Country you live in: Austria (Vienna)
Income: $1650 from job and something with poker, i have a lot of expenses (rent, food, insurance,... etc

Risk Tolerance: low/medium. basically risk neutral
Timeframe for investment: 1-5 years (10-15h/week)
Debt: none
Amount to Invest: 3K$ (2K€)


hello guys i just dont know where to start so i will just give it a go; Im pretty interested in trading but i have got very little money to start so i have probably limited options where to put my money into.
Generally i would be capable to investe 10-15h per week for this business. It would also be nice to get some advice about books that could help me to no th basic about this business.
I dont really mind taking really much effort into this business if it pays of because im very ambitious to reach my targets.

Some advice would be highly appreciated.

Thanks in advance

Gerald

Start to build an emergency fund first. I'd shoot for 6 to 12 months living expenses. After that you might want to consider paying off the highest interest loans (6%) before you start investing. It'll be a few years with that $100-$400 a month before you're there so I would ask again by that time.

Country: US
Income: 35K pre tax
Risk Tolerance: moderate to high
Timeframe 5-10 years
Debt: $0

I just turned 25 and I have about $5k to play with. I'm a complete novice when it comes to investing, so while i appreciate any information that can be provided, I'd also like to use some of the money on high quality materials to help me learn about investing. Any suggestions on that front? I mean VERY beginner, completely from the bottom up type thing.

Country: US
Income: Not relevant
Risk Tolerance: High
Timeframe: Not relevant
Debt: $0

College student, i don't have to worry about anything in terms of finances pretty much. i found ~$800 (i know, small amount) in a rollover ira in a fidelity account from my part time job a while ago. if i take it out i incur fees, and i have no need for money. should i put it into a mutual fund? take it out and take the fees? try to get some money and put it in? Thanks.

I could give some good investing advice here.I would like to give some information about my countrys stock market

I'm a 20 year old college student from Turkey, I have a great intrest in stocks,poker, and sports betting.Recently I've invested 35k of my money in the national Telecommunications company of Turkey, which is called Türk telekom. They pretty much have an monopoly on phone and internet but not the cellular network.

In 2009 the company made a profit of 1.4bn dollars roughly and gave 45 cents dividend per share(the trading price is 4.60try currently). This is roughly %10 dividend a year.

Türk telekom has a plan of buying the broadcoasting rights of the Turkish national football(soccer league). Let me tell you that in Turkey soccer is everything, on average 15 milion people get tuned into a soccer game on TV.
The bidding for the broadcasting rights will end on January 16, and if they get the rights then i think the stock price per share will jump from 4.5 to maybe 5.5 on short term.This will improve the telecoms brand value.

The current market value of Turk telekom is $11bn , It has a great potential and it might increase to $15bn in 3-4 years. This company is a monopoly and the goverment owns %30 of it, the rest is owned by an arab company called oger telecom, the goverment has many key people in the management area and will do everything so the company can still be a monopoly. They control Turkey's international internet backbone, all the private internet companies rent Türk telecoms backbone They cant set up one themselves because the goverment doesnt grant them a license.

Why I'm giving this advice? I want you foreign folks to bring in some money to my country I dont have any other catch.
You can invest in Turkey by opening a bank account in any of the banks in turkey.

Just google turkish banks and come here to open an account.
You can open an account from citibank

Anywy some people can think its fishy since its my first post, I've been browsing this from in spectator mdoe for like a week, and decided to join it.

The company has a very good foundation and it wasnt affected by the global economic crisis, all the bank stocks fell atleast %70 in Turkey, but telecom gave a profit of 1.4bn.

More info here
http://www.turktelekom.com.tr/tt/por...s/About-Us/FAQ


Anyway I hope this advice helps

Regarding variable annuities,

There are very few instances where these are suitable for for young people. VAs along with perm life insurance policies are the most often misunderstood and abused financial products out there. That is not to say that these products do not have their place. They can be very important and suitable financial tools but usually for wealthy and older investors. However, these products are widespread even among younger investors when they are not suitable because they pay very high commissions for the salespeople that recommend these products.

