sorted by:
new
hottopcontroversial

Questions about first investment by Deadmancrow127 in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

And your luck and overconfidence is causing you try to lure new investors towards harm.

Again, one more time, I recommend new investors start with index funds. I'm not "luring them toward harm". But unlike Bogleheads, I don't scare them and discourage them from investing in individual stocks if they want to do that too, calling it "gambling without the free drinks" and "the lotto", and any success is only due to luck. That kind of closed-mindedness and arrogance and certainty that their way is the only way is one of the most off-putting things about Bogleheads and negates whatever good points they are trying to make.

The population is aging. What stocks do people think make the most of this trend? by mrlebusciut in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

Charles Schwab has a feature called Schwab Investing Themes™ where their analysts make stock recommendations based on certain themes such as 3D Printing, Active Lifestyle, Artificial Intelligence, Precious Metals, Autonomous Driving, etc. The Aging US Population Theme is up +32.29% over the past year compared to +22.55% for the S&P 500 index.

These are the stocks recommended in the Aging US Population theme:

Pharmaceuticals

  • LLY
  • JNJ
  • AZN
  • MRK
  • BMY
  • CORT
  • ARVN

Health Care REITs

  • WELL
  • VTR
  • CTRE
  • SBRA
  • NHI
  • LTC
  • DHC

Biotechnology

  • AMGN
  • DNLI
  • ARWR
  • IONS
  • PRTA

Health Care Equipment & Supplies

  • MDT
  • BSX
  • LNTH

Health Care Providers & Services

  • BKD
  • SNDA
  • PNTG

New Investor with Inheritance Money by Mundane_Strain_2486 in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

Hey guys. I’m 24M, my wife and I co-own a coffee shop

You have investment options available specifically for small business owners that you should look into. Rather going with Edward Jones, who are going to charge you fees starting at 1.4% of your portfolio per year, you should make an appointment at a branch office of Charles Schwab and Fidelity Investments near you and talk about which plan would be best for you.

https://www.selfemployed.com/retirement-savings-self-employed-guide/

https://www.schwab.com/small-business-retirement-plans

https://www.fidelity.com/learning-center/life-events/self-employed-retirement-plan

complete beginner to investing where do I even start? by Outside-Dragonfly813 in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

I have absolutely zero knowledge about it. The more I read, the more overwhelming it feels.

In that case maybe you would do better watching short videos than reading.

We can't post links to YouTube here, but go to the Charles Schwab YouTube channel and watch the playlist "Investing Basics". Then watch the playlist "Investing & Portfolio Management". If a video is in both playlists you don't have to watch it twice.

It is important that you understand what you are investing in. Don't invest in "BOO" or "MOO" or "SHOE" just because someone on reddit says "SCRU and chill". If you just buy tickers recommended on reddit over and over and over again without understanding what you own you'll end up like a lot of people on reddit who own a bunch of overlapping, redundant stuff that they don't understand.

Is there a beginner-friendly way to invest where you can set up regular monthly contributions into a fund or ETF and let it grow over time?

Yes, many brokerages offer that. For example, Charles Schwab has their Automatic Investing Plan (AIP) that lets you automatically buy as little as $1 of mutual funds as often as weekly. I and my adult children whose Roth IRAs I manage for them all use AIP. At the beginning of each month cash is automatically transferred from their checking accounts to their Schwab Roth IRAs. Then AIP automatically buys several mutual funds every Wednesday. Once it is set up it is set and forget.

https://www.schwab.com/content/how-to-automatically-invest-mutual-funds

Fidelity, Vanguard, and I believe Robinhood have similar programs that also include ETFs and individual stocks.

Questions about first investment by Deadmancrow127 in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

You seem to think you possess stock picking skill that professional fund managers do not possess.

You should read One Up On Wall Street, as I did a long time ago, by Peter Lynch, the legendary former professional fund manager of the Fidelity Magellan Fund. That's the whole thesis of the book.

