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No comment.
Like I said, early on - please DON'T make this a cyrpto thread. If you want to talk about that exclusively, please make your own thread.
This is about investing in it's entirety.
Investing Thread
- Thread starter POWER2
- Start date
This is about investing in it's entirety.
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The Best Ways to Invest $5,000
https://www.nerdwallet.com/blog/investing/best-ways-to-invest-5000/
A $5,000 windfall is unlikely to change your life, but it is likely to change how you invest — or give you a jumping-off point to start investing, if you’re not already.
With $5,000, you’ve turned the investing corner. The snags that investors with lesser amounts often hit — too high account and investment minimums, too little money to diversify adequately — are not big issues for you.
The bigger issue, potentially, is making a choice when you have a lot of choices. That’s why we’ve narrowed things down to the five best ways to invest $5,000. One of these is bound to suit your risk tolerance and goals, and all of them are within reach.
1. Invest in your 401(k) and get the matching dollars
If you have a 401(k), your company offers to match your contributions and you’re not taking it up on that offer, this decision is a no-brainer: Go after that match. Many companies match half or all of your contributions, up to 3% to 6% of your salary. It’s the highest guaranteed return in investing.
You typically can’t deposit a lump sum like $5,000 into your 401(k), but you may find that having that money in the bank gives you room in your budget to start grabbing those matching dollars. Those 401(k) contributions will make your paycheck smaller, but you can repay yourself from that $5,000, either after each paycheck or whenever money runs short for the month.
» Are you on track for retirement? Find out with our 401(k) calculator.
2. Use a robo-advisor
You could build a portfolio of ETFs, or you could have one of these computer-driven advisors manage a pre-built portfolio for you.
You’ll pay for taking the easy way out, generally a management fee of 0.25% to 0.35% of your account balance per year on top of the ETF expense ratios. However, there are a few free options. Wealthfront has a $500 minimum and manages up to $10,000 for free. WiseBanyan has no minimum and is free indefinitely. Charles Schwab’s advisor, Intelligent Portfolios, requires $5,000 and uses its own funds but charges no management fee.
» Ready to call in the robots? Our picks for the best robo-advisors
3. Open or contribute to an IRA
The annual IRA contribution limit is $5,500, so you’re just a hair away from reaching it. Being that close might motivate you to pinch together the last $500, but even if it doesn’t, an individual retirement account is the best home for this money if you don’t have a 401(k) or you’ve already gotten your matching dollars.
Like a 401(k), an IRA is a retirement account, but you don’t need an employer to have one. You can open an IRA at any online broker. Many don’t have an account minimum; those that do either require much less than $5,000 or waive their minimum for an IRA.
For more, see our list of the best IRA account providers.
4. Buy commission-free ETFs
A $5,000 investment gets you past most standard mutual fund and index fund minimums, which typically hover between $1,000 and $3,000. But one or two mutual funds do not a diversified portfolio make. (The exception is target-date funds, which are inherently diversified so you can put your full investment in a single fund. These can have high expense ratios but are one option for investors who prefer to be hands-off.)
Investing in five $1,000-minimum index funds would buy you an equal share of the five kinds of investments tracked by those funds, which probably isn’t the portfolio you want.
Enter exchange-traded funds, which you can buy through that IRA or an online brokerage account. ETFs are index funds that trade like a stock. You avoid the whole song and dance with minimums and instead buy in for a share price that is, in most cases, much lower than the typical fund minimum. You can buy more funds, get more diversification and spread your money in a way that makes sense for your age and risk tolerance.
ETFs tend to have low expense ratios, but you’ll want to focus on commission-free ETFs so you’re not paying a fee each time you buy or sell. Those fees can run up to $10 and really drag down a small investment. Most brokers offer a list of commission-free ETFs.
» View the best brokers for ETF investors
5. Trade stocks
Trading stocks has a kind of allure, and if you’ve been feeling the pull, now may be the time to do something about it — with a very small percentage of your portfolio. We recommend limiting buying stocks to 10% or less and dedicating the rest of your money to low-cost funds geared toward retirement.
» Learn more: How to buy stocks
Those pesky commissions pop up again here, too. Avoid or limit fees by using a low-cost broker or free trading app like Robinhood — here are our picks for the best online brokers.
https://www.nerdwallet.com/blog/investing/best-ways-to-invest-5000/
A $5,000 windfall is unlikely to change your life, but it is likely to change how you invest — or give you a jumping-off point to start investing, if you’re not already.
