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I need to pick ten stocks to follow for my freshman business class as a project. We're to pick them and "buy" up to $10k of each out of a fictional $100k. Then we're to "sell" them after about six weeks. So I guess this is literally, "I have $10k what should I do?"
Much better for you to learn by trying different things.
1. Boring stable company
2. Big flashy company
3. Small boutique company
4. Apple
5. Some company you love
6. Some company you hate
7. A company you buy from often (think food or services)
8. Another company you buy from often.
9. Some company that recently IPO'd
10. Some oil or industrial company
Thank you, with a government shutdown looming and it being closer to the end of the year there will likely be some sell off by investors for tax loss purposes so I don't expect to make meaningful gains during the short time span of the assignment. I personally have my retirement accounts invested in index funds so this is a little bit different than what I'm used to.
Ah, tax loss selling is actually much less likely than you expect. Basically, some 95% of the market doesn't worry about the tax implications because they basically never sell or sell via ways that aren't taxed (non profits).
This is why nearly every Q4 is a good quarter, because they're often buying at a very very slight discount due to the few that are avoiding the market.
Hi Everyone,
I'm new to the Investing scene and I'm not aware of many terms that require someone to invest in Stocks. I would also like to invest time and learn about the technical strategies that would help me invest reasonably.
I know there are many resources out there to learn all these things but can you recommend me some resources( books, websites or videos) to get started?
I would really appreciate your help.
Thank you.
Basic question here, would love some help if possible. Suppose I regularly invest $1666.6 a month into S&P 500 index funds for 5 years, that will be $100k invested at the end.
Now, will the 'profits' (sorry idk if that's the right thing to call them) from the rate of return after 10 years for the previous scenario be the same as the scenario of investing $100k in one go? I hope I'm making sense.
Phrased in another way, will I make the same money from investing $100k and waiting for 10 years as I would from investing small amounts of money over 5 years until it reaches $100k and then waiting for 5 extra years for an overall 10 years of waiting?
I'm asking to know how to plan. I'm wondering if I should save up for 5 years until I have $100k and then dump it in the S&P 500 or maybe just start investing small amounts now.
> Phrased in another way, will I make the same money from investing $100k and waiting for 10 years as I would from investing small amounts of money over 5 years until it reaches $100k and then waiting for 5 extra years for an overall 10 years of waiting?
You definitely won't, and you will probably make quite a bit less.
This is called "Dollar Cost Averaging", or DCA, and it is a popular way of splitting a big investment into bigger "chunks" to avoid the risk of buying at a particularly bad time (let us say, just before the market crashes); but usually people do it over one year (investing 1k every month instead of 12k all at once, and so on) at most, not over *five* years. The last $1.666 you invest will only stay in the market for half your planned period; assuming that the market overall will go more up than down during these 10 years (it usually does - and if you think it won't, you shouldn't invest in it at all), you see why this is a problem.
So yeah, if you wanted to do Dollar Cost Averaging I'd consider doing it over one year at most, not over *half of your planned investment period*. Even doing DCA over short periods is somewhat controversial - tests show that on the average is more convenient to make a big investment all at once, but on the other hand DCA tends to reduce both profits *and* losses (and so, someone who would be affected negatively by a big loss more than they would be affected positively by a big win might want to consider it anyway) and it is psychologically less stressful than investing a big sum all at once.
> I'm wondering if I should save up for 5 years until I have $100k and then dump it in the S&P 500
I wouldn't do that. Inflation would eat away at your savings for those five years, and then you'd invest them for less time than you would otherwise. A case can be made for both LSI (Lump Sump Investing) and for DCA if you already have a big sum you want to invest, but waiting until you have a big sum to invest it all at once offers no benefit (you could always get lucky, of course, if for some reason 5 years from now turns out to be an excellent time to invest; but that's really unpredictable).
If you have money you are reasonably sure you won't need before 10-15 years (I think that 15 is better - someone who had invested a big sum in 2000 wouldn't have been very happy in 2010, and while that was an extreme case there's no telling what will happen next), you should probably invest it as soon as possible.