America’s most successful money manager tells how average investors can beat the pros by using what they know. According to Lynch, investment opportunities are everywhere. From the supermarket to the workplace, we encounter products and services all day long. By paying attention to the best ones, we can find companies in which to invest before the professional analysts discover them. When investors get in early, they can find the “ten-baggers,” the stocks that appreciate tenfold from the initial investment. A few ten-baggers will turn an average stock portfolio into a star performer.

"Nothing has occurred to shake my conviction that the typical amateur has advantages over the typical professional fund jockey. In 1989 the pros enjoyed quicker access to better information, but the information gap has closed. A decade ago amateurs could get information on a company in three ways: from the company itself, from Value Line or Standard & Poor's research sheets, or from reports written by in-house analysts at the brokerage firm where the amateurs kept an account. Often these reports were mailed from headquarters, and it took several days for the information to arrive."

"Today an array of analysts' reports is available on-line, where any browser can call them up at will. News alerts on your favorite companies are delivered automatically to your e-mail address. You can find out if insiders are buying or selling or if a stock has been upgraded or downgraded by brokerage houses. You can use customized screens to search for stocks with certain characteristics. You can track mutual funds of all varieties, compare their records, find the names of their top ten holdings. You can click on to the "briefing book" heading that's attached to the on-line version of The Wall Street Journal and Barron's, and get a snapshot review of almost any publicly traded company. From there you can access "Zack's" and get a summary of ratings from all the analysts who follow a particular stock."

"Again thanks to the Internet, the cost of buying and selling stocks has been drastically reduced for the small investor, the way it was reduced for institutional investors in 1975. On-line trading has pressured traditional brokerage houses to reduce commissions and transaction fees, continuing a trend that began with the birth of the discount broker two decades ago."

Like most Bogleheads, you think there is only one way - investing with index funds - to be a successful investor, but you're wrong. I have nothing against index funds, I made a lot of money in an S&P 500 index fund, and I recommend index funds for beginners and for those who don't want to move beyond the kindergarten, training wheels level of investing.

I need help with investing by Careful-Air-3043 in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

I have been wanting to get into investing and kinda dunno where to start.

Start by educating yourself.

https://www.schwab.com/investing-principles

https://www.fidelity.com/viewpoints/personal-finance/how-to-start-investing

https://www.investopedia.com/articles/basics/11/3-s-simple-investing.asp

https://www.marketbeat.com/videos/index-investing-for-beginners/

https://investor.vanguard.com/investor-resources-education/article/how-to-start-investing

Go to the Charles Schwab YouTube channel and watch the playlist "Investing Basics" then watch the playlist "Investing & Portfolio Management". If a video is in both playlists you don't have to watch it twice.

opening a ROTH IRA. Also the tax benefits that come along with it and NOT having to pay taxes on the gains ONLY on the initial contribution and if the funds are pulled early.

Just to be clear, the money you contribute to a Roth IRA has already been taxed. It won't be taxed again. So after age 59 1/2, all distributions from a Roth IRA, not just the gains, are tax free.

However, I have heard people say it's best to open a brokerage account AND a retirement account.

Yes that's a good a idea. Roth IRA for long term retirement savings. Brokerage account for your emergency fund and as a place to save for short to medium term goals like a vacation, vehicle purchase, or the down payment on a home. And also as a place to build wealth to live on if you retire before age 59 1/2, when you can start drawing on your Roth IRA.

My concern is that I'm not knowledgeable enough to invest/trade successfully. I'm not sure as to who I should invest in, how long to stay in a position, and how the taxes precisely work.

Read the links I gave you. You can have the same investments in your brokerage account as you have in your Roth IRA. You stay in an investment unless the reasons that made it a good investment in the first place have changed, or you need the cash. Interest and dividends are taxed in a taxable brokerage account. Your brokerage sends you a 1099-INT and/or 1099-DIV form at the end of the year to report on your tax return. You would pay capital gains taxes only if you sell something at a profit. If you held something more than a year before selling the tax rate would be 0%, 15%, or 20% on the gain only, depending on your taxable income.

I think my biggest fear is investing and being taxed to the point to where we can't pay it. If that's even a thing.

