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Investment Ideas

Discussion in 'Investing' started by Bridget Mallory, May 9, 2017.

  1. Bridget Mallory

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    Can you share some investment ideas? I'm starting to prepare myself for my retirement at 50. What could be a good investment and how do you prepare yourself for retirement?
     
  2. tbw875

    tbw875 Active Member

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    Hi Bridget, this all depends on your situation, what you want, and where you are in life.

    I'm still pretty young (26) and have been investing for about 6 years. At this point, I have a solid foundation on an ETF or "equity traded fund." Really, this "stock" follows the overall stock market closely, and is called SPY.

    Additionally, I work in tech, and still see some growth there. I buy Amazon every time I have an extra thousand dollars sitting around (that was a joke), or other tech stocks.

    Others further in life might have more capital than I do (they have more cash that they can build their portfolio off of), and since they are older, would rather rely on a steady stream of dividend income. These stocks pay out quarterly, depending on how many shares you have. With enough capital, people can live off of these dividends, and hence, retirement.

    I bet the smarter folk around can chime in better than I can. I'm just a Geologist that likes following the market, but I hope my viewpoint can help you identify yours. Good luck!
     
    T0rm3nted and Jrich like this.
  3. Timbo

    Timbo Active Member

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    Direct share plans are good for the set it and forget it folks, if you don't mind the day to day share price fluctuations. Some offer low or no fee plans and many offer DRIP "dividend reinvestment plans".. COMPUTERSHARE.COM is one and there are many others out there with a wide variety of stocks to choose from. Hope that helps.
     
  4. Jrich

    Jrich Well-Known Member

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    I'm 36, and I wish I would have started investing yesterday, but today is still better than tomorrow

    The only advice I can give at this point, is to understand diversity

    As mentioned above, dividend stocks are a great way to put your money to work... And they are typically less risky than non dividend stocks, because the lower they fall, the higher the yield goes up by default, until the bargain is too big for the market to let slide any farther (in theory)

    ETF's, also mentioned already, seem to be good strategy to diversify... Since you have a basket of stocks, the gainers can buffer the losers

    But both of the above are still stock oriented, and stock investments should be realized for what they are... Speculation

    The other, more boring route is bond investments, which I haven't learned much about yet.... But I did read a helpful article that simplified diversity into one general rule:

    Take your age and subtract it from 100... The number you get is the percentage of your portfolio that should be exposed to stock investments... The remainder should be put in stable investments like bonds........ Because the closer you are to retirement, the less time you have to recover from potential losses
     
    Timbo and tbw875 like this.
  5. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Be Diversified and don't put all of your eggs in one basket. Buy stocks or ETFs from different sectors rather than just buying from one or two sectors, get some exposure to global markets through ETF rather than just getting exposure to US only. You can also hedge and protect yourself by owning something like TLT (bonds), GLD (Gold) just in case if we get a severe downturn in the equity market, hope it helps ;)
     
  6. sunshinebest

    sunshinebest New Member

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    The best is yet to come. Before you invest make sure you plan and think of it very carefully. Good luck!
     
    Timbo likes this.
  7. michaelbronislav

    michaelbronislav New Member

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    investing doesn't necessary have to revolve around only in stocks, bonds, and forex, though those are investors favorites, it also makes sense nowadays to diversify your portfolio by investing in alternative investment markets. some are popular, some aren't.
     
    alfredgervais16 likes this.
  8. Bridget Mallory

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    Thanks for the replies. I actually invested on mutual funds and bought some stocks in an establishment near our place.

    The reason for raising this inquiry is that, I received an offer from our local credit union regarding their retirement planning services. I am not so keen on this because I'd rather invest on properties instead. I am actually thinking of getting commercial real estate loans and consider the property for rentals or any business purpose.

    What do you think? Will this be a good investment for retirement?
     
  9. Narnolia Securities

    Narnolia Securities New Member

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    A relaxed life after retirement can be achieved by smart financial planning to give you the financial security needed in old age. If you are wondering where to invest, this investment options for you.
    Mutual Fund: There are various types of MFs. For you it would be good to have a 2/3 of your MF investment in a debt fund and 1/3 in mid cap growth fund. MFs don't give you monthly income but increase the value of your money over a period of time. Plus you can withdraw your money anytime.
     
  10. Serje

    Serje New Member

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    That depends what do you mean by 'good investment'. High risk implies high ROI. Actually the above comments are all fine and I agree with them. But don't you want to invest a stable business? Forget this market volatility ETFs and alike. Set up an online biz (could be e-commercial) and get paid every single day for the rest of life!
     
  11. kirtimeliwal

    kirtimeliwal New Member

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    The best investment idea that I would like to share here is that when the market situations going opposite and you are losing your money, in this case, foreget everything and keep calm. Take a short break in trading, go to a trip to refresh your mood and then restart again. It will improve your process.
     
  12. Jonathan Wiley

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    One common way to create retirement income is to construct a portfolio of stock and bond index funds. The portfolio is designed to achieve a respectable long-term rate of return, and along the way, you follow a prescribed set of withdrawal rate rules that will typically allow you to take out 4-7 percent a year, and in some years, increase your withdrawal for inflation.
    There are so many offers and strategies to create your personal investing "protecter", but the basic rule is to mix profitable and reliable stocks. Here is also more detailed plan to follow: https://www.thebalance.com/best-retirement-investments-2388568
     
  13. Ethan Scott

    Ethan Scott New Member

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    Hey bridget,
    Could you share your insights as to how you gained interest in this field?
    Looking for some "inspire me" kind of post to gain some interest.
     
  14. Ethan Scott

    Ethan Scott New Member

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    I can see your point here. What else can you tell me about turnovers?
     
  15. Ethan Scott

    Ethan Scott New Member

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    Is this link still live? I would definitely like to speak to you about it.
     
  16. Ethan Scott

    Ethan Scott New Member

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    There is no good time to start investing than “now”. You are right in thinking about investing in commercial properties as they assure a considerably higher level of security than any other form of investment, especially if you are planning with keeping your retirement in mind. However, instead of applying for commercial real estate loans, I would suggest that you go for long-term savings like shares and mutual funds instead and buy that commercial property from the profits gained by these investments.

    I know there is a relatively long waiting period for buying that commercial property through this method. However, through this way, you would be making small, calculative investments which are always a safer bet than taking a heavy loan. In case you take that loan, a considerable part of your savings could go into paying it off (and don't forget the interest!) for a couple of years. However, there is also another possibility that you could earn enough dividend on the mutual funds and stock tradings that covers the cost of buying the real estates and leaves you with some spare cash as well. I know this outcome is not guaranteed and the waiting period would be pretty long for this. But it is worth taking a shot at. In fact, the same was suggested to me by one of my senior colleagues at work. He himself had made a killing for himself by investing in one of the schemes of Reliance Mutual Fund and later diverted that money for buying a commercial property. The capital gained from this mutual fund covered almost 90% of property’s payment, while the rest was covered by his other savings. Knowing you have invested well and would be able to liquidate your assets in case of emergencies provides a psychological relief as well, rather than having a burden of a loan on your head.

    I would suggest that you start investing in open-ended mutual funds as they offer a flexibility of entering and exit as per your convenience, without any locking period. This gives you an assurance that you can redeem your funds anytime you want, instead of them being locked away for a long period of time. If you have a better judgment of the market conditions, you can strike when the iron is hot and, earn handsome dividends by redeeming your open-ended mutual funds at the right time.

    I hope this helps!
     

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