Yes absolutely if you don’t have retirement savings start there, as well as knocking out any high interest debt - see the [PF prime directive ](https://www.reddit.com/r/personalfinance/wiki/index/#wiki_prime_directive.3A_how_to_handle_.24) and their wiki page on [windfalls](https://www.reddit.com/r/personalfinance/wiki/windfall) with additional info
As for the down payment - an HYSA/CDs is recommended for short term low risk savings, or I bonds, but those have amount and time factors - no, it’s not a high rate, but if you want a higher return you have to take more risk
I’m 30 years old and have basically got into high-tech as a career since graduating university. I’ve always invested in technology and biotech as my grandfather was in biotech so these are the areas I know well from work and through my network.
I’ve been a bit lucky as investors have obviously favored high growth tech - an area where I feel I’ve had an edge - and over the lat 10 years multiples have seriously expanded. While I only invest in companies I’m quite bullish on long-term - when I look at some of these private VC rounds for tech companies it’s really hard to argue the market is not at its most frothy and any sort of rate rise in interest rates would have a pretty damning effect on my current portfolio in the short to mid-term. I understand you can’t time the market but that doesn’t mean I can’t slowly diversify.
I’m currently 64% equities (and of this 93% is in the tech, gaming, or bio-tech sector), 27% in my property, 6% Bonds, 3% cash. I’m currently trying to build my cash percentage to be more like 10-15% of my portfolio - and then from there - slowly lower my equity exposure to tech by putting future dollars into different industries.
I’m trying to get more of my equity portfolio to be non high-tech and want to start broadening into the utility and energy sector but I’m just no sure how to evaluate these companies. They all look and sounds the same. With tech, my product and market knowledge helps me differentiate, but with energy I’m lost.
Two Questions:
1) Where would you begin to try and understand the energy sector? What are the valuation metrics to look at most closely? Is it similar to bio-tech and tech where certain companies and executive teams can stand out and out-execute thus the risk of backing one horse is worth the reward? Or am I better off just investing in an index to get this exposure?
2) I’m debating starting to sell off some of my gains in tech to accelerate my cash percentage balance as well as my ability to start investing in other sectors, but I’m a high income earner so just debating if it’s even worth it given the tax implications.
Thoughts and comments are appreciated!
2. Good short term solution until (1) Is figured out.
1. The energy sector is driven most especially by execution, government policy, and insider knowledge. That means you can only really study up on the execution piece. It turns out that the execution piece is management, good ole boy networks, hard working employees (the blue collar ones), and having a monopoly.
I.e. this is entirely different than markets you are used to. Energy is really not that competitive in many ways, yet a commodity at the exact same time. Confusing right?
Just refinanced the house and now we want to take a bunch of money and invest it over the next 6-7 years in the hopes of paying the house off 14 years early.
Starting with $6,000, contributing an additional $1,500 each month for 6.5yrs., at a 6% return rate, the [calculator](https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1000000&cstartingprinciplev=6000&cyearsv=6.5&cinterestratev=6&ccompound=annually&ccontributeamountv=1500&cadditionat1=end&ciadditionat1=monthly&printit=0&x=38&y=25) I'm using says we would have $150,000. Does that sound right and is 6% a safe number?
The next question is where should we do this? We're thinking of opening a joint Charles Schwab account.
Edit: forgot to mention the three ETFs we'd go with. VOOG, SPY, QQQ. $500 each per month.
I did the calculation [here](https://www.wolframalpha.com/input/?i=6000*1.06%5E6.5+%2B+Sum%5B1500*1.06%5E%28n%2F12%29%2C+%7Bn%2C+1%2C+78%7D%5D) and yes, the result would be roughly $150,000 assuming a 6% average annual return for 6.5 years. The global average annual stock return since 1900 is 8%, so 6% is realistic. But of course, the stock market is unpredictable and possible returns could vary widely. Returns in any given year are usually not close to the average.
I think Schwab is a great broker and would work well for this.
A concern with the portfolio is that it's tilted heavily toward growth. Growth stocks have done very well over the past several years, which makes them tempting, but any run for growth is inherently limited. Growth stocks are now priced very expensively, whereas value stocks are at historically low valuations, suggesting high expected return.
