Dumb stock market questions...

[ArcheryAddict]

What I found that worked best for me was to read the TD, Scottrade, and other internet tools on charts and what not and all other info I could read and then download the free stock market games for my iPhone. Most start you off with 100,000 and used the different things I had learned in this fake environment to "practice" before I learned my lessons the hard way for real. Once you get a "system", and feel comfortable (AT A MINIMUM) with it, then implement it with real money, but in small chunks.

I developed a certain set of parameters and have the discipline to stick within those boundaries. I am successful around 65-70% of the time. And what I define as successful is a trade that I still profit from after the transaction fee, whether it is $1 or more. The same for when I lose.

I cannot tell you what a dollar amount would be due to the different values of the stock and how many positions I hold. But overall, I am up a little from where I started once I started with real money.

[thegrouse]

What is the average roi on what y'all are investing on retirement? I'm only 23, so I just started all this. Seeing mostly between 7-10%

Historically the S and P 500 have done around 11% since inception. When you figure in inflation you come up with around a 7% return. This is past performance and nobody knows what the future holds. Congrats for getting on board at 23. I was great from 19-27 and cashed out for a truck or a house I can't remember but it was not a great investment decision. I got back in at 29 and have been consistent ever since. 7-10% is a solid return rate.

[Stins]

You never lose or make money until you sell the stock

[TheHammer]

What are your guys views on rentals? I'm at a point now in deciding if I should buy some land and a house, or buy a rent house and start getting those built up. Or just stick with straight investing.


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[TKK]

What are your guys views on rentals? I'm at a point now in deciding if I should buy some land and a house, or buy a rent house and start getting those built up. Or just stick with straight investing.


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nothing wrong with real estate. But it is not liquid. If it were me I would build up my cash savings first and not incur a lot of debt.

[froghunter]

What are your guys views on rentals? I'm at a point now in deciding if I should buy some land and a house, or buy a rent house and start getting those built up. Or just stick with straight investing.


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I own rentals and can talk about this all day. Here is the reason I started this thread. I talked to the "investment guy" at the bank. He told me if I put in 20k$ I could have 30 to 40k$ Within 15 years. Minus fees,taxes...etc.

I can take that same 20k$ and use it as a down payment on. 100,000$ house with a 15 year loan. Tenants pay the loan off and at the end my 20 has turned into 100,000$ minus fees, taxes...etc.

Both are a gamble and have risk. I'm not mart but I know which one looks better at the end. I have several mentors and each are telling me to get educated in the stock market and diversify my investments.

[TheHammer]

I own rentals and can talk about this all day. Here is the reason I started this thread. I talked to the "investment guy" at the bank. He told me if I put in 20k$ I could have 30 to 40k$ Within 15 years. Minus fees,taxes...etc.

I can take that same 20k$ and use it as a down payment on. 100,000$ house with a 15 year loan. Tenants pay the loan off and at the end my 20 has turned into 100,000$ minus fees, taxes...etc.

Both are a gamble and have risk. I'm not mart but I know which one looks better at the end. I have several mentors and each are telling me to get educated in the stock market and diversify my investments.

So what would you tell a 23 year old with some money in the bank to do. I by no means care to be "rich", but I wouldn't mind retiring at 50-55. And I refuse to ever live paycheck to paycheck like 90% of Americans. I don't want new cars or new boats, I want to invest and I'm having a hard time right now deciding in land vs rental properties. Buying a piece of land with a house and paying it off by 30-35 and then having that equity to my name as free cash vs buying rental properties slowly. Rental game is always good from what I have seen, but like anything else, there are always catches. No matter what I do I will always invest 20% of my paycheck to my financial advisor, if I can get 8-10% that could add up when I'm 55-60.


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[froghunter]

I would say to start yesterday! I wish I had began sooner, I could be so much further along than I am.

Rent houses have worked very well for me But it's not for everyone. Educate yourself and see if it is something that you can make work.

Like I said I'm not smart at all but would be happy to answer any questions you may have.

[Kdog]

I own rentals and can talk about this all day. Here is the reason I started this thread. I talked to the "investment guy" at the bank. He told me if I put in 20k$ I could have 30 to 40k$ Within 15 years. Minus fees,taxes...etc.

I can take that same 20k$ and use it as a down payment on. 100,000$ house with a 15 year loan. Tenants pay the loan off and at the end my 20 has turned into 100,000$ minus fees, taxes...etc.

Both are a gamble and have risk. I'm not mart but I know which one looks better at the end. I have several mentors and each are telling me to get educated in the stock market and diversify my investments.

Are rentals that easy? I pencilled it out one day and it didn't seem like it was that good of a return by the time you figure property taxes. Plus what about a new roof or other problem, tenant issues etc. the thing that is appealing about the stock market is its liquid and relatively " easy" to maintain. The down side is the risk. That's my 2 cents.

[froghunter]

Are rentals that easy? I pencilled it out one day and it didn't seem like it was that good of a return by the time you figure property taxes. Plus what about a new roof or other problem, tenant issues etc. the thing that is appealing about the stock market is its liquid and relatively " easy" to maintain. The down side is the risk. That's my 2 cents.

I think it's easy but I have grown up in construction and building houses. You make your money at the purchase. Shop around and you have to buy the correct house with the correct price. I stay in the c+ to b+ neighborhoods. Loans must be structured to produce cash flow but I don't use them as "income". The profit is set aside as reserves mostly used for repairs (sometimes fishing trips )

If done correctly the house is totally self contained. Paying 100% for itself. Taxes, loan,insurance,repairs and all.

[froghunter]

How do you choose what stocks to buy?

[thegrouse]

How do you choose what stocks to buy?

There are many ways. You can start by buying the stock of a company you frequent. Lets say a local retail store that you feel is well run and innovative. You could buy their stock. Dollar General, Simon Malls, Cabelas or whatever you think is going to make money going forward. Maybe you fly on a certain growing airline and you feel they have a great product. You can also read the financial news and look for trends and mergers.

You can also buy mutual funds that invest in certain segments of the market. There are oil and gas mutual funds that buy primarily oil and gas stocks. They have a fund manager that chooses what he is going to buy.

I own a few REITs but I primarily invest in mutual funds. They are not real sexy but they get the job done.

If you are seriously considering stock investing please do some reading or visit with a financial advisor you can trust.

[Captain39]

Rentals are great! But if you don't have cash or other rentals there is risk. Not worried about the market going down, but one of my rentals just came open. I'm left with 2-3k in repairs getting it ready for the next renter. If you can't stomach going to a house a seeing it trashed or people who make late payments or worse eviction cause no payment; I would advise against it. But my rentals make me money through monthly cash flow, appreciation, tax savings. But I also diversify with my retirement at work, Roth IRA, 457 plan, & a few mutual funds.

[CTR0022]

Bryan, we need to go flyfishing sometime. I can tell you about stocks and you can tell me about real estate.