22, I want to be rich, looking for a high reward fund
22, I want to be rich, looking for a high reward fund
Roth IRA has 5.5k in 2055 target date fund on vanguard. I want to invest another 5.5k in a taxable account on vanguard (and continually add $400 a month to this account) but I want this to be a high growth fund. I am tempted by the "tan" fund because I think that in 15 - 20 years years solar is going to explode and all these solar stocks we see trading at 20 - 30 dollars will be 300 +. But I can't pull the trigger on that.
Is indexing the way to go, all the time? Any have a recommended high reward fund?
Is indexing the way to go, all the time? Any have a recommended high reward fund?
- TimesAWastin
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Re: 22, I want to be rich, looking for a high reward fund
Indexing is the way to go for non-gamblers. But, it sounds like you want to gamble and time the market. You won't find much support for that here, I'm afraid. Bogleheads are turtles. You can pour everything into high-risk sectors and hope for the best ("Why not 100% emerging markets?") but there's no guarantee of success even after 30 years.. bad timing can do you in, and that's why it's more risky.
There are more Boglehead-minded ways of retiring early, but they have more to do with spending less than making a lucky strike.
There are more Boglehead-minded ways of retiring early, but they have more to do with spending less than making a lucky strike.
Stock goes up, stock goes down. Stock goes up, stock goes down. -- Homer J. Simpson (paraphrased)
Re: 22, I want to be rich, looking for a high reward fund
Here is the ticker symbol for a high reward fund:
J.O.B
You gotta get money from somewhere before you invest in equities. Might as well get it from a job or two or three.
J.O.B
You gotta get money from somewhere before you invest in equities. Might as well get it from a job or two or three.
Re: 22, I want to be rich, looking for a high reward fund
I think most people here would tell you that investing in a fund that focuses on one industry (Solar Energy) is sector investing. Sector investing is putting all your eggs in one basket. Solar energy may boom or it may not. Also, the expectation that solar stocks will outperform is probably already priced in to the share price. If you want to get rich, at your young age you can do it without taking on the risk of sector investing.
Slow and steady wins the race.
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Re: 22, I want to be rich, looking for a high reward fund
Starting to save early, which you are, is probably the most important controllable factor to ending up wealthy. By starting to seriously save at 22, you're off to a great start. You can reach your goals without taking any unncessary risk. If you do, I would make sure it's a small percentage of your portfolio.
Re: 22, I want to be rich, looking for a high reward fund
How much do you know about solar compared to others in the market? Are you aware that solar panels are quickly becoming a commodity? People in the industry don't care whose panels they use among the top ten or so producers. That should tell you something.
Re: 22, I want to be rich, looking for a high reward fund
Thanks for that, I'm pretty sure you have to have a job to invest in a Roth ira. Also I am in the navy delayed entry program right now, and that is a good opportunity to get some big investment numbers. Just read a story about a guy who became a millionaire at 27 from enlisting in the navy and investing.livesoft wrote:Here is the ticker symbol for a high reward fund:
J.O.B
You gotta get money from somewhere before you invest in equities. Might as well get it from a job or two or three.
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Re: 22, I want to be rich, looking for a high reward fund
livesoft wrote:Here is the ticker symbol for a high reward fund:
J.O.B
You gotta get money from somewhere before you invest in equities. Might as well get it from a job or two or three.
You want him to invest in a penny stocks?
Re: 22, I want to be rich, looking for a high reward fund
I don't want to gamble but index funds seem so conservative, I am putting in 5.5k now (taxable brokerage) and I plan on putting in an additional $100 dollars a week, until I retire basically. Once I'm in the Navy I'll make it a goal to fully fund my TSP, fully fund my roth IRA, and contribute at least $100 a month to my taxable brokerage account. I just want a good growth fund for this account, maybe a high dividend index?TimesAWastin wrote:Indexing is the way to go for non-gamblers. But, it sounds like you want to gamble and time the market. You won't find much support for that here, I'm afraid. Bogleheads are turtles. You can pour everything into high-risk sectors and hope for the best ("Why not 100% emerging markets?") but there's no guarantee of success even after 30 years.. bad timing can do you in, and that's why it's more risky.
