The Investment Thread!

[lordxizor]

An ETF can be traded at any time like a stock, but typically only in full share increments (though some platforms to offer fractional shares). An index fund typically only trades at the end of the day and can usually be bought and sold in any amount (once you've met the minimum if there is one). You can get an S&P index fund of ETF, so they could hold the exact same companies, It's mostly a difference in how they're traded. There can be tax advantages to one versus the other depending on the type of account you're holding them in, but I'm less familiar with that.

[wolfking]

An ETF can be traded at any time like a stock, but typically only in full share increments (though some platforms to offer fractional shares). An index fund typically only trades at the end of the day and can usually be bought and sold in any amount (once you've met the minimum if there is one). You can get an S&P index fund of ETF, so they could hold the exact same companies, It's mostly a difference in how they're traded. There can be tax advantages to one versus the other depending on the type of account you're holding them in, but I'm less familiar with that.

Thanks mate.  Seems doing my research here, EFT seems to be the common trend.  I guess early on I'm not that fussed with when it's traded and all that since I'm looking at perhaps a dollar cost average strategy and hold it long term.  Seems ETFs you can put in smaller amounts.

I think Ive found a good platform to start with and might start putting money in the ASX200 which is the Aussie equivalent of the S&P500 and maybe go from there.  I'm a tightass and just want a way to get myself in there first then go from there. 

[Cool Chris]

I'm just happy I can look at my investment accounts and not want to weep. The chart spanning the last 5 years looks like someone dropped an anvil on the second half of 2022.

[wolfking]

I'm just happy I can look at my investment accounts and not want to weep. The chart spanning the last 5 years looks like someone dropped an anvil on the second half of 2022.

Shits bound to turn around thought right?

[Cool Chris]

It's turn around nicely since the start of the year. It's nearly back up to it's peak, which was around this time 2021.

[wolfking]

It's turn around nicely since the start of the year. It's nearly back up to it's peak, which was around this time 2021.

Oh yeah sorry, I missed you said 2022.

[lordxizor]

I don't understand the stock market (which is just why I just buy index funds and never sell). Weren't we supposed to have a recession this year? Wouldn't a significant majority of people say that things feel tight financially and that they're struggling more than they were pre-covid? Inflation is still higher than ideal. So of course the stock market is about to reach all-time highs. Makes total sense.

[axeman90210]

Yeah, this is why I work in finance and do nothing but low cost index funds

[ReaperKK]

I'm just happy I can look at my investment accounts and not want to weep. The chart spanning the last 5 years looks like someone dropped an anvil on the second half of 2022.

Shits bound to turn around thought right?

I work at a large investment bank and their opinion, and communications to us is that a recession should hit next year. They've said that in the past too though so who really knows. I do know that they allocated $1b for severance packages next year so that's interesting...

[cramx3]

Im not sure I believe anyone who says "recession" or "boom" this shit comes and goes and a lot of times makes little sense to me.

I believe the market is at an all time high this week since the fed announced they will be cutting rates next year. 

I've stopped trading any stocks. I just buy and hold ETFs at this point. Also I havent really bought much at all lately because I can get 5% interest on cash because rates are so high.  I'm getting a nice chunk of money each month just leaving money in that account.

[wolfking]

Im not sure I believe anyone who says "recession" or "boom" this shit comes and goes and a lot of times makes little sense to me.

I believe the market is at an all time high this week since the fed announced they will be cutting rates next year. 

I've stopped trading any stocks. I just buy and hold ETFs at this point. Also I havent really bought much at all lately because I can get 5% interest on cash because rates are so high.  I'm getting a nice chunk of money each month just leaving money in that account.

This is also why I haven't really looked into stocks until now.  I'm getting similar interest on my cash so the short term gains is around the same at 5%.  It's a amazing income boost each month.  But I know now some of that at least should be going into EFTs.  The bonus interest is good, but not sure it's matching the inflation.

[wolfking]

I've been doing a lot of reading today to try and educate myself on this whole investing thing.  While the bonus 5% cash interest I've been receiving on my savings is a nice bonus without having to do anything, it seems a lot of wasted years I could have put money into a simple vanguard or beta EFT which would have yielded a lot more return over time.  I guess it's never too late though. Better starting now at 39 than 49.

