Do you have any advice for a newbie looking to invest in Mutual funds?

SGT Private RallyPoint Member — Sat, 09 Apr 2016 19:02:11 -0400

Scottrade, E-trade, something else? Specific strategies?

Response by CPT Joseph K Murdock made Apr 9 at 2016 7:03 PM

CPT Joseph K Murdock — Sat, 09 Apr 2016 19:03:21 -0400

It depends how long until you will need the money?

Response by Capt Brandon Charters made Apr 9 at 2016 7:19 PM

Capt Brandon Charters — Sat, 09 Apr 2016 19:19:17 -0400

Great question SGT Private RallyPoint Member. Capt Mark Perrault should have some excellent advice on this one.

Response by MAJ Rene De La Rosa made Apr 9 at 2016 9:11 PM

MAJ Rene De La Rosa — Sat, 09 Apr 2016 21:11:31 -0400

If you have a favorite company, (Wal-Mart, Disney, Coke), you can consider DRIPs (dividend reinvestment programs, where you buy one share and then dump money into that particular stock. It is another way to go. Mutual funds can be the way to go if you want diversification.

Response by CPT Joseph K Murdock made Apr 9 at 2016 9:14 PM

CPT Joseph K Murdock — Sat, 09 Apr 2016 21:14:42 -0400

I have a Finance and Accounting degrees if that helps you.

Response by SFC Private RallyPoint Member made Apr 9 at 2016 9:35 PM

SFC Private RallyPoint Member — Sat, 09 Apr 2016 21:35:02 -0400

Excellent question SGT Private RallyPoint Member I'm not so much per say a "newbie" , but am looking at options when I retire on transferring my TSP. IMO the stock market kinda scares me right now with what it's been doing so I'm looking at other options to dump my money somewhere.

Then again I just may take it all, go to casino, and put it on black on the Roulette table(joking of course)

Response by Capt Richard I P. made Apr 9 at 2016 10:45 PM

Capt Richard I P. — Sat, 09 Apr 2016 22:45:21 -0400

Vanguard S&P 500 index 90% of your savings. 10% in a risk free asset (government bonds or savings account.)

Straight from the mouth of the literal best investor alive.

"My advice to the trustee
could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers."
http://www.berkshirehathaway.com/letters/2013ltr.pdf

Response by Capt Richard I P. made Apr 9 at 2016 10:49 PM

Capt Richard I P. — Sat, 09 Apr 2016 22:49:44 -0400

There was a series of Command Post articles a while back by @Marc Wayman.

https://www.rallypoint.com/search?keyword=strategic+and+tactical+investing&search_type=answers

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Response by Maj John Bell made Apr 9 at 2016 11:16 PM

Maj John Bell — Sat, 09 Apr 2016 23:16:25 -0400

Find out when and why your financial advisor gets paid. Especially on brokerage in-house funds.

https://en.wikipedia.org/wiki/Mutual_fund_fees_and_expenses

Mutual fund fees and expenses - Wikipedia, the free encyclopedia

Mutual fund fees and expenses are charges that may be incurred by investors who hold mutual funds. Running a mutual fund involves costs, including shareholder transaction costs, investment advisory fees, and marketing and distribution expenses. Funds pass along these costs to investors in a number of ways.

Response by MSgt John McGowan made Apr 9 at 2016 11:40 PM

MSgt John McGowan — Sat, 09 Apr 2016 23:40:04 -0400

Go with Vanguard as a investment firm. Great company and I don't own any of it. Vanguard handled my 401k and when everyone was losing money all I lost was some lowering of interest. You might also look into divideND stocks. I would suggest looking at the motley fool and research what they recommend..A good dividend stock is AFLAC. Contact me and I can give you what mutual fund I use at Vanguard. This is no BS suggestions. These have worked for me very well. I have all the figures to back it up.

Response by MAJ Raúl Rovira made Apr 9 at 2016 11:48 PM

MAJ Raúl Rovira — Sat, 09 Apr 2016 23:48:11 -0400

If you want to do it yourself, there are plenty of websites that explain what each type of investment is. That will allow you to make better decisions.

My recommendation for you is to find an advisor who is a Certified Financial Planner (CFP). They are regulated and must have your interest first also known as fiduciary responsibility.

Educate yourself or find someone who can educate you so you can make money decisions without the emotions.