There are more Boglehead-minded ways of retiring early, but they have more to do with spending less than making a lucky strike.
Re: 22, I want to be rich, looking for a high reward fund
You won't get rich from investing and having a low value of human capital. The ones that said you need to find a high income career (or business owner) are right.
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Re: 22, I want to be rich, looking for a high reward fund
I consider investing a way to create wealth over time; however, my get rich quick plan is playing Powerball. So far my investing plan is doing well, but not so my get rich quick plan.
Last edited by JMacDonald on Thu Nov 06, 2014 4:29 pm, edited 2 times in total.
Best Wishes, |
Joe
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Re: 22, I want to be rich, looking for a high reward fund
Hi Matt,
does your job offer a 401k or similar plan? what funds are available there?
http://forum.thecontrarianinvestor.com/ ... post-25008
does your job offer a 401k or similar plan? what funds are available there?
Interested in Solar companies? may be you could learn from the people atI don't want to gamble but index funds seem so conservative
http://forum.thecontrarianinvestor.com/ ... post-25008
Re: 22, I want to be rich, looking for a high reward fund
You are wrong about that, it's all about savings rate.edge wrote:You won't get rich from investing and having a low value of human capital. The ones that said you need to find a high income career (or business owner) are right.
I don't know if links are allowed here but: http://finance.yahoo.com/news/27-year-o ... 23184.html
Re: 22, I want to be rich, looking for a high reward fund
Matt, for now you can put all that money to work for you in the Vanguard Total Stock Market Index, and as soon as you join the active duty Navy Team enroll in the TSP and put all in the C Fund. At the same time you can do some good reading about investing slowly and for the long run, and learn about proper asset allocation, and at the end of the day you will be rich. Good luck with your Navy Career and good luck with your investments. Semper Fortis.
~ Member of the Active Retired Force since 2014 ~
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Re: 22, I want to be rich, looking for a high reward fund
Priceless!livesoft wrote:Here is the ticker symbol for a high reward fund:
J.O.B
You gotta get money from somewhere before you invest in equities. Might as well get it from a job or two or three.
John C. Bogle: “Simplicity is the master key to financial success."
Re: 22, I want to be rich, looking for a high reward fund
Read the article carefully. He saved a lot, often and early. He didn't get rich by picking a high growth stock.Matt68 wrote:You are wrong about that, it's all about savings rate.edge wrote:You won't get rich from investing and having a low value of human capital. The ones that said you need to find a high income career (or business owner) are right.
I don't know if links are allowed here but: http://finance.yahoo.com/news/27-year-o ... 23184.html
"Years of careful research convinced him stock-picking wasn’t for him. His investing strategy was simple: focus on low-cost stock mutual funds that covered a variety of major asset classes and let the market do its job."
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Re: 22, I want to be rich, looking for a high reward fund
Matt,
I would recommend that you start with a couple of good investing books to expand your knowledge base.
Two book that I often recommend are:
1) Jack Bogle "The Little Book of Common Sense Investing"
2) Jack Brennan "Plain Talk On Investing"
Reading these two books will be time very well spent.
Best.
I would recommend that you start with a couple of good investing books to expand your knowledge base.
Two book that I often recommend are:
1) Jack Bogle "The Little Book of Common Sense Investing"
2) Jack Brennan "Plain Talk On Investing"
Reading these two books will be time very well spent.
Best.
John C. Bogle: “Simplicity is the master key to financial success."
Re: 22, I want to be rich, looking for a high reward fund
Matt: Everybody wants to get rich. You can do it too. It's not that hard if you have the time, but it probably won't happen investing in sector funds. Most people who get rich do it the old fashioned way. Save, invest and compound over a long period of time and you will get there. You are doing the right thing by starting early. Bogleheads emphasize regular saving, broad diversification, and sticking to one's investment plan regardless of market conditions. Read a few books recommended on this site including, "The Bogleheads Guide to Investing".
Slow and steady wins the race.
Re: 22, I want to be rich, looking for a high reward fund
Thank you for the advice.cfs wrote:Matt, for now you can put all that money to work for you in the Vanguard Total Stock Market Index, and as soon as you join the active duty Navy Team enroll in the TSP and put all in the C Fund. At the same time you can do some good reading about investing slowly and for the long run, and learn about proper asset allocation, and at the end of the day you will be rich. Good luck with your Navy Career and good luck with your investments. Semper Fortis.
