5-10k to invest...but where????

[w8tlifterty]

Ok guys, lets say you had 5-15k to invest and were looking for the best options out there... I need some advice, looking to start investing and just wanna start out on the right foot....thanks in advance bros

 

[mrsoul]

after the market took such a hit today, i would certainly suggest you only go as aggresive as mutual funds. here are the ticker symbols of one i have been in for a year now. mftrx. also check with fidelity, they have great funds and if you want to go conservative, you can open up a money market account that will make 5%.

 

[muscledoc1]

Mutual funds????????-whats wrong with you dude,invest it all in GH!

 

[Sassy]

I would recommend starting with an aggressive mutual funds too. That what I did when I first started investing. You can always diversify as your investments grow into other types of investments.

I have Vanguard and T.Rowe Price... other good ones are Merrill Lynch, Smith-Barny (I have a 401K at work with it), Eaton Vance, Legg-Mason, Fidelity... you can pick up a Money or Forbes magazine to learn about other good fund companies. I had Janus Fund for years, but their involvement in market timing pissed me off, plus the funds weren't doing very good. I had hear there was a lot of miss management going on... so I moved everything to Vanguard & T. Rowe Price.

Be sure an look for a "No-Load" mutual fund. These are mutual funds that don't charge any commission to purchase them. They may have a annual maintenance fee, but when you reach their minimum balance these fees are waved.

Some other good sites to learn about mutual funds are Morning Star, The Motely Fools and MSN.com gives some info too on stocks & mutual funds.

My best advise... once you put the money in there... don't look at the prices again for a long time. It can drive you nuts watching the stock market bounce around... up, down, down, up... There are days it will make your stomach turn upside down.

 

[w8tlifterty]

thanks for the replys so far....

 

[mactruckd]

why dont u pick up a truck full of roids and start up your own domestic website?

 

[Narus63]

Buy some powders and lab equipment and be a domestic source....

 

[healthfreak79]

I would recommend starting with an aggressive mutual funds too. That what I did when I first started investing. You can always diversify as your investments grow into other types of investments.

I have Vanguard and T.Rowe Price... other good ones are Merrill Lynch, Smith-Barny (I have a 401K at work with it), Eaton Vance, Legg-Mason, Fidelity... you can pick up a Money or Forbes magazine to learn about other good fund companies. I had Janus Fund for years, but their involvement in market timing pissed me off, plus the funds weren't doing very good. I had hear there was a lot of miss management going on... so I moved everything to Vanguard & T. Rowe Price.

Be sure an look for a "No-Load" mutual fund. These are mutual funds that don't charge any commission to purchase them. They may have a annual maintenance fee, but when you reach their minimum balance these fees are waved.

Some other good sites to learn about mutual funds are Morning Star, The Motely Fools and MSN.com gives some info too on stocks & mutual funds.

My best advise... once you put the money in there... don't look at the prices again for a long time. It can drive you nuts watching the stock market bounce around... up, down, down, up... There are days it will make your stomach turn upside down.

Great reply thanks for taking the time im going to have to look into this. Thanks

 

[bulldog21]

I would put it in growth mutual funds or international mutual funds....they are doing really good right now...


If you want something a little more aggressive there are some great canadian oil companies that are great invests ments kicking off between 10-15% return.....I would put a couple K in some of them.....

 

[jayuk]

Ok guys, lets say you had 5-15k to invest and were looking for the best options out there... I need some advice, looking to start investing and just wanna start out on the right foot....thanks in advance bros

Another option is ETF's or Spreads....I day trade when I can, and over the past 3 weeks I have done the best all time on falling and rising stocks...all FTSE 100 and Fortune 500.

ETF's are amazing..as you get the benefit of emerging markets and also you dont need to have to watch each individual share within the portfolio as thats done for you....

Jayuk

 

[2ez]

For one I would ask how old you are. Also, are you working and will you need the funds anytime in the near future and if so…approx when ? The younger you are…the more risk you may consider assuming. The more risk you may be inclined to assume….the more your potential rewards.

Mutual Fund are one consideration…..but I would never place my money into a fund and not watch it. Fund Managers change……holdings change….so it is a good idea to keep up on what is going on with your mutual fund. Now this does not require you to check on it daily…..but definitely monthly or every two months…..i gauge on my funds performance.

Historically, stocks have always done better than mutual funds….so with this in mind…you may want to consider a DRIP…(Dividend ReInvestment Plans). A lot of your more established companies have this. It’s where you send in funds to make periodic purchases into a company…and sometimes this is for fractional shares. So you can start with the $5k……..and again send in funds monthly to buy additional shares. EX: Company XYZ has a DRIP program, with a min periodic purchase of $25. Currently the stock cost $50. So if you send in $25 every month…….the program will buy ½ shares for you every month.

I suggest this along with a mutual funds when getting starting……..and until one becomes more versed on how to trade and invest.

