Want to learn how to invest better

[KrisD]

Hey everyone not sure if this is the correct place for this or not


I own a Business repairing Rvs and Tiny houses. I make a good bit off it each month but it is simple what i call Recycling money. I constantly use it to build more business and upgrade tools/skill of my employees.

Id like to start learning best places to invest some of my extra money each month besides a savings account.


Can anyone help me understand more about say just investing 100.00 a month into something?

My company i work 7-330 for offers 401k and i have two other 401k accounts i'm closing out to fill this one ( Companies are forcing account withdrawal)

I see people investing in small inventions and other things,stocks Ect.

 

[GodBlessTheUSA]

Since no one else has jumped in, I'll add some PERSONAL OPINIONS (note those two words, these are MY OPINIONS and not based a lots of gobbled-gooked up statistics etc.

#1. Pay off your debt. Including your house. Even without the proposed tax-bill "taking" away that deduction a mortgage deduction is NOT a way to save money. You are paying the bank money to keep from paying the government less. That one is a FACT.

#2. If any employer offers a match on a 401K, take it. If they offer a stock option, take it. Their free money match is almost always a good deal.

#3. Stocks will move up and down and there may never be a real rhyme or reason. Mutual funds are "safer", and I prefer older established ones. Newer foreign funds may make a better dividend initially, but are often more volatile.

#3b. There are some old funds that go back to the 40's that are steady. Even those took hits in the last big recession. Also, after 9/11 Ford stock went down to less than $8.00 / share. I bought some, thinking, "hey, it's Ford, they'll bounce back". Years later they got above $16 / share and stalled. So I "doubled" my money, but it wasn't fast. GM and GE bounce back much more quickly. You just never know.

#4. Any "quick" scheme is probably a scheme. Most investments won't make 15-20% year after year.

#5. If you are passionate about something consider how you can invest in it. Not like .22LR ammo.

#6. Follow your gut if you have a strong negative feeling. I won't delve into the positive gut feelings, but a lot of "bad vibes" pan out to be well heeded.

#7. Don't pay big "fees" for fund managers. Know how managers or advisors get paid, and discuss how they'll collect a fee if your funds don't make money.

That's a quick 7 off the top of my head. I know there are people with more money and better advice. But in closing, I'll say this: being debt free (no mortgage, no car payment, no loans period) is the best advice I ever took. I have a lot of freedom now. I didn't eat out a lot, didn't go to movies, or take vacations, but now I can do all that stuff and never worry about tomorrows job. God Bless.

 

[Hayata]

Don't invest in anything more than you can afford to lose.

Start young. Sounds like you have that one covered.

Rental property can be both good and bad if you can afford that. Maybe plan phase II for you.

And congrats for the success of your business! I never had the guts to venture out on my own.

 

[gh1950]

Look at post 2. Paying off debt is the biggest "return" you can get in today's market. Especially on durable assets.

Don't go into debt on consumables. "Consumables" is pretty much anything other than real estate. If you want that 64" TV, wait until you can pay cash for it. If you look at the subject analytically, there are very very few things you "need,"

Invest in good equities for the long term. If you aren't willing to basically get a graduate degree in reading a balance sheet to learn how to invest in individual stocks , invest in mutual funds. Chasing the stock market is worse than roulette. Remember, that you don't have a "loss" until you cash out the investment. Historically, investments in equities have been the best long term investment. Read what Warren Buffett says about investing.

If you have an employer match, max it out even if it means eating beenie weenies. It is absolutely the cheapest money you will ever have.

Set up a pre-tax retirement account. You save two ways. You will need to find an advisor you can trust which can be an issue, but all the money you save pre-tax will really come back to you as you approach retirement.

Finally, any time anyone (including me ) suggests a specific investment, ask him or her how much money they have invested in it. If they say "0" then pass (and they are required to answer the question.)

 

[KrisD]

Thanks everyone!

I am on the Dave ramsey program now getting debt wiped out

I went from over 200k in debt to a little under 35k now in 3 years total time. House finally sold and got rid of my Ex lol

Im pretty sure the company matches it all

 

[gh1950]

Im pretty sure the company matches it all

Even it doesn't match it all, find out if you can make excess contributions, it will come off your taxable income.

