on edge wrote:
If you placed all eight thousand into Mutual Funds right now, you’ll have about two million at 65. Invest that same amount every year for six years and the only thing you will have to worry about. Is living long enough to spend it all and taxes.
Yeah then a week later I can die and leave it to my kids J/K. I understand that one should learn to invest in more secure funds like index funds, bonds etc. but it is to passive, I am choosing to buy into an index fund as a more secure investment. My goal however is to learn to pick long term stocks and then trade to make to big gains, risky sure but with better rewards.
#1. I’m a little confused, are you the OP? It sounds like it from these posts.
#2. Assuming you are the OP, based on this post and your others, the best thing you could do with the 8 grand would be to send it to me. I’m a nice guy and I will use it wisely and grow it to help support and enrich my family. With your current way of thinking it will go to taxes, brokerage fees and ultimately into the hands of more savvy investors who may very well be creeps.
Or, you can change your mind set, open a ROTH IRA and invest 4 grand of it in the Hussman Strategic Growth Fund. Then, next year put the other 4 grand in the same fund. Your money will be safe there for decades and grow steadily in both up and down markets.
In the mean time, you can learn to play the market with money you work hard for and even harder to save. This is the money you will be a better player with. The eight grand you didn’t earn or scrap for is money you will too easily squander. Don’t be a dumb shit with it. Put it where it’s safe and forget about it for a long long time.
Yeah its me the computer at my grandmothers house has a different account.
I didn’t work for it? where the hell do you think it came from the sky? Like I said investing in secure funds is smart, but many people on here refuse to research and pick their own stocks they think its impossible.
I plan on putting money into index funds, IRa, etc. But my goal is to trade in the market. I dont want to invest all my money to finally have a lot of it whe I’m 65.
Sorry for my bad assumption. Most people start investing their savings before they accumulate 8 grand. That, with your stated family history about not saving, I guessed you came into the money.
I understand your desire to have money now, that’s reasonable. I’m sure you want to save for a home or something like that. I can’t fault that. It’s also good to start the retirement nest egg early (power of compounding).
Everyone here knows it’s possible to pick winning stocks but we also know that the odds are against it. Even if you do pick a winning stock it can be tough making a profit on it. In '96 I put 25 grand into two funds; Tech Value (now Firsthand Tech Value) and Invesco Telecommunications (now defunct). The value of those two positions ballooned to well over 100 grand by 2000. By the time I got out of them in the early 2000’s I had a little more than the 25 grand I started with. I got lucky and picked winners but had know idea when I needed to cash in.
You’ve gotta learn the signs to get out as well as how to get in a stock. These lessons are best gained with a small amount (or a virtual trading account) rather than your whole nest egg. Good luck.