With $5,000, you’ve turned the investing corner. The snags that investors with lesser amounts often hit — too high account and investment minimums, too little money to diversify adequately — are not big issues for you.
The bigger issue, potentially, is making a choice when you have a lot of choices. That’s why we’ve narrowed things down to the five best ways to invest $5,000. One of these is bound to suit your risk tolerance and goals, and all of them are within reach.
1. Invest in your 401(k) and get the matching dollars
If you have a 401(k), your company offers to match your contributions and you’re not taking it up on that offer, this decision is a no-brainer: Go after that match. Many companies match half or all of your contributions, up to 3% to 6% of your salary. It’s the highest guaranteed return in investing.
You typically can’t deposit a lump sum like $5,000 into your 401(k), but you may find that having that money in the bank gives you room in your budget to start grabbing those matching dollars. Those 401(k) contributions will make your paycheck smaller, but you can repay yourself from that $5,000, either after each paycheck or whenever money runs short for the month.
» Are you on track for retirement? Find out with our 401(k) calculator.
2. Use a robo-advisor
You could build a portfolio of ETFs, or you could have one of these computer-driven advisors manage a pre-built portfolio for you.
You’ll pay for taking the easy way out, generally a management fee of 0.25% to 0.35% of your account balance per year on top of the ETF expense ratios. However, there are a few free options. Wealthfront has a $500 minimum and manages up to $10,000 for free. WiseBanyan has no minimum and is free indefinitely. Charles Schwab’s advisor, Intelligent Portfolios, requires $5,000 and uses its own funds but charges no management fee.
» Ready to call in the robots? Our picks for the best robo-advisors
3. Open or contribute to an IRA
The annual IRA contribution limit is $5,500, so you’re just a hair away from reaching it. Being that close might motivate you to pinch together the last $500, but even if it doesn’t, an individual retirement account is the best home for this money if you don’t have a 401(k) or you’ve already gotten your matching dollars.
Like a 401(k), an IRA is a retirement account, but you don’t need an employer to have one. You can open an IRA at any online broker. Many don’t have an account minimum; those that do either require much less than $5,000 or waive their minimum for an IRA.
For more, see our list of the best IRA account providers.
4. Buy commission-free ETFs
A $5,000 investment gets you past most standard mutual fund and index fund minimums, which typically hover between $1,000 and $3,000. But one or two mutual funds do not a diversified portfolio make. (The exception is target-date funds, which are inherently diversified so you can put your full investment in a single fund. These can have high expense ratios but are one option for investors who prefer to be hands-off.)
Investing in five $1,000-minimum index funds would buy you an equal share of the five kinds of investments tracked by those funds, which probably isn’t the portfolio you want.
Enter exchange-traded funds, which you can buy through that IRA or an online brokerage account. ETFs are index funds that trade like a stock. You avoid the whole song and dance with minimums and instead buy in for a share price that is, in most cases, much lower than the typical fund minimum. You can buy more funds, get more diversification and spread your money in a way that makes sense for your age and risk tolerance.
ETFs tend to have low expense ratios, but you’ll want to focus on commission-free ETFs so you’re not paying a fee each time you buy or sell. Those fees can run up to $10 and really drag down a small investment. Most brokers offer a list of commission-free ETFs.
» View the best brokers for ETF investors
5. Trade stocks
Trading stocks has a kind of allure, and if you’ve been feeling the pull, now may be the time to do something about it — with a very small percentage of your portfolio. We recommend limiting buying stocks to 10% or less and dedicating the rest of your money to low-cost funds geared toward retirement.
» Learn more: How to buy stocks
Those pesky commissions pop up again here, too. Avoid or limit fees by using a low-cost broker or free trading app like Robinhood — here are our picks for the best online brokers.
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While I made this thread to really share tips an stock favorites, I'm also considering a thread on "Improving Your Credit Score". I'm kind of astonished that people pay for this service, as it's not that hard to get done on your own, with some discipline. When it comes to that topic, I consider myself a pro of sorts.
Would anybody be interested in that?