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Re: 22, I want to be rich, looking for a high reward fund
Hi Matt,Matt68 wrote: ...it's all about savings rate.
that's an interesting point,
savings rate matter a lot when you start investing.
And if we define rich as financially independent, savings rate is key (see Jakob Fisker's Early Retirement Extreme).
If we define rich as having a very large amount of money, in absolute terms, then having a high paying job is key.
In the case of the yahoo piece, it helped a lot that the guy had an income of $100,000+ a year.
----
cfs,
may I ask you,
why Señor Fig?
Re: 22, I want to be rich, looking for a high reward fund
Good question - Señor (or Maestro) is a Navy military rank plus my military nickname.HurdyGurdy wrote: ----
cfs,
may I ask you,
why Señor Fig?
~ Member of the Active Retired Force since 2014 ~
Re: 22, I want to be rich, looking for a high reward fund
he never had a income of $100,000, it said now his income is just under 100k. he was enlisted in the Navy until 2013 so he was making 32k + 12k for bah + other pay allowances and doing a little free lance work.HurdyGurdy wrote:Hi Matt,Matt68 wrote: ...it's all about savings rate.
that's an interesting point,
savings rate matter a lot when you start investing.
And if we define rich as financially independent, savings rate is key (see Jakob Fisker's Early Retirement Extreme).
If we define rich as having a very large amount of money, in absolute terms, then having a high paying job is key.
In the case of the yahoo piece, it helped a lot that the guy had an income of $100,000+ a year.
----
cfs,
may I ask you,
why Señor Fig?
What I'm saying is if you can invest 100% or close to it of your pay, you are probably investing more than people making 100k +. Bah money is investable by paying a mortgage.
- pennstater2005
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Re: 22, I want to be rich, looking for a high reward fund
snipMatt68 wrote:I don't want to gamble but index funds seem so conservative,
How is the nearly 90% stocks in the 2055 fund you're in conservative?
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson
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Re: 22, I want to be rich, looking for a high reward fund
Hi Matt!
Welcome to the forum.
You are rich - you have your health, you have time as your very young, you have your whole life ahead of you.
Learn a skill that can not be offshored to cheaper locales, will always be in demand and pays you a fair or lucrative wage over your career. Now here's the key to long term prosperity; keep your health, stay disciplined - don't waste your hard-earned dollars on fadslike solar, todays solar was yesterdays "flip the house scam to riches". Take the first 15 percent of your net pay and invest it in the Lifestrategy Growth fund or the Vanguard Total Stock Market Index, reinvest all of the distributions back into the account, look at it once per year - do not tinker with it, don't sell. Only buy and hold - come back in 25 years, let us know how your enjoying your second paycheck. That account is in addition to your retirement account Matt - it's not your "I wanna go to Vegas fund".
That's all you need - savings, time and patience. Now go enjoy your youth.
Welcome to the forum.
You are rich - you have your health, you have time as your very young, you have your whole life ahead of you.
Learn a skill that can not be offshored to cheaper locales, will always be in demand and pays you a fair or lucrative wage over your career. Now here's the key to long term prosperity; keep your health, stay disciplined - don't waste your hard-earned dollars on fadslike solar, todays solar was yesterdays "flip the house scam to riches". Take the first 15 percent of your net pay and invest it in the Lifestrategy Growth fund or the Vanguard Total Stock Market Index, reinvest all of the distributions back into the account, look at it once per year - do not tinker with it, don't sell. Only buy and hold - come back in 25 years, let us know how your enjoying your second paycheck. That account is in addition to your retirement account Matt - it's not your "I wanna go to Vegas fund".
That's all you need - savings, time and patience. Now go enjoy your youth.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: 22, I want to be rich, looking for a high reward fund
Here is a little book written just for you by a Boglehead, William Bernstein:
If You Can: How Millennials Can Get Rich Slowly
http://www.etf.com/docs/IfYouCan.pdf
Also available in Kindle format on Amazon (read the reviews.)