[Cool Chris]

Do it! I started in my late 20s with very little, and had years of regret not starting sooner. Now I am 47 and pleased with how things have grown over the years, which makes me forget about getting in later than maybe I would have preferred.

I had no idea about these 5% rates!

[wolfking]

I mean, for years I was just working so much I didn't have time for anything like this but it's only been the last couple of years with interest rates going up that has seen upwards of 5% returns on high interest accounts before that, it was nothing which sucks in hindsight.

But yeah, I've opened an account with a brokerage platform and have transferred $500 to start with (Saturday here so won't clear until Mon/Tue) and will just go with probably the biggest ETF (Vanguard) to start with and go from there.  I think I'll have the tact of putting money in each week as opposed to putting large lump sums in, in these early stages anyway.  Once that initial money is in there I'll learn more, monitor it and maybe after I have money filtering into it will look into an ETF that dabbles in the US market.  Although it seems the US has been on a good run so am wary and will just start with the Aussie bound ETF.

I know $500 to start with is nothing but I'll make sure I do it all correct and keep filtering money through when I can.

[wolfking]

Next week I'll sit and read through this entire thread too.  Probably all the learning and info I need right in these 9 pages from you guys.

[lordxizor]

My most simple and best advice is to find a good, broad market ETF, choose your weekly or monthly budget, and just put it on automatic purchase. Don't care how the money is doing, just keep buying. Do not sell!! Even if the market drops 50%. Just keep buying. It will take several years or even a decade to really start to see the magic of compound interest, but your patience will be worth it.

[wolfking]

Cheers mate, that definitely seems the simplest strategy from all the reading I've been doing too.  I'll put in amounts weekly or fortnightly and extra where I can, plus the interest earned from the stocks will go straight back in too.  Hopefully I can see some significant gain when I'm 45 but really hoping to see some results by the time I'm 50.

[wolfking]

Man this is slightly confusing.  Put some money into a platform and now trying to place the order.  Trying to figure out limit price vs market price is confusing.

I'm guessing when putting money in weekly or fortnightly you're not putting in an amount, you buying a number of shares?  Like, this particular share costs 92.76 so I'm putting that amount in each time?  This platform has a value or quantity option however but both seem to give off the same values, so that's why it's slightly doing my head in.

[Cool Chris]

Man this is slightly confusing.  Put some money into a platform and now trying to place the order.  Trying to figure out limit price vs market price is confusing.

I'm guessing when putting money in weekly or fortnightly you're not putting in an amount, you buying a number of shares?  Like, this particular share costs 92.76 so I'm putting that amount in each time?  This platform has a value or quantity option however but both seem to give off the same values, so that's why it's slightly doing my head in.

Market: An order to buy or sell at the best price available when the order reaches the marketplace. A Market Order guarantees execution, but not price.
Limit: An order to Buy or Sell a security only at a price that is specified (the limit) or at a better price. A Limit Order is not guaranteed, but if executed, the price you set or a better price is guaranteed.

At this stage of your investing just place an order at the market price. You don't need to worry about what the exact price is.

I believe you have to purchase stocks or ETFs based on a specified quantity, but you can purchase mutual funds based on an exact dollar amount. lordxizor please clarify if I am wrong.

[wolfking]

Thanks Chris.  I think with this particular ETF having a $500 buy in, that's where I was confused on the buying of singular shares at that 92 dollar price, as the maths obviously doesn't add up.  I'll whack some more money in and just buy 6 shares at market price maybe and go from there.  I mean, it's not like I was going to put in $10 at a time so $100 each time for me is more than fine.  Appreciate the response.  A lot to get the head around.

[Cool Chris]

When I switched to Schwab in 2020, I had a call with one of their advisors. It was not a detailed call but she did run a report on my retirement accounts to evaluate my financial situation. All of this was free and while not overly insightful (other than to find out I was on a solid trajectory and did not need any immediate course correction) it was nice to be able to talk to a professional about my finances. I've never had further conversations with them but know they are available should i wish to. If your bank offers these services, take advantage of them.

