For Dummies

[Anonymous No.11551097]

Retard here, how do I start investing for gains?

I'm interested in a long-term investment plan of some kind as opposed to shoving all my money in a savings account and pretending the interest will make me rich.

How do I make gains without gambling like a pink wojak?

[Anonymous No.11551112]

>>11551097
3 way split between VTI, VXUS, BND. Nothing more nothing less.

Alternatively, all in on LINK

[Anonymous No.11551120]

you know what to do

[Anonymous No.11551127]

>>11551112
I'd include BNDX as well.

[Anonymous No.11551131]

>>11551111

[Anonymous No.11551133]

>>11551097

Forgot to add specifically, I'm not interested in short-term stock trading or cryptocurrency. I want to know about investment in regards to things like dividends and bonds. Think a 20 year retirement plan rather than a get-rich-quick scheme.

>>11551112
I'm a novice, so what are these? Mutual funds? I have yet to open a brokerage tbqhwu

[Anonymous No.11551229]

>>11551133
They're ETFs. Extremely similar to mutual funds. You're so green you won't even notice the difference. But I prefer them because they generally have lower fees.

More specifically they are total market ETFs. ETFs are like groups of stocks. You buy 1 share of etf and you own an "average" of many stocks. Pic related is the total US fund which mimics the S&P 500. It has been statistically proven time and time again that timing the markets is a bad idea. Hedge fund managers rarely beat the S&P500 average, you can't do better picking individual stocks so it's better to have an average. How old are you? If you're young then the portfolio should be about 80% stocks 20% bonds. The older you get, the closer to 50/50 you want. I gave you 4 etfs, 1 for us stocks, 1 for us bonds, 1 for international stocks, 1 for international bonds. I would split them 40 40 10 10. Maybe 35 35 15 15 if you want to be conservative and safe.

[Anonymous No.11551262]

>>11551229
I only gave you US bonds, what the other anon suggested
>>11551127 is the international bonds and I like that idea.

I gave you a perfect retirement plan. You don't need a lot of different things in your portfolio to make big money. Warren Buffet only has something like 10 or 12 different stocks in his portfolio and that's it. And especially because these funds encapsulate the entire stock market, it's like you have lots of stocks.

Google bogleheads wiki, more specifically lazy portfolio or 3 fund portfolio.

[Anonymous No.11551314]

>>11551229

I've just entered my mid 20s, and I'm investing as a total beginner. I was initially pointed to penny stocks, but I was turned off by their apparent volatility, and I have yet to invest anything at all.

[Anonymous No.11551348]

>>11551314
Do not do penny stocks. I did penny stocks when I was 20. I lost money. 99% of people do. Penny stocks are for daytrading which is a whole skillset and requires thousands of hours of education. You want passive investing. You want retirement. I gave you that. It's very simple. Open a Vanguard account. What I would do if I was you, since you're young, do the 80/20 split between stocks and bonds, so 40 40 10 10 respectively. These are Vanguard funds I gave you so if you buy them in a Vanguard fund you will not pay any commissions to buy them. Take whatever money you have that you want to invest, divide it by 6, and over the course of the next 6 months, buy these 4 things once a month. This is called dollar cost averaging. This way you don't go all in now and have the market dump on you. Keep doing this every month. That's it, simple as that.

Or, if you want even simpler, Google Vanguard target date funds. They do essentially what you're going to be doing manually, dividing between stocks and bonds. Only reason I don't like that too much is because they have higher fees for doing the work for you. But if you want less hassle then all you need to buy is a target date fund for like 2055 or whenever you plan to retire and that's it. 1 thing in your portfolio. Done.

[Anonymous No.11551394]

>>11551097
https://www.bogleheads.org/wiki/Getting_started

[Anonymous No.11551435]

>>11551348

I really appreciate the advice, but excuse my misunderstanding of the jargon. I don't know what a Vanguard fund/account is. But what I'm gathering is that for a multi-decade plan, dumping part of my paycheck/savings in these ETFs is a smart move, yes?

I'm okay with slow growths, so long as its notably higher than dumping shit in a savings account.

[Anonymous No.11551526]

>>11551435
No problem. You're a beginner. You have a lot to learn. Click the link the other guy posted and start reading, it's the forum i mentioned, bogleheads wiki.

You said in your OP you don't have a brokerage account. That's an account that's let's you buy these stocks and funds and mutual funds, one of the big names I'm sure you've heard, Etrade, Td Ameritrade, schwab. One of them in Vanguard. Open an account with Vanguard. Now the 4 ticker symbols I mentioned, the 4 etfs I said you should buy. Etf stands for exchange traded fund. So when I say fund, that's what I'm referring to. The ones I told you to buy are run by Vanguard. So if you buy Vanguard funds in a Vanguard account you pay no fees. I buy my Vanguard funds in my Td Ameritrade account so I pay 10 bucks for every purchase. I should probably open a new account.

The rule of thumb is you should dump 15% of your income into retirement minimum. You should do so regularly on a schedule, up to you how often. Could be every week, every 2 weeks, every paycheck, once a month, every 2 months, whatever. I gave you a retirement plan complete with how to split up your buys. That's all you need to do. Just as quick and easy as buying crap on Amazon. Once you buy them, set them up to reinvest dividends. Google DRIP, Google it, if you need help setting it up call your Vanguard account and tell them you want to do the DRIP which stands for dividend reinvestment program.

Your returns will be much greater than your savings account. My savings account is something pathetic like 0.01%. With this portfolio you can expect 6-10%, obviously fluctuations happen.

Never sell even if markets are crashing. In fact, buy even more when price is cheap. You're young you have a long investment horizon. Don't sell. Buy the dip. It will recover.

