School me on investing...

Discussion in 'General' started by noles19, Nov 8, 2017.

  1. notbostrom

    notbostrom DaveK broke the interwebs

    Vanguard sp500 ETF. Add what you can monthly and never ever try to time the market. Add another$250 a month and dollar cost average in. Never sell no matter what you think the market will do.
  2. Lawn Dart

    Lawn Dart Difficult. With a big D.

    I almost recommended Robinhood too. I still have an account, even though I trade primarily options these days.

    The caveat with Robinhood (or any trading platform/broker) is to avoid pattern day trading rules. With a small account, do not buy/sell the same symbol in a 24 hour period. Doing this 3 times will get your account locked for a significant time period. Accounts with $25K or more do not have to follow this rule.
  3. kz2zx

    kz2zx zx2gsxr

    Agree with Roth IRA - he says he's self-employed, so 401k makes no sense...

    If you just want to put money in when YOU think you have it to put in, go for a Vanguard target-year fund (i.e. Vanguard 2045). Choose low-expense ratio funds. Other options if you have a little more desire to move things around, use ETFs, and go for cheaper ones.

    I use Schwab for my traditional brokerage and traditional IRA (legacy of a job in the early '90s), and I use USAA for an automatic investing fund (USAA funds are not the best, but since I use USAA for banking, it's pretty easy to set up). Your bank will probably also offer this service - and funnel it to a particular fund family by limiting your options. This is good for a long-term, painless investment strategy. Downside - you pretty much have to have excess cash each month to take on what amounts to a car payment-sized hole in your bank account, long-term.

    I trade semi-often in my traditional brokerage, changing ETFs depending on what's on it's way up the Gartner Hype Cycle and similar predictions, I have some bond ETFs, and I have a few of Schwab's low-cost funds - there's enough to diversify international, finance, tech, index.

    I should hit my retirement goal in about 10 years.
  4. SuddenBraking

    SuddenBraking Tire collector

    /close thread
    rugbymook, Funkm05, sdiver and 3 others like this.
  5. Venom51

    Venom51 John Deere Equipment Expert - Not really

    Hookers.....lots of hookers. Male...female...doesn't matter. If you can get enough of them in your stable they provide a nice source of renewable income.
    TurboBlew and dtalbott like this.
  6. dtalbott

    dtalbott Driving somewhere, hauling something.

    I'm just gonna work until I'm dead, then maybe a few more days to help pay for the funeral.
  7. noles19

    noles19 Well-Known Member

    Yeah but the more I expand the business, the more protection I have to provide for them and that's alot of work, I really don't want the Hassel anymore.
    Plus if I get back in that game I have to deal with James east and ED again, and that's just not worth it....
    Last edited: Nov 8, 2017
  8. beac83

    beac83 Old

    Roth 401K's and Roth IRA's are funded with money after you pay income tax on them.

    Traditional and Simple 401K's are funded with pre-tax money, meaning you don't pay income tax on the money when you put it in, you pay when you take it out when you are older (and presumably, in a lower tax bracket - YMMV).

    On a Roth accounts, you do not pay tax on the gains/appreciation when you take them out (after age 59.5). With a traditional/simple 401K, since you did not pay tax on teh income that you diverted into the 401K in the year you contributed it, you pay income tax on the amount you withdraw when you take it out, including on the gains/appreciation of the original pre-tax money.

    A traditional / Simple 401K makes sense when you have enough income that stashing some away pre-tax will lower your tax bracket.

    You can set up a Simple 401K for a self-employed person at Fidelity or Vanguard or somewhere else. The advantage is that you can put a lot more money into a 401K than you can into an IRA each year.

    So if you have the ability to sock away more than the IRA limits, a Simple 401K (I may have the name wrong, but it's a 401K for a self-employed person or small business) would be the way to go under the current tax laws.

    Of course, if Congress changes the tax law with the current proposed tax reform, then everything will need to be re-evaluated to see what provides the most value for your particular situation.

