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Questions tagged [starting-out-investing]

For questions relating to beginning investing. It should normally be used with other tags to clarify the area that it relates to.

302
votes
15answers
54k views

Best way to start investing, for a young person just starting their career?

I am young, just started my career, and looking to begin investing so I can make my money work for me. I'm still living like I did in college (occasional purchase on myself, but most of it goes into ...
182
votes
23answers
59k views

What options do I have at 26 years old, with 1.2 million USD?

I'm a 26 years old female, got into an accident that almost killed me; I sued, and after attorneys fees and medical bills from hell... I will walk away with around 1.2 million dollars tax free. Here ...
124
votes
13answers
66k views

I'm 23 and was given $50k. What should I do?

Recently I was given 50k from my grandmother in her will. I am 23 years old and have no idea what to do with it. I make $33k a year. I have zero savings. I owe $35k in student loans over 6 years 0% ...
122
votes
8answers
21k views

Oversimplify it for me: the correct order of investing

I have been reading the top posts here, and the recommendations for what to invest in are often similar. What I'd like to know, in as simply of terms as possible, is what the consensus is on priority ...
61
votes
11answers
29k views

I'm 18 and have 6 grand. What should I do with it?

I'm 18 and about to go to college. Luckily, I don't have to worry about student loans or most other living expenses. I've been working and have over $6,000 (will probably be about $7,000 by the end of ...
52
votes
12answers
16k views

Invest $50,000 in cash or borrow $100,000 and get a mortgage?

I have $50,000 saved and I'm paying $760 on rent right now. All my relatives are telling me to get a mortgage so I don't "throw money away on rent", but I just don't like the idea of getting in debt ...
49
votes
7answers
11k views

Why are low risk investments so strongly advised for first-time investors?

Inspired by the flurry of questions on this site about the returns available from investing in equities over the long term, I decided to approach my UK bank about setting up a small investment fund, ...
43
votes
5answers
10k views

When to stop saving and start investing?

Since I started my first job after graduating a few years back, I always saved a certain percentage of my salary each month on an extra savings account my bank offers. At that time, and until recently,...
41
votes
7answers
5k views

Ethics and investment

I am a young man who has recently reached a point of financial stability. I'm starting to think about long-term plans which may one day buy a home, or provide for myself in old age. This raises the ...
37
votes
10answers
8k views

Should a high-school student invest their (relative meager) savings?

I am a high school student, I don't really have much money, between one and two grand in my savings account. However, I have friends who are investing in both penny stocks and stocks. I do not really ...
34
votes
4answers
4k views

Should I invest when in debt?

I have just consolidated my debt and am thinking where I want to be in the future. My payment plan is to be debt-free in three years. It is not an extremely aggressive plan; I still want to have a ...
33
votes
15answers
10k views

Why invest for the long-term rather than buy and sell for quick, big gains?

Somewhat along the lines of this question. I've been putting mostly unmatched money into my 401(k) for a few years. I know that investing is generally seen as a long-term decision, but with volatile ...
31
votes
4answers
9k views

What are the benefits and disadvantages of investing $60-70K in the following methods?

I have $60-70K that I'm planning on investing in stocks/ETFs/funds. What are some of the advantages and disadvantages of investing this amount of money with a human financial advisor vs an automated "...
27
votes
7answers
3k views

Where to start with personal finance?

I am married with kids and starting to look hard at savings for retirement, buying a house and sending my kid to college (still a LONG way away). However, I am completely new to the world of finance ...
27
votes
4answers
4k views

How do I invest and buy/sell stocks? What does “use a broker” mean?

This is an embarrassingly basic question. I'm a college student and know very, very little about the world of investing and purchasing stocks. I realize that some Googling could find me the answer ...
25
votes
10answers
4k views

Why is property investment good if properties de-valuate over time?

So I was reading that investing in property is a safe and solid investment (but low on return). This is based on how the prices rise e.g. a property price in the 1980's vs 1990's vs 2000's vs 2015. To ...
23
votes
12answers
1k views

What should I be aware of as a young investor?

