Investmenting Options/Suggestions...

[Nathan]

Im currently in a Finance class, and a lot of what we are learning about is really making me want to start investing money. Im only 21 years old, im a college student, and work part-time, so I dont really have a lot of cash I can lock up into an investment. Whatever I do, I want it to be something I can handle on my own (I dont want to pay someone to invest for me), and it be something I can do in very small increments of cash.

Everyday when I come home I throw all my change into this jar to be rolled later. I was thinking that for starters I can start converting all of that change into investments. Its not money I rely on, and when I cash it all in I always end up blowing it on something stupid. I was thinking about possibly buying government bonds with the change money, since I can easily do this myself via the internet, and I can buy bonds in increments as small as $25. They can be cashed in at any time after a year, and the only penalty is the last 3 months interest is lost. They continue to mature for 30 years, earning 3-4% interest annually. Its not much, but its way better then what my change would be getting sitting in my room.

Im also about to set up a 401K up with my workplace, and start investing a small percentage of each check towards it. The bottom line is I want to do everything I can to help make sure im set once I retire. I dont want to have to work till im 70 years old, and when I do retire I want to be able to live rather nicely. I dont think many people my age even consider investing, but I figure the sooner the better, since investments are all about time and patience.

With my tax return coming soon, and the possible economic stimulus package, I was thinking this may be a good time for me to take some of that money and invest it. I was just wondering what ways you all are currently investing, and what would be a good way for someone with little disposable income to get started. Also what about stocks? Any brokerage site suggestions?

Any help or feedback regarding investing would be appreciated it. Im currently just in the research phase. I want to make sure I really figure out a plan before I jump into anything major.

[Nathan]

I just realized I said investmenting... im not that dumb, really.

[Ugly Bastard]

Does your company give you any incentive to invest in your 401k? Like... will they match your contribution up to 10% or something like that?

[Nathan]

Originally Posted by Ugly Bastard

Does your company give you any incentive to invest in your 401k? Like... will they match your contribution up to 10% or something like that?

I dont have too many details yet regarding the 401k. My boss gave me a packet of information the other day regarding it that I read over. He said that they DONT match what I put in, but I get money from the company put in depending on how the business does every quarter or so... I didnt get very detailed information regarding this, but I figure when I meet with the financial institute thats in charge of it ill get more of an explanation. Regardless if the company doesnt put much in, its only a part-time job, and anything I get from them is better then nothing. I dont intend on working for them for more then a few more years, since ill be graduating college and hopefully finding a stable career of some sort. At that point I would just transfer the 401k over to the new company.

But as far as government bonds go do you guys have any input? I just figured do to the small amount needed to get started, it was a decent way to invest some of my money. My bank account only gets .3% interest so its pointless to put anything more then necessary in there, and until I get more saved up I cant invest too heavily into anything, especially since most things require 1,000-2,000 minimum.

As far as stocks go, I started watching Mad Money recently and paying a little closer attention to the stock market and business news. I was curious what you guys think of Jim Cramer, the host of Mad Money, or if anyone has read any of his books.

Growing up ive always been big on watching things progress... I used to play all the various Sim City games, I get way in depth into the statistical parts of games such as Madden in franchise mode and the progression of players. Ive told my friends before that if they invented a way to keep stats on EVERYTHING we ever do in our lives that would be the coolest thing ever (how much time of your life is devoted to shitting, watching tv, etc). I know its not related, but the idea of being able to create something in real life, and watch it grow over time is very fascinating for me, so the whole topic in general has started to consume me lately.

[StabMaster Arson]

Originally Posted by Nathan

Ive told my friends before that if they invented a way to keep stats on EVERYTHING we ever do in our lives that would be the coolest thing ever (how much time of your life is devoted to shitting, watching tv, etc).

I had a book like that when I was little. It was called 'on the average day' or something like that. I thought it was the coolest thing ever for a while, then I got laid.

[Beebs]

A Roth IRA or a normal IRA are also worth looking into, especially if your 401k is shit.

Make sure the 401k is properly managed and has the right investment mix for you.

[THEINCREDIBLEdork]

Originally Posted by Nathan

Im currently in a Finance class, and a lot of what we are learning about is really making me want to start investing money. Im only 21 years old, im a college student, and work part-time, so I dont really have a lot of cash I can lock up into an investment. Whatever I do, I want it to be something I can handle on my own (I dont want to pay someone to invest for me), and it be something I can do in very small increments of cash.

Everyday when I come home I throw all my change into this jar to be rolled later. I was thinking that for starters I can start converting all of that change into investments. Its not money I rely on, and when I cash it all in I always end up blowing it on something stupid. I was thinking about possibly buying government bonds with the change money, since I can easily do this myself via the internet, and I can buy bonds in increments as small as $25. They can be cashed in at any time after a year, and the only penalty is the last 3 months interest is lost. They continue to mature for 30 years, earning 3-4% interest annually. Its not much, but its way better then what my change would be getting sitting in my room.