If You Can: How Millennials Can Get Rich Slowly
http://www.etf.com/docs/IfYouCan.pdf
Also available in Kindle format on Amazon (read the reviews.)
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Re: 22, I want to be rich, looking for a high reward fund
OK, but Ivanov still had additional income from his rental properties.
Anyway, you are receiving the best advice here, and with your frugality and sensible investments, it is very likely that you'll do great.
Anyway, you are receiving the best advice here, and with your frugality and sensible investments, it is very likely that you'll do great.
Re: 22, I want to be rich, looking for a high reward fund
I can't believe others have left out this great piece of advice...marry a rich girl/partner! Great way to get rich quick assuming you are marrying for the right reasons (e.g. not to be rich).
A man is rich in proportion to the number of things he can afford to let alone.
Re: 22, I want to be rich, looking for a high reward fund
I know some high growth funds that will make you super rich someday. but they are super secret. I can only tell people that are super serious about getting super rich.
Re: 22, I want to be rich, looking for a high reward fund
Matt68: there are two major problems with your solar thesis, and sector investing in general.
1) It's entirely possible for solar to take off, yet every current manufacturer goes bankrupt and you get nothing. For example, a new technology makes all existing players obsolete, OR all manufacturing moves to China. The latter story should be painfully familiar to anyone who invested in solar in recent years.
To temper your high growth enthusiasm, take a look at that investing board for a solar stock that someone posted above. Watch the attitudes change from anticipation of the lottery win to utter dismay as portfolios get destroyed. It's rather heart-braking.
2) It's entirely possible, and even more likely than not, for a hot sector to grow a huge amount, yet slightly less than expectations currently baked in valuations. In this case investors in that sector will make subpar returns because they paid too much for that growth.
A great example of this comes from international investing. If you knew in advance (perfect foresight) which countries would grow most by GDP and you invested in those stock markets, historical data shows you'd fall behind someone who picks at random, or an index. Valuations matter a great deal. In the case of solar, surely you're not the only one seeing the potential. I like solar too and I think it will be great. Who's to say that I didn't just yesterday buy enough to make your purchase extremely expensive? The people you're competing with are not me, but professionals doing this full time, listening to such arcane indicators as rare earth supply pipelines, and even they have a terrible time beating the average.
The most efficient way to get high returns is not to chase the hot idea du jour, but to get as much of the index as your risk tolerance allows, borrowing money if need be. Mind you, it's a bad idea particularly for higher leverage ratios and I never recommend more than 80% stocks to anyone. But it is the best way to do it.
The next best thing IMHO, if you don't want to use leverage, is small value stocks. Historically these have the best returns (and highest volatility). Historically, they're even more efficient than the leveraged index, but I don't trust history nearly to that degree. By contrast, small growth stocks -- i.e. what's tempting you right now -- is commonly referred to as "the black hole of investing", with the poorest returns and more money thrown away chasing lottery tickets than any other sector.
I second everyone who tells you that the most important thing is the savings rate. And I too thank you for your service!
1) It's entirely possible for solar to take off, yet every current manufacturer goes bankrupt and you get nothing. For example, a new technology makes all existing players obsolete, OR all manufacturing moves to China. The latter story should be painfully familiar to anyone who invested in solar in recent years.
To temper your high growth enthusiasm, take a look at that investing board for a solar stock that someone posted above. Watch the attitudes change from anticipation of the lottery win to utter dismay as portfolios get destroyed. It's rather heart-braking.
2) It's entirely possible, and even more likely than not, for a hot sector to grow a huge amount, yet slightly less than expectations currently baked in valuations. In this case investors in that sector will make subpar returns because they paid too much for that growth.
A great example of this comes from international investing. If you knew in advance (perfect foresight) which countries would grow most by GDP and you invested in those stock markets, historical data shows you'd fall behind someone who picks at random, or an index. Valuations matter a great deal. In the case of solar, surely you're not the only one seeing the potential. I like solar too and I think it will be great. Who's to say that I didn't just yesterday buy enough to make your purchase extremely expensive? The people you're competing with are not me, but professionals doing this full time, listening to such arcane indicators as rare earth supply pipelines, and even they have a terrible time beating the average.