[Anonymous No.11551559]

>>11551435
what country are you in?

[Anonymous No.11551577]

>>11551559
UK I'm afraid

>>11551526
Absolutely fantastic, I've just been writing everything you've said in this thread on paper. Can't thank you enough anon, I'll see how my savings turn out after I put the info you've given me to use.

[Anonymous No.11551620]

>>11551577
No problem. Glad to help. Any more questions you got? Ill answer any last ones before going to sleep, I'm in the US so it's bedtime for me soon.
I can't stress enough to not pick individual stocks later once you start reading and think you're more experienced. The guys on Wall Street almost never beat the S&P500 average, and the etf fund I've given you mimics the S&P500. You can't do better trust me

[Anonymous No.11551659]

>>11551577
you sound like you have a good head on your shoulders. aside from coming to 4chan for financial help.
that wiki has most of what you need. if your under 200k your specific plan doesn't make much of a difference as much as having a plan and building up healthy habits.

[Anonymous No.11551663]

>>11551620

I haven't got much to ask, but I think I'll just take the safer option of dumping in the funds you suggested plus maybe some bonds.

I'm mildly interested in gambling on short term gains, but only as a very small part of my future portfolio. I will depend only on the long-term gains. I think I'll go with your advice and dump my initial investments into what has a good, proven history. a 4-6% gain per year is far better than a bank account that only provides up to 2% per year.

The main questions for me are mostly practical -- A lot of online literature I'm reading seems to be written for traders/investors living in the USA. I'm quite confused as to what I can make of that as a britbong, and I'm not sure if it means I'm meant to open a bank account based in the USA or something like that.

Like I said, I'm new to it. The only investments I have made in my life are personal involvements in poultry and honey.

[Anonymous No.11551707]

>>11551663
Hm you bring a bong and me a burger I don't know the specific ins and outs. I think you can still open a Vanguard account and buy these funds. And you still should buy the US fund even though you don't live here, US has the best companies in the world.

If you want to gamble short term such as picking stocks yourself, open a retirement account, the Bong equivalent of an IRA. Put your stocks there. Retirement accounts have tax savings so when you do short term trading you will be paying short term capital gains tax. Or your can avoid them or limit them by putting them in the retirement account. Put the funds I mentioned in a regular account since they're very tax efficient they don't need the tax savings of the retirement account

[Anonymous No.11551729]

>>11551663
equity averages 7-9% over a 20 year span. if you're absolutely confident you're not going to touch the money for that long you don't need really need bonds at all. but theoretically drop 50% the day after you buy which most people can't stomach. there are rules of thumb but it's ultimately what your comfortable with.
>A lot of online literature I'm reading seems to be written for traders/investors living in the USA.
the fundamentals are the same. basically buy everything weighted by their market size and adjusted for your local taxes. I'm sure there are guides and ETFs that outline the most of it. honestly, try reddit. the more professional subs aren't bad.
https://www.reddit.com/r/UKPersonalFinance/
f you don't want to deal with all that you can pay a bit extra for a robo advisor or all-in-one fund.
>I'm mildly interested in gambling on short term gains
if you have a taste for gambling just go to the casino. the trap most people on this board fall for is getting a taste of victory and getting a false sense of confidence they sink in more money into.

[Anonymous No.11551736]

>>11551707
>Retirement accounts have tax savings so when you do short term trading you will be paying short term capital gains tax
you also can't write off your losses. also day trading tax free accounts is illegal where I'm from

[Anonymous No.11551755]

>>11551707

I've done a quick google and there's something called an ISA that protects investments against tax up to £20k in said account. I'll need to look more into the nitty-gritty of it.

I don't doubt that British investors are buying into US companies, so I'll have to ask around IRL and see what's what.

>>11551729
>if you're absolutely confident you're not going to touch the money for that long you don't need really need bonds at all.

That sounds about right, The money I intend to invest is money that has been sitting for a while in spite of me doing just fine with my income. I don't know too much about bonds though, and don't know what I'm in for.

[Anonymous No.11551770]

>>11551736
I didn't mean him daytrading, I thought he was going to be gambling by stock picking and swing trading, holding a week, a month, or 6.
I'm not sure what the write off is like in bongland. He has to do that research himself, I admit I don't know much about tax stuff

[Anonymous No.11551801]

>>11551755
>I don't know too much about bonds though, and don't know what I'm in for.
they're guaranteed returns. ~3% in the states
>That sounds about right, The money I intend to invest is money that has been sitting for a while in spite of me doing just fine with my income.
20 years is a long time, make sure you're fine not having the money for anything like buying a house or having kids.
>>11551770
>I didn't mean him daytrading, I thought he was going to be gambling by stock picking and swing trading, holding a week, a month, or 6.
functionally the same

[Anonymous No.11551802]

>>11551755
You should have at least some bonds, when you read the lazy portfolio on the bogleheads wiki they give 1/3 to bonds, I only told you to do 20%. You should have a bit.

[Anonymous No.11551834]

>>11551801
>they're guaranteed returns. ~3% in the states

Already seems better than bonglandese savings accounts.

>20 years is a long time, make sure you're fine not having the money for anything like buying a house or having kids.

That's completely fine. I don't have any big expenses on the horizon, and I can put my increases in income into my investments. I have a educational/job opportunity coming, as well part-time small-scale entrepeneurship such as flea markets and green produce.

[Anonymous No.11552185]

>>11551097
LINK

[Anonymous No.11552212]

>>11551120
invested into LINK around this time last year. cant believe its been a whole year since the ICO! Sergey and the team have made amazing strides since then. HODLing