How much do people invest in stock?

Amazon
mDEj35

Go to company page Amazon

mDEj35
Jan 3, 2021 25 Comments

Hi All,

I have seen people discussing here that how big they are making by investing in stocks.

I know people from Twilio, Airbnb, Tesla, Doordash etc are becoming millionaires because of their comp stocks are sky rocketing.

But I was curious about, how much amount people invest(apart from rsu) in stock market regularly on an average per month basis to get good returns?

I want to start investing so looking for guidance

Thanks

#personalfinance #investments

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TOP 25 Comments
  • Apple
    PDX_TPM20

    Go to company page Apple

    PRE
    Intel Corporation
    PDX_TPM20
    My networth is $5 million, and I have 15 YOE and TC is 300K.

    I only have 125K in cash. The rest is in the stock market. Banks give aweful interest.

    Here are some of my stocks:
    Jan 3, 2021 13
    • Apple
      PDX_TPM20

      Go to company page Apple

      PRE
      Intel Corporation
      PDX_TPM20
      I use Fidelity and Charles Schwab. Those are just the ones my dad uses, so I just kept using them. Fidelity does ipo, which is something I enjoy. Charles Schwab does not have any ipo access. I feel Fidelity is good enough for me. I don't do wallstreetbets level of trading like puts and shorts.
      Jan 14, 2021
    • Apple
      PDX_TPM20

      Go to company page Apple

      PRE
      Intel Corporation
      PDX_TPM20
      I can't take credit for Intel purchase, I was at intel 10 years and they just gave me those shares.
      Jan 14, 2021
  • Pandora
    Pfaa13

    Go to company page Pandora

    Pfaa13
    I auto invest 4k per month on index funds in vanguard . (on top of maxing out 401k in target retirement funds). Investing in index funds will not make you very rich overnight. But you will also not lose all the money in a very short period. The value will go down during recession (like what happened in March 2020), but will go up eventually in few years max. Same we can't say for individual stock. For my risk profile, 90 percent of my money in stock market is invested in index funds.

    Since I already has a huge cash reserve (around 150k), I invest all of my savings in a year in stock market. If I get lumpsum like rsu and bonus, I will also invest them 10k at a time and buy index funds.

    One big advantage of automatically investing in index fund is, I don't have to think about what to buy and when to buy/sell stocks. So this simplifies investing greatly for me. When the market goes down, I buy more index fund on top of my normal monthly auto buy.
    Jan 3, 2021 4
    • thank you for the detailed info. You have it all figured out. so 90% of your net worth is equally distributed between VTSAX and VTWAX only. anything other than this?
      Also, whats your age and how long have you been doing this?
      Will you continue the same approach for next 7 years?

      sorry, too many questions.
      Jan 3, 2021
    • Pandora
      Pfaa13

      Go to company page Pandora

      Pfaa13
      Right now I have around 25 percent in cash because I was saving for down-payment. But I have realized I am not excited to buy a home. So probably will invest some of that cash also into stock market slowly.

      Initially when I started investing, I was more conservative. So I would invest more percentage in bonds. I have those investments as is. But mostly investing in VTSAX and similar investments these days and going forward . I have around 20-30k invested in some individual stock. And 50k in my company stock (need to diversify it soon) And around 15k in reit index funds.

      I feel investing around 10 percent in high risk investments like individual stocks should be fine and falls under my risk profile. I won't buy more than 4-5k on a single company stock. Anymore than that makes me nervous.

      I am planning to keep 60-100k in cash and fully invest in index funds for the next 15 years. 10 years before retirement, I ll slowly move to bonds to be more safe.

      I am 34 years. I have been doing this for like 5-6 years now. My networth is around 650k. It's not much compared to people who made millions by investing in individual stocks. But I am quite risk averse and this works well for me to sleep well at night and not worry that I ll lose most of my money. Index funds gives around 7-8 percent gains average over 10 year period.
      Jan 3, 2021
  • every single $ - emergency fund
    Jan 3, 2021 0
  • Amazon
    VeryUgly

    Go to company page Amazon

    VeryUgly
    I have an emergency savings fund for 6 months and a neat amount for a down payment. I'm no longer gonna save and after paying monthly and "fun" expenses, my paycheck will go entirely into the market.
    Jan 3, 2021 2
  • Twitch
    rPPF30

    Go to company page Twitch

    rPPF30
    Here's what I do with a caveat that it should be tailored toward your own risk profile.

    I do a 6-month emergency savings and rest of the money goes into the market. I also hold stocks for the long-term, instead of opting for short-term options. This means in the worst case scenario which I need more money than what I have in emergency savings, I can liquidate my stock portfolio to get cash.
    Jan 3, 2021 0