i have several gains and a few loses, is this like a hobby to do stocks?
2007-09-30 06:17:20 · 6 answers · asked by faridrahbar@sbcglobal.net 1 in Business & Finance ➔ Investing
It depends on your cost of living and how much you add a year.
A million dollars will give you a safe withdrawal rate of 40K a year so if you can live on 20K you need 500K to retire.
You have a start but it will take much more. Start with putting 4K in a IRA or ROTH if you don't have a 401K plan. Put at least 10% away a year and more if you are already over 25.
Investing in individual stocks with so small an amount might cost you more in fees than you earn. Consider it tuition to the school of investing.
2007-09-30 06:24:34 · answer #1 · answered by shipwreck 7 · 1⤊ 2⤋
If you look at stocks as a hobby, you will give a lot of money to stockbrokers and traders. Trading stocks can be very lucrative. You need to do a lot of research on how to trade. I would suggest reading a ton of books on stock trading. Get started at the library and that will open the door to many books on the subject. Treat it like a job. Get training, Practice, and then start little by little. It is not a way to get rich quick, and it is not gambling.
2007-09-30 16:15:38 · answer #2 · answered by Clown 3 · 0⤊ 2⤋
About 90 years. Explanation below:
Okay, lets assume:
- You get an average of 10% on your investments before use the money to make a living.
- You get 6% per year after you use the money to make a living.
- Inflation is 3%
- Everything is in a Roth IRA (tax free)
- A living is defined at $24,000 per year in today's dollars, and you should be able to draw that forever. To do that beating inflation by 3% per year, you need $800k in the bank in today's dollars.
If you have $2000 today, it will take just a hair under 90 years for it to reach $800,000 in today's dollars given the assuptions above.
You won't be able to make a living on it, but your great grandchildren might.
-->Adam
2007-09-30 15:29:43 · answer #3 · answered by great_and_mighty_adam_levine 4 · 0⤊ 2⤋
:) Depends on the stocks you chose.. one never knows....
People trade stocks differently. Some really believe it as an investment and form loyalties to companies, others daytrade or look for the bounce be it for money or the sport / hobby.
2007-09-30 13:57:52 · answer #4 · answered by itsjunglepat 6 · 1⤊ 2⤋
The average return on the S&P 500 is less than 10% per year. At 10%, your $2,000 will be worth $100,000 in about 40 years.
If you can add an extra $2,000 per year, you will get to $100K in 19 years -- and will have a Million after 40.
2007-09-30 13:47:17 · answer #5 · answered by Ranto 7 · 1⤊ 2⤋
1) You will never make enough money to make a living unless you keep saving at least once each month.
2) No.
2007-09-30 14:34:09 · answer #6 · answered by Anonymous · 1⤊ 4⤋