Support NeoGAF

[Blunoise]

Hey so I just started a new job that has awesome benefits like the ESPP. Which I am going to sign up on, but it got me thinking that I should start investing into my future and short term goals more by learning how to buy stocks and bonds. I want to buy bonds in the gaming industry since that is what I follow the most in the news and maybe Google. I'm thinking of buying in Nintendo since the upcoming mobile development and NX is sure to rise their stocks.

Do any of you have any pointers to teach me the routes to take and in which companies maybe best to invest in as a beginner? FYI I am 26.

 

[ClosingADoor]

The advice from this thread is to invest in index funds: http://www.neogaf.com/forum/showthread.php?t=749978

Doing that myself at the moment, but that's for retirement more then 30 years away. Not interested in short term investments.

 

[Cyan]

That's great! Never too soon to think about investing.

The first step is to do some research and realize that beating the market in individual stocks is essentially pure chance. The second step is to remember the old phrase "if you can't beat em, join em." The third step is to start buying index funds.

I'm not really joking here. "Investing" in individual stocks can be fun and (randomly) profitable, but if you're investing to provide for your future self then you should be investing in index funds. While this thread is primarily about investing for retirement, it's an excellent general resource as well: http://www.neogaf.com/forum/showthread.php?t=749978

 

[Sectorseven]

The simple answer is buy the SPY on a regular basis and don't worry about the rest.

Beyond that, well, you have to figure out what your trading personality is. What you're inherently skilled at, how much risk you're willing to take, how closely you want to follow it and so on.

 

[Hari Seldon]

That's great! Never too soon to think about investing.

The first step is to do some research and realize that beating the market in individual stocks is essentially pure chance. The second step is to remember the old phrase "if you can't beat em, join em." The third step is to start buying index funds.

I'm not really joking here. "Investing" in individual stocks can be fun and (randomly) profitable, but if you're investing to provide for your future self then you should be investing in index funds. While this thread is primarily about investing for retirement, it's an excellent general resource as well: http://www.neogaf.com/forum/showthread.php?t=749978

Yes buying individual stocks is gambling and not investing. If you want to invest, the low fee index funds are the best route.

If you do have money you want to gamble though, then trading individual stocks is fun. Just make sure you do it with money that you would be willing to burn at a casino and not money you are trying to invest.

 

[CapitalismSucks DonkeyBalls]

That's great! Never too soon to think about investing.

The first step is to do some research and realize that beating the market in individual stocks is essentially pure chance. The second step is to remember the old phrase "if you can't beat em, join em." The third step is to start buying index funds.

I'm not really joking here. "Investing" in individual stocks can be fun and (randomly) profitable, but if you're investing to provide for your future self then you should be investing in index funds. While this thread is primarily about investing for retirement, it's an excellent general resource as well: http://www.neogaf.com/forum/showthread.php?t=749978

Is there any way to invest in index funds via your state's 401(k) and State 457 funds? If so, how should I disperse my investments?

 

[GhaleonEB]

I was a new investor back in 2000, in the 15 year since have transitioned from investing in individual stocks, to actively managed funds, to being invested in 100% index funds. I dearly wish I knew then what I know now. I'd be so much better off right now had I known.

Take the advice given so far and start reading up on index funds; Piecake's Retirement OP is a good resource.

 

[MilkyJoe]

First things first.

Go and read up what Bonds are, what stocks are, what securities are, what equities are, what options are what a mutual fund is etc.etc..

You need to knowwhat's right for you and what will actually make some money worthy your time and investment.

 

[Lunar15]

Investing is really all about risk mitigation, which Index funds basically do, hence why it's so recommended on this forum for long-term saving.

If you want to invest in individual stocks, prepare for a lot of reading, mistakes, and random happenstance. I like the book One Up on Wall Street, but take it more as just general introduction advice for some metrics you should be looking for rather than a step-by-step guide to investment. It's also kind of outdated now. General idea: You need a diverse portfolio to hedge your losses up against the few stocks that do rise. Never put all your eggs in one basket.

 

[FriedConsole]

Index funds are a good investment but not much fun. You can just look at investing in stocks as gambling with better odds. Most analysis is useless. If you think you know which way things are heading, a million other people think that too and has overvalued the stock.

Video game stocks are a terrible idea. I love video games but the future for making money looks bleak.

 

[Yaphett Kotto]

Can someone do both: invest in index funds and do individual stocks?

Want to know this for when I start investing.

 

[Cyan]

Is there any way to invest in index funds via your state's 401(k) and State 457 funds? If so, how should I disperse my investments?

I don't know the answer to that one. 401k plans differ a lot plan by plan. The 401k plan where I work offers all the index fund options you could want, but I understand that many plans lean a lot more towards actively managed funds.

I'm a little bit hesitant to give direct advice on investment allocations, but a rule of thumb that many people use is to divide specifically between stocks and bonds, allocating [age minus 20]% to bonds. That is, if you were 30 years old you'd allocate 10% to bonds (a broad bond index fund) and 90% to stocks (a broad stock index fund). This is fairly aggressive, though.

Can someone do both: invest in index funds and do individual stocks?

Want to know this for when I start investing.

Sure, of course. My recommendation would be to primarily invest in index funds, and then maybe have a second "fun" account using extra cash that doesn't matter much to mess around with individual stocks.

 

[mmazurkiewicz]

Can someone do both: invest in index funds and do individual stocks?

Want to know this for when I start investing.