Im also about to set up a 401K up with my workplace, and start investing a small percentage of each check towards it. The bottom line is I want to do everything I can to help make sure im set once I retire. I dont want to have to work till im 70 years old, and when I do retire I want to be able to live rather nicely. I dont think many people my age even consider investing, but I figure the sooner the better, since investments are all about time and patience.

With my tax return coming soon, and the possible economic stimulus package, I was thinking this may be a good time for me to take some of that money and invest it. I was just wondering what ways you all are currently investing, and what would be a good way for someone with little disposable income to get started. Also what about stocks? Any brokerage site suggestions?

Any help or feedback regarding investing would be appreciated it. Im currently just in the research phase. I want to make sure I really figure out a plan before I jump into anything major.

suck my dick and I'll give you 10 dollars

[Ironic Mustache]

Is that offer on the table to anyone?

[Ugly Bastard]

Jim Cramer is an entertainer. That's not to say he doesn't know a lot about the market, but it's important to realize that to make money in the market, you have to know something that most people don't. Plenty of people blindly purchase whatever stocks Cramer recommends, and smarter people make a lot of money shorting those stocks for a couple weeks following the recommendation.

I believe there is value to watching Mad Money. You can learn a few things about investing while being entertained in the process. But it might not be wise to let it be your only guide to investing.

[BigDongedHoe]

AMD (Advance Micro Devices) is only at $7.00 a share right now. You'd have to think with the market share they've taken from intel over the past 2 years that is bound to go up.

I'm not much of a stock market guru but this is the first stock I've ever bought into. Maybe something to think about in the future.

edit: extremely unbelieveabley intoxicated while posting this.

[THEINCREDIBLEdork]

amd is going under

[DJ FC]

Bonds is a good way to go until you get to $500-1000, then you have enough to open a scottrade account invest in an ETF.

ETFs are the best way for the small invester to be diversified. Read about ETFs.

[Ugly Bastard]

Originally Posted by George W. Bush

ETFs are the best way for the small invester to be diversified. Read about ETFs.

Agree 100%. Until you have hundreds of thousands of dollars and a lot of understanding about the market, it's going to be a bad proposition for you to be making trades at $10/pop on stuff you don't really know about. ETFs do all the work for you.

Buying SPY is just like buying the S&P 500
Buying QQQQ is just like buying a bunch of tech stocks
Buying EWA is buying the Australian market
Buying VWO is buying emerging markets

You get the idea. Instant diversification in one trade.

[Nathan]

Originally Posted by George W. Bush

Bonds is a good way to go until you get to $500-1000, then you have enough to open a scottrade account invest in an ETF.

ETFs are the best way for the small invester to be diversified. Read about ETFs.

I haven't read about ETFs at all yet, but I did plan to do something like this. The withdrawal fees associated with bonds is pretty minimal. I figured I would work my bonds up to a certain amount, and once I reach it I can take that cash out of bonds, and invest it into a higher yielding investment of some sort.

Essentially, if you invest properly, I look at it almost like a exponential curve. You start out with little, at a low rate, and the more money you accumulate allows you to invest in more options, maximizing my rates of return.

Today in between classes I stopped by Borders and bought Jim Cramer's Stay Mad for Life book. Like UB said hes an entertainer, but I figure Ill be able to get some useful information out of the book.

Ultimately, I want to be able to work up to a decent amount of cash I can play in the stock market individually, while still maintaining a handful of other investments on the side that are less risky and that I wont be touching for some time.

[Mr. Blonde]

Who the fuck was Nathan?

[Orgazmo]

Nathan was a gentleman a few of us met while playing Ultima Online. I believe his name was FuzZ there. We brought he and a few of his cohorts to Nubblies, though he was the main poster of the group.

[Repugnant Abomination]

I remember him having a very gentle, John Mayeresque look to him.

[Orgazmo]

Originally Posted by Repugnant Abomination

I remember him having a very gentle, John Mayeresque look to him.

[Nathan]

Originally Posted by Orgazmo

You win. The internet truly is amazing.

[Mr. Blonde]

It saddens me deeply how many Nubblites we have lost.

[Repugnant Abomination]

I thought you were really cute back in the day. I once remarked you had a John Mayeresque look to you. It was gentle. You're more attractive now, but have a "I'm sexy and know it" frat boy thing going on. And yet, somewhere behind that mask of self confidence, I still see the old you. The tender you. the you with those gentle eyes, imploring me to lose myself in their depths.

I don't know how I feel about this.

[DJ FC]

Nathan is back!?

[Repugnant Abomination]

So is that it, then? Nathan sweeps back into our life only to leave again?

[f3lix]

I just made a 100% exit from the stock market for the first time in my life.

[DDTempest]

Originally Posted by f3lix

I just made a 100% exit from the stock market for the first time in my life.

Care to elaborate?