General Investment Advice

Discussion in 'The Okie Corral' started by Lowcountry_Glocker, Aug 15, 2019 at 6:33 PM.

  1. Lowcountry_Glocker

    Lowcountry_Glocker

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    GT
    I have found myself in a little bit of a deficit financially. Not much, right at 3k, but it still bothers me I've sat down and put pen to paper and devised a plan to get out of it. My goal by New Years is to back to no debt (minus mortgage), hopefully before. I also need to squirrel away ~3500 come March time frame for some some long put off vehicle maintenance and a small home improvement project. I also intend to have liquid cash sitting in a savings account also.

    I am currently employed with a pension program. I have an old 401(k) from a company I no longer work for with just shy of 10k in it. I have started now the legwork to get these funds moved to a new IRA. I have two options, first being the state deferred comp. plan, with payroll deductions, etc., and the second being via a company called M1 finance which has a variety of options available such as typical retirement funds, or more market based aggressive investment programs.

    I'm now determined to contribute $100 a bi-weekly check to the long term, retirement IRA. Hopefully this amount can go up once I get my stuff square as mentioned above. My real question is I'd like more on top of that, about $75 every other paycheck (to start) going to a different fund. I am considering a Roth for this money, but am also tempted to start funding a more aggressive fund that is a little more stock heavy.

    What all do you say. Which stocks have been good performers for you? Any advice? My knowledge, admittedly, is slim. At my old job, it was just the 401k, auto w/d. Since I left that, I've not deposited a cent, and as stated above have this pension, but I want to actively begin to save more. Break this down to Pre-K terms for me. I'm approaching 30 and it is time to stop putting this off and making a more active approach. If I need to provide more information, I can.
     
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  2. Jonesee

    Jonesee

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    Stay away from individual stocks. :fist:

    To start, dollar cost average into an S&P index fund. (Vanguard or Fidelity) :fred:

    If you feel the desire to research and start learning, go to Bogleheads.com and early-retirement.org
     

  3. willie_pete

    willie_pete NRA Life Member

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    Need a bit more info here; married, kids, planning any? At your age definitely a Roth though.
     
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  4. FullClip

    FullClip NRA Benefactor CLM

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    GE stock could be a real bargain right now......

    Or maybe not.....
     
  5. PlayerOne

    PlayerOne

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    You're mixing up terminologies. A Roth is a type of account. You get to choose the funds you want in a Roth.

    People shouldn't be picking individual stocks if they don't have the money to lose, doubly so for you based on your situation. Stick to ETFs -- find the equivalent of whatever the total market index ETF is offered by your institution and, if the expense ratio is good, get it.

    --
    Providing more details, like your income, would be helpful if you're looking for more specific advice. Roths have a low cutoff, so make sure you check that too.
     
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  6. Ramjet38

    Ramjet38 Mentally Frozen

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    And don't forget Gillette.
     
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  7. WeeWilly

    WeeWilly

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    100% agree.

    You want to be only in equities, that is, stock funds, for a very long time. The bad news is now is not a great time to be deploying cash, so average in over a period of time, like a year or more.

    Only buy low cost broad market index mutual funds. If You were my nephew, I would recommend rolling your 401K cash into an IRA at Fidelity/Vanguard and start averaging into their S&P 500 index mutual fund.

    The only other type of index you probably should own would be a whole market index. Set it and forget it.
     
  8. Lowcountry_Glocker

    Lowcountry_Glocker

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    Thanks all so far, I am sure I have mixed terms up. I am single... at the moment no, I do not plan on kids of my own.
     
  9. OGW

    OGW SAF

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    What Jonesee and Willy said. Super low operating cost indexed mutual stock funds.
     
  10. Lowcountry_Glocker

    Lowcountry_Glocker

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    Have you all heard of M1 Finance. Like I said, lot of options with them. They allow you to create a "pie" which can include a very large number of different company stocks, with a certain % of your money going to each one. I did sign up, and have been playing with it.
     
  11. willie_pete

    willie_pete NRA Life Member

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    Culp and Druckenmiller think so; Markopolos, not so much.

    ;)
     
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  12. willie_pete

    willie_pete NRA Life Member

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    Never ran across them;

    Best to stay with a bigger “ name “ company. I deal with Schwab, my wife uses TD Ameritrade
     
  13. OGW

    OGW SAF

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    Again, low operating cost stock index mutual funds. As a novice, you will not beat the indices, period.
     
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  14. Lowcountry_Glocker

    Lowcountry_Glocker

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    Thanks all again.
    Keep 'em coming.
    Any and all reading suggestions, be it forums, articles, books, etc. like posted above also welcome!
     
  15. OGW

    OGW SAF

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    The Wall Street Journal. Reading that will give you an idea of the complexity involved in the markets.
     
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  16. kiole

    kiole

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    You’re 30 be aggressive I have everything in a fidelity S&P500 index fund.
     
  17. sonoma

    sonoma

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    Vanguards S&P index fund is where 40% of my money is at and it has done well over the years.Once you build up to $100,000.00 don't be afraid to risk a little on a certain stock.In 2012 I bought Netflix at 12 dollars per share.In 2017 or 2018 it was at $400.00 per share when I sold.I made more in 5 years with Netflix than I did in 20 years with my index funds.
     
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  18. Lowcountry_Glocker

    Lowcountry_Glocker

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    This may be (probably is) a stupid question, but can you explain what you mean by "averaging"
     
  19. WeeWilly

    WeeWilly

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    Two books that are worth reading.

    https://www.amazon.com/Little-Book-Common-Sense-Investing/dp/1119404509

    https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Essentials/dp/0060555661

    If you really want to understand what you should be thinking about, go to bogelheads.org and register an account and start reading.
     
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