Stock Portfolios V2

If one wanted to start dabbling in stocks, how would they go about it? I have a small 401k in Charles Schwab from a previous job that I dont want to eat 30% taxes on to withdraw, but earns almost zero interest.
 
Roll it over. You can open a new brokerage and make a deposit to keep the min balance.

Cashing out, is the worst thing that you can do. Also, make sure, if you are working, that you are enrolled in a 401k
 
PUO3 said:
If one wanted to start dabbling in stocks, how would they go about it? I have a small 401k in Charles Schwab from a previous job that I dont want to eat 30% taxes on to withdraw, but earns almost zero interest.
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Roll it over to Vanguard index fund if you can. Contribute the max every year which is probably $5500. Don't touch it til you're 65.
 
I fucking love watching dividends come in. Yesterday I took in $45 total from GIS, VZ and T. This year I'll take in about $1800 in divs that just get immediately reinvested. Compound interest motherfuckers!
 
I love me some DRIPs. But I just added it up. I only make about $850 a year in dividends. Gotta say That I am jelly. Also, that I need about 24 times that amount a year to live on. A long way to go
 
ElKarlo said:
Roll it over. You can open a new brokerage and make a deposit to keep the min balance.

Cashing out, is the worst thing that you can do. Also, make sure, if you are working, that you are enrolled in a 401k
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Krav McGraw said:
Roll it over to Vanguard index fund if you can. Contribute the max every year which is probably $5500. Don't touch it til you're 65.
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This would be just keeping the same type of thing open, or potentially earn more?

Its not a huge amount, only about 10k, and not part of my retirement that Im working on now so I dont really mind gambling a bit with it on stocks. I simply have no idea what I am doing. Id like to turn it into something bigger potentially.
 
PUO3 said:
This would be just keeping the same type of thing open, or potentially earn more?

Its not a huge amount, only about 10k, and not part of my retirement that Im working on now so I dont really mind gambling a bit with it on stocks. I simply have no idea what I am doing. Id like to turn it into something bigger potentially.
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The Vanguard index funds mimic the SP 500 or the DOW which averages roughly 11% return. Not bad. Do you think you could do better? You could buy up Berkshire Hathaway class B stock.
 
Krav McGraw said:
The Vanguard index funds mimic the SP 500 or the DOW which averages roughly 11% return. Not bad. Do you think you could do better? You could buy up Berkshire Hathaway class B stock.
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Oh wow that is solid, much better than the less than .3% it gets now.....

Have no idea if I could do better investing elsewhere. I have zero idea what Im talking about.
 
Open a Traditional IRA, and roll it over into there. Then buy an index ETF, like VTI, which is the total stock market in the US.
 
PUO3 said:
Oh wow that is solid, much better than the less than .3% it gets now.....

Have no idea if I could do better investing elsewhere. I have zero idea what Im talking about.
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Read The Coffeehouse Investor. Good quick read that will help you forever. You could even read it in the bookstore so you don't have to buy it. It will get your mind in the right place.

His philosophy is right in line with the Vanguard folk. This is where you want to put your money long term. Its just a matter of deciding which fund to go with. The Total Stock Market fund seems like a winner but there are a few others that are good too:

https://investor.vanguard.com/home/

This guy: http://en.wikipedia.org/wiki/John_C._Bogle

http://www.amazon.com/The-Coffeehouse-Investor-Wealth-Ignore/dp/159184584X
 
Krav McGraw said:
The Vanguard index funds mimic the SP 500 or the DOW which averages roughly 11% return. Not bad. Do you think you could do better? You could buy up Berkshire Hathaway class B stock.
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Pretty much this. Buy an ETF that represents the S&P500. As, you really aren't going to get a better return than it without putting in crazy work + luck

I think 7% is a decent return per year. Which about what you can get these days.
 
Thanks to this thread, I maxed out my Vanguard ROTH IRA. Since last March, I've gotten about 18% return. Not sure if I did something else to it because the report shows dividends.

So I still have some extra savings that I can invest on. What do you guys suggest?
 