The most efficient way to get high returns is not to chase the hot idea du jour, but to get as much of the index as your risk tolerance allows, borrowing money if need be. Mind you, it's a bad idea particularly for higher leverage ratios and I never recommend more than 80% stocks to anyone. But it is the best way to do it.
The next best thing IMHO, if you don't want to use leverage, is small value stocks. Historically these have the best returns (and highest volatility). Historically, they're even more efficient than the leveraged index, but I don't trust history nearly to that degree. By contrast, small growth stocks -- i.e. what's tempting you right now -- is commonly referred to as "the black hole of investing", with the poorest returns and more money thrown away chasing lottery tickets than any other sector.
I second everyone who tells you that the most important thing is the savings rate. And I too thank you for your service!
- bertilak
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Re: 22, I want to be rich, looking for a high reward fund
Way more important than what funds you invest in is how much you are able to save and invest.
Second in importance is how much the funds cost. By cost I don't mean market price but loads and fees. Forget any fund with any load or ongoing 12b-1 fees. Forget any funds with more than about 0.50% expense ratio. Even that's pretty high. Shoot for under 0.20% ER.
Second in importance is how much the funds cost. By cost I don't mean market price but loads and fees. Forget any fund with any load or ongoing 12b-1 fees. Forget any funds with more than about 0.50% expense ratio. Even that's pretty high. Shoot for under 0.20% ER.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
- Yesterdaysnews
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Re: 22, I want to be rich, looking for a high reward fund
What do you all consider "RICH"
Net worth $2 million plus? Maybe 3 or 4? I'd say $4 million net worth with minimal debt.
Net worth $2 million plus? Maybe 3 or 4? I'd say $4 million net worth with minimal debt.
Re: 22, I want to be rich, looking for a high reward fund
1) That guy isn't rich by my definitionMatt68 wrote:You are wrong about that, it's all about savings rate.edge wrote:You won't get rich from investing and having a low value of human capital. The ones that said you need to find a high income career (or business owner) are right.
I don't know if links are allowed here but: http://finance.yahoo.com/news/27-year-o ... 23184.html
2) Most of his wealth is because of a lucky RE transaction
3) Related - he didn't get 'rich' on stock investments
4) Saving 50% of a 100k salary is a way of accumulating savings but it is definitely way out of whack of the normal distribution of utility of money. In other words, he is basically depriving himself. His end game isn't clear or apparently rational.
- Clearly_Irrational
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Re: 22, I want to be rich, looking for a high reward fund
If you want to be rich then the market is the wrong place for your money. You need to start a business. It's higher risk, but potentially much higher reward.
Re: 22, I want to be rich, looking for a high reward fund
The guy got much, much, much luckier than most. Not really a repeatable blueprint. But yeah, save as much money as you can as early as you can and eventually you stand a good chance of being pretty wealthy. Almost certainly not by 27, though.Matt68 wrote:You are wrong about that, it's all about savings rate.edge wrote:You won't get rich from investing and having a low value of human capital. The ones that said you need to find a high income career (or business owner) are right.
I don't know if links are allowed here but: http://finance.yahoo.com/news/27-year-o ... 23184.html
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Re: 22, I want to be rich, looking for a high reward fund
+1.thenextguy wrote:Starting to save early, which you are, is probably the most important controllable factor to ending up wealthy. By starting to seriously save at 22, you're off to a great start. You can reach your goals without taking any unncessary risk. If you do, I would make sure it's a small percentage of your portfolio.
These 3 Charts Show The Amazing Power Of Compound Interest
Mike
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Learn every day, but especially from the experiences of others, it's cheaper! - John Bogle
Re: 22, I want to be rich, looking for a high reward fund
"Slow and steady wins the race" - at least for the common retail investor.
How quickly your investments grow is a factor of:
- Amount of investments
- Time
- Risk
You already have time on your side. You're young, so starting now means more years later-on with very large compounding effects. Amount you invest is a function of your expenses and your income. You don't need a six figure income to save a decent amount, but it IS that much more difficult, obviously, the less you earn. So, as others have said, strive to invest in YOURSELF as well. And risk - well, that's where you can go from investing to gambling. The "professionals" (who have many more years of experience, degrees, experience, special insights, yadda, yadda) are constantly trying to beat the market ("seeking alpha") - and yet very few of these seasoned professionals can do it in any given year... and even fewer can do it for more than a few years... and perhaps one or two geniuses can do it over a long haul. And that's where index investing makes sense - when the "pros" can't consistently beat the market, making market returns looks really good to me!
