New, Self-Employed and Planning

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pranaman
Posts: 1
Joined: Tue Jul 10, 2018 8:11 pm

New, Self-Employed and Planning

Post by pranaman » Tue Jul 10, 2018 8:42 pm

Hi,

First post here, found this site from a search.

I am new to investing. I had a few stocks years ago, also a Roth IRA, funded through a mutual fund with Primerica. Spent on travel years back. Later and wiser, now I have a checking, a savings, and plain IRA with $100.

I live in SF, I'm in my later 40s, mostly self-employed, in tech. I work for a few clients, sometimes sent out on jobs via a 1099. I make around 50k, and have a couple grand I could work with.

Basically starting over, with a little old debt to sort out, and see a lot of options. Top ones that I know of are:

another Roth IRA
Index Funds
Robo-advisors
apps that do investing, like stash, acorn, robin hood
wealthfront, heard from Tim Ferriss and seen on nerdwallet.com

I am drawn to things that are considered 'green', also inventions and new tech, and among other things, thought there might be a way to invest in things like that, that are interesting to me.

Of all the options, what is the best place to start, if I wanted to invest, say $500, $1000, $5000, or some of it at a time?

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danielc
Posts: 340
Joined: Sun Dec 10, 2017 4:48 am

Re: New, Self-Employed and Planning

Post by danielc » Tue Jul 10, 2018 11:39 pm

pranaman wrote:
Tue Jul 10, 2018 8:42 pm
another Roth IRA
Index Funds
Those two are not mutually exclusive. You can (and should) choose index funds inside your Roth IRA.
pranaman wrote:
Tue Jul 10, 2018 8:42 pm
Robo-advisors
apps that do investing, like stash, acorn, robin hood
wealthfront, heard from Tim Ferriss and seen on nerdwallet.com
I think it would be cheaper and more profitable to learn and follow the Bogleheads investment philosophy:

https://www.bogleheads.org/wiki/Boglehe ... philosophy
https://www.bogleheads.org/wiki/Outline_of_indexing
https://www.bogleheads.org/wiki/Three-fund_portfolio
pranaman wrote:
Tue Jul 10, 2018 8:42 pm
I am drawn to things that are considered 'green', also inventions and new tech, and among other things, thought there might be a way to invest in things like that, that are interesting to me.
Index funds and low-cost investing are all the rage right now :wink: I suggest you look through the wiki and setup a three-fund portfolio that matches your need and tolerance for risk.

pranaman wrote:
Tue Jul 10, 2018 8:42 pm
Of all the options, what is the best place to start, if I wanted to invest, say $500, $1000, $5000, or some of it at a time?
The best place to start is learning about index funds and the Boglehead investment philosophy.

Jablean
Posts: 98
Joined: Sat Jun 02, 2018 2:38 pm

Re: New, Self-Employed and Planning

Post by Jablean » Wed Jul 11, 2018 12:53 am

First question - Do you have an emergency fund - to cover 6 months of no income after something like a motorcycle accident? I'm really a bit hesitant without more info to encourage you to do anything right now other than to build up your cash and pay down your debt.

But if you must then open account at Fidelity or Vanguard - I'm at Fidelity

Or to give you less flexibility (ie no opportunity to buy individual stocks) you could open a JanusHenderson account (much like your Primamerica account I'd think) If you tend to change your mind a lot then less flexibility might be better for you to stick with something.

So at Fidelity to start an IRA or Roth you can move $100 over and invest it in their money market or their cash mutual fund (only two choices) Then when you are ready to earn more than interest you can purchase a fund (usually $2500 minimum). Most here will steer you to a total market stock fund. If you don't mind the risk and more volatility you could look at a Contrafund instead of total market- when I've looked they tend to be more tech heavy. You could also buy EFTs geared to green or tech etc.

Janus will allow you to put less in their funds. something in the neighborhood of $100 to start with auto investments of $50 a month. Fewer fund options, no day trading or EFTs, higher expense ratios, but a few specialized funds that might fit your interest.

I wouldn't go with a three fund portfolio right now. You need to be on what we would probably call a two fund plan. The cash in your bank checking & savings is one fund (call it your cash fund) and then the money you put into an IRA or Roth call it your stock fund and only pick one mutual fund to invest it in for at least the next year.

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