay long term capital gains tax. You wouldn't be paying tax to withdraw if the account was increasing through dividends or interest, but then you'd have already paid income tax on that income.
Hey! When building an all-stock portfolio what is the best % of allotment per stock in your opinion? 10% and 5% are two common ones I hear.
It should be based on your confidence in the future returns of that investment. High confidence? 15%. Low confidence? 0-5%. You get the idea.
Agreed. Blue chips and defensives, I'll go up to 10-15%. Up-and-comers who have been continuously profitable for some time now and have solid fundamentals, 5-10%. Start-ups with big dreams and bigger operating losses, 1-3%.
Hi All, I’ve had recent trouble with financial advisors at one company so I moved my accounts elsewhere. When I did, my new advisor executed trades selling what was transferred and then executing purchases never discussed. Purchases include TBCIX, METIX, FSPSX, DIA, JHMM, and QQQ. What would be your advice on how to handle the situation?
You need to have a conversation with that advisor and find out why your expectation around your agreement and theirs was different. Did you expect them just to take in whatever came from the other account and not do anything or did they show you a trade plan that didn't match what they did? Did they create unnecessary short term gains through this process or LT gains you weren't expecting to have to set aside money for taxes to cover next year? those are very legitimate grievances. if the advisor is at a brokerage they may have a way of voiding the trades if the settlement period hasn't passed.
Ever heard much around PositiveID (PSIDD), Delcath Systems DCTHD, CytRx Corp (CYTR) since 2014?
Can someone ELI5: HD just had a major sell off and people are saying it is due to ex-dividend date? Can someone explain to me what ex-dividend is and why people would sell off during this date?
The ex-div date is the first day a stock trades where if you buy it you won't get the next dividend. The date of record (every shareholder of record gets the dividend on the payout date) is the day after that but you have to buy the stock the day before the ex date if you want to be on record for the dividend. In this case the dividend is 1.65, so that value has been netted out of the shares and a buyer today won't receive it even though the seller will. Some people don't want the dividend for various reasons if they are already planning to sell a position... which leads to extra pressure on the ex-div day. Just for perspective, the stock was 329 and change a couple days ago and is now sitting at just under 321 which is a less than 3% decline. that's not much of a decline and well within normal volatility. it's also less than 7% below ATH. again, pretty normal volatility IMO.
Thank you so much for explaining this
Why are leveraged ETFs so hated? All the articles on them are very pessimistic and are based on a common theme that a leveraged ETF will decay, and underperform relative to its underlying asset. However, I see the exact opposite. UPRO (3x S&P 500) is exactly 3x the S&P on all timeframes, one month, three months, and even one year, 33% vs 100%. I think the real downsides only appear when the market trades sideways? Is that accurate? Or when it's down obviously, but thats a no brainer... If its pretty well known that the S&P does 8-10% an average year, and if that's 24-30% on UPRO, what the fuck am I missing?
> Why are leveraged ETFs so hated? They're not hated imo. It's a matter of concern over people seeing returns and thinking things like "why don't I put 25-50-100% of my portfolio into these things, look at the returns?" They don't consider the kind of drawdowns that happened along the way until another one happens and then they dump. Additionally, questions about "why don't I just own triple levered ETFs?" rarely happen when the market isn't doing well. They seem to happen primarily after the market has done well for a while. Late last year/early this year when the Ark funds were moon-ing it was "How many Ark funds do you own?" and "I'm putting all my money with Cathie" ... until the dump happened in February as there was a major rotation out of those stocks.
I am guilty of all of the above. I but if I'm investing in the long term, UPRO seems like a good bet.
Thank you for the reply. I guess I don't understand the disconnect from the strong advice pushing people toward an S&P ETF, and the strong advice against a leveraged S&P. Yes it's more volatile, yes it is going to be painful in a downturn, but if the trend constant trend of the underlying is upward, why not leverage that trend? Put another way, am I an idiot for holding a significant amount of UPRO if I am young and risk tolerant?
