With the market crashing left and right, about time I start investing/buying at least blue chips? Fresh out of college looking for investment advices.
Fresh out of college you should be building up a safety net fund.
How much should that ideally be?
At least 6 months of expenses
I would recommend 401k, paying off any debts (ie student loans), and emergency funds. Use Marcus by Goldman Sachs for emergency funds / savings. Rule of thumb for emergency is 4-6 months of income. Create a solid budget and stay at it. If you have extra money, put them in index funds. Don’t trade unless you know wtf you’re doing
Right, I'm contributing 12% on my 401k. Don't have any debts as I was paying for my masters tuition and half was waived. Currently I've like around 50k in savings and probably two months pay in check-in. I was reading on reddit and right thing to do is to invest in emergency funds first. But I got tempted because of the market.
Ahhh for sure. I kinda assume everyone out of college would have some debt :P. In that case, I would base your investing on what kind of trader you are. If you’re active trader, set a monthly contribution to your brokerage account and invest in a wealth of companies. I have roughly 14 ish companies. Diversified Portfolio is hella important. If you’re not active, I would just do index funds :P. Nobody can predict whether the market will go up or down without insider knowledge.
Best time is 10 years ago. Invest now and you’ll be glad you did 10 years from now
I would avoid individual stocks and stick with vanguard ETFs or mutual funds that trade commission-free. This is what I wish someone told me when I first started investing. VTI for stocks, BND for bonds and you’re set. If you want some international exposure you can get VXUS as well. The mutual fund equivalent of the ETFs I listed above are VTSAX VBTLX VTIAX And open a Roth IRA if you haven’t already
Right now or 20 years ago
2012 is best because with 20 years you go through the dot com and 08 depression
Now
The right time is always now.
“The right time is always now.” The above is terrible advice, any profesional trader or investors attempts to time the market. Putting a % of your salary in the market is ok advice as you will average out the swings and over time be ahead of the game, but your situation is unique. You have 50k cash to invest and investing that now would be a mistake given the tremendous volatility and probability of a correction/recession (they happen every 8 years on average). Wait it out to see if the economy continues to fall and then try to time the low (when credit freezes and unemployment rises). When there is blood on the street, buy... so hold on to the cash you worked so hard to accumulate and invest it when the time is right. In the meantime, read about investing and get as educated as possible. So much free info out there!
To add to this. Look at major profesional investors... there is a reason why the likes of warren buffet are currently holding on to massive piles of cash and not investing in today’s market. Best of luck.
Yeah that's true. I do have money to invest, but I'm not going all in. I just wanted to get started on it with safer, long term investments and it looks like investing in ETFs/index funds strikes the right balance between too safe or too risky. I will definitely be holding on most of my cash as you rightly mentioned that the market is tremendously volatile right now and is expected to be like this and bleed more in next couple of years.
Buy etf Fidelity contra and vanguard debt fund.IRA also
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VTSAX and chill