But you ARE young, and I remember being in your shoes. At 22, I picked stocks. I made some great returns with a few of them early on... and I thought I was a genius. What I didn't realize was that we were in a full-on bull market, and I just got lucky. And then the luck ran out. It's painful to watch your "investments" (gambling hands) capsize. But I just figured more research would help... more reading... more technical analysis... more data. And I tried again. I even did some trading. And then when I got really crazy, I even dabbled in options.
Through it all, I learned a lot about the market. In some instances, I made a killing. I won't lie. Half the down payment on my house came from profits off of a single stock trade. HOWEVER, prior to that I probably lost just as much or more across various other trades that didn't pan out. So, I didn't really get ahead. In fact, I think I was pretty lucky that it didn't end up worse. I started to realize the strategy wasn't working when year after year I'd do my taxes and would be forced to face my poor returns when compared to what I would have done if I had just invested in the market - an index or two.
But it wasn't that I was blind to this message - I had read plenty of books... and heard the same story that people are telling you hear. But somehow, being young and ambitious, it's hard to accept the facts and thinking, "I can do better" is an itch that's hard to scratch. So here's what I'd recommend:
- Invest in indexes as the folks here are advising. Steadily contribute, get diligent about it, and play by the rules.
- Take a few thousand dollars on the side and put it in a COMPLETELY separate brokerage account - do NOT link it to your index investing account. Use this account to play and learn. Pick stocks, invest in sector indexes, try to time the market, have at it. This is your play account.
I think what you'll find after a year or so is that your index account is doing better than the play account. Keep at this and watch the general returns on both. You may get lucky at first with the play account - so don't get tempted to dump money into it. I promise that luck will run out!
I remember being young, and I think I've learned some good lessons by dabbling in stocks. You learn the fundamentals of the market, which are still valuable to know even when investing in indexes. But it'll give you a true appreciation of indexes after you lose some hard earned money in a bad stock pick. And sometimes that's what it takes - much more striking than reading some advice on a message board.
How quickly your investments grow is a factor of:
- Amount of investments
- Time
- Risk
You already have time on your side. You're young, so starting now means more years later-on with very large compounding effects. Amount you invest is a function of your expenses and your income. You don't need a six figure income to save a decent amount, but it IS that much more difficult, obviously, the less you earn. So, as others have said, strive to invest in YOURSELF as well. And risk - well, that's where you can go from investing to gambling. The "professionals" (who have many more years of experience, degrees, experience, special insights, yadda, yadda) are constantly trying to beat the market ("seeking alpha") - and yet very few of these seasoned professionals can do it in any given year... and even fewer can do it for more than a few years... and perhaps one or two geniuses can do it over a long haul. And that's where index investing makes sense - when the "pros" can't consistently beat the market, making market returns looks really good to me!
But you ARE young, and I remember being in your shoes. At 22, I picked stocks. I made some great returns with a few of them early on... and I thought I was a genius. What I didn't realize was that we were in a full-on bull market, and I just got lucky. And then the luck ran out. It's painful to watch your "investments" (gambling hands) capsize. But I just figured more research would help... more reading... more technical analysis... more data. And I tried again. I even did some trading. And then when I got really crazy, I even dabbled in options.
Through it all, I learned a lot about the market. In some instances, I made a killing. I won't lie. Half the down payment on my house came from profits off of a single stock trade. HOWEVER, prior to that I probably lost just as much or more across various other trades that didn't pan out. So, I didn't really get ahead. In fact, I think I was pretty lucky that it didn't end up worse. I started to realize the strategy wasn't working when year after year I'd do my taxes and would be forced to face my poor returns when compared to what I would have done if I had just invested in the market - an index or two.
But it wasn't that I was blind to this message - I had read plenty of books... and heard the same story that people are telling you hear. But somehow, being young and ambitious, it's hard to accept the facts and thinking, "I can do better" is an itch that's hard to scratch. So here's what I'd recommend:
- Invest in indexes as the folks here are advising. Steadily contribute, get diligent about it, and play by the rules.