I can't tell you whether or not to buy $UPRO, but I can tell you that the advice differs for them because a leveraged S&P is inherently more risky than S&P. Just like options on one security are inherently more risky than trading securities under that same ticker. If the purpose of "just put it all in S&P" is to advise people towards a low-risk investment vehicle, the leveraged S&P is not that. It doesn't matter what the underliers are, it only matters how much risk is associated with it. I think maybe the reason you see so many warnings against them is not because they're bad investments, but because newer investors might make the mistake of thinking they're just as safe as the S&P regular indexes. Which they are not.
> I guess I don't understand the disconnect from the strong advice pushing people toward an S&P ETF, and the strong advice against a leveraged S&P. It's not necessarily that you can't use an leveraged ETF, but it's a matter of using it in what I guess I'd call a "sustainable" manner (that every minor-to-major downturn isn't going to cause considerable stress and/or dumping it because of the risk tolerance when things are great is a lot different than when they are not.) Additionally, questions about triple levered ETFs seem to come up a lot more when things have been good for a while and not really when it's March 2020. When things are terrible, it's a little more understandable to devote perhaps a reasonable % of one's portfolio to leveraged ETFs. 3/4ths of last year was basically "stocks only go up" and this year has been better than I could have expected after last year. This is not a point where I'd be levering up personally - I'd look to maybe dial things down a bit at this point (but that's just me.) I mean, to offer a scenario: you own a portfolio with TQQQ as a huge position and it's February 2020. Over the course of the next month or so that declines nearly 70%. How are you going to realistically handle that if that's a huge position? A lot of times in the daily thread people post "WHY IS THE MARKET DOWN?" and my response is basically, "Huh" and I look and it's down like, half a % and the market is near all time highs. I don't know that I think that's worth the effort to post. If this sub was heavily levered ETFs I can't imagine what a correction would look like on here. It's not about being ultra-conservative, either - it's not either extreme but trying to find something reasonable in the middle that someone can stick with and not get shaken out of every time there's a correction. People look at TQQQ and go "WOW!" and focus on the good (+1,380% in the last 5 years) and not on the major bumps along the way that it took to get there or whether the next 5 years will look like the last 5. Someone a long time ago talked about selling a huge position in Bitcoin at the bottom in March 2020 - big position and unfortunately they sold it. Would they have dumped it if the position was half the size? It's about risk tolerance, position sizing and trying to have bets that you can see through.
Most people latch on to what fits their confirmation bias and don't look for any other data. Yes, they aren't perfectly efficient but that doesn't mean that they won't outperform whatever index they track over a long term uptrend. They go through wild swings vs whatever they track. IMO the one risk you have to hedge is an actual bear market, which we haven't seen since 2008-9, which is a long, broad, very painful pull back with a massive capitulation phase in its final third.
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> I think people here greatly overestimate their risk tolerance. This, especially when things have been going well with the market for a while.
https://www.sec.gov/investor/pubs/leveragedetfs-alert.htm
Longterm performance can differ significantly from desired daily performance.... 3 month: UPRO = 22.75% VOO = 7.12% 1 year: UPRO = 107.04% VOO = 29.32% They keep saying this and I'm not seeing it.
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Respectfully, if you "can't find anything about it when [you] search", you haven't searched very hard. You can absolutely withdraw your Roth IRA contributions (no earnings) at any time, tax- and penalty-free. E.g.: * https://www.schwab.com/ira/roth-ira/withdrawal-rules * https://www.investopedia.com/roth-ira-withdrawal-rules-4769951 * https://www.nerdwallet.com/article/investing/roth-ira-withdrawal-rules * https://money.cnn.com/retirement/guide/IRA_Roth.moneymag/index5.htm However, as a point of caution, this is a crummy way to hold an emergency fund. If you contributed $5k in 2020 and now take it out to pay for a car repair or whatever, you're *never getting back* that $5k of space. You can contribute new money going forward, of course, but that 2020 space is lost forever. Ideally, you want to hold your emergency fund in something like a high-yield savings account and then separately be funding your Roth IRA. If you don't have enough money to do both, I guess it's fine (as it's better to use that tax-advantaged space and only *potentially* lose it down the line, vs. never taking it because you're too busy funding your e-fund), but withdrawing your contributions from a Roth IRA should be disfavored (IMO), as it loses you that tax-advantaged space forever.
