How a new investor should begin during bear market

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brett41
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How a new investor should begin during bear market

Post by brett41 » Thu Mar 26, 2020 8:40 am

If you are a 30yr old new investor opening an Ira in today’s bear market with less than 5k to invest what do you start with?

Target index fund

Total us market fund

3 fund portfolio

Four-in-one fund
Last edited by brett41 on Thu Mar 26, 2020 8:48 am, edited 1 time in total.

livesoft
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Re: How a new investor should begin during bear market

Post by livesoft » Thu Mar 26, 2020 8:42 am

Those all would work. A new investor could be 16 years old or 91 years old and anywhere in between. They all may choose differently.

I've seen all those solutions used by my children who are getting close to 30-years-old.
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WoodSpinner
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Re: How a new investor should begin during bear market

Post by WoodSpinner » Thu Mar 26, 2020 9:59 am

OP,

The most important thing you can do is to save and invest regularly and try to keep upping the rate by a Living Below Your Means.

FWIW, advised my daughter to start with a Target Date fund, add regularly and don’t worry about current values. At some point it’s worth it to shift, but it’s a great start.

WoodSpinner

dh
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Re: How a new investor should begin during bear market

Post by dh » Thu Mar 26, 2020 10:01 am

WoodSpinner wrote:
Thu Mar 26, 2020 9:59 am
OP,

The most important thing you can do is to save and invest regularly and try to keep upping the rate by a Living Below Your Means.

FWIW, advised my daughter to start with a Target Date fund, add regularly and don’t worry about current values. At some point it’s worth it to shift, but it’s a great start.

WoodSpinner
Sound advice, WoodSpinner. You focused on the important things regardless of current market conditions.

michoco911
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Re: How a new investor should begin during bear market

Post by michoco911 » Thu Mar 26, 2020 10:24 am

brett41 wrote:
Thu Mar 26, 2020 8:40 am
If you are a 30yr old new investor opening an Ira in today’s bear market with less than 5k to invest what do you start with?

Target index fund

Total us market fund

3 fund portfolio

Four-in-one fund
I read somewhere that the rate of savings and amounts invested regularly will impact your overall final nest egg more than the actual distribution or fund types as long as you keep fees and costs low.

So no matter what you choose will work from the above.
Nevertheless, i always prefer a 3 fund portfolio for simplicity but at the same time flexibility in changing AA or rebalancing during bear markets.

Good luck.
30% VWRD 30% VUSD 40% AGGG until further notice

cashboy
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Re: How a new investor should begin during bear market

Post by cashboy » Thu Mar 26, 2020 10:56 am

brett41 wrote:
Thu Mar 26, 2020 8:40 am
If you are a 30yr old new investor opening an Ira in today’s bear market with less than 5k to invest what do you start with?

Target index fund

Total us market fund

3 fund portfolio

Four-in-one fund
https://www.youtube.com/watch?v=-_IlNbsILLE

all good choices.

at your age,
at this point in time:

Total us market fund
or SP500 index

would be a great 'foundation' for your investment portfolio.

i am currently retired and a three-funder - makes the most sense to/for me at this point in my life. if i could go back in time to being 30, the two choices i mentioned are what i would do (just opinion; not fact; YMMV)

good luck! you are on the right track!
:sharebeer
Three-Fund Portfolio: FSPSX - FXAIX - FXNAX (with slight tilt of CDs - CASH - Canned Beans - Rice - Bottled Water)

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ruralavalon
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Re: How a new investor should begin during bear market

Post by ruralavalon » Thu Mar 26, 2020 11:12 am

brett41 wrote:
Thu Mar 26, 2020 8:40 am
If you are a 30yr old new investor opening an Ira in today’s bear market with less than 5k to invest what do you start with?

Target index fund

Total us market fund

3 fund portfolio

Four-in-one fund
When first starting the most important investing decision you can make is to establish a high rate of contributions.

If there is a plan offered at work (like a 401k, 403b, 457, SEP IRA, SIMPLE IRA, TSP, etc.) then set up automatic contributions every pay period.

Starting with a Three-fund portfolio, Two-fund portfolio, target retirement index fund, Fidelity Four-in-One Index Fund (FFNOX), or other low expense balanced fund would all be fine.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Topic Author
brett41
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Joined: Mon Mar 09, 2020 10:20 am

Re: How a new investor should begin during bear market

Post by brett41 » Fri Mar 27, 2020 9:27 pm

WoodSpinner wrote:
Thu Mar 26, 2020 9:59 am
OP,

The most important thing you can do is to save and invest regularly and try to keep upping the rate by a Living Below Your Means.

FWIW, advised my daughter to start with a Target Date fund, add regularly and don’t worry about current values. At some point it’s worth it to shift, but it’s a great start.

WoodSpinner
At what point do you think it may come time to shift?

vipertom1970
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Re: How a new investor should begin during bear market

Post by vipertom1970 » Fri Mar 27, 2020 9:47 pm

At our age just go 100% S&P500 or Total US market and don't add bonds until 50.

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WoodSpinner
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Re: How a new investor should begin during bear market

Post by WoodSpinner » Fri Mar 27, 2020 10:01 pm

brett41 wrote:
Fri Mar 27, 2020 9:27 pm
WoodSpinner wrote:
Thu Mar 26, 2020 9:59 am
OP,

The most important thing you can do is to save and invest regularly and try to keep upping the rate by a Living Below Your Means.

FWIW, advised my daughter to start with a Target Date fund, add regularly and don’t worry about current values. At some point it’s worth it to shift, but it’s a great start.

WoodSpinner
At what point do you think it may come time to shift?
No hard and fast rule....

Perhaps when the savings and budgeting have been dialed in and you are ready to take the next step and deal with a slightly more complicated set of investments. Perhaps shifting from 1 to 3 or 4.

WoodSpinner

annu
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Re: How a new investor should begin during bear market

Post by annu » Fri Mar 27, 2020 11:31 pm

Lots of great advise already given. Just something bit different , with current conditions, no one knows how things will pan out, but we will see a spike in patients and it can get bad , if you are just starting, saving for 4 to 6 more weeks and maybe getting enough saving to invest either in an admiral fund or index fund( to meet minimums) is not a bad idea. Especially if you are investing for long term and just starting, seeing fluctuations like right now, almost weekly gains and losses, it can be little nerve wracking and also uncommon.
You did not talk about emergency fund, but this can be another way to have an improved emergency fund if you are impacted at job as well.

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