besides “investing for dummies” are there any other books someone would suggest as a great start for investing on your own using vanguard/ameritrade/etc. mutual funds, small cap stocks, etc. i want to know how to start, how to manage, and how to know when to get out. thanks for your suggestions! my goals are for long term and short term, id like to have a diversified portfolio
website links are welcomed suggestions as well. ive already visited motley fool, vanguard, ameritrade, and beacon.
You're on the right track with Vanguard. Stick to low cost index funds. If you're not already in a 401k or Roth IRA, then START. Just stuff as much money as you can into a "target retirement fund" and let it swell up over time.
Dont move your money out when the "stuff hits the fan" like it did today. If anything, buy more when the market tanks. Stocks are on sale! If you are going to let this money grow for 20 or 30 years, it doesnt really matter how bad things are currently because it will work itself out and you'll be way ahead over the long haul if you just stay your course and KEEP INVESTING.
This takes care of your "long term".
Short term, stay away from stocks. Stuff money into I-bonds at Treasurydirect. Ladder your CDs. Consider rental real estate property.
Stay away from individual stocks. Stay away from the "get rich quick crap" on late night TV and spam e-mails. Stay away from normal brokerage accounts that eat you alive with fees.
Work to cut your cost of living so that you can maximize your contributions to a 401k and a Roth IRA. Diversify your investment.
If you're already maximizing Target Retirement funds in a 401k and Roth, consider investing in Real Estate so that you dont have all of your gold in one bag.
Investing is simple. Do the above for 20 or 30 years and retire a multi-millionaire.
Oh and here are some good books:
"Grow Your Money" by Jonathan Pond.
"The Lazy Person's Guide to Investing" by Paul B. Farrell.
"The Quiet Millionaire: A Guide for Accumulating and Keeping Your Wealth" by Brett Wilder.
All available on Amazon. Read up and study but dont fall victim to "paralysis by analysis", which means to study something endlessly but have zero action. Learn just enough to be dangerous and then ACT.
Good luck!
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I am 24 years old and looking at my future investments in my Roth IRA. Right now I own shares of 3 separate mutual funds, divided equally by initial monetary investment. Ratings below are from Morningstar.
-FDFFX: Fidelity Independence, a 3-star rated Large Growth Fund.
-FICDX: Fidelity Canada, a 5-star rated Foreign Large Blend Fund.
-HIINX: Harbor International, a 4-star rated Foreign Large Value Fund.
With the upcoming year for contributions of up to $5k, I am looking at the potential of either buying into 2 new funds (typically most funds I look at have a $2500 buy in), 1 new fund and adding to my already existing funds, or not buying into any new funds and purchasing only more shares in my already existing funds (which are a bargain with the market the way it is).
I feel as though buying into 2 more funds is the best bet for this year, but at what point will I have enough diversification to start reinvesting in already existing good performing funds versus continually making minimum purchases into new funds?
About me: At 24 years old I am not worried about risk. I prefer extreme risk with the possibility of extreme gains. Because of this I am looking into this year buying into some Small Cap Value funds, especially in foreign markets. Right now I'm running a 68% foreign / 26% domestic / 4% short-term.
I am not specifically looking for a fund recommendation as much as I am overall investing strategy for the upcoming 3-years with suggestions of fund TYPES that I should be buying into. Also I wish to know when should I stop buying MORE mutual funds and start reinvesting into already held high performing funds..if ever. Thanks!
Note: I would like to treat my IRA as if it were in a vacuum. I will be investing into a 457b and a 401a plan this year, but I will be using the same investment strategy as in my IRA (but purchasing different mutual funds of the same types for stability and diversification).
By vacuum, I mean that I don't want my 457 or 401 to be considered when looking at diversification…I want each portfolio to be separately diversified. Which I'm actually starting to think might not be my best option. By actually using my 457 and 401 to purchase funds that compliment my existing IRA picks, I could get the amount and types of funds I want quicker.
For diversification, putting it into five or so funds that invest in different types of stocks is best. You shouldn't put it all into an S&P500 fund, because that fund only represents 500 of the biggest companies in the United States — it doesn't cover small-cap stocks or foreign stocks, for example. You should probably have a large-cap fund, small-cap fund, foreign-stock fund and maybe a value fund and a growth fund. If you buy to many funds, you are likely to have overlapping investments and would be less diversified.
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1 FAEGX Fidelity Advisor Equity Growth Fund: Class T (FAEGX)
2 FGITX Fidelity Advisor Growth & Income Fund: Class T (FGITX)
3 FAGOX Fidelity Advisor Growth Opportunities Fund: Class T (FAGOX)
4 FMCAX Fidelity Advisor Mid Cap Fund: Class T (FMCAX)
5 FSCTX Fidelity Advisor Small Cap Fund: Class T (FSCTX)
6 FAERX Fidelity Advisor Overseas Fund: Class T (FAERX)
7 FAIGX Fidelity Advisor Balanced Fund: Class T (FAIGX)
8 FAHYX Fidelity Advisor High Income Advantage Fund: Class T (FAHYX)
9 FTBRX Fidelity Advisor Intermediate Bond Fund: Class T (FTBRX)
10 FDAXX Prime Fund – Daily Money Class (FDAXX)
Do not invest in just one fund. Diversity is your best option. Some in FAERX, some in FSCTX, some in FAEGX and some in FGITX and a lesser amount in FDAXX as a safety value in case the market falls. Stay away from the bond funds. They are not good long term investments. Also stay away from balanced funds.
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I was planning on investing $1000 in domestic small cap funds. I was planning on investing another $1000 in foreign funds, preferably Indian or Chinese real estate. I was planning on putting $500 in domestic blue chip stocks.
A lot of the fidelity mutual funds and etfs I was looking at require a minimum investment of $2500 or have a high expense ratio. Any suggestions on what mutual funds I can invest my money in? I’m a college student and totally new to this!
Thanks!
One thing you can look into is forming an investment club. That’s where a number of people each put in a smaller amount than what’s required by a particular investment fund and pool their money together to come up with the minimum amount required. The amount you invested as a percentage of the overall investment is the percentage amount of the fund that you own.
A friend of mine was in this kind of club with a bunch of friends a few years ago. Everybody was assigned a couple of investments to research and present them to the club. The club then voted on which investments they would put their money into. They would then meet every month at a bar or someone’s house to discuss their progress, any new investment opportunities, and whether they should drop any of their existing investments.
One thing they did require, though, was that everyone put another chunk of money into the kitty every month (like $100). That way, they were all contributing to their savings/investment fund and having it grow each month. And, if someone wanted out at any time, they could cash out their percentage ownership in the fund.
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MF – mutual fund
ETF – Exchange Traded Fund
I live in Asia.
Im looking to invest in small cap stock funds and s&p indexed funds.
Fidelity, Schwab and others offer international services.
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