Investing(newbie)?

Question

What are some good investments for someone new in the world of investing? I know there are all kinds but just tell me what you think I should look into. Thanks.

PS also if you could recommend any books I would be greatful...

Answer 1

First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. (Some people say 6 months.) Financial disasters like getting layed off or sick happen to all of us.

Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage and student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay. (Depending on the rates, you may want to pay off the mortgage and student loans as well.)

Third, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. Buying a house instead of renting will make you a lot of money in the long run.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planningeducation
http://finance.yahoo.com/funds
http://www.dallasnews.com/sharedcontent/dws/bus/scottburns/columns/2007/vitindex.html
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetallocation.htm
https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education

Answer 2

The best book to read: "The Little Book that Beats the Market", by Joel Greenblatt - this is short, fun, and informative.

The best sector to invest in is 3d seismic. here is a quick link about some of these stocks (My favorites are Bolt, BTJ, and Mitcham, MIND):

http://www.top10traders.com/ViewPost.aspx?postID=336

The best investing site: http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can read posts on investing from the best traders, as well as share your own investing ideas. There is a charting feature, so you can see how your portfolio performs compared to the S&P 500. Also, you can create your own "group" so that you can see how you are doing compared to your friends.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Good luck.

Answer 3

OK, does 300% return in 15 months excite you? I am talking from my personal experience here. I have started with USD12K in 30.8.2006 and from that time, they never miss to provide me with the monthly return as promised. They used the scale of 10%x3months + 15%x3months + 20%x3months + 25%x3months + 30%x3months.

The best part of it, they have started a new product called EMF that had a value of USD1 in December 2006 and now valued at USD2.11 per unit and expected to reach USD4 in April 2007.

See for yourself and experience this exciting investement. Mind you, this is not a HYIP but real investment in offshore financial market.

You can register free for 14 days but need an introducer to start. Use mine: mygha1605101 to register yourself.

Answer 4

Hi Jack,

Of course there are many kinds of investments, and some can be very confusing. That's why I created a site called HowTheMarketWorks to help people get started with the stock market. On there you can practice trading real stocks with fake money and read answers to many stock questions. There are also several recommended books and websites.

See http://www.howthemarketworks.com

Enjoy!

Answer 5

For initial investments I would recommend No Load Index Mutual Funds that track the overall market. Companies such as Fidelity and Vanguard should be excellent starting points.

Both companies offer excellent information as does Morningstar, a ranking company.

Good luck.

Answer 6

Personally, I think index funds are a good place to start for beginning investors. It's easy to get started, the fees are low, and they give you diversification across a broad section of the market.

I was once new to investing, too. My first publication I used was Money magazine. That was 20 years ago, and I still read it and am able to get something out of it. I also like Smart Money and Kiplinger's Personal Finance. All three of those publications are general enough for the beginning investor, and can give you some good ideas on where to start your research.

Good for you for planning for your future!

Answer 7

First you'll need to understand some basic principles of investment and understand which type of investment suits you.
To achieve excellent returns on your investments it is important to adopt the right investing strategies. To Learn more about investing check the website link below.


http://www.smart-investments.org/Investing/Investing.php

Answer 8

If you can't loan money to your friends, get new friends.
My best investments are the ones I make in people I know and trust.
I usually get a 30% return! Friends help friends.

Answer 9

"Rich Dad, Poor Dad" by Robert T. Kiyosaki. Trust me, great book.

Answer 10

good day, here is my favorite resource for concerns like yours; hope you will find this one useful too

have a happy day