[wolfking]

That's a damn good feature to have to an investing platform!  Not sure if anyone offers that here but I haven thought about seeing a financial advisor.  I always get scared off by paying money to someone else to help me with my money, especially when I'm not a complete idiot. 

I think CMC the platform I'm using though has a good support feature so maybe there is something there.

I've transferred some more cash over and yeah seems like Market price is the easiest go to option to just put money down and start investing.  Means, I can buy 6-7 shares straight up.  Next will be to research if to keep buying from the one or start to eventually diversify across maybe 2 or 3 other ETF's.  I'm enjoying the learning process though.

[chknptpie]

I inherited an account with Edward Jones from my grandparents. We chat twice a year about how things are going, if I have any concerns, etc. It's actually really nice. It also allowed me to roll all my straggler 401ks from former jobs into one place.

[cramx3]

That's a damn good feature to have to an investing platform!  Not sure if anyone offers that here but I haven thought about seeing a financial advisor.  I always get scared off by paying money to someone else to help me with my money, especially when I'm not a complete idiot. 

I think CMC the platform I'm using though has a good support feature so maybe there is something there.

I've transferred some more cash over and yeah seems like Market price is the easiest go to option to just put money down and start investing.  Means, I can buy 6-7 shares straight up.  Next will be to research if to keep buying from the one or start to eventually diversify across maybe 2 or 3 other ETF's.  I'm enjoying the learning process though.

My work 401k has some built in features with Fidelity for getting access to a financial advisor, but like the bolded, I feel the same as they are not free  Luckily my brother in law is into this kind of stuff and will go through my 401k and give me advice that I actually trust. 

Also, without knowing more info, I would say to diversify more ETFs. 

[TAC]

My work 401k is also through Fidelity. We have an advisor who we opened a fund with and it's through Schwab, even though he doesn't work for them. But he advises us on both mine and my wife's 401k's as well.
We feel comfortable with our advisor for sure, and there's no way I'd go at it alone.

[cramx3]

My work 401k is also through Fidelity. We have an advisor who we opened a fund with and it's through Schwab, even though he doesn't work for them. But he advises us on both mine and my wife's 401k's as well.
We feel comfortable with our advisor for sure, and there's no way I'd go at it alone.

The thing is, I can go in there and make the changes and whatnot, but I'm just not knowledgeable to know what's a good investment or not.  I can see the costs, performance, and whatnot, but I just don't know or have the desire to understand every single company or fund I'm investing in.  My brother in law loves this stuff, so he'll allocate my funds for me and make sure I'm OK with it all.  I wouldn't go at it alone either, because when I first did my 401k wasn't moving much at all since it was all just going to very general funds that didn't move much. My 401k is getting a 10% return lifetime on it, but would probably be getting 5% if someone didn't help me. YTD is like 20% though, crazy.

[TAC]

My work 401k is also through Fidelity. We have an advisor who we opened a fund with and it's through Schwab, even though he doesn't work for them. But he advises us on both mine and my wife's 401k's as well.
We feel comfortable with our advisor for sure, and there's no way I'd go at it alone.

The thing is, I can go in there and make the changes and whatnot, but I'm just not knowledgeable to know what's a good investment or not.  I can see the costs, performance, and whatnot, but I just don't know or have the desire to understand every single company or fund I'm investing in.  My brother in law loves this stuff, so he'll allocate my funds for me and make sure I'm OK with it all.  I wouldn't go at it alone either, because when I first did my 401k wasn't moving much at all since it was all just going to very general funds that didn't move much. My 401k is getting a 10% return lifetime on it, but would probably be getting 5% if someone didn't help me. YTD is like 20% though, crazy.

Yes, the year is ending on a strong note.

My brother is in the field, but I'd never put that on us.

[wolfking]

Hmm....I'm guessing 401K is like our superannuation over here  I'll look that up later and come back and comment.

[cramx3]

My work 401k is also through Fidelity. We have an advisor who we opened a fund with and it's through Schwab, even though he doesn't work for them. But he advises us on both mine and my wife's 401k's as well.
We feel comfortable with our advisor for sure, and there's no way I'd go at it alone.