- Take a few thousand dollars on the side and put it in a COMPLETELY separate brokerage account - do NOT link it to your index investing account. Use this account to play and learn. Pick stocks, invest in sector indexes, try to time the market, have at it. This is your play account.
I think what you'll find after a year or so is that your index account is doing better than the play account. Keep at this and watch the general returns on both. You may get lucky at first with the play account - so don't get tempted to dump money into it. I promise that luck will run out!
I remember being young, and I think I've learned some good lessons by dabbling in stocks. You learn the fundamentals of the market, which are still valuable to know even when investing in indexes. But it'll give you a true appreciation of indexes after you lose some hard earned money in a bad stock pick. And sometimes that's what it takes - much more striking than reading some advice on a message board.
- tainted-meat
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Re: 22, I want to be rich, looking for a high reward fund
Put your cash in emerging markets and let it ride. The valuations are very attractive.
Re: 22, I want to be rich, looking for a high reward fund
We had a poster who did this. I think his username was "100% emerging markets" or something like that. I say "had" and "was," because he hasn't posted in several years.tainted-meat wrote:Put your cash in emerging markets and let it ride. The valuations are very attractive.
Gordon
Re: 22, I want to be rich, looking for a high reward fund
When do you go in? That opens a very nice path for you, called the Thrift Savings Plan.Matt68 wrote:...Also I am in the navy delayed entry program right now, and that is a good opportunity to get some big investment numbers. Just read a story about a guy who became a millionaire at 27 from enlisting in the navy and investing.
Here's some reading for you: Military finances
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Re: 22, I want to be rich, looking for a high reward fund
You are not going to like the answer, but it is true saving is BY FAR the most important. That means more the better. So how do you do it? Get a great education, the highest paying job you like, LBYM, and eliminate/ lower your debt.
It isn't sexy and not easy which is why It is easier for the young guns to ask about a secret fund that will make you rich.
Good luck.
It isn't sexy and not easy which is why It is easier for the young guns to ask about a secret fund that will make you rich.
Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” |
-Jack Bogle
- Whiggish Boffin
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Re: 22, I want to be rich, looking for a high reward fund
Grt2bOutdoors said:
I concur with the suggested readings, especially Bogle and Bernstein.
In the Navy, you might pick up a security clearance that you can carry into civilian life. A security clearance qualifies you for many jobs that cannot be offshored.Learn a skill that can not be offshored to cheaper locales, will always be in demand and pays you a fair or lucrative wage over your career.
I concur with the suggested readings, especially Bogle and Bernstein.
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Re: 22, I want to be rich, looking for a high reward fund
Matt, it appears nobody wants to answer your question and just wants to lecture you. So, here is a special high growth fund for the rich guys: IBLN (an ETF that tracks the iBillionaire index). More information here: http://www.direxioninvestments.com/prod ... -index-etf.
Swing your own bat and swing for the fences if you like. Best of luck to you.
Swing your own bat and swing for the fences if you like. Best of luck to you.
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Re: 22, I want to be rich, looking for a high reward fund
Historically,
small cap returns are higher than large cap.
Value are higher than growth.
Of course risk goes up as well, and there is no guarantee that the pattern will continue. And even though in the long term it probably will, there is nothing to say that you won't have a 10 year drought in a certai sector or stock class. If you can weather that, then find the best risk/return profile fund and go with that. Lots of books will discuss the technical analysis you can do to evaluate risk
small cap returns are higher than large cap.
Value are higher than growth.
Of course risk goes up as well, and there is no guarantee that the pattern will continue. And even though in the long term it probably will, there is nothing to say that you won't have a 10 year drought in a certai sector or stock class. If you can weather that, then find the best risk/return profile fund and go with that. Lots of books will discuss the technical analysis you can do to evaluate risk
Re: 22, I want to be rich, looking for a high reward fund
There's no secret way to easy wealth by just picking the right stocks or funds. Everyone wants their investments to earn the most they can over whatever time period they're looking at.
You can definitely find stocks/funds that will have fluctuations (both up and down) higher than the market average, but accepting a wider variety of possible outcomes and crossing your fingers hoping that yours will be more on the positive side doesn't seem like a prudent choice.