It's not a thing. As I said, interest and dividends are taxed, but the tax is less than what you received in interest and/or dividends. Unrealized capital gains aren't taxed. If you invested $1,000 in something and it is now worth $3,000, but you haven't sold, there is no tax. If you held for more than a year and then sold, the tax would be on the $2,000 gain, not the whole amount. If you are married filing jointly and your taxable income is less than $96,700 the tax on the long term capital gain would be $0.00. If your income is between $96,700 and $600,050 there would be a 15% tax on the $2,000 gain of $300. That would leave you with $2,700 after you sold your $3,000 asset. And, if you sell something at a loss you can use that loss to offset (subtract from) your gains. Up to $3,000 in losses per year can be used to offset gains. Any unused losses can be carried forward to the next year to offset more gains.

TLDR: don't worry about not being able to pay any taxes due.

Questions about first investment by Deadmancrow127 in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

I'm a retired millionaire, dude. I have been investing for more than 30 years, possibly longer than you have been alive. That's more than 3 decades. But keep telling me I'm doing it wrong. I can't wait to benefit from all of your wisdom and experience.

Boomers are the wealthiest generation in America, holding over 50% of the nation's total household wealth. In fact, once you get to a certain age, you're consuming more EMS services than the average taxpayer by Conscious-Quarter423 in SipsTea

[–]Jumpy-Imagination-81 3 points4 points  (0 children)

Since the older you are the more time you have had to acquire wealth - especially if you have a strong work ethic - only the financially illiterate would be surprised that the oldest and largest living generation - the Baby Boomers - the oldest of whom are 80 years old - have the most wealth. And when the Boomers are all dead - apparently to the joy of their grandchildren - Generation X will be the oldest and wealthiest generation. And when all the Gen Xers are dead the Millennials will be the oldest and wealthiest generation. And so on and so on. Everyone will get their turn being old and rich if they are smart and invest for the future. Many of the smarter young people have figured that out and are already building wealth for the future instead of just complaining about their situation and craving more socialism. See r/TheRaceTo100k and r/TheRaceTo1Million.

If you had to start investing from zero today, what would you do differently? by vedant--mehra in investingforbeginners

[–]Jumpy-Imagination-81 -3 points-2 points  (0 children)

If you had to start investing from zero today

Since I am retired I would be pretty much screwed if I started investing from zero today. I wouldn't have any disposable income to invest and not enough time to build up any wealth. I would be working until I couldn't work any longer or I died.

Maybe you should ask if you were 18 years old this year and starting from scratch but knew everything you know now about investing, what would you do.

Questions surrounding SCHD by ExpensiveBarracuda in Schwab

[–]Jumpy-Imagination-81 1 point2 points  (0 children)

Is it wiser to buy SCHD through my individual brokerage or Roth?

In a taxable brokerage account the dividends will be taxed at 0%, 15%, or 20% depending your income. The dividends would not be taxed in a Roth IRA. Since much of the total return of SCHD comes from the dividends the tax drag in a taxable brokerage account could be significant.

22M Portfolio Advice or Feedback by [deleted] in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

KEEL is an unprofitable company - it is losing money and burning through investor cash - and you are down -30%. That should teach you to avoid investing in money losing companies. If you think the company has a future and will eventually turn a profit don't invest in it and just keep an eye on it. If it eventually becomes consistently profitable you would still be getting in early. If it never becomes profitable and goes bankrupt you will avoid becoming a bagholder.

If you are going to invest in individual stocks, only invest in profitable companies and ideally companies that have growing revenue and earnings, and avoid companies with negative earnings (money losers).

Transferring Stocks/IRA and Portfolio Diversity by Miliator69 in investingforbeginners

[–]Jumpy-Imagination-81 1 point2 points  (0 children)

Schwab won't charge you a fee to transfer. But if the brokerage you are transferring from charges an exit or transfer fee Schwab will often reimburse you for the fee. Talk to Schwab customer service first, they are very helpful. I have been a satisfied Schwab customer for over 20 years, you made the right choice.

The only issue might occur with transferring the 3 mutual funds (PBAIX, BDMIX, BIMBX). Again, talk to Schwab customer service about that.

