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How can I start investing with a modest saving's account? - Page 3

post #31 of 58
Quote:
Originally Posted by GreenFrog View Post
.. the returns are pretty damn enticing. It has a 5 star morningstar rating and 1000+ 5 star reviews.

So go back 12 months and buy in.

Otherwise, look at the portfolio, the strategy, and ask if the reasons the manager looked so great last year will be at all repeatable. There can be some momentum among winners, but more likely he has squeezed the juice out of his part of the market.
post #32 of 58
Quote:
Originally Posted by GreenFrog View Post
I'm looking into mutual funds to invest in and I see one highly lucrative aggressive growth fund. It's called Cambiar Aggressive Value Fund with a 17% YTD return and 74% 1-yr return rate.

The minimum to invest is $2500, which is exactly how much I have in my IRA. I know the saying don't put all your eggs in one basket.. but damn. I'm really tempted to go all-in on this. But I'm holding back for now because I haven't done any extensive research.

I'm guessing most of you are going to say 'no.. you're a newbie idiot and you don't know what you're doing' but damn.. the returns are pretty damn enticing. It has a 5 star morningstar rating and 1000+ 5 star reviews.

I'd still say just do vfinx

remember that past returns are not an accurate predictor of future returns...and almost every fund has impressive 1-2 year returns right now because they were recovering from huge losses.
post #33 of 58
Quote:
Originally Posted by v0rtex View Post
Ramsey's advice is not that exciting (pay off all your non-mortgage debt, hold 3-6 months expenses in cash, invest 15% into IRAs/pre-tax) but it is solid financial advice.

This is solid advice, but not usually realistic for someone fresh out of college. Let's say that he gets a job fight out of school that pays 48k. That's 4k/mo gross. After investing 15% pre-tax, he's working with 3400. After taxes/medical insurance, that's at best ~2250/mo take-home. Much less if that money is going in an IRA, as those contributions are pre-tax in the sense that they get deducted at tax time, but taxes will still be withheld by his employer's payroll. In anything aproaching a major city, that's not enough to live on, much less build 3-6 months of savings with.
post #34 of 58
Thread Starter 
Okay, so I guess the consensus is a no. I'm glad I didn't go all-in haha. I guess seeing 30 lamborghinis/ferraris/rolls royces/porsches/maseratis/bentleys everyday in florida is making me want to get really, really rich, really, really quickly lol.
post #35 of 58
Thread Starter 
Quote:
Originally Posted by otc View Post
I'd still say just do vfinx

remember that past returns are not an accurate predictor of future returns...and almost every fund has impressive 1-2 year returns right now because they were recovering from huge losses.

I checked out vfinx and the minimum to invest with roth money is $3000.

Looks like I'm locked out of a lot of these funds because I don't have enough capital to invest with.
post #36 of 58
Quote:
Originally Posted by GreenFrog View Post
Okay, so I guess the consensus is a no. I'm glad I didn't go all-in haha. I guess seeing 30 lamborghinis/ferraris/rolls royces/porsches/maseratis/bentleys everyday in florida is making me want to get really, really rich, really, really quickly lol.

I wish it worked that way. I've heard this method of investing referred to as a get-rich-slow plan.

However, part of diversifying your investments means you have some in the Roth in growth-stock mutual funds, and you can put other stuff in other investments such as single stocks, gold, real estate, or whatever else you choose. Just make sure you understand whatever you're vested in.
post #37 of 58
Quote:
Originally Posted by GreenFrog View Post
I checked out vfinx and the minimum to invest with roth money is $3000.

Looks like I'm locked out of a lot of these funds because I don't have enough capital to invest with.

You know...I don't really know how those limits work.

I remember getting into vfinx with less than the stated minimum but mine was bought as a standard fund purchase through a broker (and not straight from vanguard or whatever).

I think I actually have less than 3k in there right now since I was selling in steps as I moved the s&p500 index portion of my total portfolio over to my 401k (which has access to institutional shares).
post #38 of 58
OP, for that amount it doesn't matter all too much where you put it. Just stick it in a solid mutual fund or ETF while you learn more. You might also need the money for a car or house relatively soon (<3 years) and if so, the stock market might not be a good place. Don't pay attention to the nice cars in Florida. They'll only lure you to unnecessarily risky investments and get rich quick crap. Casual investing won't make you super rich. Modest gains and a comfortable life are the best one can hope for. Nothing wrong with that. It takes knowledge to get super rich and the knowledge comes from being geekishly interested like any other talent.
post #39 of 58
Thread Starter 
I just put all my 2.5 k into that cambiar aggressive growth fund.
post #40 of 58
Quote:
Originally Posted by GreenFrog View Post
I just put all my 2.5 k into that cambiar aggressive growth fund.

Probably fine. The point is you did something If it does well, you make out and if not, it is a learning experience and its doubtful it is going to lose that much.
post #41 of 58
Thread Starter 
Quote:
Originally Posted by otc View Post
Probably fine. The point is you did something If it does well, you make out and if not, it is a learning experience and its doubtful it is going to lose that much.

Thanks. I'm glad I put a good chunk of my savings into a roth. I was planning on buying a new (used) car after I graduate and sell my old one, but the rational part of me says I should just keep it until it dies on me.

I still realllllly want a stick shift car though. I HATE automatics.
post #42 of 58
Well the good news is a 5-speed will be a bit cheaper than an automatic. I've heard the average self-made millionaire drives a used car. Makes no sense to borrow money one something that will depreciate that quickly and then make payments on it with interest.
post #43 of 58
Quote:
Originally Posted by GreenFrog View Post
I just put all my 2.5 k into that cambiar aggressive growth fund.
One note, 'Growth' and 'Value' are well-defined terms describing the fund's investment strategy. While you invested in a fund with the hope that it would grow your finances quickly with an aggressive strategy, it is actually a 'Value' fund. Both are valid strategies. A simple summary would be that value funds look for stocks that are undervalued and thus get their returns from the market returning to the "proper" value over time (and paying dividends) while growth funds look for stocks that are going to increase in value through high earnings/expansion/whatever (with little or no dividends factored into the equation). Famous investors like Benjamin Graham or Warren Buffet are "value investors" although Buffet has said things along the lines of "growth and value investing are basically the same thing" since he values on intrinsic value which should include potential for growth. May not be important...but I know I got those confused when i was first looking at funds (of course I want growth!!! I don't want no stinking value funds from the discount store)
post #44 of 58
A quick question:

I just had my first permanent job after my bachelor and I still live at my parents (yea booh ), at least untill the end of 2012.

It means I have a ton of cash each month...
My question is :

Where in canada should I sign up if I want to invest in some stocks. I'm interested in NYSE, SSE and CAC40. My bank (HSBC) only seems to cover CAC40 and it asks for a shitload of money.
I plan to put 5k that I won't touch untill the end of the year (DOTD) in the nyse at the beginning of 2011. I'll put the rest in savings (what's good in canada anyways?).
Where should I do this?

Thanks,
post #45 of 58
^ Talk to a professional in Canada.
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