Who knows about investments to get into making nominal return, I have no interest bearing debt other than my mortgage at 3.75% so any investment needs to make more than that otherwise it's better to just put it all towards the principal which knocks out common things like CDs and high yield savings etc. Lets assume I'm wanting to invest 5-10K and up to 30K if I'm comfortable.
How long is your investment timeframe? If longer than 10 years, Warren Buffet (any myself and my graduate school investments Prof) will tell you an S&P500 ETF. VOO is a good 1. https://www.fool.com/investing/2017/02/26/warren-buffett-just-revealed-the-best-investment-m.aspx Many financial advisers will not tell you that because they don't make much money on them.
No really any particular time frame just don't like the idea of money sitting in accounts not making me anything. I'd prefer an investment I could pull out of without penalty if I need to. I understand stocks and ETFs just don't know enough to get involved on my own. I know north of 4% involves risk which is why just paying principal on the house is a safe 3.75% investment. What are dependable places to read up on market info and trends, not sure how much I trust random sites from google that may just be sponsored by so and so on the back end.
There's nothing to know with S&P500 ETF's. Open an online account, setup electronic money transfer, buy VOO, IVV, or SCHX. If you want money out, sell it and transfer money back. There is no great place to read up on it short of academic research. Everyone has a spin or an angle.
I max out Roth IRA but employer doesn't have a traditional/match so it doesn't seem sensible to create one. I plan on making more in my later years than I do now, i'd rather be taxed on it at a lower rate today.
You sort of have to do some reading on your own and decide for yourself what you believe and are willing to accept. This thread is a key example. No one has said anything that's incorrect - a market based ETF is the default "fire and forget" investment. As that market goes, so do you. BUT... there's minor little differences in products, services and companies. This article talks about some of the differences between S&P 500 ETFs. http://www.marketwatch.com/story/why-your-choice-of-sp-500-etf-matters-2013-03-19 You'd think there's one, but there's not - just like making a taco, everyone has their little spin on it. There are three ETFs mentioned in the article - SPY (SPDR ETF), VOO (Vanguard ETF), and IVV (iShares ETF). They all trade/track the same basic underlyings, but how they do it and the costs are slightly different. Personally, I invest in and trade SPY all the time. Its what I know and I'm comfortable with. VOO and IVV are fine, but take a look at how they do what they do. IVV has a lower expense ratio (expense ratio eats away profits), but uses derivatives and portfolio lending, which introduces slightly more risk to the mix than SPY. VOO also has lower expense ratio, does some derivatives, but hasn't been around as long as the other two. Just food for thought about managing your own money. Some funds to consider: S&P - those mentioned here: VOO, IVV, SPY Nasdaq: QQQ, ONEQ Down Jones Industrial Average Fund: DIA Lastly, you can use Robin Hood - its an app that allows you to invest for no commission. There are small fees when you cash out, related to the market where the stock/ETF comes from, but they're minimal compared to brokers' fees. Start reading investopedia and reddit.com/r/investing.
I maxed out my Roth for the year and I'll be looking into a brokerage account that allows trades with similar EFTs to the ones described above. I didn't know there was another choice
You can buy many etfs with no commission at TD Ameritrade E-Trade etc. Buy them hold them do not trade them.
You max out a Roth but do you do a traditional 401k? If not start there, you will get your money back in taxes... but depends when you want it out
Guess I need to find a calculator to figure that out. I was my understanding that if I plan to retire in a higher tax bracket than I am now the tax savings isn't there.
You "plan" on retiring in a higher tax bracket but are asking the Beeb for vague investment advice? Does your plan involve rich relatives dying before you?
My taxable income is around 30K/yr I've got money just don't know how you use it at more than 4% effectively. No point in having money sit in the bank when it can be working, I just need it working at 4+% to be more useful than going toward the mortgage. Hence asking the beeb for vauge advice of what averages more than 4%
You already know the safe answer... unless you find someone that will guarantee in writing a return greater than 3.75%. Me personally, I'm buying silver bullion right now, which you can get for not much over spot & free shipping on ebay. When the fed continues to raise rates there will come a moment of reckoning on the US stock market. All I will say is look at a long-term historical chart of the S&P P/E. This does not constitute investment advice, and is worth precisely what you paid for it.