Nuclear is correct that a variable annuity can be considered for a younger investor if and when they have maximized all their other tax advantaged investment options such as IRAs or a company sponsored 401K plan. In both cases, you give up liquidity (you cannot withdraw without penalty until age 59+) in exchange for tax deferred growth. The major difference is that with IRAs and 401K plans, you can withdraw a certain amount without incurring the standard 10% penalty for a variety of reasons including medical bills, health insurance payments, down payment for a first home just to name a few. So despite the fact that this is a "long-term" investment, most people, especially younger investors with smaller balances that have not yet purchased their first home, retain quite a bit of flexibility with their money without incurring any penalties.

With VAs, you may or may not pay the 10% IRS penalty depending on whether or not it is a qualified or non-qualified plan. Regardless, there is no escape from massive early withdrawal penalties from the insurance company that sold you the annuity, usually for a period of between 5-10 years. Add to that VAs typically have fees that are double that of a typical mutual fund. There is also the consideration that in the event that you die, your beneficiary will pay the deferred taxes while in a standard mutual fund, the basis is stepped up at death.

When you factor all these considerations, there is just no reason for an average young person to even consider a variable annuity. I mean there could be an exceptional case out there but it really is too rare to consider as a reasonable possibility.

Perm life insurance policies including whole/variable/universal etc. are also usually a bad idea idea for most young people. Well, there are a lot more cases where it can make sense for young people so I can't give the blanket statement that is isn't a reasonable possibility that I gave for VAs. But generally speaking, it isn't suitable for most young people. Perm life insurance policies are actually quite complex so it would be a huge post for me to get into the details.

But as a simple rule of thumb, unless you are 99.99% positive that you will not need to withdraw the money for at least 5-10+ years (depending on the specifics of the actual insurance contract), you shouldn't even consider a VA or perm life insurance policy because the penalties and fees will far outweigh any tax benefits that these policies provide.

#1. Voting for real estate for you. Like one of those $529K houses in Surrey that have 2 suites in the basement. Whether you just live there, or rent out, stats are good lately for housing in Canada. Surrey seems a little more affordable than Vancouver and Richmond. And it pretty well is Vancouver isn't it? What if that house gets worth the $750-800K that it was worth a few years ago? There seems to be almost no room for today's Vancouver area prices to decrease, and lots of room for increase. I hope you can get a mortgage. Don't say the words poker player under any circumstances on any application. Trust me, unless you pay taxes on your gambling.
#2. Small business-if you are worth these numbers at poker, forget a small business, unless it runs itself. Sounds like a pay cut for sure, unless you just pick the best, greatest business ever. Was that 90% of new small businesses fail? Been there done that.
#3. I forget my last point. Cutting myself off the vodka now. Pretty good post with just the two points though eh?
roxy in Stoney Creek, ON

#3. STOCKS-SOMEBODY'S HAND IS ALWAYS IN YOUR POCKET! bUT if the real estate isn't working out, sure try some stocks, watch Kramer's Mad Money or Kudlow or whoever instead of just random picks good luck!

Pull it out. The penalty isn't worth fretting over nor is the amount and I'm sure you can do something fun with the $700ish or whatever would be left over.

I totally disagree. He has no need for the money now, so why not roll it over and stash it in an index fund and let it grow for the next 40 years. The 700 or so in cash that he would get right now can be spent so quickly on meaningless things, not to mention that he would have to pay a penalty to the IRS to get the money out. On the other hand, $800 compounded tax deferred over 40 years will amount to something meaningful.

My dad is retired and I recently found out he's got 55k stashed in a checking account. I'm pretty comfortable with the info I gave him, but I thought I'd run it by the forum to see if I might have missed anything. He has no debts or leins, house is paid off, lives off Social Security. He's never invested.

Out of the 55k, I told him to put 20k in an emergency savings account in case anything was to go down that he needed money fast.

I used 120-Age to determine that he needs to put about 33% of his money in bonds. He put $3k in a 3year CD, $3k in a 4year, and $3k in a 5year. They bring 2.6%, 2.8%, and 3.0% respectively.

There were some other immediate expenses that I left out, but he now has 16.5k to invest in the market.

I have focused a portfolio on dividend paying stocks, but he's lived without the extra income so far, so I think at this point wealth acquisition is just as good of a goal.