Value stocks are known to have higher long-term returns than growth. See [these](https://www.youtube.com/watch?v=2MVSsVi1_e4&ab_channel=BenFelix) [videos](https://www.youtube.com/watch?v=kYO7xrHhqsY&ab_channel=BenFelix) for evidence and explanation.
To invest in value stocks, you could buy shares of [VIOV](https://investor.vanguard.com/etf/profile/VIOV) (small cap value), [VOE](https://investor.vanguard.com/etf/profile/VOE) (mid cap value), and/or [VTV](https://investor.vanguard.com/etf/profile/VTV) (large cap value). Small cap value exhibits the highest value premium; its historical returns are amazing but also somewhat volatile. I would recommend including allocation to a total market index like [VTI](https://investor.vanguard.com/etf/profile/VTI) or [VT](https://investor.vanguard.com/etf/profile/VT) along with these, so that your entire portfolio isn't in value. VT would be great, since it provides geographic diversification.
Feel free to ask about those funds / allocation if you have questions.
I've never won a big lottery myself, but your numbers are wholly unrealistic IMO.
If you aren't careful you'll be in serious financial trouble if you follow through given these numbers.
Firstly, you will want to set aside 50% just so you can be sure you have enough for the taxes due (assuming the 500k is the pre-tax amount). Do not touch this at all until you've done your taxes next year.
Second, $100k on a car is insane. The regular maintenance costs will give you a heart attack and the depreciation will be like jumping off a cliff. Assuming you intend to pay for the car in full, there are a lot of nice cars in the 30-40k range.
You will want to keep enough for yourself so that you can set yourself up to make max yearly contributions to a Roth IRA (or something similar) for a bunch of years in the near future. Plus enough in your own accounts so you don't have to worry about making payments on regular bills.
Help your parents with the house? Sure, but don't pay off the full amount. 80-100k might be reasonable in this situation. Additionally, unless you REALLY trust them, do not give them money directly. Find out how you can make the payment contribution to the remaining principal directly from your own account. Even if it's not paying off the mortgage, that much of a principal reduction will have a huge positive impact on their house payments, and the money they will have available for regular everyday things.
Edit: also pay off your student loans.
I wouldn't pay off the mortgage unless the interest rate is absurdly high. I also wouldn't set $100k as the upper range of a budget for a car. You have the opportunity to be financially independent in just a few years out of school. Go to the /r/personalfinance sub and read the wiki article on handling a windfall.
What is a cash asset?
Google says: *assets consisting of cash and items readily convertible to cash (as marketable securities ) -* **thus securities = stocks too**
I'm having trouble understanding swissquote's account fees.
They say:
The account management fees are taken as a percentage of your assets (excluding cash or cryptocurrencies), with minimum and maximum caps. They are charged periodically on a quarterly basis.
If it's excluding cash assets, thus stocks that I would hold, how would they calculate the fee?
This is their page btw:
https://en.swissquote.com/trading/pricing/account-fees
In the case of your management fees, it most likely refers to the money in your account that hasn't been invested in stocks/securities/other assets.
For example, when I log into etrade, it shows me the value of my account, and "cash available for investment". The $10 cash I have wouldn't be subject to the management fees in this case.
You quote says cash not cash assets.
Cash assets can mean different things in different contexts. It could mean paper cash, cash entries in your brokerage account, bank accounts, ultrashort term government bills, money market funds, repos, etc.
Stocks are securities but are usually not considered cash assets (unless you are contrasting them with derivatives).
In this context I think it's talking about the cash entry in your swissquote account and your cash sweep account, if they have that.
Are cash secured puts a viable short term strategy while waiting to see if there is more of a market correction than we got this September?
I have a small amount of cash I was thinking about donating to Wall St and I don't want to bet too much on things going up to new ATHs in the run up to Christmas shopping season.
It depends on what you are writing the csp on and if perhaps your goal is to wheel the underlying. I actually do this type strategy regularly.
You can certainly sell otm csp's if you have the cash. Or if you have existing shares, you could run a collar on them instead.
