Lux Investing
Investing money for retirement?
I am 33 and what to start saving for retirement. How do CD's work and is the bank or credit union the best way to go. What are some viable investing options for beginners. I personally do not want to work with any companies that charge fees. I want the most sound and safe way possible.
Public Comments
- look into if the company you work for has any 401k plans or try opening an IRA there is a reason that when the government considers eliminating social security they want to go the route of IRAs becuase they have good returns and are fairly risk free CDs have low rates of growth they are part of the money market and produce the lowest yeilds but have the lowest risk. MY advice is if your paying fees it is worth it and you will make them work for those fees by making sure you save more. Check out IRA.com
- i just want to say good luck. i just opened a CD with ING Direct on the web. its basically you open deposit the money and cant touch it until it matures from like 6 mo. to 5 yrs. i did one for a year. i'm in college so i'll probly need the money when it comes out. but thats really basic. if you pull it out early they charge you a fee so best not to touch it. the annual percentage yeild is 5.25% its a start anyways and CD's are much safer than playing the stock market. its guaranteed money basically. they have savings accounts that are 4.5% annual percentage yield. and i have one of those to. most of your online banks offer much higher interest than your traditional banks because of savings on infrastructure costs etc. so best of luck and my dad showed me the ING thing and it was really easy to set up. they have a lot of info buttons about things like investing on their site so go check it out at www.ingdirect.com
- It's pretty hard if people are involved making the things you want to happen... fee for service..that's what makes people go to work! Ideas for beginners: Tip: Don't hold stocks...and be a sitting duck! Now you have absorbed that..the market at present is becoming difficult because it is volatile. How would you like to lose money..like 20% of your money? Not likely! This is the prediction that it could fall by that much. What goes up must come down..people like to take profits and so they sell...and youy must learn to sell as well. Many people HOLD...get used to the idea of the market as a short term opportunity...not long term. Buying is not where you make money...it's the selling that's important. In order for you to make some money you have to educate yourself. You are going up against ther BEST in the world when you put your money in the market..and they will take your money..if you let them! Start your research..do courses and read books on your business. Don't rush it! Plenty of time for you to make a profit. Wait until the markets have a 20% drop then get in! Learn while you're waiting: Using Options ..less money...full control..great leverage.. $1 controls $10 worth...so you can multiply profits and losses. Imagine holding $100 000 worth of stock with $5000!!! It is now possible...by using options.
- I have a free downloadable book on retirement investing at http://www.invest-for-retirement.com . Took me 16 months to write. It will teach you all you need to know about the subject, although you will not learn it overnight. Banks and Credit Unions are poor choices for investing. These are precisely the places that have high fees. For good low-cost mutual funds, there are clearly two leaders in the industry: - http://www.vanguard.com - http://www.fidelity.com Both of these firms also offer target-date retirement funds, which will invest your money in several underlying mutual funds. In other words, you get full diversification within one target-date fund. The manager will rebalance for you and make the fund more conservative as you move closer to the target date. It is the simplest way to invest for retirement. For example, I am 31 and I use this Vanguard fund for my Roth IRA: https://flagship.vanguard.com/VGApp/hnw/funds/holdings?FundId=0305&FundIntExt=INT Notice how the fund actually invests in other mutual funds. You can also pick a target-date fund that is not your actual date of retirement, but one that has the stock to bond ratio that you desire. Academic studies show that the stock to bond ratio determines most of the risk and return of your portfolio over the long run. The specific funds you pick or the specific stocks within the funds play only a minor role. I cover all this in my book. If you are 33, then retirement is several decades away. I would recommend a mixture of stocks and bonds in your mutual funds. Bank CDs and other money market instruments are far too conservative for a time horizon this long. To be an investor, you are going to have to take risks ... more risks than what a bank CD offers. However, after reading through my book, you should have a good understanding of risk and how to be a risk manager with your portfolio.
- CD give very low return. it might not enough even to beat inflation. Try stock investing! Invest in quality stocks for long-term and don’t depend on stock trading too much. Holding quality stock is like owning an excellent company; with hardworking employees struggle to generate income as much as possible for you. While stock trading is good for short term investment period, it will cost you much in transaction cost in the long-run. to pick this kind of stock, look stocks that able to perform 15% ROE and 15% EPSGR (just for example) at least for the past 10 years. you'll be amazed on how much junk stocks are in the stock market by just applying this method. high in ROE show that the company is working really hard to satisfy its investors. as much as possible, they'll meet the target set before and able to return some of the profit to its investors. this can be either in dividend or bonus issues. high in EPSGR means the company able to grow in a growing industry. higher growth than the industry average shows that their product or services is widely acceptable to customer, another comparison that you need to do. Stock Investing for Beginners http://www.stock-investment-made-easy.com/
