So I'm finishing off my masters degree this year with a $3300/month job lined up and about $6600 in the bank just sitting there. Literally never invested anything
Q. Do you think I'm in a position to start investing if not, what should I do with all this money sitting around?
Q. I've heard of these virtual investment simulators I might use like MarketSim, Stock fuse, is this a good idea, do you have any other recommendations of how I might practice before putting down real money? Something to read up on?
You don't have a lot of money, quite honestly, and $3,300/month is not a lot of money either. In my opinion, especially at this point in the market cycle, you're best off building up a larger cash reserve. I personally believe in having at least one year's living expenses or one year's salary in cash. Use the lesser of the two if the market is very cheap which it isn't right now.
Once you start your job, I'm assuming it has a company 401K and match. Even though stock prices are highly elevated, contribute the maximum you can into the 401K and make sure you get the full match from your company. Also, if your company offers an HSA (Health Spending Account) and you qualify for it, be sure to participate. It is a tax-advantaged account where you can put money into it which is either pre-tax or capital-gains free, I forget which.
The HSA is different from the other type of spending account (Flexible Spending Account?). The FSA is the one where the money you put into it must be spent on medical expenses a yearly basis or you lose it. The HSA is something where you can just let the capital gains accumulate and not withdraw anything for years.
Brandon James
Sniffy poopy yum yum
Mmm mmm stinky milkies milk my bottom sniff my bottom big ol titties in my holes I sniffy sniffy sneeze yum yum
Gabriel Rivera
>tfw you do coke, get punches in the head till you shit yourself and think everything smells like shit.
Lincoln Carter
Thanks for the advice, just kinda sucks I'll be 20 and already paying into my retirement :(
Do you have any recommendations for books or youtube channels or something to help me learn about this sort of thing? I'm only barely know what a 401k is
Honestly? Congrats man, now just lay your financial groundwork.
$1,000 in the bank for emergency fund 3-6months of living expenses saved (I'd recommend 6) Invest 15% of your income (If your company offers 401k matching start with that, be wary of risky things like crypto)
That is if you have no outstanding debts, always do damage control before gambling your money on shitcoins
I used to put effort on giving replies and links but being despised gets really tiring after a while. If you have genuine curiosity you'll figure it out on your own.
Jayden Watson
Well, for starters you should put 5k into crypto.
Cooper Moore
Through what metal gymnastics a gaylord must go to live his trap fantasies? Seem like we found the answer.
I would read the books by Harry Browne regarding his Permanent Portfolio idea. You can also visit the Motley Fool web site as they have quite a few forums on basic investing.
If you barely know what a 401K is, you really, really need to avoid picking individual stocks (or at least keep the percentage of your portfolio of picked stocks to a small percentage, say 10% or so) because you'll probably underperform.
For your 401K, it's either going to be an index fund or some sort of actively managed fund which may or may not outperform the indices. The key, though, is this: If you are invested in a broad index, you must not panic sell if the market falls a lot. If you hang on, you will in all likelihood make money over the longer term: 10 or 20 years. If you sell during a panic, you'd better be absolutely certain that you have both the knowledge of what is good value and balls of steel to buy back in when it appears the world is ending.
At the moment, due to high equity prices, I would recommend that even young people have a greater percentage of their investments in cash and bonds (Treasuries, avoid corporates because some really shitty stuff is going on) than usual. Also, from a global perspective, European and emerging market indices, while not really cheap, look less expensive than the U.S. markets.
Finally, you might want to register at gmo.com/ to get access to their research. In particular, Jeremy Grantham is very worth reading. In the past, you ignore his investment outlook at your own peril. He called the 2000 dot-com bubble and bust as well as the 2008 housing bubble and bust. He then go back into the markets after the dot-com bubble popped and in 2009, he called for going in near the bottom. Prior to that, Grantham called the Japanese stock and real estate bubbles in 1990 or so and I believe he also avoided a nasty bubble in the early 1970s.
Benjamin Lopez
Lol what a fucking boomer.
All 6K in GNT, thank me later.
Adrian Perez
yeah its pretty cool in terms of the computer and political science behind it, but memecoin will forever be memecoin why even post then wtf ngl, first thing I think when I see a 8+/10 i "benis?"
Only traps put that much effort into there appearance lest there crippling dysphoria lead them to off themselves
Austin James
Why don't you tell people to buy 6,000 lottery tickets instead? The OP is asking for investment advice, not tips on speculation.
Landon Clark
I would have to be really drunk to wanna smash her. Would rather not drink
Henry Howard
Will do :P,
I think that's a /thread right there
thanks, good to see biz isn't entirely infested with Jow Forumstards and summerfags
You need to start investing asap. A dollar earned now is worth ten dollars 20 years from now through the power of compound interest. Spend your energy rather than your money while you're young.
Simulators are shit. Big part of trading is the emotional aspect, very hard to simulate. Put down $1k on either stocks or crypto and start from there.
Join a community about whatever it is you're trading and lurk over there. Investopedia is great for early lessons. biz is okay for crypto, but there are shills in every community so beware.
Noah Russell
Yes you are in a great position to invest, put 10% to 20% of your income into investing, your late 20, 30's self will love the compounding from that...
Michael Perry
Put it into Charles Schwab total US market fund. Start along about trading later when you have skin in the game. Just looking over your money in the fund will be a test of your patience.
Thomas Morales
Why would you have one year in cash when you can have one year in bonds earning you 3% instead. The chances you need to call out your bonds at any given point are low.
Dominic Howard
Think about it this way: you can retire at 35 and have that retirement fund distribute that money. All you have to do is contribute now, tether, I mean go into bonds when the economy looks grim and save like crazy while getting better and better paying jobs
Kayden Hill
Because cash doesn't have the volatility of a bond. The entire idea behind a slug of cash is to allow you have a cushion if something bad happens: emergency medical situation, loss of a job, loss of a car, etc. without being subjected to the possibility of selling an asset at a loss.
Lucas Robinson
I'm in a similar position. Just today got my offer phone from the company giving me a job.
Total poorfag and I don't know what I'm doing nor what I should do. Incredible though I'll be getting more money than I've seen in my life. Thought I might just put 2k every month into crypto but I don't know if that's the best path.
Mason Watson
>>delusional faggot If you weren’t appreciated it’s because your advice was shit
