Jake asked in Business & FinanceInvesting · 6 months ago

How would I go about getting invested in stocks? Is there a right way or best way to do it?

Hello I’m 23 and getting into the mindset that I want myself to be financially stable if not well off in the future. I’m not looking for rich quick schemes just an honest living with a few side investments. I have been told not to worry about my finances at such a young age a couple times. I understand my 20’s are when I should be thinking about having fun and all but I keep getting this nagging sensation in the back of my mind when I think about starting a family or taking care of my parents when they get old. Any advice would be noted and appreciated. Thank you for the time.

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  • 6 months ago

    You don't...you put money into your IRA (maximizing any employer contribution) and then put the rest into some investments. I like mutual and index funds...nice and easy.

    Don't buy individual stocks on your own. The pros out there are better than you at this.

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  • 6 months ago

    Buy shares of an index fund. It's easier and safer than buying individual stocks or managed funds.

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  • 6 months ago

    Good for you. You started when I did (now I am close to 80). Unless you can spend a lot of time every day looking at your investments, you should buy mutual funds instead of stocks. You should strive to save and invest at least 10% of your gross income. Believe me, because of compounding returns you will be a lot wealthier if you start at your age. Go to Morningstar.com/funds and research the types of mutual funds. Invest in larger funds with good returns over 3 years, five years and ten years, not just the best fund last year. Do not buy and sell funds - pick a good one and stick with it. Remember when the price of a fund goes down, it's temporary and that means that the funds are on sale.

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  • Never
    Lv 7
    6 months ago

    Great time to start and its not too soon.

    I posted some advice a few days ago. You will notice some regret about not spending more but mostly I am very happy I did what I did and became financially secure at a young age.

    Here:

    https://answers.yahoo.com/question/index?qid=20190...

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  • Judy
    Lv 7
    6 months ago

    Your 20s is a GOOD time to start.

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  • DEBS
    Lv 7
    6 months ago

    To start with:

    1. Take full advantage of your company's 401k plan if they have one.

    2. Invest in market indexes. Individual stocks are a gamble and too linear. Index funds give you less return potential but also protect you more against large losses.

    If you want to do it yourself, open an account with an online brokerage site like TD Ameritrade, eTrade, etc.

    Consider talking to a financial adviser. If you don't have a lot of money right now they may not be overly excited about talking to you, but most will.

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  • 6 months ago

    Read the Dummies Guide to Personal Finance and the Dummies Guide to Investing.... should have most of the information you seek young Padawan.

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  • 6 months ago

    Smart man gave good advice. Always save as much as you can. I have several investments with T Rowe Price. they take good care of my investments. Since you are your, look for a mutual fund that features growth stocks. there will be ups and downs, but the long term trend is upward. Consider using a 401k or IRA with some bond funds. You won't earn much interest but the investments are safe and you won't have to pay taxes on dividends and principal until you withdraw money.

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  • 6 months ago

    As the Trump economy sinks (and it has started to do so), stocks are no longer a good idea. It is better to put money into bank certificates of deposit (CDs). They are FDIC insured and will survive a big recession. Trump failed stop the growth of the Nation Debt and damaged trade by insulting other nations.

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  • Joe
    Lv 7
    6 months ago

    Smart man.

    First, save enough money for an emergency fund: about 6 months of living expenses.

    Beyond that: your situation will dictate your choices. I don't know your situation. But there are a few general rules that probably apply to you.

    1) Take full advantage of any tax-deferred retirement savings plan your employer may offer.

    2) When you are as young as you are, a Roth IRA would be a good way to fund additional retirement savings.

    3) Don't try to outsmart the professionals in the stock market. Buy stocks in a nice, simple, low-cost S&P 500 Index Fund, through one of the big mutual fund companies.

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