When to start investing

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Chrismiceli
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Joined: Thu Oct 10, 2019 7:54 am

When to start investing

Post by Chrismiceli » Thu Oct 10, 2019 7:58 am

What is an appropriate amount to have stored away in order to start investing? Should I let the amount of money in my bank determine what stocks to pursue or pursue stocks that I feel will do better in the long run?

Silk McCue
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Re: When to start investing

Post by Silk McCue » Thu Oct 10, 2019 8:38 am

Welcome to Bogleheads!

We have found that the most reliable path to financial success includes investing early and often and in buying broadly diverse Mutual Funds/ETFs at very low expense ratios. No one knows what the market will do tomorrow but we do know what the market tends to do over time and that is long term growth. Picking individual stocks based on what you think will perform best is a great way to find yourself proven wrong at least 50% of the time and resulting in long term market under performance.

I would strongly encourage you spend some time taking advantage of the free resources available here and begin your education before you invest a dime. It won't take you long if you are seriously interested in being successful over a life of investing. I recommend you start here.

https://www.bogleheads.org/wiki/Getting_started

Cheers

aristotelian
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Re: When to start investing

Post by aristotelian » Thu Oct 10, 2019 8:44 am

If you are planning to invest in stocks, you should use money that you don't plan to need for at least 5 years, maybe longer.

This forum generally discourages attempting to pick individual stocks since diversified index funds are now available at negligible expense.

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RickBoglehead
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Re: When to start investing

Post by RickBoglehead » Thu Oct 10, 2019 8:45 am

And you should never invest in anything based on how you "feel".
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

Jack FFR1846
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Re: When to start investing

Post by Jack FFR1846 » Thu Oct 10, 2019 8:50 am

You can have close to nothing and invest. Fidelity has no minimums and zero expense ration for their zero funds. You can buy fractional shares of their zero mutual funds with 85 cents. Schwab allows this as well (I own 0.02 shares of a mutual fund from dividend payment in a tax advantaged account there).
Bogle: Smart Beta is stupid

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Sandtrap
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Re: When to start investing

Post by Sandtrap » Thu Oct 10, 2019 8:56 am

Chrismiceli wrote:
Thu Oct 10, 2019 7:58 am
1
What is an appropriate amount to have stored away in order to start investing?
2
Should I let the amount of money in my bank determine what stocks to pursue
3
or pursue stocks that I feel will do better in the long run?
4
(When to start investing)?
1
Whatever amount you can afford to put away for at least 5 years as part of a long term retirement strategy.
This assumes you have adequate steady income and short term savings to not have to tap into this.
But, when you can and begin to save $$$ a portion of your earnings, etc, you are already beginning to invest. . in yourself.
Until you can save $$$ with discipline and a long term goal, nothing happens.
2
No. What you have in the bank has nothing to do with "what stocks to pursue".
3
Link below for the starting point. Have the fundamentals down before you take the lst step.
4
The best time to start investing is after you study this:
GETTING STARTED
https://www.bogleheads.org/wiki/Getting_started
And post for a portfolio review:
Asking Portfolio Questions
https://www.bogleheads.org/forum/viewt ... =1&t=6212
Last edited by Sandtrap on Thu Oct 10, 2019 8:58 am, edited 1 time in total.
Wiki Bogleheads Wiki: Everything You Need to Know

Dottie57
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Re: When to start investing

Post by Dottie57 » Thu Oct 10, 2019 8:58 am

Chrismiceli wrote:
Thu Oct 10, 2019 7:58 am
What is an appropriate amount to have stored away in order to start investing? Should I let the amount of money in my bank determine what stocks to pursue or pursue stocks that I feel will do better in the long run?
Read this - great advice and short! From etf.com

https://www.etf.com/docs/IfYouCan.pdf

HomeStretch
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Re: When to start investing

Post by HomeStretch » Thu Oct 10, 2019 9:06 am

I have contributed to workplace retirement plans since starting my first job. Then I paid off my student loans/first car and saved enough for wedding/downpayment for house. After that, at age 30, I started investing for the long-term in a Taxable brokerage account as soon as I had enough to meet the fund’s minimum amount. I used US equity mutual funds rather than individual stocks.

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firebirdparts
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Re: When to start investing

Post by firebirdparts » Thu Oct 10, 2019 9:33 am

I started immediately upon beginning work, in my early 20's. I think it would be wise to have a little emergency fund too, but don't let it take you more than 6 months or a year to amass this little emergency fund. For me, investing in a 401k with mutual funds, there was no minimum size investment to be considered. Back then, we were limited to 15% of income in our own retirement savings plan, and that turns out to be a nice figure early in life. I would just dump 15% in there and live on what's left.

Early in our lives, my wife tried to get that money away from me repeatedly. When you're young, of course you'll want to buy a lot of stuff. Resist. I don't recommend you buy individual stocks, but the education benefit is certainly there. I mean it was for me. The money I lost probably saved me a lot more later.
A fool and your money are soon partners

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