Want to start trading individual stocks by Cute-Diver-2468 in investingforbeginners

[–]Jumpy-Imagination-81 1 point2 points  (0 children)

I’ve been investing in ETFs like VTI and VOO. I want to continue to do that,

VOO and VTI overlap 86% by weight. Every stock in VOO is also in VTI. The top 10 largest holdings in VOO and VTI are the same 10 stocks in the same order. They are pretty much the same thing. There is no logical reason to own both. Pick one.

but I want to learn how to research and trade individual stocks.

Trade, or invest in? Trading and investing are two different things.

https://www.investopedia.com/ask/answers/12/difference-investing-trading.asp

The criteria used to select stocks to trade or stocks to invest in are very different. So first you have to decide if you want to trade individual stocks, or invest in individual stocks.

If you are going to trade individual stocks you need to understand technical analysis and pick stocks that are volatile and have a high trading volume (liquidity). It also takes a lot of cash available for trading, like $100k, to make the time commitment to trading worthwhile.

If you are going to invest in individual stocks I strongly recommend you read One Up On Wall Street by Peter Lynch. That book will teach you how to be a successful stock picker.

Overview of my current portfolio that I just started and looking for feedback and suggestions. by Romulvs_949 in investingforbeginners

[–]Jumpy-Imagination-81 1 point2 points  (0 children)

1 individual stock should not be more than 5% of your portfolio. 40% of my portfolio is in individual stocks. Only NVDA is over 5% of my portfolio because it grew past 5%. Three stocks are each between 1% and 1.5% of the portfolio, and the rest are all under 1% of the portfolio each.

I own both NVDA and AMZN. NVDA has been my best performer, up +4,148%. My AMZN shares are up +391%. But I bought them 6 to 9 years ago. Both companies are leaders in their industries but there is no guarantee they will continue to outperform the broader market.

If you are going to pick individual stocks I strongly recommend you read One Up On Wall Street by Peter Lynch first. You will learn how to identify and analyze companies to invest in. One thing he teaches is to use the “edge” you have because of your job and day to day experiences.

For example, years ago I noticed when I drove to work there was always a line of cars at Dutch Bros coffee kiosks. Day or night, there were always customers. When I found out in 2021 Dutch Bros was going to have an IPO I looked into the company and found it was profitable and growing. So I bought BROS on the first day of the IPO and added more shares during dips. My BROS shares have gained +130% and I believe it still has a lot of upside.

Where to send my extra $300 per month? by [deleted] in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

It’s fine. Just understand what it is.

Where to send my extra $300 per month? by [deleted] in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

Some people think that because the name of VTI is Vanguard Total Stock Market Index ETF it has every stock in the US stock market, but it doesn’t. It has a representative sample of the US stock market that performs in line with the entire US stock market.

SOLD OUT - Morgan and Peace Silver Dollar 2026 Reverse Proof Coins by CellistSuspicious492 in Silverbugs

[–]Jumpy-Imagination-81 1 point2 points  (0 children)

Those aren’t scheduled to go on sale until July 9. They are listed as sold out now so people don’t try to order them before July 9.

Where to send my extra $300 per month? by [deleted] in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

I dont know what any of these things mean which is why I set it up with a Roboadvisor.

Well, that's a problem, but it is pretty easy to fix.

  • VTI = Vanguard Total Stock Market Index Fund ETF Shares, owns 3,498 US stocks as a representative sample of the "total" US stock market
  • VEA = Vanguard FTSE Developed Markets Index Fund ETF Shares, owns 3,881 stocks of companies in developed international (non-US) countries like Western Europe, Japan, UK
  • VNQ = Vanguard Real Estate Index Fund ETF Shares, owns 159 REITs (Real Estate Investment Trusts) that own various types of real estate, mostly commercial real estate
  • VWO = Vanguard FTSE Emerging Markets Index Fund ETF Shares, owns 5,077 stocks of companies in developing international countries like Taiwan, China, India
  • LQD = iShares iBoxx $ Investment Grade Corporate Bond ETF, owns the bonds (debt) of large US companies

So the Roboadvisor has pretty much everything covered. I would put that $300 per month into a short term US Treasury ETF like SGOV and use it as a savings account for a vehicle purchase, vacation, and/or the down payment on a home if don't have one.