My portfolio:
U.S. Large Corps
BUD - $1000
HD - $1000
GE - $750
BAC - $750
ATVI - $750

International
TEVA (Pharms) - $1750
VDE (Energy ETF) - $1000
VWO (Emerging Markets ETF) - $1000

Other Diversification
REIT - $2000
TIPS - $4000
Cash - $1500

Here I go.

Country you live in: USA
Income: 2-3.5k/month
Risk Tolerance: 6 out of 10 (ten being highest)
Timeframe for investment: Lifetime I think (i am 19)
Debt: $2,000 in Student Loan repayment
Any other information you might have that would help us:


May eventually return to school, but staying away for now as I'm not 100% sure on degree I want. Income has wide range due to it being from SNG grinding due to hard time finding a job in St. Paul/Minneapolis Area. Would like to get a solid PT/FT job for additional income.

I have very low living expenses: Rent is 475/month w/$20 electric and $25 internet bill. I shop at Aldi and I spend less than $200/month in groceries.

Would like to get student loan debt paid off while drip feeding (or throwing in mass chunks here and there)some type of investment tool. I eventually would love to own properties that I could rent out or perhaps own my own business one day.

Just want to say that this is a great thread. Thanks to all the input. Very helpful !

I would consider looking at Fidelity or Schwab to start a Roth IRA. They have programs that let you invest as little as $100 with no other fund minimums. Start off with a Target Retirement fund until things are more stable before possibly looking at other investment options.

Being retired at the age of 55 means most likely a pension of some kind? Which union was he in?

Unless capital appreciation and growth is a real desire, going higher on the bonds and inflation protection is the better route for someone who is older and has no need for more wealth.

Country you live in: USA
Amount Investing: I am 20 years old and plan to invest $15k now, and gradually add $35k more by the end of this year. Will invest $50k more by the end of 2011.
Risk Tolerance: Low-Middle for short term (Spring 2012) : Aggressively High (Probably retiring ~Year 2050)
Timeframe for investment: Most likely taking out 75% of my investment funds by Spring 2012 to help contribute in buying a house with my family.
Debt: No debt with interest as of right now.

Any other information you might have that would help us:
Since I would like to withdraw 75% of my funds by 2012, I was thinking that I be conservative market with 75% of the funds I plan to invest and with the other 25% into an aggressive market.

I would like to max out my contribution into a Roth IRA for a retirement fund for the year of 2050 maybe 2055. I don't have an IRA or any investments right now, but as I understand I can put in $10k this year into my Roth IRA ($5k for 2009 by April 15, 2010 & 5k for 2010).

One final thing: Is it a good idea for me to just stick with one investment company for now until I grow more competent with investing? I plan on doing my investing with Fidelity because they have a nearby building for me to go to if I would like to speak with them in person, but you guys are talking a lot of Vanguard funds. If you guys prefer Vanguard, does being able to speak with financial advisers over at Fidelity offset whatever is good about Vanguard? Also, if it matters, I heard Vanguard charges high fees for non-Vanguard funds.

What should my plan be?

Thanks for the help ahead of time.

I would agree with that. 3/4 of it into something like a total bond market fund. Something pretty safe when it comes to the principal. You aren't terribly concerned about increasing capital because of the risk increase.

Correct-o.

Fidelity is a fine choice. They offer no load funds like Vanguard and are one of the more popular due to them being used for many companies 401K plans and IRA rollovers.

Vanguard is simple, its expense ratios are some of the lowest of the bunch and most of the funds regularly brought up are the index funds.

You need to keep in mind that Vanguard Brokerage is completely separate from Vanguard Mutual Funds. As a mutual fund investor with Vanguard you do not get the option of purchasing other funds, you have to go through their brokerage services. The Vanguard brokerage fees to purchase other non-Vanguard funds is a bit more expensive then others but it comes down to some what of your last question with regard to multiple companies.

Being able to have face to face contact with someone and preferring that is a personal choice we cannot answer for you.

As for sticking with one company - theres nothing wrong with "diversifying" where you invest - but frankly if you can get what you need from location and its not that expensive, it makes it simplier to manage overall.

