Questions about Investing... - U2 Feedback

Go Back   U2 Feedback > Lypton Village > Free Your Mind > Free Your Mind Archive
Click Here to Login
 
 
Thread Tools Search this Thread Display Modes
 
Old 04-30-2006, 03:12 PM   #1
ONE
love, blood, life
 
melon's Avatar
 
Join Date: Oct 2000
Location: Toronto, Ontario
Posts: 11,781
Local Time: 07:28 PM
Questions about Investing...

Hello all...I know this place has a lot of smart and opinionated people from both sides of the political spectrum. So I figured I would ask some informal advice on the subject of investing...

...mainly on where the hell to start.

I have my company 401K, and I've diversified it, etc. However, I'm also interested in investing beyond retirement needs--i.e., I don't want to be old and half dead before I start enjoying my money.

However, on this question, I've generally found myself a bit intimidated and wandering. Are there places/funds that deal with less affluent investors? I don't have a lot of money upfront, but I want to have an automatic transfer from my bank account every month to keep on adding to it. I don't want to invest conservatively like with bank CDs, etc. I generally want something like my 401K where I can diversify it into multiple funds of various risk over long periods of time (a mutual fund?).

So does anyone have any advice for where I should go?

I worked in a bank for six years, but the one side of banking I never touched was anything to do with investments. Too bad, because I always found it interesting.

Much thanks!

Melon
__________________

__________________
melon is offline  
Old 04-30-2006, 04:05 PM   #2
Refugee
 
Bluer White's Avatar
 
Join Date: Jul 2005
Location: Maine
Posts: 1,885
Local Time: 07:28 PM
Melon, you should consider a Roth IRA (individual retirement account). With a Roth, you contribute your after-tax dollars, up to $4000.00 per year. All of your gains are tax free, and this is huge if you plan on leaving your money alone until you are old and gray. You would probably want to stick to low cost mutual funds or exchange traded funds. I'm with T. Rowe Price, where you can start an Roth account with $1000.00. I'm pretty sure that you can contribute as little as $50.00 per month on an automatic investment plan. Vanguard also has quality funds, although there are many other great options. What you invest in depends on your age, goals, and what you hold in your 401(k).

Once you get a general plan together, get some advice from someone you trust about where you might put your money specifically. Morningstar.com is also a great source for research. Good Luck!
__________________

__________________
Bluer White is online now  
Old 04-30-2006, 04:34 PM   #3
ONE
love, blood, life
 
melon's Avatar
 
Join Date: Oct 2000
Location: Toronto, Ontario
Posts: 11,781
Local Time: 07:28 PM
Thanks for the advice. I'm going to do some investigating.

I looked up T. Rowe Price, and they don't have any offices in my area. I'll have to see if any of their competitors are around here. I'm a bit hesitant to open anything online at this point, mainly because I need the in-person advice this early in the game.

Melon
__________________
melon is offline  
Old 04-30-2006, 04:42 PM   #4
Blue Crack Addict
 
U2democrat's Avatar
 
Join Date: Aug 2004
Location: England by way of 'Murica.
Posts: 22,140
Local Time: 12:28 AM
Can't offer any advice but good luck in your hunt
__________________
U2democrat is offline  
Old 04-30-2006, 04:46 PM   #5
Blue Crack Addict
 
anitram's Avatar
 
Join Date: Mar 2001
Location: NY
Posts: 16,289
Local Time: 07:28 PM
To be honest with you, you will not get a great investor or stock broker without at least $100K to invest. They simply don't deal with small amounts of money. If this is what you're interested in, you need sufficient capital to compel them to take your money.
__________________
anitram is online now  
Old 04-30-2006, 05:00 PM   #6
Refugee
 
AliEnvy's Avatar
 
Join Date: Jan 2001
Location: Toronto, Canada
Posts: 2,320
Local Time: 12:28 AM
Re: Questions about Investing...

Quote:
Originally posted by melon

...mainly on where the hell to start.
Why don't you start with the company that holds your 401k? Since you are already a client, they may be more flexible on minimal regular deposits in a non-retirement account.

Most mutual funds have minimums (i.e. $25/month is probably the bare minimum) so if you want to diversify, look for a balanced fund OR a balanced portfolio fund that draws on underlying funds of varying risk within the same family.

Good luck
__________________
AliEnvy is offline  
Old 04-30-2006, 05:29 PM   #7
ONE
love, blood, life
 
melon's Avatar
 
Join Date: Oct 2000
Location: Toronto, Ontario
Posts: 11,781
Local Time: 07:28 PM
Re: Re: Questions about Investing...

Quote:
Originally posted by AliEnvy
Why don't you start with the company that holds your 401k? Since you are already a client, they may be more flexible on minimal regular deposits in a non-retirement account.
You know, I never thought of that! My 401K is through Ameriprise, and I just did a search on their site for financial advisors. There's quite a few in my area, and I think I'm going to check one of them out...

...but then I see that there's a whole site dedicated to how much they suck as financial advisors...

http://www.ameriprisesuck.com/

LOL. Oh what to do...