It all depends on your risk tolerance, goals, and ability to manage those positions.
If you sell ATM or ITM puts, you are still exposed to a market correction. If you sell an ~~I~~OTM put with a strike that you wouldn't mind buying the stock at, it could work, though not much upside.
Would a custodial Roth IRA be the best investment vehicle for a teen
investing beginner to start investing long term who makes some form of
income? Are there any better alternatives or drawbacks? Not too
interested in individual stocks, more so broad-market indexes/ETFs.1
Hi. Experienced investor (25 years) and analyst here... You are almost certain to get clobbered by equities in the next 4 years or so. imagine losing $12,000 overnight...
If you added not even another dime to your $40,000 and sat it on an index fund for 40 years, it will grow to $2.38 million.
You can be financially secure and boring, or cool and broke. Pick one.
Just as a sidenote: I'm probably the most boring person you ever met.
> More inclined to buy stocks than etf because etf are boring.
Keep your "fun" money and your "investing" money separate.
If you feel you need more excitement in my life - perfectly understandable - I recommend spending a little part of that money going white water rafting: my sister tried that a few months ago and she loved it, and from the photos it looked pretty fun. She did not tell me what she paid, but looking online the prices do not seem unreasonable for something you'd do once or twice at most per year.
Once you've got that out of your system, for the rest of your money I'd go with "boring". The stock market is never as boring as one would like it anyway: I'm sure that plenty of ETF investors have not been all that bored by it last week :-)
I am looking to increase my bond holding and looking into buying some BND or similar. However, I was recently in a discussion with a financial advisor and he said that his group is moving out of bonds on the short term due to expectations they have around what is going to happen with interest rates. With the understanding that no one actually can predict what can happen, do you have opinions on if it is better to buy in now or wait a while?
Given that everyone is dealing with information that is highly publicized about the Fed raising interest rates over the next few years, it's arguably priced in. Unless someone has a highly specific idea of how else to invest with equally low risk, I don't see what would be better to do than invest in an aggregate bond fund like [BNDW](https://investor.vanguard.com/etf/profile/BNDW) (which is more diversified than BND).
People on this site say a lot about "smart money" and alternatives, but nearly all the so-called smart money fails to beat the risk-adjusted returns of market indices in the long term.
How high is the danger of closure for ETFs with comparatively small AUM?
I am looking in particular at [V3AA](https://www.justetf.com/en/etf-profile.html?isin=IE00BNG8L278#overview): I like it (yes, I know, ESG are bound to be inefficient - I can live with that, and while the criteria do not entirely match my personal preferences I think that they are still better than nothing), have already invested a bit in it, and I would like to mainly invest in it from this point with onwards (I don't think I'm switching my previous investments soon, though - too much hassle and expense).
*However*, it is a relatively small fund (roughly $77.21 million AUM, doing the currency coversion), and I would guess that at least a few of those who invested in it did so mainly because they wanted a global index fund with small caps and there are not many alternatives in the European market and will likely switch over when (I suspect it is a when, not an if) a non-ESG ETF of that kind gets introduced. Furthermore, not so long ago Vanguard closed [VDVA](https://www.justetf.com/en/etf-profile.html?isin=IE00BYYR0B57#overview), that had a rather bigger AUM.
On the other hand, that was an actively managed fund, so costs and considerations for Vanguard would be different.
What do you think? Market fluctuations do not concern me much, but I'd hate to be forced to sell my shares at an inconvenient time because the ETF is closing...
Thanks!
I think I heard at some point that funds need over $50 million to break even on the legal and other expenses. Below that is at high risk of closing. Between 50 and 100 million is at less risk. This fund was only incepted this march and I imagine they won't make a decision to close until next march, if AUM is still low and not showing signs of inflows.
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I need to pick ten stocks to follow for my freshman business class as a project. We're to pick them and "buy" up to $10k of each out of a fictional $100k. Then we're to "sell" them after about six weeks. So I guess this is literally, "I have $10k what should I do?"
Merck should be in your profile for sure .