After like 30 hours of initial research & reading, I've decided I'm not going to spend the time it takes to make good ongoing market predictions. What do you guys think about 70% S&P500 / 20% TIPS / 10% Liquid? Goal is cap growth for 20+ years.

The only thing I'd say is you're pining everything on the US economy and the large caps, pretty much ignoring mid cap and totally ignoring small caps.

I'd opt for something like this instead if you want to stay simple.
40% VTI (Vanguard Total US Stock Market)
30% VEU (Vanguard FTSE All World ex-US)
20% TIP
10% cash

Country you live in: USA
Amount Investing: 10K-50K.
Risk Tolerance: Moderate
Timeframe for investment: 3-? years
Debt: None.
Any other information you might have that would help us:
I am basically trying to decide the best place for medium-term investments, with the possibility that I might be using them for a down payment on a primary residence in a few years (although that might not necessarily be where the money ends up being used).

Right now, I'm maxing out my tax-preferred retirement options with higher-risk investments. Part of my logic in giving preference to these accounts first is that these can be cashed out penalty-free to get a home, and the higher risk is somewhat offset by my ability to borrow against the 401K. If that's a terrible line of reasoning, please let me know.

I have enough money left over after setting aside cash for emergency expenses, to make the time investment on my part to set up and maintain an investment less than the potential gains.

I'm sure there's an "obvious" solution here akin to the standard advice for retirement accounts, but I'm not sure what that is. If the advice would differ substantially between the 10K-100K range, I'd be interested in understanding what the main considerations are. Thanks in advance.

Thanks. To clarify, will this increase my returns or will it decrease my risk? Or both? And this investment portfolio could be checked & rebalanced no more than once or twice per year?

First thing you should do is work out exactly how much you will have. It sounds like you're looking for a multiple time frame investment, you want some long term, some medium term, and some closer to cash on hand. With this in mind I'd first try and set up a buffer savings cash management account (I think ING is the best but some US guys might correct me) with about 6 months worth of expenses. Once you have this money, stash it away and don't use it for any other investments. Its an emergency fund which you'll use in case things go bad (plus you'll earn a little off it so its not like its a waste).

After that I'd then come back with a more solid number for how long term you want to be. If you're putting a down payment on a house, I'd probably start thinking about what price range you can afford by income (3-4x yearly income is usually the sweet spot, less if your income isn't as solid), and start saving for a 30% down payment for that (just use another cash management account). If you're looking to invest some on the side, for the long term, 401k is probably the way to go, I'd maybe take a piece out of what you earn that doesn't go towards your housing deposit (remember, emergency fund is the priority), like 20%, and put that away.

Follow this and you'll have a solid financial core to get into the housing market without going busto like all the over-leveraged idiots of the last 3 years.

Little of both. The concensus seems to be that the rest of the world has more potential as more economies start their engines and "emerge" into "developed" markets

Country you live in: Canada
Amount Investing: 70k. Still have plenty of $ in cash as backup and have solid dual income.
Risk Tolerance: High
Timeframe for investment: Will most likely take out the majority to purchase a house in 1.5 to 2 years
Debt: None

Any other information you might have that would help us:
Looking to take advantage of the market rebounding. I understand that stocks aren't usually a recommended investment for 2 years, but willing to roll the dice.

It seems the Vanguard funds are a pretty solid option for those inexperienced and not wanting to get too involved, so feedback on the following breakdown would be much appreciated.

35% - Vanguard Total Stock Market ETF (VTI)
35% - Vanguard FTSE All-World ex-US ETF (VEU)
10% - Vanguard Short-Term Bond ETF (BSV)
10% - Vanguard Emerging Markets Stock ETF (VWO)
10% - Vanguard Mid Cap ETF (VO)

Thanks for the advice. I guess my problem is that I understand what to do with retirement money (buy "everything" as in one of the targeted retirement accounts) and with short time (cash with the best saving rate available). It's less clear to me what I should do with money I have now that I won't need for (at least) four years.

Since part of the problem is the uncertainty (I don't know how much money I'll need or when) maybe being concrete is a good place for me to start: I have $40K today that I won't need for 4 years -- how should I decide where to invest it? Or for such a short term, just keeping it in savings is close enough to optimal that I should opt for that convenience (if I understand the above correctly)? Thanks again.