There is a difference between Trading and Investing. What Jayuk has stated….is trading……with your mutual funds…..this is considered investing. Longer time horizons. With trading the time horizon can vary. You have day traders…..swing traders……..Buy/Hold Traders…….those that trade Options, Equities, Futures, Currency….and the list goes on.


but I would highly suggest not day trading .....esp trading ETF's, Spreads, Straddles or whatever else. start slow and keep things simple.

With trading you have to find that edge. Some use Technical Analysis (Fibonacci, Elliot Waves, RSI...etc), some Scalp Trade...and again...the list goes on and on.


Bottom line…trading and investing are easy to learn….but difficult to master.


2ez…Series 7, 63, 24, 55

 

[muslhead]

2ez is right but since that requires work and a plan most people will just listen to others advice.
That being said, If you are not going to do your homework then split the money between a well diversified US Large Cap stock mutual fund or ETF (such as VTI or RSP) and a well diversified Intl stock mutual fund (such as SSAIX). If you want to take more risk and can stomach volatility India has a screaming economy and should continue to for a while --- MINDX.
The key to successful investing is diversification.
MH

 

[Sassy]

Yes, 2ez is right, but for a new investor who doesn't have much knowledge or experience and very little to invest... mutual funds are a nice way to get started.

You have to start somewhere. As learn you can grow your investments and start expanding your portfolio to include different types of investments. It's never a good idea to put all your money in one type.

 

[2ez]

2ez is right but since that requires work and a plan most people will just listen to others advice.
That being said, If you are not going to do your homework then split the money between a well diversified US Large Cap stock mutual fund or ETF (such as VTI or RSP) and a well diversified Intl stock mutual fund (such as SSAIX). If you want to take more risk and can stomach volatility India has a screaming economy and should continue to for a while --- MINDX.
The key to successful investing is diversification.
MH

Your on point MH. But before listening to others advice….at least do your due diligence and check the person/Rep/Agent/Broker….out.

Reps licensed in this country can be found here:

http://www.finra.org/RulesRegulation/index.htm


What is this link you ask ? Good Question…hehehe It is the link for Finra….(formerly NASD). They are one of the watch dogs in the financial industry. You can plug in a person’s name and get past employment, licenses held, schools they have attended….and even….if they have any adverse remarks….like violating some kind of rule. For one of my co-workers here…….it shows that he filed bankruptcy a few years ago.

So before taking any advice…..plug the name of the person or brokerage. If you have probs navigating thru the site…..let me know.


But one thing…….buying a Large Cap fund may not be considered diversifying for some. ….because you have all Large Cap. So if you are looking to diversify…..you may want to split the funds between different types of funds….look at the choices:

http://biz.yahoo.com/p/top.html

 

[2ez]

Yes, 2ez is right, but for a new investor who doesn't have much knowledge or experience and very little to invest... mutual funds are a nice way to get started.

You have to start somewhere. As learn you can grow your investments and start expanding your portfolio to include different types of investments. It's never a good idea to put all your money in one type.

Correct my friend……..

But just know….and this is not directed to you….just anyone reading……….. you don’t want to just park your money in a mutual fund and then forget about it. Another thing when buying mutual funds….you have to elect if you want the capital gains and/or dividends reinvested or paid to you in cash. I say elect to reinvest so that your interest and capital gains both are earning interest. Also, I prefer “A” shares, but this is what works for me…

And I would try to stay in the same fund family…rather than buying One Vanguard Fund and One Fidelity. Not saying not to do this….but I would first try to stay in the same fund family.

Each mutual fund should have a PIP (Periodic Investment Plan)……where you send funds in routinely…..you can elect monthly, quarterly, semi-annual or annually. When you buy a fund…some of the miniums are high….could be $1000 or even $5000. But if you want one of these funds…and only have $300 to start….No prob…..tell them you want to establish a PIP. With this, you are only required to give them the PIP minimum (USUALLY). So if the minimum initial investment for a fund is $2000,…the PIP minimum could be $100…….so you can still get into the fund without the $2000. But remember, this is a PIP so you will need to make systematic deposits……if you need to skip a payment or two…..because things get tight….no prob….just give the broker or fund a call…and tell them.



Hope this was helpful.

 

[muslhead]

Stay away from A shares, b shares, c shares etc. You are paying unnecessary fees and loads. If you are doing it yourself there is no reason to pay a load. That answer is a "load" of crap.

If you want to diversify in the US then buy VTI.

If you want unbiased, quality advice visit an adivsor who will charge you by the hour. Go to the NAPFA website and find a fee only advisor in your area. This type of advice minimizes the potential for conflict of interest. When you are being sold something (A, B, C shares etc) you have no idea whether it is being recommended because it is in your best interest or the salesman's. Do you want to work with a salesman or an advisor? Once you decide then it narrows down your choices where to look for advice.

If you are looking to work with an INVESTMENT ADVISOR and not a salesman you can check them out on the SEC website http://www.adviserinfo.sec.gov/IAPD/Content/Search/iapd_OrgSearch.aspx.