Krav McGraw said:
Read The Coffeehouse Investor. Good quick read that will help you forever. You could even read it in the bookstore so you don't have to buy it. It will get your mind in the right place.

His philosophy is right in line with the Vanguard folk. This is where you want to put your money long term. Its just a matter of deciding which fund to go with. The Total Stock Market fund seems like a winner but there are a few others that are good too:

https://investor.vanguard.com/home/

This guy: http://en.wikipedia.org/wiki/John_C._Bogle

http://www.amazon.com/The-Coffeehouse-Investor-Wealth-Ignore/dp/159184584X
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Will do. Thanks.
 
highkicknomore said:
Thanks to this thread, I maxed out my Vanguard ROTH IRA. Since last March, I've gotten about 18% return. Not sure if I did something else to it because the report shows dividends.

So I still have some extra savings that I can invest on. What do you guys suggest?
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Which Vanguard funds do you have?

Have you thought about REIT's?
 
Krav McGraw said:
Which Vanguard funds do you have?

Have you thought about REIT's?
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It's like the Retirement 2040 or something. It used to have a bigger return but it kind of went down about 2 weeks ago.

What's REIT's and do they have it?
 
highkicknomore said:
It's like the Retirement 2040 or something. It used to have a bigger return but it kind of went down about 2 weeks ago.

What's REIT's and do they have it?
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Nice man. Been learning a lot by reading through this thread as well.

Right now I've got a deferred comp plan, but I'm forced to pay into retirement. I wish I could opt out and put the money where I want to put it. Right now my retirement takes about 150-200 biweekly(3-400 a month) and after 5 years I'm vested and I'll see a match on that of about 90%. Since I have to shell out so much for that I don't have a lot to put into deferred comp after they rape my wages, so it's $20 into pre-tax and $20 into post tax. I diversify that money(which includes about $2k from other jobs 401k plans) into vanguard 2040(60%) and Fidelity Contrafund(40%).

I'm trying to figure out how I can put more money into my deferred comp, while still paying down debt(CC/Student Loans). Any advice from the big heads?
 
Omegaboy13 said:
Nice man. Been learning a lot by reading through this thread as well.

Right now I've got a deferred comp plan, but I'm forced to pay into retirement. I wish I could opt out and put the money where I want to put it. Right now my retirement takes about 150-200 biweekly(3-400 a month) and after 5 years I'm vested and I'll see a match on that of about 90%. Since I have to shell out so much for that I don't have a lot to put into deferred comp after they rape my wages, so it's $20 into pre-tax and $20 into post tax. I diversify that money(which includes about $2k from other jobs 401k plans) into vanguard 2040(60%) and Fidelity Contrafund(40%).

I'm trying to figure out how I can put more money into my deferred comp, while still paying down debt(CC/Student Loans). Any advice from the big heads?
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That's a good amount to put into retirement. I think rule of thumb for debts is to pay it off as fast as possible unless employers match 401k 100% or whatever they want you to invest in.

Krav McGraw said:
Real Estate Investment Trusts
http://www.investopedia.com/terms/r/reit.asp
http://en.wikipedia.org/wiki/Real_estate_investment_trust

Good way to diversify your portfolio.

This one looks like a gem:
http://money.usnews.com/funds/mutual-funds/real-estate/vanguard-reit-index-fund/vgsix
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I'll definitely look into that. Thanks dude.
 
Don't invest in REITs unless you know what you're doing.

If you have extra funds, do you have the ability to stash more in a 401k?

Usually the standard recommendation is to:
Invest up to the match in a 401k
Invest in a Roth to the max
Then invest more in a 401k
And beyond that, start investing outside of a 401k.

If you don't have a 401k and have maxed out a Roth, then I'd say start with companies you know that have products you use. Think JNJ, PG, KO, PEP, WMT, TGT, etc. REITs are something you need to learn about more before investing in.
 
It's recommended that REIT's make up 5-10% of your portfolio. Just research a good one. It's not that complicated.
 
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