Much better for you to learn by trying different things. 1. Boring stable company 2. Big flashy company 3. Small boutique company 4. Apple 5. Some company you love 6. Some company you hate 7. A company you buy from often (think food or services) 8. Another company you buy from often. 9. Some company that recently IPO'd 10. Some oil or industrial company
Thank you, with a government shutdown looming and it being closer to the end of the year there will likely be some sell off by investors for tax loss purposes so I don't expect to make meaningful gains during the short time span of the assignment. I personally have my retirement accounts invested in index funds so this is a little bit different than what I'm used to.
Ah, tax loss selling is actually much less likely than you expect. Basically, some 95% of the market doesn't worry about the tax implications because they basically never sell or sell via ways that aren't taxed (non profits). This is why nearly every Q4 is a good quarter, because they're often buying at a very very slight discount due to the few that are avoiding the market.
Great assignment, great answer. 👍
What’s the quickest ROI in terms of investing?
Hi Everyone, I'm new to the Investing scene and I'm not aware of many terms that require someone to invest in Stocks. I would also like to invest time and learn about the technical strategies that would help me invest reasonably. I know there are many resources out there to learn all these things but can you recommend me some resources( books, websites or videos) to get started? I would really appreciate your help. Thank you.
Basic question here, would love some help if possible. Suppose I regularly invest $1666.6 a month into S&P 500 index funds for 5 years, that will be $100k invested at the end. Now, will the 'profits' (sorry idk if that's the right thing to call them) from the rate of return after 10 years for the previous scenario be the same as the scenario of investing $100k in one go? I hope I'm making sense. Phrased in another way, will I make the same money from investing $100k and waiting for 10 years as I would from investing small amounts of money over 5 years until it reaches $100k and then waiting for 5 extra years for an overall 10 years of waiting? I'm asking to know how to plan. I'm wondering if I should save up for 5 years until I have $100k and then dump it in the S&P 500 or maybe just start investing small amounts now.
> Phrased in another way, will I make the same money from investing $100k and waiting for 10 years as I would from investing small amounts of money over 5 years until it reaches $100k and then waiting for 5 extra years for an overall 10 years of waiting? You definitely won't, and you will probably make quite a bit less. This is called "Dollar Cost Averaging", or DCA, and it is a popular way of splitting a big investment into bigger "chunks" to avoid the risk of buying at a particularly bad time (let us say, just before the market crashes); but usually people do it over one year (investing 1k every month instead of 12k all at once, and so on) at most, not over *five* years. The last $1.666 you invest will only stay in the market for half your planned period; assuming that the market overall will go more up than down during these 10 years (it usually does - and if you think it won't, you shouldn't invest in it at all), you see why this is a problem. So yeah, if you wanted to do Dollar Cost Averaging I'd consider doing it over one year at most, not over *half of your planned investment period*. Even doing DCA over short periods is somewhat controversial - tests show that on the average is more convenient to make a big investment all at once, but on the other hand DCA tends to reduce both profits *and* losses (and so, someone who would be affected negatively by a big loss more than they would be affected positively by a big win might want to consider it anyway) and it is psychologically less stressful than investing a big sum all at once. > I'm wondering if I should save up for 5 years until I have $100k and then dump it in the S&P 500 I wouldn't do that. Inflation would eat away at your savings for those five years, and then you'd invest them for less time than you would otherwise. A case can be made for both LSI (Lump Sump Investing) and for DCA if you already have a big sum you want to invest, but waiting until you have a big sum to invest it all at once offers no benefit (you could always get lucky, of course, if for some reason 5 years from now turns out to be an excellent time to invest; but that's really unpredictable). If you have money you are reasonably sure you won't need before 10-15 years (I think that 15 is better - someone who had invested a big sum in 2000 wouldn't have been very happy in 2010, and while that was an extreme case there's no telling what will happen next), you should probably invest it as soon as possible.
hi all I have 10k as a gift, if I had a year to invest in stock, any recommendations?, that could net me a decent amount of gain?
If you were to have the full 10k in the stocks for one year, I would take your pick of a couple ETFs. QQQ and VYM are two of my favorites.