MH

 

[2ez]

Why is my reply a load of crap ?

Because i said "A" shares work for me ?


I said "A" shares work for me because of the amount i have invested and I get a little extra being an employee of a brokerage. And there are Break Points and aging advantages with staying within the same fund family.

Some will go to Merrill Lynch (Full Service)......some will opt to use ETrade (Discount). Does not make one right and one wrong....it's all about personal preference and there are many options available and many ways to plan for the financial future.

It may be beneficial to everyone here to share ideas.....and not throw darts at each others opinions.

and oh.....VTI has a $3000 initial purchase minimum. This will leave out those not looking to start with such an amount. PIP and Dividend Reinvestment plans can help here...and one can start with as little as $25.

 

[muslhead]

"and oh.....VTI has a $3000 initial purchase minimum. This will leave out those not looking to start with such an amount. PIP and Dividend Reinvestment plans can help here...and one can start with as little as $25."

EZ, EZ, EZ its really good to get your facts straight.
VTI is an exchange traded fund and, depending upon your broker you can buy as little as one (1) share. This may not make sense because you will mor than likely have to pay for the trade but it is still an option.

Its clear your A shares work for you because you sell them and make 5% on the commission. I would recommend any look at non loaded shares and not pay a commission.

EZ either you must be a wannabe sales guy (or EX) for a brokerage company. If you were a really looking to help people out you would be recommending no cost, no load, no transaction fee (when available) investments. Here is a great example of a conflict of interest.

MH

 

[Sassy]

Heel boys! In this case you are both right. Only it depends on what the investor is interested in, so it good to let people know what there options are. Some people my like to go full-service broker and others will want a discount broker. I think it would be a really good thing to explain the options, so they will be able to make a wise decision.

Muslhead, the NAPFA website is a very good resource. I didn't know about it... thanks for posting it.

EZ... you've posted some good info too... thanks!

 

[2ez]

Wow……I am definitely confused by the way your coming at me bru.

I am no guru nor have I ever claimed to be. I do have over 20yrs in various areas in Finance…..and my degree in college was Risk Managment with a concentraion in both Finance and Actuarial Science. I would never want to be a salesperson…not even if you put a Glock to my freakin temple. I don’t have the personality to deal with others when it comes to their money. I don’t kiss azz well. I have made my hobby into a career…..and I like to discuss trading and investing because it is what I am interested in most.

It’s all about personal preference. I don’t make commissions on the retail level. I started in Investment advisory on the Institutional Level as a trading assistant. Most of the clients were Pension Funds (NFL, Notre Dame, City of Philadelphia)..etc Nothing to sell……..because this was on an institutional level. I then moved on and became licensed as a trader. I use to trade with the firms money…….and now my own while still keeping my 9-5…..because I love trading…….…..again, no salesperson here.


And yes, you can buy 1 share and it does not make sense to do so……….right now as I type, VTI is trading at $153. What does Vanguard charge for additional purchases ?

There are other options than the no load for a reason. There are some that believe the loaded funds, fill a void that the no-loads do not provide.

I know there are some full service brokerage that may charge $30 easy to trade a share…….then some will have a fee schedule based on the size of the trade. But let’s take the $30 commission. One would have to pay $183 for each share purchased and not the $153. And this is why I suggested the PIPs…..because you are paying an extra 20% to buy into this debt instrument. Moreover, with PIPs you can buy fractional shares. I don’t know if you can buy a ½ share of VTI….but please correct me if I am wrong. But if a mutual funds is priced at $68…..and I am set up for a $25 additional purchase amount……..the $25 will be purchased despite the $68 NAV.

Moreover, Vanguard has a comparable mutual fund to VTI……..which will allow additional purchases (PIPs included) at a minimum of $100….with no commissions. Why not suggest this to those looking to start smaller until they get their feet wet.


Again, not sure why the hostility my friend…but no love lost here. Again, rather than throwing darts, why not offer an alternative to what I am suggesting. Soros, Buffet, Rogers all have their own style of investing/trading. Just like you have yours….and I have mines. Does not make either right and the other wrong…..just different opinions and personal preference. When I wanted to learn about this....I didn't read one book and say o.k. I am ready.....I have read several and continue to read. So much to learn here. So I am suggesting that you be one source of info....and I can add my opinions to the conversation as well.


You said earlier, that the key to successful investing is diversification...........I say the key to successful investing is to first become knowledgeable and know what you are buying. How else would they learn how to diversify...or even what diversification entails. Motley Fool offers a lot of good beginner books. I give the younger people in my family this:

http://www.amazon.com/Motley-Fool-I...7154220?ie=UTF8&s=books&qid=1192481358&sr=8-2


I am not suggesting to learn how to trade futures ..which can take years and one still may not be profitable.........just learn the basics and build from there. Worst thing one can do...is to be totally reliant on another when it comes to their financial future.