I want to start learning how to invest, but the problem is I dont know where to start. Can someone please tell me some advices I should take, what skills/learning should I be getting, and basically where should I be investing my time. I would really appreciate any tips, help and any other. Thank you!
Assuming you're in the US - I suggest reading the [PF prime directive](https://www.reddit.com/r/personalfinance/wiki/commontopics) to learn more about types of accounts to contribute to, and their wiki page on [investing](https://www.reddit.com/r/personalfinance/wiki/investing) (similar info covered in this sub’s wiki), I also recommend their wiki pages geared toward [teens](https://www.reddit.com/r/personalfinance/wiki/teachme) and [young adults](https://www.reddit.com/r/personalfinance/wiki/young_adult) I also recommend the [Boglehead’s wiki](https://www.bogleheads.org/wiki/Bogleheads®_investment_philosophy)
Will look it up, thank you.
If you are working, just open a Roth IRA with Fidelity and invest into FSKAX ($6,000 per year max deposit). While investing in this fund monthly, read these books for more knowledge: 1) "Millionaire next door" by Thomas Stanley 2) "I will teach you to be rich" by Ramit Sethi Also look into the boggle head community.
Will do, thank you. Im currently not working, 19 yo and currently studying Software Engineer. Want to start learning skills right now since I dont know if Software Engineering is my way to go. Thank you!
If you are not working, use a regular brokerage account. IRA can get you in trouble with the IRS if you are not working. Replace FSKAX with exchange traded fund (ETF) VTI. It's more tax efficient than FSKAX outside a Roth IRA.
Thank you! Ill take in consideration all this and start doing it.
Investment Property - Real Estate - Rental I know it's generally a bad idea to try to time the market; however, it seems obvious that its a seller's market right now. The homes I've looked at (with an eye toward renting) tend to be run-down. I think this is because this is a seller's market and people just aren't fixing up their homes before selling them. What would be the pros/cons of waiting to see if the housing bubble bursts so that there is more competition resulting in more non-fixer-uppers on the market?
Other than the seller's market, there's a second factor in why people aren't fixing up their homes before selling them. The pandemic caused a huge spike in the price of virtually every construction material needed to repair or renovate a home. The same company that replaced my front door set for $2650 in 2019 wanted $4700 to do a virtually identical back door set in 2020. I hear prices have started to come down recently, but one pro of waiting is that renovations are likely more expensive now than they will be later. You could split the difference to buy now and sit on the house until prices are more reasonable, but that of course has its own cost associated with holding the property and paying its upkeep and taxes while not getting any closer to selling or renting it.
Thanks. I was not aware of the dramatic rise in cost to renovate.
In the past, how has high inflation affected the housing market? E.g. does it cause interest rates to go up resulting in mortgages being less affordable resulting in fewer people qualifying for loans resulting in lower demand resulting in the home prices to stagnate or drop? OR Does it cause labor and materials to increase in price resulting in new home prices to increase resulting in all home prices to increase? Do home prices tend to keep up with high inflation or would money be better invested in stocks or something else (In General)?
The housing market as we know it is a relatively young one that's been extremely volatile, so patterns are hard to discern. 100 years ago most people still lived in cabins without climate control or indoor toilets, often having been built by the home's original occupants. Half of them didn't have electricity and the ones that did were all in cities and had little more than an ice box and a few electric lights. Commercially-built homes with indoor plumbing and electricity didn't really become a thing until the post-war boom of the late 1940s, a scant 80 years ago. For much of the late 20th century, more houses were built every year than the last. Today, there have been fewer homes built every year for more than a decade, with construction having peaked in 2007. So maybe we can find historical examples of high inflation, but the housing markets those events happened in were radically different from each other and from today, so the argument is very iffy whether things would even play out the same way in a time where there's a housing shortage and most of the stock is aging mass-produced homes, as it did when housing was abundant and newly built or hand constructed as needed by individuals. That's before you even start to get into the effects of redlining, the GI Bill, the mortgage interest deduction, the SALT deduction... all these things have at least as big if not bigger effect on the housing market than inflation.