    As others have said, investing in a broad market index fund (Vanguard Total Stock Market Index Fund or similar) gives you the best long term returns at the lowest fund fees. S&P500 funds are slightly narrower, but still broad enough to typically match or beat any more narrowly focused fund or individual stock over the long term.
    These funds are available as mutual funds or Exchange Traded Funds (ETF). The difference is minimal between the two, especially for 401K or IRA's where you do not pay capital gains on the annual gains, nor income tax on the interest they pay each year.

    Fund fees are expressed in the prospectus as the Expense Ratio. It is given as a rate (such as .02%) that tells you what the costs of running the fund are. I typically see fees as low as .02% for index funds, and as high as 2.00% or more for more actively managed funds (where there is a lot more trading activity by the fund manager because the fund is actively managed and focused on other than tracking the broad market. Although 0.02% to 2.00% doesn't seem like a lot, these are annual rakes off the top, and over time they can make substantial differences in the growth of your holdings.

    I use both Fidelity and Vanguard and am satisfied with both of them. Either would be a good place to start.

    Talk to your tax guy/accountant to figure out what makes sense for you.
    Last edited: Nov 8, 2017
    XFBO, Boman Forklift and noles19 like this.
  9. Lavana

    Lavana The coming

    if you are serious about investing... first thing I would suggest it’s to get out of this sport. If I would have invested what I have spent it would make someone a millionaire
  10. noles19

    noles19 Well-Known Member

    Well that goes without saying, if I would have saved all the money I've spent on Racing I'd either have a really nice car paid off or s big down payment on a nice house. But chances are I'd be in a mental word instead...
    track wagon likes this.
  11. Lazy Destroyer

    Lazy Destroyer Well-Known Member

    Check out BetterInvesting at

    They have online classes (some of which are public) on how to read a stocks Selection Guide (SSG) and analyze the numbers to find stocks of solid companies. it will also determine the Buy or Sell range of these stocks so you can buy with confidence without any guess work.

    You can also pay for a membership there for more features and material to have access to.

    I've been using them a little here and there, and they helped support me a little in my 2017 season also. If you ever make the WERA Southeast rounds, lots of people there know my mom who works directly with BettterInvesting and she can get you more detailed information. She's been doing this stuff for like 30 years
  12. peakpowersports

    peakpowersports Well-Known Member

    So I'll switch it up a bit and say you need to focus on being as close to debt free as possible. I'm guessing at 27 you still carry decent debt somewhere. If you don't own a home consider that as a debt that will come.

    401k and IRA's are great, but being late 30s and debt free owing a home is even better. You can stack a lot of cash quickly once your debt free for the future.
    Str8-Lurkin likes this.
  13. noles19

    noles19 Well-Known Member

    Nope Completely Dept free.
  14. noles19

    noles19 Well-Known Member

    I've met your mom! Had lunch with her and the Davis's at tally in April
    Lazy Destroyer likes this.
  15. I’ve got 30 different ones I play with, that’s one of them.

    Actually, I don’t actually “play” with that one, I just keep buying more all the time.

    Stocks are fun, especially if you play with ones on your field of expertise and know what to look for (while being far outside the realm of Insider Trading).

    But I also put money in 5 different Indexes. You can’t go wrong there.
    noles19 likes this.
  16. BTW, I use Robinhood for mine.
    noles19 likes this.
  17. sanee

    sanee Well-Known Member

    definitely an index fund like the ones mentioned. one of mine is VFINX. wish someone told me sooner also. mine is on etrade
  18. peakpowersports

    peakpowersports Well-Known Member

    If your debt free and own a home at 27 (assuming it's not a 25k shit box) then you shouldn't be asking for advise from this lot, you should be giving it!
  19. This was my 401k rationale. I’ve invested min 20% of my check since I was 16, I have money stashed all over the place from property to 401k and everything in between. Really comes down to your goals and how much and when you want to access the money.
  20. XFBO

    XFBO Well-Known Member

    Yea, I was beginning to wonder if I had the wrong understanding on Roth IRA' there any debate on how they operate? :confused:

    I think beac is the first to get it right, they TAX your contribution but withdrawals are then tax free.

    I used to participate with a 457b from work but now that I have retired I can no longer contribute/invest in it. For the time being, I'm leaving it where it sits but anyone REALLY good with this sorta stuff, I'd love to hear some suggestions on rolling it over to ????

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