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The Big Hack: How China Used a Tiny Chip to Infiltrate U.S. Companies
The attack by Chinese spies reached almost 30 U.S. companies, including Amazon and Apple, by compromising America’s technology supply chain, according to extensive interviews with government and corporate sources.
https://www.bloomberg.com/news/feat...filtrate-america-s-top-companies?srnd=premium
Anyone considered how Russian and Chinese activity as well as cyberterrorism could impact their investment portfolio?
The attack by Chinese spies reached almost 30 U.S. companies, including Amazon and Apple, by compromising America’s technology supply chain, according to extensive interviews with government and corporate sources.
https://www.bloomberg.com/news/feat...filtrate-america-s-top-companies?srnd=premium
Anyone considered how Russian and Chinese activity as well as cyberterrorism could impact their investment portfolio?
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- Joined
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While I made this thread to really share tips an stock favorites, I'm also considering a thread on "Improving Your Credit Score". I'm kind of astonished that people pay for this service, as it's not that hard to get done on your own, with some discipline. When it comes to that topic, I consider myself a pro of sorts.
Would anybody be interested in that?
You'd actually be surprised how many young millennials can't afford mortgages. A few of my friends can't understand how I have a 780 credit score and how I was able to get a loan for my duplex I just recently purchased.
It's wild... Then I feel like an asshole if I told them my views on finances so I just change the subject but its really fucking simple. Don't spend what you don't have. Of course, I also used the time I lived with my parents to build up my credit score via car payment (Took a three year loan and paid it in 1.) And constantly maxing out my credit cards then paying them off at the end of the month. I don't ever suggest that to people but thats what I did because I could afford to do it due to my living situation.
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I'm disappointed with my returns so far this year. I have two mutual funds, and a few bio stocks. Over 20 months I've gone up like 6-8%.
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Invest your hard earned cash to properties....especially the foreclosed properties for huge discounts...
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I must be the only one doing RE. Got a couple multi-family properties. Between the 2 I have now and my pension, my retirement is already secured assuming everything stays the same. Any additional RE I buy is will be gravy.
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While I made this thread to really share tips an stock favorites, I'm also considering a thread on "Improving Your Credit Score". I'm kind of astonished that people pay for this service, as it's not that hard to get done on your own, with some discipline. When it comes to that topic, I consider myself a pro of sorts.
Would anybody be interested in that?
Great topic if people actually cared. It's also not rocket science once you know what can affect your credit score postively or negatively in both the short and long term. My FICO score ranges depending on which of the three main bureau I look at. The highest one is 826 and the lowest was 798. Doesn't matter though since I have no need for it outside of churning credit cards and having that high credit score buffer when I cancel/add new cards. As long as my lowest credit score is above 760 I'm good.
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I figured I'd tag the two greatest internet investors of all time.
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For cyclical options trading SPY, QQQ and EEM
Won't disclose my high yield dividend portfolio stocks here but will say that it is mostly REIT and BDC stocks.
Won't disclose my high yield dividend portfolio stocks here but will say that it is mostly REIT and BDC stocks.
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Well The Logical Artist does a little sumtin'... anyone wanna collect some dividends or better yet trade some options ought to holla at a pimp.
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Similar, but I don't buy the "stocks gain 12% per year!" nonsense he espouses, nor do I buy into the 4% withdrawal in retirement "rule" a lot of advisors use. If I can get a high quality mix of stocks, bonds, CEFs and BDCs that pay dividends of 4% per year, and I'm taxed at a dividend rate instead of a long term investment rate, why not? You'll reap the rewards of consistent income without having to touch your principal.
I also believe in term life insurance, enough to pay off all debts and have a bit saved for surviving family members.
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I'm certainly not opposed to crypto, but I don't go to the "thought extremes" some weirdos do. Gubmint is da devil! and all that shit is simply justification for their alternative investment ways.
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I am.
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Nothing wrong with that. I own MAIN in my son's UTMA, O in my IRA, and really consider investments like T and VZ almost bond substitutes with similar yields.
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Diversity and long term thinking can help you assuage these thoughts. If I return 8% this year, great! 8% is still a pretty good rate of return in it's own right and you can't always compare to a benchmark that you'll never meet/exceed. Just diversify, invest smartly and often, and worry about your target numbers, not some arbitrary benchmark that may not pertain to you.
