twainerm wrote: Hello,
I am completely new to investing. I am good at saving but never invested in anything more than employee stock purchase and 401k.
I would like to get started with investing. Investing sounds scary and I hear stories about how people lost their money. Is there anything I can do to avoid this other than not investing?
Please can anyone suggest how to get started with investment? What kind of investments I should make, how to make, is there anything I can read to get started?
Thanks so much,
twainerm wrote:Hi All,
Thank you all for your replies.
I went to "getting started wiki " and I read "The Bogleheads' Guide to Investing" and have several questions.
I would appreciate if anyone here can answer these:
1. Mostly the book is for investments towards retirement. What should I invest in, if I am looking for 2-3 years of duration? Say I want to save for trip to somewhere after 3 years.
2. What is "Money Market Fund"?
3. Based on what I understood, it seems to me that investing in index funds should be obvious choice of anyone as it mimics perfomance of given index. Then why do not people just invest in index funds and instead pick risky investments? Why invest in stock of a particular company and not in index funds which will mimic say SP500 - if SP500 is going down then it is likely that there are bigger problems in the economy and any other investment can be risky if SP500 itself is doing poorly. Am I missing something here?
4. If I buy a mutual fund - then when do I sell it?
5. How do I sell a mutual fund?
6. what quantity of index funds should I buy? Book does not mention about quantity?
7. Do I have open IRA at vanguard if I want to invest vanguard mutual funds? The chapter on "how to buy index funds" mentions I need to have an IRA.
8. I already have an IRA so can I open another one with vanguard if I have invest in their index fund?
9. Why does Vangurad ask for monthly payment if I want to buy index funds? can I just on buy them in one go and sell them when I want money?
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