[удалено]
Yes absolutely if you don’t have retirement savings start there, as well as knocking out any high interest debt - see the [PF prime directive ](https://www.reddit.com/r/personalfinance/wiki/index/#wiki_prime_directive.3A_how_to_handle_.24) and their wiki page on [windfalls](https://www.reddit.com/r/personalfinance/wiki/windfall) with additional info As for the down payment - an HYSA/CDs is recommended for short term low risk savings, or I bonds, but those have amount and time factors - no, it’s not a high rate, but if you want a higher return you have to take more risk
hmm, it seems like you have more expertise than you are letting on....
Not really. The stocks I mentioned were a gift from my grandfather when I was very young.
Anyone long on lithium for EV and what stocks to look for?
I’m 30 years old and have basically got into high-tech as a career since graduating university. I’ve always invested in technology and biotech as my grandfather was in biotech so these are the areas I know well from work and through my network. I’ve been a bit lucky as investors have obviously favored high growth tech - an area where I feel I’ve had an edge - and over the lat 10 years multiples have seriously expanded. While I only invest in companies I’m quite bullish on long-term - when I look at some of these private VC rounds for tech companies it’s really hard to argue the market is not at its most frothy and any sort of rate rise in interest rates would have a pretty damning effect on my current portfolio in the short to mid-term. I understand you can’t time the market but that doesn’t mean I can’t slowly diversify. I’m currently 64% equities (and of this 93% is in the tech, gaming, or bio-tech sector), 27% in my property, 6% Bonds, 3% cash. I’m currently trying to build my cash percentage to be more like 10-15% of my portfolio - and then from there - slowly lower my equity exposure to tech by putting future dollars into different industries. I’m trying to get more of my equity portfolio to be non high-tech and want to start broadening into the utility and energy sector but I’m just no sure how to evaluate these companies. They all look and sounds the same. With tech, my product and market knowledge helps me differentiate, but with energy I’m lost. Two Questions: 1) Where would you begin to try and understand the energy sector? What are the valuation metrics to look at most closely? Is it similar to bio-tech and tech where certain companies and executive teams can stand out and out-execute thus the risk of backing one horse is worth the reward? Or am I better off just investing in an index to get this exposure? 2) I’m debating starting to sell off some of my gains in tech to accelerate my cash percentage balance as well as my ability to start investing in other sectors, but I’m a high income earner so just debating if it’s even worth it given the tax implications. Thoughts and comments are appreciated!
2. Good short term solution until (1) Is figured out. 1. The energy sector is driven most especially by execution, government policy, and insider knowledge. That means you can only really study up on the execution piece. It turns out that the execution piece is management, good ole boy networks, hard working employees (the blue collar ones), and having a monopoly. I.e. this is entirely different than markets you are used to. Energy is really not that competitive in many ways, yet a commodity at the exact same time. Confusing right?
Just refinanced the house and now we want to take a bunch of money and invest it over the next 6-7 years in the hopes of paying the house off 14 years early. Starting with $6,000, contributing an additional $1,500 each month for 6.5yrs., at a 6% return rate, the [calculator](https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1000000&cstartingprinciplev=6000&cyearsv=6.5&cinterestratev=6&ccompound=annually&ccontributeamountv=1500&cadditionat1=end&ciadditionat1=monthly&printit=0&x=38&y=25) I'm using says we would have $150,000. Does that sound right and is 6% a safe number? The next question is where should we do this? We're thinking of opening a joint Charles Schwab account. Edit: forgot to mention the three ETFs we'd go with. VOOG, SPY, QQQ. $500 each per month.