I'm 19 years old and am keen on investing in blue-chip companies. What should I take note of?
23
votes
5answers
4k views

Book or web site resources for an absolute beginner to learn about stocks and investing? [closed]

I'm completely new to the world of investing and stocks. Knowing that I shouldn't invest or buy stocks until I know it well enough, I was wondering which cheap or affordable resources would be the ...
21
votes
7answers
7k views

Is it wise to invest money in the stock market?

My uncle wants me to invest money in buying shares. I would like to ask these questions to my fellow users: Is it wise to invest money in the stock market? Is there any age limit to start into stock ...
19
votes
5answers
8k views

How exactly does dealing in stock make me money?

Soon I will be coming into a bit of extra money. Rather than simply sticking it in a savings account I would like to make my money work for me and getting into stock seems to be a good way to do that.
19
votes
8answers
8k views

As a 22-year-old, how risky should I be with my 401(k) investments?

As a 22 year old guy, how should I plan my financial life regarding my 401(k) investments? How much risk should I be taking? Also, is it a good idea to invest in a dynamic portfolio with smart beta ...
19
votes
9answers
2k views

Investing small amounts at regular intervals while minimizing fees?

My daughter is about to turn one year old and I'd like to start some sort of investment account for her. The purpose would be to invest her birthday and gift money into the stock market each year. I'd ...
17
votes
5answers
3k views

Why might a robo-advisor service like Betterment be preferable to just buying a single well-performing index fund like SPY?

Edit: I think it would be beneficial for any answers to include whether the answerer uses a diversified portfolio or not in their own finances, and whether they have any affiliation with Betterment or ...
16
votes
3answers
1k views

Invest or save first?

I am in my mid 20s, I have a (quite) good job and I am able to put aside, each month, about $800. I just started this savings process and currently I have just $800 but at the end of the year I'll ...
14
votes
3answers
8k views

Should I open a Roth IRA or invest in the S&P 500?

I am a 24 year old high school teacher. Currently, I don't have that much capital to open two accounts. I would rather focus on one at a time until I gain more capital. Should I start with a Roth IRA ...
14
votes
4answers
8k views

How can I determine if my rate of return is “good” for the market I am in?

I am considering a small investment to get started with. What percent rate of return is considered to be good return on investments made in a stock market? I read somewhere that 25-30% is considered ...
14
votes
2answers
2k views

How do I invest in the S&P 500?

If I want to invest $4000 in the S&P 500 stocks (which is diversified and non-risk), how do I do this?
13
votes
7answers
2k views

Understanding the phrase “afford to lose” better

The phrase, "Only invest what you can afford to lose", when put in quotes, generates 167,000 Google hits and seems to me like one of the hoariest maxims in investing. But what does it mean? ...
13
votes
4answers
1k views

What is a good investment vehicle for introducing kids to investing?

We have been paying our four kids a small allowance. We help them split their money by percentage into different categories (savings, investment, responsibility, school, play, etc.) One of the ...
12
votes
4answers
1k views

Is an index fund a good choice for a starter investment?

As an individual that is willing to consistently invest ~100-150 dollars monthly into an investment, willing to devote an average of an hour a day to educate himself / monitor investments, what kinds ...
12
votes
1answer
38k views

What does it mean if a company pays a quarterly dividend? How much would I get quarterly?

If I have a single share, lets say in Google which is currently worth 605.79. Lets say they pay out the dividends quarterly. What does that mean and how much would I get quarterly?
11
votes
4answers
853 views

Why are some funds only recommended for investors starting out?

I am 23 years old and have been in industry for a couple years and my savings have grown to an amount whereby GIC's are no longer good enough. Since I bank with TD Canada Trust, there seems to be a ...
11
votes
3answers
2k views

Detangle this potential scam?