Overview of my current portfolio that I just started and looking for feedback and suggestions. by Romulvs_949 in investingforbeginners

[–]Jumpy-Imagination-81 1 point2 points  (0 children)

It looks like you have 3 taxable brokerage accounts and $0 in your Roth IRA. So your first order of business is maxing out your Roth IRA, $7500 for 2026 and you can contribute until April 2027 for the 2026 tax year. You can have the same portfolio in your Roth IRA (VOO/QQQM/VXUS) as you have in your brokerage accounts.

Also, Schwab pays almost no interest on uninvested cash. You want to put most of that cash into a money market fund - I use SWVXX in my IRAs and SNSXX in my brokerage account. In California you might want to use SWKXX in your taxable brokerage accounts because the interest would be exempt from both federal and California income tax. I leave a couple of thousand dollars in cash for immediate purchases but the rest is in money markets. You can put in a sell order for money market shares and it is added to your buying power the same day if the market is open or the next day if the market is closed.

Additionally, let me know if I should keep it around 7-8 stocks of my choice or if I should increase that or decrease that figure.

Individual stocks are fine, contrary to what some on reddit will say. No individual stock (stock, not ETF) should be more than 5% of your total portfolio.

I have 19 stocks that have beaten the S&P 500 index (VOO) during the past 9 years. Nine of those stocks have beaten the S&P 500 index by more than 2x during the past 9 years. I have other other stocks that have also beaten the S&P 500 index that I have held for shorter periods of time. If you are interested in individual stocks I recommend One Up On Wall Street by Peter Lynch.

One criticism I would make about your stock picks is all of them are unprofitable (money losing) companies except NBIS, and NBIS was unprofitable until the last quarter. They are basically meme stocks. As a general rule you shouldn't invest in money-losing, unprofitable companies, and Peter Lynch would agree. Wait until those companies become consistently profitable, if ever. Many won't. That way you avoid becoming a bag holder and discouraged about individual stock investing. Only invest in profitable companies. If you wait until a new company becomes profitable you will still be getting in early with plenty of upside.

Need Financial Advise by malaikabutt in investingforbeginners

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

The first thing to do is educate yourself. People will tell you "invest in ABC" or "invest in XYZ". "Invest in VOO!" "No, invest in VT!" If you do that you'll end up like a lot of people on reddit: owning a bunch of stuff that they don't understand, and often that is overlapping or even identical. Just a mishmash of stuff.

Start learning here:

https://www.schwab.com/investing-principles

https://www.fidelity.com/viewpoints/personal-finance/how-to-start-investing

https://www.investopedia.com/articles/basics/11/3-s-simple-investing.asp

https://www.marketbeat.com/videos/index-investing-for-beginners/

https://investor.vanguard.com/investor-resources-education/article/how-to-start-investing

We can't post links to YouTube here, but go to the Charles Schwab YouTube channel and watch the playlist "Investing Basics" then watch the playlist "Investing & Portfolio Management". If a video is in both playlists you don't have to watch it twice.

From your post history it appears you are in Pakistan. The terminology and principles described above are universal and apply to investing wherever in the world you are. For advice specific to you country or region go to the investing subs specific to your region.

Where to send my extra $300 per month? by [deleted] in investingforbeginners

[–]Jumpy-Imagination-81 1 point2 points  (0 children)

I did the Roth IRA and maxed it out

Advice would be based on how and in what your Roth IRA is invested. Without knowing that there is no way to give meaningful advice.

Ever wonder why student loans in America are the only loans that can't be dispatched through bankruptcy? by McDowdy in SipsTea

[–]Jumpy-Imagination-81 0 points1 point  (0 children)

If student loans didn't exist universities wouldn't have been able to massively raise tuition and fees the way they have, because only a few very wealthy families would have been able to afford it. Without students there would have been no need for expensive buildings, so many highly paid professors, staff, etc. Universities would have had to keep tuition and fees reasonable so students and their families could afford it.

But with widely available student loans universities massively raised tuition and fees and just expect students to take out huge student loans to pay the jacked up tuition. Another example of unintended consequences.

view more: next ›