Melon
__________________
melon is offline  
Old 04-30-2006, 05:38 PM   #8
Refugee
 
Bluer White's Avatar
 
Join Date: Jul 2005
Location: Maine
Posts: 1,885
Local Time: 07:28 PM
Just tread very carefully with anyone claiming to be a "financial advisor," but earns their living off sales commissions. The key words you should be looking for are "no-load" funds (no up front sales commission).

I interviewed at Ameriprise when it was called American Express. I turned down the job because I didn't want a sales job, which is was what it amounted to.
__________________
Bluer White is online now  
Old 04-30-2006, 06:06 PM   #9
ONE
love, blood, life
 
melon's Avatar
 
Join Date: Oct 2000
Location: Toronto, Ontario
Posts: 11,781
Local Time: 07:28 PM
Quote:
Originally posted by Bluer White
Just tread very carefully with anyone claiming to be a "financial advisor," but earns their living off sales commissions. The key words you should be looking for are "no-load" funds (no up front sales commission).

I interviewed at Ameriprise when it was called American Express. I turned down the job because I didn't want a sales job, which is was what it amounted to.
Doing some research here, this sounds like sound advise--meaning I should probably avoid places like Ameriprise completely.

I've seen some talk about "fee-only financial planners," such as advocated through this site:

http://www.napfa.org/

The logic sounds correct, so would it be advised to try to find someone like that?

Melon
__________________
melon is offline  
Old 04-30-2006, 06:28 PM   #10
Rock n' Roll Doggie
Band-aid
 
ntalwar's Avatar
 
Join Date: Feb 2004
Posts: 4,900
Local Time: 07:28 PM
Other firms like Fidelity also provide this service, and they have branches you can visit to discuss this. They take into account what your financial objective and risk tolerance is, and can recommend funds and assets accordingly. Risk/return is a big factor in the recommendations.
__________________
ntalwar is offline  
Old 04-30-2006, 08:18 PM   #11
The Fly
 
Join Date: Aug 2004
Posts: 77
Local Time: 12:28 AM
I agree with the Vanguard suggestion. They are one of the largest and most respected mutual fund companies around. I suggest you visit their web site. Even if you decide not to open any accounts with them, the site has some excellent tutorial content.
__________________
redsox04 is offline  
Old 04-30-2006, 08:31 PM   #12
Refugee
 
AliEnvy's Avatar
 
Join Date: Jan 2001
Location: Toronto, Canada
Posts: 2,320
Local Time: 12:28 AM
Quote:
Originally posted by melon

The logic sounds correct, so would it be advised to try to find someone like that?
In my opinion it's only worthwhile to pay for financial advice once you're substantially in the black. But, the fee-based advisors would at least be the most objective in helping you sort through the myriad of fund choices and fund companies. Plus, the fee is likely tax-deductible.

All the big fund companies offer the free advisor service and they all suck. Mainly because they all follow the same cookie-cutter investing formulas and selling schtick for accounts under certain thresholds.

When choosing no-load for long-term investing, watch for high fund management fees - could actually be more expensive in the long run!
__________________
AliEnvy is offline  
Old 04-30-2006, 08:42 PM   #13
ONE
love, blood, life
 
melon's Avatar
 
Join Date: Oct 2000
Location: Toronto, Ontario
Posts: 11,781
Local Time: 07:28 PM
Quote:
Originally posted by AliEnvy
In my opinion it's only worthwhile to pay for financial advice once you're substantially in the black. But, the fee-based advisors would at least be the most objective in helping you sort through the myriad of fund choices and fund companies. Plus, the fee is likely tax-deductible.
Do you know what the fee normally runs? And if I didn't pay for financial advice in this route, what route would you suggest for the most sound and unbiased advice?

Quote:
When choosing no-load for long-term investing, watch for high fund management fees - could actually be more expensive in the long run!
Good point. But what's considered "average" in terms of management fees?

Thanks everyone for your opinions and advice so far. I appreciate it.

Melon
__________________
melon is offline  
Old 04-30-2006, 08:47 PM   #14
ONE
love, blood, life
 
melon's Avatar
 
Join Date: Oct 2000
Location: Toronto, Ontario
Posts: 11,781
Local Time: 07:28 PM
Quote:
Originally posted by ntalwar
Other firms like Fidelity also provide this service, and they have branches you can visit to discuss this. They take into account what your financial objective and risk tolerance is, and can recommend funds and assets accordingly. Risk/return is a big factor in the recommendations.
Quote:
Originally posted by redsox04
I agree with the Vanguard suggestion. They are one of the largest and most respected mutual fund companies around. I suggest you visit their web site. Even if you decide not to open any accounts with them, the site has some excellent tutorial content.
Interestingly, when I was researching what "no-load mutual funds" meant, Fidelity and Vanguard were the two names that came up. I used to live in Boston, so I know that the "Fidelity" name carries some weight.

Melon
__________________
melon is offline  
Old 05-01-2006, 01:12 AM   #15
ONE
love, blood, life
 
Join Date: Aug 2002
Posts: 10,881
Local Time: 07:28 PM
You could day trade like me...hehe....my .92 Cent Gold Stock from three years ago is now a $36.00 Stock.....
__________________

__________________
Dreadsox is offline  
 

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -5. The time now is 07:28 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Design, images and all things inclusive copyright © Interference.com