Yes

 

[milanbaros]

Can someone do both: invest in index funds and do individual stocks?

Want to know this for when I start investing.

You can, but think of individual stock investing this way. You spend more of your time and more in trading fees for additional risk because of lower diversification. Unless you are more skilled in investing than the countless other institutions and individual investors then you are unlikely to beat the market. As a newcomer you are likely to have less acumen than the folks at Goldman Sachs and JP Morgan. I know which type of investment I use.

 

[RedNumberFive]

What's the consensus on doing some micro-investing with that Acorns app?

 

[Blunoise]

That's great! Never too soon to think about investing.

The first step is to do some research and realize that beating the market in individual stocks is essentially pure chance. The second step is to remember the old phrase "if you can't beat em, join em." The third step is to start buying index funds.

I'm not really joking here. "Investing" in individual stocks can be fun and (randomly) profitable, but if you're investing to provide for your future self then you should be investing in index funds. While this thread is primarily about investing for retirement, it's an excellent general resource as well: http://www.neogaf.com/forum/showthread.php?t=749978

Cool so what your saying is for example, if I want to save for a long trip in Japan in 2017, I should buy individual stock, but if I want to invest for the long run for retirement than do index funds.

 

[inm8num2]

In terms of long-term investing it, imo it all boils down to:

- diversify holdings across different mutual funds
- dollar-cost averaging (regular contributions at set intervals)
- ride out the short-term losses and fluctuations of the market (e.g. don't panic if markets sink a couple percent in a week)
- assess portfolio and rebalance as necessary at least once per year

Check out beginners' guides to investing like this one at Investopedia. If you're looking for a book to read, Investing in Your 20s and 30s for Dummies (assuming you're in that age range).

 

[milanbaros]

Cool so what your saying is for example, if I want to save for a long trip in Japan in 2017, I should buy individual stock, but if I want to invest for the long run for retirement than do index funds.

<10 years avoid stocks. Maybe 5 if you don't mind losing 50%. Stocks are always a long game.

 

[Dougald]

Cool so what your saying is for example, if I want to save for a long trip in Japan in 2017, I should buy individual stock, but if I want to invest for the long run for retirement than do index funds.

I wouldn't touch the market in any form if I wanted to withdraw the money within 5 years

 

[CapitalismSucks DonkeyBalls]

I don't know the answer to that one. 401k plans differ a lot plan by plan. The 401k plan where I work offers all the index fund options you could want, but I understand that many plans lean a lot more towards actively managed funds.

I'm a little bit hesitant to give direct advice on investment allocations, but a rule of thumb that many people use is to divide specifically between stocks and bonds, allocating [age minus 20]% to bonds. That is, if you were 30 years old you'd allocate 10% to bonds (a broad bond index fund) and 90% to stocks (a broad stock index fund). This is fairly aggressive, though.

Very helpful, Cyan. Just getting my feet wet with this through the state so I'm still learning the ropes. Luckily I'm young and can makes small adjustments if need be.

 

[Cyan]

Cool so what your saying is for example, if I want to save for a long trip in Japan in 2017, I should buy individual stock, but if I want to invest for the long run for retirement than do index funds.

No, it's more like... if you want to play around with individual stocks, using money you can afford to lose, that's fine. But if you want to actually invest, buy index funds.

If you're saving for a near-term goal in the next year or two, you're going to want to be more conservative. That might even mean not investing the money at all, but holding it in a savings account.

 

[muu]

The best way is to just buy index funds. Setting aside 10K and playing around w/ the market can be a good learning experience though, just realize that you could very much so have that turn to 8K, 5K or even nothing if you're not careful.

 

[blitz64]

Do not buy Nintendo stock or any gaming stock. Visit the how to invest thread in the first reply

 

[Yaphett Kotto]

Sure, of course. My recommendation would be to primarily invest in index funds, and then maybe have a second "fun" account using extra cash that doesn't matter much to mess around with individual stocks.

Yes

You can, but think of individual stock investing this way. You spend more of your time and more in trading fees for additional risk because of lower diversification. Unless you are more skilled in investing than the countless other institutions and individual investors then you are unlikely to beat the market. As a newcomer you are likely to have less acumen than the folks at Goldman Sachs and JP Morgan. I know which type of investment I use.

Ok. Thanks.

 

[LoveCake]

I have an investment portfolio, i have a financial advisor who i have known for a long time, the best advice is to play the long game, also do NOT get involved if you cannot afford to lose the money, now you should never end up with zero but be careful.

You should also put money in either monthly or in one go when the tax year changes over, there is no point in putting in a small amount as the investment will get eaten up by charges & fees.

Even though i use real money for investing, i also play http://www.howthemarketworks.com/trading/index.php it will give you a insight on how it all works

I have taken a couple of hits over the years, i look at my portfolio balance once a week & one week it can have gone down £3000 & the next it's gone up £2000 (including the -3000) you have to be prepared to take a loss now & then & not to worry about it.

Also the key thing to remember is that the only person who is going to look after your money is yourself, even if you pay an advisor remember he gets paid either way, so read the business pages of newspapers & find out info on the markets, so you know what you are doing.

 

[muu]

Do not buy Nintendo stock or any gaming stock. Visit the how to invest thread in the first reply

Console wars are so much more fun when you have money on the line though! I stopped looking at how much my 'for shits and giggles' investment on Nintendo stocks has lost the last few years, one day it will rise like a phoenix.