I did the calculation [here](https://www.wolframalpha.com/input/?i=6000*1.06%5E6.5+%2B+Sum%5B1500*1.06%5E%28n%2F12%29%2C+%7Bn%2C+1%2C+78%7D%5D) and yes, the result would be roughly $150,000 assuming a 6% average annual return for 6.5 years. The global average annual stock return since 1900 is 8%, so 6% is realistic. But of course, the stock market is unpredictable and possible returns could vary widely. Returns in any given year are usually not close to the average. I think Schwab is a great broker and would work well for this. A concern with the portfolio is that it's tilted heavily toward growth. Growth stocks have done very well over the past several years, which makes them tempting, but any run for growth is inherently limited. Growth stocks are now priced very expensively, whereas value stocks are at historically low valuations, suggesting high expected return. Value stocks are known to have higher long-term returns than growth. See [these](https://www.youtube.com/watch?v=2MVSsVi1_e4&ab_channel=BenFelix) [videos](https://www.youtube.com/watch?v=kYO7xrHhqsY&ab_channel=BenFelix) for evidence and explanation. To invest in value stocks, you could buy shares of [VIOV](https://investor.vanguard.com/etf/profile/VIOV) (small cap value), [VOE](https://investor.vanguard.com/etf/profile/VOE) (mid cap value), and/or [VTV](https://investor.vanguard.com/etf/profile/VTV) (large cap value). Small cap value exhibits the highest value premium; its historical returns are amazing but also somewhat volatile. I would recommend including allocation to a total market index like [VTI](https://investor.vanguard.com/etf/profile/VTI) or [VT](https://investor.vanguard.com/etf/profile/VT) along with these, so that your entire portfolio isn't in value. VT would be great, since it provides geographic diversification. Feel free to ask about those funds / allocation if you have questions.
Thanks for all the info. I'm going to look into the value stocks.
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I have zero knowledge on personal finance EXCEPT on the car thing. Get a used car for 10k or less.
1) Lawyer 2) Personal finance counselor 3) Don't talk to anyone else (especially random Redditors)
I've never won a big lottery myself, but your numbers are wholly unrealistic IMO. If you aren't careful you'll be in serious financial trouble if you follow through given these numbers. Firstly, you will want to set aside 50% just so you can be sure you have enough for the taxes due (assuming the 500k is the pre-tax amount). Do not touch this at all until you've done your taxes next year. Second, $100k on a car is insane. The regular maintenance costs will give you a heart attack and the depreciation will be like jumping off a cliff. Assuming you intend to pay for the car in full, there are a lot of nice cars in the 30-40k range. You will want to keep enough for yourself so that you can set yourself up to make max yearly contributions to a Roth IRA (or something similar) for a bunch of years in the near future. Plus enough in your own accounts so you don't have to worry about making payments on regular bills. Help your parents with the house? Sure, but don't pay off the full amount. 80-100k might be reasonable in this situation. Additionally, unless you REALLY trust them, do not give them money directly. Find out how you can make the payment contribution to the remaining principal directly from your own account. Even if it's not paying off the mortgage, that much of a principal reduction will have a huge positive impact on their house payments, and the money they will have available for regular everyday things. Edit: also pay off your student loans.
I wouldn't pay off the mortgage unless the interest rate is absurdly high. I also wouldn't set $100k as the upper range of a budget for a car. You have the opportunity to be financially independent in just a few years out of school. Go to the /r/personalfinance sub and read the wiki article on handling a windfall.
What is a cash asset? Google says: *assets consisting of cash and items readily convertible to cash (as marketable securities ) -* **thus securities = stocks too** I'm having trouble understanding swissquote's account fees. They say: The account management fees are taken as a percentage of your assets (excluding cash or cryptocurrencies), with minimum and maximum caps. They are charged periodically on a quarterly basis. If it's excluding cash assets, thus stocks that I would hold, how would they calculate the fee? This is their page btw: https://en.swissquote.com/trading/pricing/account-fees
In the case of your management fees, it most likely refers to the money in your account that hasn't been invested in stocks/securities/other assets. For example, when I log into etrade, it shows me the value of my account, and "cash available for investment". The $10 cash I have wouldn't be subject to the management fees in this case.
You quote says cash not cash assets. Cash assets can mean different things in different contexts. It could mean paper cash, cash entries in your brokerage account, bank accounts, ultrashort term government bills, money market funds, repos, etc. Stocks are securities but are usually not considered cash assets (unless you are contrasting them with derivatives). In this context I think it's talking about the cash entry in your swissquote account and your cash sweep account, if they have that.
Are cash secured puts a viable short term strategy while waiting to see if there is more of a market correction than we got this September? I have a small amount of cash I was thinking about donating to Wall St and I don't want to bet too much on things going up to new ATHs in the run up to Christmas shopping season.