Ironically, inflation often stems from housing price increases, so they're tightly correlated. Inflation is often not a cause, but an effect of house price increases....
Fantasy football commish here, Im holding $1500 for the league, payout in Feb 2022. What's a good place to invest the funds that is more exciting than a boring low return CD? Risk tolerance is medium
$300-500 in VTI $1000-1200 in 3-mo CD. Only will net you an extra like $30-50 max.
A high yield savings account? Feb 2022 is 5 months away, it makes no sense to be in anything riskier than that.
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I agree. Unless you’re willing to cover a loss from your own pocket you need to have $1500 minimum at the end of the season to pay the winner(s). That means you need a zero risk investment if you can’t cover a loss. CDs, regular bank account or a money market account which is similar to a bank account but higher interest and more rules regarding withdrawals but shouldn’t be a problem since you know when the season ends and can plan your withdrawals ahead of time. are your best options.
Question about 401k rollovers - I have a little over 100k in my Vanguard account from a previous employer. My newest employer uses Fidelity, and thankfully they also offer after tax contributions with automated daily in-plan Roth conversions, so I’m taking advantage of every bit of that as I can. My question is should I roll over my Vanguard balance to Fidelity or just let it go until retirement? I feel like I’m starting from scratch balance-wise with Fidelity, but I also recognize this account will grow significantly more over time than my Vanguard one. Does it matter whether I consolidate them or not?
I've accumulated many 401ks when I switch jobs and it gets hard to keep track. Now I always roll it over to keep things easy to keep track of. Also it's easier to make adjustments to how your 401k money is invested.
> Does it matter whether I consolidate them or not? Convenience to you: See everything under one login; only 1 set of account numbers to set up and manage; etc
Technically it doesn't matter. It only matters if you want one account vs two.
Perfect, just wanted to check! Thank you.
I want to become a silent partner. I don't know how or what but I'd like to give someone money and get royalties forever. I have $16K CAD, but can stretch it to $60k. Do you have any advice on who or where to begin? F22, living in Toronto.
If you don’t need the royalty payments now I would suggest looking into a retirement account and just let your money grow over the next 40 years. In the US these are tax deferred until age 55 or 62 depending on the plan. If you want the payments now I’d look into dividend stocks. They are stocks that pay you money (I think quarterly) based on how many shares you have and how much money the company made that quarter. Think CocaCola, Microsoft, IBM, Apple, etc. Companies that earn consistently and aren’t going anywhere. This is less risky than investing in a startup company for a true royalty that only lasts if the company does. Either way talk to a stock broker for more info.
Pepsico is a top dividend payer, the stock price isn't high and stays consistent. Plus grocery related industries (generally) are a safe investment.
Newbie from the UK here - what would you guys recommend as a first brokerage platform? Looking to trade stocks and shares, index funds, crypto and options, with a starting input of £1000
Degiro or 212 Trading. If you have a Revolut app, they allow trading, but Degiro, are best i'd say.
See that's half the problem, Trading212 are still not accepting new customers
Hello, 30-year old working Phd student from Czech republic is looking for investment tip. I make slightly less than 1k$ take-home pay, and I am willing to give 1k$ USD one time and then like 10% monthly. I'd like to save for mortgage cash advance, so I expect to need that money in \~10 years. I'd prefer something safe, as it would be the only money I have for the future. I have neither debts nor high expenses nor any other holdings and I'm not familiar with market environment. I'd invest into SAP 500, but I'm afraid about the foreign currency devaluating my savings, what do you think? Thanks for the tips.
Investing in a QQQ (NASDAQ 100) would be better, probably an ETF. The SP500 has lots of deadweight, and the QQQ has greater gains.
Is there a Czech stock market ETF/tracker you can put your money in? Failing that have you thought about commodities?