Questions tagged [investing]

Investing is growing money over a longer time frame. When appropriate a specific tag like stocks, mutual funds etc should additionally be used.

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39
votes
1answer
4k views

Where can I put savings for my kid that I literally cannot withdraw from?

I currently have a second savings account where I'm saving money for my child's future - most likely it will be used for their college and/or wedding. I've heard horror stories of parents stealing ...
23
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10answers
2k views

Why do some people say a house “not an investment”?

I have heard a few people say that "a house is not an investment" as an argument to stay in an apartment. (To me, this seems like a stupid reason, but that is not my question.) Of course, this is ...
30
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3answers
73k views

Is the “Bank on Yourself” a legitimate investment strategy, or a scam?

There seem to be a lot of advertisements by "Bank on Yourself", promising to show how you can invest in a certain type of life insurance policy. Is this really a legitimate investment strategy, or ...
27
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2answers
12k views

Why did I lose 2 cents more than the difference in the stock prices on my Robinhood trade?

I don't understand how stocks work but I'm hoping someone can explain it to me given my short example here. So on Monday, I purchased 2 stocks priced at $2.50 each, using an app on iOS called ...
21
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1answer
3k views

How to invest after 401k and Roth IRA are maxed?

I'm in my 20's. I'm a big saver and I think I've covered the basics, including: Paying off all high interest (>3%) debt. Getting the full company match out of my 401k. Maxing out my Roth IRA for the ...
15
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6answers
14k views

Saving $1,000+ per month…what should I do with it?

I am able to save $1,100 a month, after all expenses and after paying the minimums ($225 a month on my 2.24% and 3.25% student loans). I want to make smart decisions with my money, but am not sure ...
11
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7answers
8k views

Is there a general guideline for what percentage of a portfolio should be in gold?

I have some gold (GLD), but not much - a little over 1% of my net worth, and about 2% of my non-retirement investments. I'd like to increase this position as an inflation hedge and to have something ...
8
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10answers
3k views

Ideal investments for a recent college grad with very high risk tolerance?

I recently graduated college and got a steady job making decent money as a software engineer/programmer. I make more than enough money to sustain myself and save up money, while still having money ...
7
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2answers
1k views

Is my “retire young” strategy a sensible one?

My goal is to have enough to retire at 40. I have 11 years to go (I'm 29) as of the past 15th. To be clear, I don't plan on retiring, maybe ever, but I want to have enough to just quit one day if I ...
34
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3answers
5k views

What is it called when you sell and reinvest to pay lower taxes?

Every year or so, I sell my investments and then immediately buy them again. I do this because I'm in a low enough tax bracket that I don't have to pay capital gains on my long term investments, so I'...
23
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5answers
3k views

I have $100,000 in play money… what to do?

I feel a bit self-conscious with the title above given that web-searches along these lines turn up mostly people who are struggling to get rid of debt or build a modest amount of financial security. ...
20
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2answers
1k views

Using a Health Savings Account (HSA) as an investment vehicle: What are the drawbacks?

For next year, my company has started offering an HDHP with an HSA. With this, they will contribute $500 per year flat, and 50% matching up to $500 (where they will match $250; up to $750 total). I ...
14
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5answers
3k views

What should I look at before investing in a start-up?

A friend from college (and middle school and elementary school, for that matter) has talked to me a little about his company, a start-up working on technology tangentially related to Internet ...
11
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4answers
4k views

Any compelling reason to contribute to a 401k if my employer doesn't match?

My employer does not match 401k contributions at all. Currently, I do not make any contributions to a 401k or an IRA due to a need for liquidity. Aside from the obvious gains incurring no tax ...
11
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8answers
2k views

Is Bogleheadism (index fund investing) dead?

I've always been a believer in index funds, and lately have been reading books such as The Coffee House Investor and The Lazy Person's Guide to Investing. It all makes sense to me except that the S&...
7
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4answers
603 views

When is a good time to invest in gold? In what situations is the price of gold likely to drop?