 

[shootsacanon]

Since no one else has jumped in, I'll add some PERSONAL OPINIONS (note those two words, these are MY OPINIONS and not based a lots of gobbled-gooked up statistics etc.

#1. Pay off your debt. Including your house. Even without the proposed tax-bill "taking" away that deduction a mortgage deduction is NOT a way to save money. You are paying the bank money to keep from paying the government less. That one is a FACT.

#2. If any employer offers a match on a 401K, take it. If they offer a stock option, take it. Their free money match is almost always a good deal.

#3. Stocks will move up and down and there may never be a real rhyme or reason. Mutual funds are "safer", and I prefer older established ones. Newer foreign funds may make a better dividend initially, but are often more volatile.

#3b. There are some old funds that go back to the 40's that are steady. Even those took hits in the last big recession. Also, after 9/11 Ford stock went down to less than $8.00 / share. I bought some, thinking, "hey, it's Ford, they'll bounce back". Years later they got above $16 / share and stalled. So I "doubled" my money, but it wasn't fast. GM and GE bounce back much more quickly. You just never know.

#4. Any "quick" scheme is probably a scheme. Most investments won't make 15-20% year after year.

#5. If you are passionate about something consider how you can invest in it. Not like .22LR ammo.

#6. Follow your gut if you have a strong negative feeling. I won't delve into the positive gut feelings, but a lot of "bad vibes" pan out to be well heeded.

#7. Don't pay big "fees" for fund managers. Know how managers or advisors get paid, and discuss how they'll collect a fee if your funds don't make money.

That's a quick 7 off the top of my head. I know there are people with more money and better advice. But in closing, I'll say this: being debt free (no mortgage, no car payment, no loans period) is the best advice I ever took. I have a lot of freedom now. I didn't eat out a lot, didn't go to movies, or take vacations, but now I can do all that stuff and never worry about tomorrows job. God Bless.

^^^^ All of this.

 

[InTune]

GE bounce back? Really? I missed it.

 

[carver]

Pay off debt! Invest in land (I have never lost money on land,always made money,and sometimes a lot of money),when the interest from the debt that fool Obummer racked up hits, the interest paided on CD's will be very high and safe (I still have some long term CD's that are paying over 5% that I invested in many years ago) This is the plan we followed, wife and I retired debt free at 60,now we travel,do for our kids and grandkids

 

[Sandman771]

When I invest in the stock market I buy stocks where I shop. In other words, when i go buy groceries at Wal Mart I'm paying myself a little bit each time. Same for mcDonalds, Coke, Southern Company (Ga Power). Also all those companies pay and have paid quarterly dividends (think interest) and those dividends I have reinvested into more shares of those stocks. (i.e if you buy 50 shares of stock XYZ that pays a $0.50 quarterly dividend and is priced at $90-100/share, every quarter they are giving you $25. So each year or four quarters, you are getting a free share. Actually it is a little more than that since it is compounded quarterly).
The other good advice in here is the land issue. Yes land is a good thing because they aren't making anymore of it.
One last thought is credit cards. I know someone mentioned Dave Ramsey and I'll keep my opinion of him to myself. But RESPONSIBLE use of credit cards is a great thing. Do you travel? Want free hotel nights or airline miles? Are you a veteran and just want straight 2% cash back on all purchases? There are literally tons of reward cards out there. Purchase what you need on them get the rewards then pay in full each month. Example with a 2% cash back card and power bill there are two ways to do it. :
Option A
Write a check for $200 each month.
12 months you spend $2400
option B
Set up auto draft on a 2% rewards card.
12 months you spend $2400
in rewards you get $48 back.

just one example and there are tons of other expenses that you pay each month anyway that can be done this way. My current rewards card gives me 3% on gas so I use that one for gas purchases mainly and 2%on groceries and dining.
Nothing wrong with having three or four cards for different things, just pay attention to details and always pay in full.