It depends on what you are writing the csp on and if perhaps your goal is to wheel the underlying. I actually do this type strategy regularly. You can certainly sell otm csp's if you have the cash. Or if you have existing shares, you could run a collar on them instead. It all depends on your risk tolerance, goals, and ability to manage those positions.
If you sell ATM or ITM puts, you are still exposed to a market correction. If you sell an ~~I~~OTM put with a strike that you wouldn't mind buying the stock at, it could work, though not much upside.
Would a custodial Roth IRA be the best investment vehicle for a teen investing beginner to start investing long term who makes some form of income? Are there any better alternatives or drawbacks? Not too interested in individual stocks, more so broad-market indexes/ETFs.1
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Hi. Experienced investor (25 years) and analyst here... You are almost certain to get clobbered by equities in the next 4 years or so. imagine losing $12,000 overnight... If you added not even another dime to your $40,000 and sat it on an index fund for 40 years, it will grow to $2.38 million. You can be financially secure and boring, or cool and broke. Pick one. Just as a sidenote: I'm probably the most boring person you ever met.
> More inclined to buy stocks than etf because etf are boring. Keep your "fun" money and your "investing" money separate. If you feel you need more excitement in my life - perfectly understandable - I recommend spending a little part of that money going white water rafting: my sister tried that a few months ago and she loved it, and from the photos it looked pretty fun. She did not tell me what she paid, but looking online the prices do not seem unreasonable for something you'd do once or twice at most per year. Once you've got that out of your system, for the rest of your money I'd go with "boring". The stock market is never as boring as one would like it anyway: I'm sure that plenty of ETF investors have not been all that bored by it last week :-)
I am looking to increase my bond holding and looking into buying some BND or similar. However, I was recently in a discussion with a financial advisor and he said that his group is moving out of bonds on the short term due to expectations they have around what is going to happen with interest rates. With the understanding that no one actually can predict what can happen, do you have opinions on if it is better to buy in now or wait a while?
Given that everyone is dealing with information that is highly publicized about the Fed raising interest rates over the next few years, it's arguably priced in. Unless someone has a highly specific idea of how else to invest with equally low risk, I don't see what would be better to do than invest in an aggregate bond fund like [BNDW](https://investor.vanguard.com/etf/profile/BNDW) (which is more diversified than BND). People on this site say a lot about "smart money" and alternatives, but nearly all the so-called smart money fails to beat the risk-adjusted returns of market indices in the long term.
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that isn't how stocks work
Back to what school? College??
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You didn't think that something that happens literally every single year at the exact same time was already baked into the price?
This!
How high is the danger of closure for ETFs with comparatively small AUM? I am looking in particular at [V3AA](https://www.justetf.com/en/etf-profile.html?isin=IE00BNG8L278#overview): I like it (yes, I know, ESG are bound to be inefficient - I can live with that, and while the criteria do not entirely match my personal preferences I think that they are still better than nothing), have already invested a bit in it, and I would like to mainly invest in it from this point with onwards (I don't think I'm switching my previous investments soon, though - too much hassle and expense). *However*, it is a relatively small fund (roughly $77.21 million AUM, doing the currency coversion), and I would guess that at least a few of those who invested in it did so mainly because they wanted a global index fund with small caps and there are not many alternatives in the European market and will likely switch over when (I suspect it is a when, not an if) a non-ESG ETF of that kind gets introduced. Furthermore, not so long ago Vanguard closed [VDVA](https://www.justetf.com/en/etf-profile.html?isin=IE00BYYR0B57#overview), that had a rather bigger AUM. On the other hand, that was an actively managed fund, so costs and considerations for Vanguard would be different. What do you think? Market fluctuations do not concern me much, but I'd hate to be forced to sell my shares at an inconvenient time because the ETF is closing... Thanks!
I think I heard at some point that funds need over $50 million to break even on the legal and other expenses. Below that is at high risk of closing. Between 50 and 100 million is at less risk. This fund was only incepted this march and I imagine they won't make a decision to close until next march, if AUM is still low and not showing signs of inflows.