The most rewarding investment you can make is in yourself. The best way to get money is to do something that deserves it, something people are willing to trade their money in exchange for.
You can definitely find stocks/funds that will have fluctuations (both up and down) higher than the market average, but accepting a wider variety of possible outcomes and crossing your fingers hoping that yours will be more on the positive side doesn't seem like a prudent choice.
The most rewarding investment you can make is in yourself. The best way to get money is to do something that deserves it, something people are willing to trade their money in exchange for.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
- White Coat Investor
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Re: 22, I want to be rich, looking for a high reward fund
First of all, becoming rich has nothing to do with picking the right mutual fund. Here's how to get rich:Matt68 wrote:Roth IRA has 5.5k in 2055 target date fund on vanguard. I want to invest another 5.5k in a taxable account on vanguard (and continually add $400 a month to this account) but I want this to be a high growth fund. I am tempted by the "tan" fund because I think that in 15 - 20 years years solar is going to explode and all these solar stocks we see trading at 20 - 30 dollars will be 300 +. But I can't pull the trigger on that.
Is indexing the way to go, all the time? Any have a recommended high reward fund?
1) Make a lot of money
2) Carve a good portion of it out
3) Invest that portion in a reasonable manner.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy |
4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
Re: 22, I want to be rich, looking for a high reward fund
Small Value and Emerging Markets. But only if you can stomach the potential for 5-10 years of under-performance compared to Total Stock Market and Total Int'l. For example, the market high for Emerging Markets was about 7 years ago.
What most performance chasers end up doing is buying when things are hot and then selling when things are looking bad. Buy high, sell low - not a good way to get rich.
What most performance chasers end up doing is buying when things are hot and then selling when things are looking bad. Buy high, sell low - not a good way to get rich.
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Re: 22, I want to be rich, looking for a high reward fund
Invest in Biotech fund like IBB, XBI, FBIOX if you wish to take the volatile ride but not more than 10% of your portfolio.
You will get some heart breaks if you see it every day but at the end of the year you have nice return.
But not more than 10% of your portfolio
You will get some heart breaks if you see it every day but at the end of the year you have nice return.
But not more than 10% of your portfolio
Allocation : 80/20 (90% TSM, 10% on ARKK,XBI,XLK/individual stocks and 20% TBM) |
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Need to learn fishing sooner
Re: 22, I want to be rich, looking for a high reward fund
The 10% is a bit aggressive. We generally say to use no more than 5% of your portfolio, which is the maximum amount you can afford to lose and not mess up your retirement savings.Srinivasan777in wrote:But not more than 10% of your portfolio
Re: 22, I want to be rich, looking for a high reward fund
You are already in a high risk/reward fund. The 2055 TD fund will have an AA of 90/10 until 2025. That's a lot of risk with the potential for a lot of reward. I don't understand why you seem to think that mutual funds are too conservative. Is it just because they offer a lot of diversity? Diversity is a good thing.
I think you have the right idea as far as funding the TSP and Roth IRA are concerned. I think your goals for how much to fund them with are a bit lofty, but don't let that stop you.
If you are using a taxable account for retirement savings along with tax advantaged accounts, you should read the wiki on tax efficient fund placement. I would hold either the total international stock fund or the total (domestic) stock fund in the taxable account. Leverage your IRA/TSP for the rest, and rebalance once a year or so.
Also, read the wiki on tax loss harvesting.
I think you have the right idea as far as funding the TSP and Roth IRA are concerned. I think your goals for how much to fund them with are a bit lofty, but don't let that stop you.
If you are using a taxable account for retirement savings along with tax advantaged accounts, you should read the wiki on tax efficient fund placement. I would hold either the total international stock fund or the total (domestic) stock fund in the taxable account. Leverage your IRA/TSP for the rest, and rebalance once a year or so.
Also, read the wiki on tax loss harvesting.
Re: 22, I want to be rich, looking for a high reward fund
The history of investing is littered with new technologies that succeeded, but did not provide great returns to investors. Railroads, radio, television, etc.
Focus on your savings rate, and put it all in Total Stock Market.
Focus on your savings rate, and put it all in Total Stock Market.