The thing is, I can go in there and make the changes and whatnot, but I'm just not knowledgeable to know what's a good investment or not.  I can see the costs, performance, and whatnot, but I just don't know or have the desire to understand every single company or fund I'm investing in.  My brother in law loves this stuff, so he'll allocate my funds for me and make sure I'm OK with it all.  I wouldn't go at it alone either, because when I first did my 401k wasn't moving much at all since it was all just going to very general funds that didn't move much. My 401k is getting a 10% return lifetime on it, but would probably be getting 5% if someone didn't help me. YTD is like 20% though, crazy.

Yes, the year is ending on a strong note.

My brother is in the field, but I'd never put that on us.

Yeah, I get the idea of not wanting your borther to be at potential fault for a loss of money or jsut knowing your financials.  I'm just a solo dude here so I don't have a wife and kids riding off this.  I trust him and if it fucks up, remember, I agreed to it and he showed me it and I still agreed.  It's still on me.  He literally loves this.  He just did my brother's wife's as well over Thanksgiving while we all in Florida at my parents.  It's become like a thing where he'll deal with it very happily.  Yeah, it also gets personal, but I don't care. I think we all kind of know where we stand financially within my family.  If he sees my 401k #'s, I don't have any reason to think he'll think of me any differently or talk about it.  He's shown me his portfolie before as well.

[wolfking]

So yes, seems it's the same as superannuation over here.  I've never really looked into it or thought about putting more money into mine.  Not sure if it's the same in the states but we can't access it until we are 60 or 65 or something.  I'm happy to let it accumulate for the basics of what the employer has to put in it for another 20 years and go from there.  Same as Marc, while I'm not touching mine, no dependents for me so I'm looking at this money as bonus money when I get to retirement.  My goal is not to have to rely on that money when I hit the age of 60.

[Cool Chris]

So yes, seems it's the same as superannuation over here.  I've never really looked into it or thought about putting more money into mine.  Not sure if it's the same in the states but we can't access it until we are 60 or 65 or something.  I'm happy to let it accumulate for the basics of what the employer has to put in it for another 20 years and go from there.  Same as Marc, while I'm not touching mine, no dependents for me so I'm looking at this money as bonus money when I get to retirement.  My goal is not to have to rely on that money when I hit the age of 60.

Correct. As retirement accounts have tax advantages, one of the requirements is that it is used for retirement, so you cannot access those funds without a significant tax hit before whatever the minimum withdrawal age is. I think in the US it is 59.

[lordxizor]

59.5 to be exact in the US. There are a few exceptions, like buying your first home, or you can have a hardship exemption.

[ReaperKK]

My work 401k is also through Fidelity. We have an advisor who we opened a fund with and it's through Schwab, even though he doesn't work for them. But he advises us on both mine and my wife's 401k's as well.
We feel comfortable with our advisor for sure, and there's no way I'd go at it alone.

The thing is, I can go in there and make the changes and whatnot, but I'm just not knowledgeable to know what's a good investment or not.  I can see the costs, performance, and whatnot, but I just don't know or have the desire to understand every single company or fund I'm investing in.  My brother in law loves this stuff, so he'll allocate my funds for me and make sure I'm OK with it all.  I wouldn't go at it alone either, because when I first did my 401k wasn't moving much at all since it was all just going to very general funds that didn't move much. My 401k is getting a 10% return lifetime on it, but would probably be getting 5% if someone didn't help me. YTD is like 20% though, crazy.

Yes, the year is ending on a strong note.

My brother is in the field, but I'd never put that on us.

This year has been killer for me as well investment wise, my 401k did really well and my FX account had one of the biggest years ever.

[wolfking]

59.5 to be exact in the US. There are a few exceptions, like buying your first home, or you can have a hardship exemption.

What a strange figure lol.

Over here you can't touch it for anything prior to the age criteria but the Government were allowing people to access their Super funds during COVID.

We can't access it for first home ownership, but our Government hands out generous grants to people getting their first homes.

[Phoenix87x]

So I learning more about mutual funds and I am reading that there are 4 types:

Growth and income funds
Growth funds
Aggressive growth funds
International funds

Does anyone know what the S and P 500 would fall into? Would it be growth and income?