My cousin [we'll call him Chuck] has gotten involved with an investment "tutor" [we'll call him Tim] that has "hired" Chuck to make investments for Tim. From what I understand, Tim allows Chuck to ...
10
votes
5answers
3k views

What type of investment is best suited for a 1-year investment on a down payment?

I'm looking to buy a house, but lacking in the capital to make an adequate down payment on said house. My lease expires in a year from now, so I am looking to build up my capital through investment ...
10
votes
4answers
2k views

Can I buy stocks directly from a public company?

Is it possible to buy stock directly from a public company, bypassing a broker? It seems that discount brokers do nothing more than facilitate a trade and take a cut - I'd like to eliminate the ...
10
votes
3answers
3k views

18 year old making $60k a year; how should I invest? Traditional or Roth IRA?

I've had a lot of questions regarding personal finance, and I figured this would be the best place to get some good answers. To start, I made over $60,000 in 2013 and just over $44,000 in 2012. I make ...
10
votes
2answers
650 views

What ways are there to invest in stocks, options, indexes, etc, and where should one start (what funds)?

I have been poking around with investing for a few years now. I have diversified my assets a decent amount, between a home, several IRA's and 401k's, savings and checking accounts, and a little bit of ...
10
votes
4answers
1k views

As a young adult, what can I be doing with my excess income?

I am a 20 year old living in the UK. I've had a look at my monthly incomings/outgoing and have realised I have approx £400-600 (~$600-$900) to spare per month, and that at the minute I'm just ...
9
votes
3answers
236 views

Are there things I can be doing while waiting for an investment to mature?

I'm not going to be a day trader and I don't have enough time to be an active trader in the sense that I will not be making several trades a month. Instead I'm more of a buy and hold investor. I find ...
9
votes
3answers
2k views

I'm 23 and new to investing. How should I diversify my 401(k) based on my plan's choices?

My employer matches 100% of up to 4% of my gross salary. I want to contribute at least what is matched. I'm 23 and have a gross salary of $70k, and I know very little about this. I was hoping someone ...
9
votes
2answers
898 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
votes
3answers
2k views

I am a 23 yr old looking to open a Roth IRA. Should the fund I choose track the S&P?

Not sure what particular funds should be examined, including funds that track the S&P. Is it smart for me at a young age to choose a fund tracking the S&P?
9
votes
2answers
769 views

What are some valuable sources for investment experience, when there is very little to no money to start with?

I have come across quite a bit good information about investing (real estate, stocks, bonds, etc..) and so far, almost all of my investment knowledge comes from books and online research. I would like ...
9
votes
3answers
1k views

How do you model future income when doing long term planning?

One of the things I do that allows me to really get into investments, budgeting, saving money, is spreadsheeting it all out and forcasting the returns I might reap based on a given set of assumptions. ...
8
votes
6answers
1k views

23 and on my own, what should I be doing?

So I graduated in May with a Computer Engineering degree and started work in September at a major bank located in Jersey City and moved in with a couple of college friends in an apartment in Astoria, ...
8
votes
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 ...
8
votes
9answers
17k views

New to investing — I have $20,000 cash saved, what should I do with it?

maybe someone can lend some advice. Background: I'm 28, married, and expecting my first child. Our short(ish)-term financial goal is to continue saving for a home. I'm wondering if I should take ...
8
votes
7answers
11k views

High-risk investing is better for the young? Why?

I have heard statements such as the question's time. Basically, it's a financial motto: "If you're young, take on more risk." I don't really understand it. I figured risk-tasking is a personal/...
8
votes
2answers
669 views

What to do with $2115 disposable income per month?

I want to start investing money, as low risk as possible, but with a percentage growth of at least 4% over 10 - 15 years. I won't need this money until then so can handle locking it away or risking a ...
8
votes
3answers
4k views

Best way to invest as a 22 year old with not very much money but no debt

Here's my situation. Not sure if this question has been asked, I think my situation is pretty unique. I am a 22 year old college student living in Tennessee, about to graduate soon with my Bachelor ...