I was talking to a small group of providers a couple of months back and the subject of investing came up. We have to handle our own retirement, want to buy houses and etc. but it's not like most of us have a 401k. What we want is someone to teach us how to invest. We're willing to pay for this service and have lightly discussed starting an investment club. Is there anyone here who can tell us where to start?
Everyone can feel free to comment, give advise and offer to educate those of us that are willing to learn.
- Dharma
- 01-25-2010, 07:32 PM
- lisa.lisa0302
- 01-25-2010, 07:35 PM
Great thread, that sounds awesome, i have things i want to invest in, but not sure how to get started without paying crazy fees. Im all for learning!!!
- Dharma
- 01-25-2010, 08:20 PM
Ladies, I have two offers to help us out. I'm going to arrange a meeting at my office for either late this week or early next week so we can get organized. Anyone who wants to come, PM me. It doesn't matter if you're older or 20-something, if you have alot or very little to start with. Let's get this party started!
If anyone else wants to volenteer, of course you're welcome. There's alot for us to learn. Thank you!
If anyone else wants to volenteer, of course you're welcome. There's alot for us to learn. Thank you!
- filbone
- 01-25-2010, 09:20 PM
Scott Burns Couch Potato and Margarita portfolios are good places to start for do-it-yourself investors. He's a long time business advice columnist for The Dallas Morning News. His website now is called AssetBuilder http://assetbuilder.com/
- boo-boo bear
- 01-25-2010, 09:47 PM
Most credit unions offer education programs to their members as well, so if your in a credit union check out what they have to offer.
Also, the Consumer Credit Counseling Services (usually under the United Way Umbrella) offer lots of free, and low cost financial training to consumers. (And they have quite a bit of good, useful information on a wide range of topics.)
Dallas branch:
http://www.cccs.net/index.asp
National website:
http://www.nfcc.org/index.cfm
Also, the Consumer Credit Counseling Services (usually under the United Way Umbrella) offer lots of free, and low cost financial training to consumers. (And they have quite a bit of good, useful information on a wide range of topics.)
Dallas branch:
http://www.cccs.net/index.asp
National website:
http://www.nfcc.org/index.cfm
- Dharma
- 01-25-2010, 10:01 PM
Thank you, boo-boo!
- 69er
- 01-26-2010, 12:10 AM
My first suggestion is to, know yourself. Are you willing to read a book or two on investing? Is the thought of about 10 hours of homework a month working on your investments, more than you are willing to spend?
Investing, and learning the investment ropes, take some real time and effort. If you are willing to spend the time, there are many good references. I personally like, The Motley Fool: http://www.fool.com/
But, if you are not willing to spend the time, or know that you just won't... a professional advisor may be a better choice for you. I believe the most important considerations for investing are to:
1. Decide to start, and do so early in life. Compounding interest is your friend!
2. Get rid of any high interest debt. Don't carry a balance on your credit cards! A car loan is acceptable, as long as it is at a decent rate. (For the most part, cars are not investments. To put it another way, most cars are really bad investments. They are almost guaranteed to decline in value. The less money you spend on them and maintenance, the better.)
3. A home can be an excellent investment... A bank will give you money to buy a home (They will not want to loan you money to invest without other capital.), the government will let you write off your property taxes and loan interest expense, and you get to live there! But, this is only one investment, and must be balanced with your other goals.
4. Put an amount into your investments each and every month. Pay this just like any other bill that must be paid.
5. Do your homework before investing. Know what the fees are for the investment. Know what the cost of getting out of the investment is. Realize what your tolerance for risk is, and make decisions consistent with that.
I would suggest to anyone interested in a professional advisor, to look for someone that has been in the business for at least 10 years. (Why be the newbie's learning ground?) I also like the idea of an advisor that charges a fixed yearly fee to manage your investments. I would suggest interviewing several. They should want to get an idea of how much you are willing to invest each month, and what assets/investments you currently have. They should be discussing setting up some sort of plan, where they look at what your investments are likely to make each year, and what money you will have to support yourself come retirement.
Advisors are also available that make money based on the transactions that occur on your account, and the sales they make. This can be a decent approach, but be aware they are making money on the products they are selling you.
My biggest advice is to start now. It is never too early to start. Make it a priority, and don't procrastinate.
Investing, and learning the investment ropes, take some real time and effort. If you are willing to spend the time, there are many good references. I personally like, The Motley Fool: http://www.fool.com/
But, if you are not willing to spend the time, or know that you just won't... a professional advisor may be a better choice for you. I believe the most important considerations for investing are to:
1. Decide to start, and do so early in life. Compounding interest is your friend!
2. Get rid of any high interest debt. Don't carry a balance on your credit cards! A car loan is acceptable, as long as it is at a decent rate. (For the most part, cars are not investments. To put it another way, most cars are really bad investments. They are almost guaranteed to decline in value. The less money you spend on them and maintenance, the better.)
