Investing for beginners

[Ingerdeere]

JasperFrank, you're dating yourself Mr. (Or Mrs.) Robinson. Good one.

 

[California]

Invest in something REAL - land, gold, silver, livestock, equipment, etc.

I'm sorting out the Lionel trains I got as a kid. With additions in the 80's when my kids were little, from a Lionel collector's club. I had assumed these are collectibles and what I paid back then would appreciate in value over the years, at least a little.

Nope. I see eBay prices today are the same $ as what I paid 30~40 years ago for clean used pieces. Considering inflation - today's dollar worth less in its purchasing power compared to back then - I've lost money on that 'investment'. Bah.

I've made money on rental real estate, where the income covered the payments so my holding cost was zero. By a simple method: Make a realistic estimate of what the place will sell for after cleaning it up, then hold for a few years expecting appreciation in overall RE prices. Then sell when it reaches the target price.

This method of making a future estimate can work for livestock you feed, and usually for land, but there's no reason for gold or silver to appreciate faster than inflation over the longest horizon. Scarcity of either isn't increasing fast enough to count on a profit. Equipment similar, there's a momentary scarcity today but I wouldn't calculate a future price based on this.

 

[marhar]

Can anyone recommend the best way to start investing for beginners? For example, opening an account with TD Ameritrade or Fidelity? Broad topic I know, just would like someplace to start. Thanks!

I agree with the poster that said first see if your employer has a 401k with a match; is so use it. If not, look at Vanguard index funds and open an IRA or Roth IRA.

 

[fruitcakesa]

We decided to be proactive in terms of investing and went the dividend stock route to provide a steady income in retirement.
It has netted us a solid 7-8% return over that last few years.
I realize that the market is always a risky bet but if you take the time to research the companies with a long and strong dividend history and solid fundamentals you can minimize the risks.
Sure, the market is up and down seemingly at random so the best advice is always buy and hold, this too shall pass.
My example:
My portfolio was flying high pre covid but crashed and burned post covid and it bottomed out at about 50% down.
I sold off all the dogs [a number of them stopped paying dividends] and others had lost most of their value. I figure I actually lost about $60K!!
2 years later, I have regained all the lost value and am ahead. All through this time I have been collecting my 8% dividend.
Not for the faint of heart but life is a risk in general so one may as well try and make it pay

 

[JasperFrank]

Mr. Maguire: There is a great future in plastics. Think about it. Will you think about it?
Benjamin Braddock: Yes, I will.
Mr. Maguire: Okay. Enough said. That's a deal.
From the movie The Graduate.

The easiest way for anyone to invest, is to follow any stocks I might suggest buying, and then immediately, Short Sell them.

 

[GeneV]

I dunno, but my 401k lately been looking like Rocky going into the first few rounds with Ivan Drago. Just a bit bruised so far, but damn where is this fight going!

 

[California]

I'm up about 18% for 2021, similar in 2020. See Fuddy's posts #120, 121.

 

[kenmac]

I dunno, but my 401k lately been looking like Rocky going into the first few rounds with Ivan Drago. Just a bit bruised so far, but damn where is this fight going!

IDK. It does get tough at times.. I'm hoping these new investments I'm in now will help during the rocky times !

 

[Doughknob]

I'm up about 18% for 2021, similar in 2020. See Fuddy's posts #120, 121.

Yep, I was up 20.1% for 2021, in my 401k. So far this year down 8.3%. Gotta keep looking long term........

 

[California]

Yep, I was up 20.1% for 2021, in my 401k. So far this year down 8.3%. Gotta keep looking long term........

Long term is all there is. Investing has to be thought of as enduring through a few market cycles.

It's no place to put money that you might need soon!

OP, are you still listening?