Investing

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

Founder

Full Member
10+ Year Member
15+ Year Member
Joined
Feb 2, 2007
Messages
241
Reaction score
0
Hi all,

I was thinking of taking about $7,000 to $8,000 of my HPSP bonus and investing it before the stock market shoots up again.

I am certain I want to do this. However, I don't want to pay outrageous fees and crap like that.

I have been looking at Vanguard ETFs. Since I am young, 23, I am into "high risk" for better returns over the long haul. I wont need the money for a long while, due to my stipend and all that, and I'll still have most of the rest of the bonus available...

So I have been thinking Vanguard or going with Etrade or Ameritrade or something like that. I was wondering if anyone here had any experience with the online brokers and was willing to share?

I was also considering getting some individual stocks (I think Microsoft is going to try and buy Yahoo! again, and it's cheap as dirt right now) and again was wondering which is the best online broker to use.

Thanks.

Members don't see this ad.
 
I've got Vanguard. Put as much as you can in a Roth IRA because its tax free. You could buy 75% total stock market index and 25% international or 50% large cap (s&p 500 index fund), 25% combined small/mid cap and 25% international.
 
I've got Vanguard. Put as much as you can in a Roth IRA because its tax free. You could buy 75% total stock market index and 25% international or 50% large cap (s&p 500 index fund), 25% combined small/mid cap and 25% international.

The only problem with that is in order to contribute to the Roth, one must have "earned" income and that amount is the max you can contribute up to 5,000 (ex. If you only make 3K per year, you can only contribute 3K to a Roth). Otherwise, I completely agree and I try to follow the Dave Ramsey model (i.e. Spread out risk among different mutual funds)

25% International
25% Small Cap Fund (or Aggressive Growth)
25% Large Cap Fund (or Growth and Income)
25% Mid Cap Fund (or Growth)

For the kiddies, I went with an Educatuional IRA (as opposed to a 529 plan) because I wanted the ability to choose which fund I could invest in. Since the limit is 2K for this, though, I choose to contribute into a diversified fund consisting of many funds (kinda of like an index fund but not that random)

Vanguard has excellent expense ratios (probably the best), but I liked T Rowe Price's returns over the long run better. When you are thinking of which funds to pick, I highly recommend buying the book Morningstar Funds 500. Very good comparison book.

Good Luck
 
Members don't see this ad :)
If you're paying federal income taxes on your stipend, then you have enough income to put the full $5K into a Roth IRA. Open it at Vanguard, pick the target retirement 2050 fund, the Total Stock Market Index Fund, or the All-World Index Fund and forget about it until January. Then you can put up to $5K more in. That should satisfy your urge to "buy low." Make sure this isn't money you'll need for a house in a few years, a car next year, moving or interview expenses etc. This should be retirement money.

If you insist on opening a brokerage account and buying ETFs, Wellstrade has a great option, but you have to keep at least $25K with Wells Fargo to take full advantage of it.
 
If you're paying federal income taxes on your stipend, then you have enough income to put the full $5K into a Roth IRA.

Totally forgot about the stipend/bonus, but I don't remember paying federal taxes on the monthly stipend.

I would also recommend against ETFs since the OP wants more "high risk/high return"
 
25% International
25% Small Cap Fund (or Aggressive Growth)
25% Large Cap Fund (or Growth and Income)
25% Mid Cap Fund (or Growth)

I agree with the plan, but not the allocation. I think this would probably best best given the current economic and political climate:

45% Canned Tuna
30% Bottled Water
25% Shotgun Shells

:laugh:

Ed
 
I agree with the plan, but not the allocation. I think this would probably best best given the current economic and political climate:

45% Canned Tuna
30% Bottled Water
25% Shotgun Shells



Ed
How do you know this plan was written by someone in the Army? There's no budget for:

A) a can opener

B) A shotgun

At least you won't be thirsty

:laugh:

Perrot
 
How do you know this plan was written by someone in the Army? There's no budget for:

A) a can opener

B) A shotgun

At least you won't be thirsty

:laugh:

Perrot

Nice one.

I have been with Trowe Price for the last 5 years, have been very pleased with their service and their low fees. They are ony of the few institutions that have been able to stay clean over the last few years of financial scandal (I probably jinxed them, better go with Vanguard)
 
if i had any money to invest now i would pick those Buffett's stocks that are down at least 50% right now. u know IR, NRG, BAC. btw, how much is yr hpsp bonus? isnt it taxed? so how much cash do u really get before enrolling in college?
 
Whatever you get into, expect to stay in a while. We have not hit bottom, and it could be many years until we see a consistent upswing in value.
 
I'm using Edward Jones. I know E-Trade charges a lot of accessory fees for account maintenance, therefore I stayed away from them and other online traders and went to an Edward Jones office instead. So far, so good. No problems thus far.

Good luck and buy soon!
 
Top