When is a good time to invest in gold? What are situations likely to trigger a drop in gold prices? What are alternatives to gold?
3
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4answers
649 views

Building financial independence

In my very late 20s I am working hard to become financially independent. I have a good job paying between 74-80k a year. I can live (pay rent, food, entertainment) for $1k a month. So after taxes I ...
2
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2answers
3k views

What are some simple techniques used for Timing the Stock Market over the long term?

What are some simple techniques used for Timing the Stock Market over the long term to beat average market returns? By long term I mean 5 years and longer. It may include investing directly into ...
24
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10answers
10k views

Boutique Investment firm cold called me offering me the chance to purchase stock in a private placement. Legit or scam?

A week ago I got a cold call from someone doing "research about investment experience" which ended with "we might call you if a investment opportunity comes up". A couple of days ago a person from a "...
18
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2answers
2k views

What does Chapter 11 Bankruptcy mean to an investor holding shares of a Chapter 11 Company?

If I currently have shares in a company that has filed for Chapter 11 bankruptcy protection what impact does this have on me? Does this mean the shares stop trading? If the company successfully ...
15
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1answer
13k views

What are some examples of “fixed income” investments?

I'm using an online tool that my broker provides for balancing my portfolio according to my investor profile and it breaks down the suggested allocation into the following categories: Large Cap ...
11
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3answers
2k views

What are some well known or well regarded arguments against investing?

I'm looking to research the arguments against investing, or at least arguments that present a rather different view of investing than is the conventional wisdom. By "investing", I mean putting money ...
10
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5answers
3k views

How do you quantify investment risk?

It's obvious that investing in stocks and bonds is not a guaranteed return--there is some risk, and this is well known. People talk about risk averse investors or riskier ones, or that one should ...
9
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2answers
946 views

How does compounding of annual interest work?

I have tried reading up on it, but I just find it confusing. Apparently, if you started investing $150/month at a 15% annual return and kept reinvesting the profits, here is what you would have ...
9
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7answers
10k views

A University student wondering if investing in stocks is a good idea?

I'm a University student (with a University student budget) and I was wondering if it is worth my trouble and my money to invest in the stock system? I don't know much about it, but it seems like a ...
7
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4answers
860 views

What are my investment options in real estate?

In a nutshell, I'm 21 and I'll be starting a job soon which will give me a fair amount of spare income, which I would like to look into investing. What are my options here? I'm considering investing ...
6
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3answers
3k views

What factors make someone buy or sell a stock?

Stock price is determined by the buyers and sellers, correct? What causes people to buy or sell? Is it news? earnings? stock analysis and techniques? I mean even if a company is reporting increasing ...
6
votes
1answer
601 views

Why should I avoid mutual funds as an investment?

I've heard in passing when discussing investments, "oh, you're crazy to invest in mutual funds". I didn't want to seem like I didn't understand at the time. What are the downsides of investing in ...
4
votes
1answer
361 views

No debt. Any advice where to invest saved money and what to invest in after maxing out 401k? [duplicate]

My situation: I'm 24, single, and I live with my parents in the United States I have no debt and I have 100k in a savings account I have a 90k job I am currently maxing out my 401k I have no ...
3
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3answers
241 views

Asset allocation when retirement is already secure

A bit of background information, I currently have a pretty good defined pension plan with my employer, above average salary and ability to contribute to savings, high earning potential, and a low cost ...
2
votes
5answers
1k views

What's the most conservative split of financial assets for my portfolio in today's market?

Mid 30's, looking for what split I should have between Australian shares, International shares, property, cash, interest, bonds, options, etc. or maybe none of the above. What is considered to be a "...
60
votes
10answers
14k views

Why don't bond makers just get loans?

I was just looking at investment opportunities, and I found a number of places offering bonds paying up to 12% interest over two years. My first thought was, I can get a loan from my bank for 5% ...
40
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7answers
6k views

Why don’t index-tracking mutual funds corner themselves?

I don't really want to think too much about investments -- just park my surplus money somewhere and be able to come back several years later and see that it has grown. (As this question shows, I'm ...
37
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9answers
15k views

How does gambling (like buying a lottery ticket) differ from investing?