*This post is not financial advice

Response by Sgt Private RallyPoint Member made Apr 10 at 2016 12:04 AM

Sgt Private RallyPoint Member — Sun, 10 Apr 2016 00:04:49 -0400

Do your homework before you invest. Starting out I would invest in a conservative mutual fund with low fees. As others have suggested, look at http://www.vanguard.com to start because they have many low fee funds to choose from. Starting out, look at an index mutual fund. You could pick out a balanced fund that invests 60% in stocks, and 40% in bonds. Begin with mutual funds, and only after you know what you are doing should you consider individual stocks. Study IRAs, Roth IRAs, 401K, and discover how these tools can provide big benefits. Explore the Vanguard website and it will answer a lot of questions that you have.

Mutual funds, IRAs, ETFs, 401(k) plans, and more | Vanguard

Vanguard is one of the world's largest investment companies, with more than $3 trillion in global assets.

Response by CSM Charles Hayden Passed 7/29/2025 made Apr 10 at 2016 1:36 AM

CSM Charles Hayden Passed 7/29/2025 — Sun, 10 Apr 2016 01:36:17 -0400

SGT Private RallyPoint Member For 1 year - don't. For longer term, please check into Dave Ramsey's, books, podcasts or radio show. Don't invest- educate yourself. Just like my having played "pokies", (slot machines), in an Australian 'Returned Serviceman's League', their version of the American Legion; I did not understand how their slots worked - and QUIT PLAYING THEM!!

Response by SGM Mikel Dawson made Apr 10 at 2016 1:36 AM

SGM Mikel Dawson — Sun, 10 Apr 2016 01:36:53 -0400

Real estate, gold or silver. These things you don't have to watch, pay attention to, and over time they increase in value. Great long term investments.

Response by SPC(P) Private RallyPoint Member made Apr 10 at 2016 1:43 AM

SPC(P) Private RallyPoint Member — Sun, 10 Apr 2016 01:43:10 -0400

My advice is to avoid them period. I recommend in ETF's. And $VTI, $RWO, $SPY and $DBO are what I'm currently holding in my liquid account

Response by Capt Seid Waddell made Apr 10 at 2016 1:46 AM

Capt Seid Waddell — Sun, 10 Apr 2016 01:46:27 -0400

Read Investors Business Daily every day - they have a great investor's education section every day, and they rank stocks, explain the stock chart patterns, and give good advice on buy/sell points.
But read and learn for at least six months before you start putting your money into any stocks. If you understand their ranking factors you will be able to find good stocks and buy them at reasonable prices.

Response by SPC(P) Private RallyPoint Member made Apr 10 at 2016 1:51 AM

SPC(P) Private RallyPoint Member — Sun, 10 Apr 2016 01:51:26 -0400

Also, you can hedge your investments with inverse ETF's. Like the $SQQQ is short and the $QQQ is long stocks apart of the NASDAQ index. I personally hold a 3 to 1 when it comes to hedging. For every 3 stocks I purchase, I short 1. And vice versa

Response by CPT Joseph K Murdock made Apr 10 at 2016 11:38 AM

CPT Joseph K Murdock — Sun, 10 Apr 2016 11:38:53 -0400

The question is, are you willing to accept a -10%, -5% to pursue 5%, %10, 15% with your investment?

I would be leery of the stock market, that is my personal opinion. Stay out of hedge funds and options, that is just some bad advice unless you are a sophisticated investor.

I would go with:
1. Preservation of capital
2. Make a short term gain with minimal downside.
3. Go full out stock market and take your chances.

So what are you going to do?

Response by MAJ Hugh Blanchard made Apr 12 at 2016 10:42 PM

MAJ Hugh Blanchard — Tue, 12 Apr 2016 22:42:19 -0400

First, before you begin to invest, get some savings together, something like 3-6 months of living expenses. Put that into an interest-bearing account that you can access in an emergency. Don't put those savings at risk.
Then, do some research. Go on-line to your local library and look at Morningstar Reports, Value Line, Better Investing or the American Association of Individual Investors (AAII). Look at mutual funds and at exchange-traded funds , many of which have lower costs than mutual funds.
If you want to get an advisor, ensure they are trained - Certified Financial Planner is a very good credential. If you get an investment advisor, get a fee-only advisor who is NOT working to directly sell you products for which he or she gets a commission. Do NOT hire a financial investor who directly sells investment products-that is a built-in conflict of interest.
Lots of products available - no need to buy funds with sales loads, don't let any one convince you that you need to pay a sales load to get good performance - reality is quite the opposite, actually.
Regards,
Hugh