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How do I start investing?

by amotinga on 6/27/21, 10:44 PM with 15 comments

how does one in US go about building investment portfolio? I have about 30k now and making more than I spend on living so Id like to save save and invest some. do I just walk into chase and ask for help?

also, 401k - can I only change settings in certain period? confused.

also, is there any way I can invest pretax? and if I can should I?

please help.

edit: goal is passive investing for comfortable retirement at appropriate age.

im happy working 9-5, not planning on getting rich. jaust want to save some so that I dont have to think about it when I can no longer work.

  • by WheelsAtLarge on 6/27/21, 11:41 PM

    It's very hard to beat index funds, few funds beat them year after year. So, call a mutual fund company(vanguard is very good) and tell them that you want to invest in index funds. They will guide you on what to do.

    Add funds on a regular basis until you need it. It will grow. Keep in mind that the returns will be a wavy ride but ultimately it will be positive.

    We are starting to hear criticisms on index funds but we have yet to find a better long term way to grow wealth for the individual investor. Specially for people that don't want to make finance there life's work.

  • by mtberatwork on 6/28/21, 4:45 PM

    1. Max out 401k and take advantage of employer matching. 2. Max out Roth IRA. 3. Invest in low cost index funds/ETFs.

    Good overview: https://www.pbs.org/newshour/show/all-the-financial-advice-y...

  • by imakwana on 6/28/21, 11:45 PM

    Bogleheads Wiki is the definitive resource, Start from the Getting Started page: https://www.bogleheads.org/wiki/Getting_started

    Once you grasp the essentials, you can deep dive further with the recommended reading list: https://www.bogleheads.org/wiki/Books:_recommendations_and_r...

  • by boulos on 6/28/21, 3:08 AM

    If your employer offers a 401k with a match, you should do it.

    To invest outside of an employer fund, you can open an account with any number of firms, but many folks like Vanguard: they have low fees and aren’t trying to up sell you.

    There’s a vibrant community at bogleheads.org (their wiki is probably more useful, e.g., the three-fund portfolio). I think there’s a subreddit at r/personalfinance or something that’s reasonable as well.

    As others are saying: use simple index funds, maybe even start with just a target date fund if you aren’t comfortable building your own portfolio.

  • by andymoe on 6/27/21, 11:07 PM

    401k is pretax. Usually you can change settings whenever you like though it usually takes a pay cycle or two to take affect. Pay yourself first (invest/save automatically) and budget with the rest. If you have goals like buying a house don’t forget to save for those separately so you don’t have to dip into retirement funds early and get hit with fees and extra taxes.

  • by murm on 6/28/21, 8:36 AM

    I think this video[0] fits nicely to your situation. JL Collins lays out how to invest for your retirement using index funds, explained in simple and commonsensical terms.

    [0] https://www.youtube.com/watch?v=T71ibcZAX3I

  • by aazaa on 6/27/21, 10:47 PM

    You've said nothing about goals. I'd say start there and work your way down.

  • by runawaybottle on 6/29/21, 1:37 AM

    I’m going to suggest wsb. Start with a small amount and try to have fun. Add more as you gain confidence and determine your risk tolerance.

  • by blacksqr on 6/27/21, 11:17 PM

    Research target mutual funds. They're all many people in your situation need.

  • by kyawzazaw on 6/28/21, 6:48 PM

    /r/bogelheads