Investors seeking a higher return on their investments may invest in things that they know have a higher risks associated with them. Greek bonds have higher interest rates, and banks charge more ...
23
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10answers
4k views

Can paying down a mortgage be considered an “investment”?

I've read a few articles online about investments, and other articles about paying down home mortgages. One thing that I've noticed is that people who advocate paying down mortgages seem to emphasize ...
20
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3answers
1k views

Abundance of Cash - What should I do?

There seems to be a glut of information and I don't know where to start. My situation is: No debt/kids Own Home and Vehicles Have a years worth of living expenses in my savings/checking Max out my ...
20
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2answers
14k views

How can I invest in gold without taking physical possession?

I want to buy gold but I do not want to physically store it. I just want to invest in the price of gold. Where can I buy electronic gold certificates? Something like putting money in the bank but ...
18
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2answers
4k views

Why does the Nikkei 225 appear to be such a bad long-term investment?

For most well-developed countries, indexes of their stock markets tend to grow in the very long term. For example, look up a long-term graph of the FTSE100 or the S&P500. For Japan's Nikkei 225, ...
14
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4answers
310 views

For an investor, what's the appropriate response to the U.S. Debt downgrade?

So the S&P has downgraded United States debt from it's AAA status. There have been other threads discussing why/when a downgrade will happen, as well as possibility of default. Instead, I want to ...
14
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5answers
1k views

I can completely pay off my mortgage early. Should I pay it off or invest?

My mortgage is 3.5% fixed rate. I have enough money to pay off the remaining balance, and still have enough left over for an emergency fund. My investments have historically made more than 3.5% per ...
14
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6answers
6k views

What should a 21 year old do with £60,000 ($91,356 USD) inheritance?

I'm turning 21 years old soon and have an inheritance coming into my control to the value of approximately £60,000. I'm full-time employed, as a Software Developer in a Financial Services company. I ...
12
votes
5answers
16k views

Buying a small amount (e.g. $50) of stock via eToro “Social Trading Network” using a “CFD”?

On LinkedIn I saw an ad claiming I could buy some AAPL stock for as little as $50. I clicked and came to a site called eToro that calls themselves a "Social Trading Network". It appears the buying of ...
11
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2answers
4k views

What is a stock warrant? How do warrants work?

What is a stock warrant? How do warrants work? I've been told they are similar to options; how? Then why not just call them options - what makes them different?
11
votes
6answers
761 views

Is my company 401k okay or should I be using an IRA?

My company does not have a matching 401k. Instead it is a profit sharing 401k. How should I approach this? Should I consider investing primarily in an IRA instead? How much should I be ...
9
votes
11answers
15k views

Is CFD trading a good idea?

I am planning on speculating in forex and possibly indices, however due to my lack of experience I don't want to invest too much. With £100, you can't really get very far with indices, and profit ...
9
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3answers
320 views

When to sell a stock?

What do you look for in a stock that makes you say "I'm done with this, let me take profits and go somewhere else"?
8
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7answers
1k views

Why would I ever invest in a traditional IRA over a Roth IRA

I've read many articles in the past about the differences between Roth IRAs and Traditional IRAs and no matter how I read it, it always seems like the author leaves some detail out that makes the ...
7
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7answers
3k views

How much capital is necessary to live on $5000 / mo.?

If I want to determine how much gross return I would need to live on $5000 / mo ($60,000 / yr) and I were to assume all return would come from an investment pool of capital in ETFs, stocks, etc, that ...
7
votes
2answers
433 views

Do physical ETFs possess the same problems as CDOs?

Today Michael Burry explained to Bloomberg that ETFs are comparible to subprime CDOs, in that investors are buying securities that aren't backed by any real value: Passive investing has removed ...
5
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3answers
473 views

What to Look for in ETF

I wish to invest ETF. Sure, I can see what companies it comprise of. Sure, I can open brokerage account in my bank, etc. How do I know the ETF I purchase is legitimate? What if the ETF is fooling ...

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