3. A home can be an excellent investment... A bank will give you money to buy a home (They will not want to loan you money to invest without other capital.), the government will let you write off your property taxes and loan interest expense, and you get to live there! But, this is only one investment, and must be balanced with your other goals.
4. Put an amount into your investments each and every month. Pay this just like any other bill that must be paid.
5. Do your homework before investing. Know what the fees are for the investment. Know what the cost of getting out of the investment is. Realize what your tolerance for risk is, and make decisions consistent with that.
I would suggest to anyone interested in a professional advisor, to look for someone that has been in the business for at least 10 years. (Why be the newbie's learning ground?) I also like the idea of an advisor that charges a fixed yearly fee to manage your investments. I would suggest interviewing several. They should want to get an idea of how much you are willing to invest each month, and what assets/investments you currently have. They should be discussing setting up some sort of plan, where they look at what your investments are likely to make each year, and what money you will have to support yourself come retirement.
Advisors are also available that make money based on the transactions that occur on your account, and the sales they make. This can be a decent approach, but be aware they are making money on the products they are selling you.
My biggest advice is to start now. It is never too early to start. Make it a priority, and don't procrastinate.
- Maverick972
- 01-26-2010, 04:34 PM
Scott Burnes started out as a food editor.....then he inherited a large sum of cash.
next to giving financial advise behind a poor column now he is a FS financial advisor, his track record is a joke.
That is who I want giving me advise.
Ladies and gents if 08-09 did not teach you anything, please listen close....Indexing is DEAD.
next to giving financial advise behind a poor column now he is a FS financial advisor, his track record is a joke.
That is who I want giving me advise.
Ladies and gents if 08-09 did not teach you anything, please listen close....Indexing is DEAD.
- mayday
- 01-26-2010, 05:33 PM
knowing what I know about our financial system and the present financial state of our Government(s). the level of corruption is beyond anything imaginable. at least take some of your savings 5%,10%, or more and buy some US Gold bullion coins. keep them in a safe place where you can get your hands on them and pray you never need them. things are that bad.
- Roy Hobbs
- 01-26-2010, 05:37 PM
If you elect to hire a professional planner, hire one that does not work on commission. Hire one that works for a fee only.
I echo the suggestion about the Motley Fool.
Best of luck.
I echo the suggestion about the Motley Fool.
Best of luck.
- SouthArlington
- 01-26-2010, 06:34 PM
As already mentioned, the most important advice before investing is to first pay off anything that has a high interst rate.
Setting up an IRA (and Roth IRA) with a financial advisor would likely be where to start.
Setting up an IRA (and Roth IRA) with a financial advisor would likely be where to start.
- DFW5Traveler
- 01-26-2010, 08:49 PM
I've heard murmers that gold prices will sky rocket, so if you are going to buy it, buy now. Also, silver prices aren't going up at the same rate as gold it's also a good investment, as silver will start booming when gold peaks.
- Maverick972
- 01-26-2010, 08:51 PM
You have already missed 99% of the Gold rally.
Stock valuations are cheap. 13x earnings....
Stock valuations are cheap. 13x earnings....
- boo-boo bear
- 01-26-2010, 09:02 PM
Dharma, your welcome, the thing I like about CCCS is that they have stuff in my learning range (basically, I am just a rock with eyes and a hard-on!)
69er has some good suggestions as well. I wish I knew & thought about this when I was 25, verses 45 today. Like most young 'uns, I was more concerned about living life up (i.e. the grasshopper) instead of thinking ahead (the ant!) It is NEVER TO EARLY TO START SAVING! It is a good thing I finished up 20 plus years in the good ol' U.S.N. otherwise I'd be screwed hard. The earlier you start saving, the earlier you can relax, or retire, and enjoy stuff. I'd also suggest checking out motley fool as well.
69er has some good suggestions as well. I wish I knew & thought about this when I was 25, verses 45 today. Like most young 'uns, I was more concerned about living life up (i.e. the grasshopper) instead of thinking ahead (the ant!) It is NEVER TO EARLY TO START SAVING! It is a good thing I finished up 20 plus years in the good ol' U.S.N. otherwise I'd be screwed hard. The earlier you start saving, the earlier you can relax, or retire, and enjoy stuff. I'd also suggest checking out motley fool as well.
- Dharma
- 01-26-2010, 09:06 PM
This is all great advice. I do buy gold coins and small silver ingots.I know nothing about investing. I think we'll have our first class late next week and will need to start right at the bottom and have the basics explained, to start with.