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CelticsWin7 t1_j2cb4d8 wrote

$50 per month invested from 18 years old to 65 years old at 8% rate of return will turn into $310,000 at age 65.

Start with investing in the overall market like a S&P 500 fund.

VOO and VTI are both good overall stock market investments.


lost_girl_2019 OP t1_j2dav8b wrote

Is that what I would buy into? The VOO and VTI? What is an S&P 500 fund? I'm in my mid-30's, so a little late to the game.


EffectAdventurous764 t1_j2dc2ok wrote

The S&P is a basket of U.S shares it includes companies like Apple/Microsoft/Amazon and hundreds of other shares.

You are essentially buying just over 500 shares in the American stock market and its a great place to start investing, when some companies are struggling the others help balance it out. I D.C.A (dollar cost average) into it every week. I would recommend doing that.


lost_girl_2019 OP t1_j2dex18 wrote

Okay, how do I go about doing the D.C.A.?


nrealistic t1_j2df6tp wrote

Putting the same amount in every week or month is DCA. The alternative would be waiting until the market seems low, buying a bunch of stock, and then not buying any more for a long time until the market seems low again

I think DCA generally performs better / is safer. Personally, i do it - I have it set up so a portion of every paycheck is deposited into my brokerage account and invested.


lost_girl_2019 OP t1_j2dfhcv wrote

Yeah, I wouldn't have any idea how to tell if it's low. When I look at those charts, my brain feels like it's frying. I literally have ZERO experience in this stuff. I am so appreciative of everyone's help and kindness towards my lack of knowledge and experience!!


tsnara t1_j2dof55 wrote

Don’t try to time the market. Just buy when you have your $50 available.

Some times you get a “good” price per share with that $50, others not so good. Good price means your $50 will buy more shares compared to a bad price.

But either a good or bad price on each $50 purchase you make will result in more or less the same outcome - you’ll own a lot of shares that accumulate over time. Especially if you’re diligently buying shares each time you have extra cash, with little regard to the price you pay.

That’s the secret - amass shares and don’t sell them for decades.

(Ps - Don’t buy individual stocks- stick to broadly diversified mutual funds or ETFs)


JJROKCZ t1_j2e1q3k wrote

Time in the market beats timing in the market. Put whatever you can in when you can and don’t sweat too much over it. Anything you do now is a benefit to your older self


absurdamerica t1_j2eaz2u wrote

The habit of saving is far more important than any timing. I’ve been consistently putting in for 23 years and it’s a big pile of money now.


Strong_Woodpecker634 t1_j2fnpvn wrote

Get the book, or audiobook, the simple path to wealth by JL collins. You need to build some base financial literacy in that book is really all you need.


lhamil64 t1_j2frh6v wrote

>Putting the same amount in every week or month is DCA.

Check out the wiki on investing:

Dollar cost averaging is when you have a sum of money that you want to invest and, rather than investing it all at once, you spread it out over time. If you are investing as you earn, it's not technically DCA. And as the wiki says, it's generally better to just invest the lump sum at once. But by the same logic, it's better to invest as you earn rather than saving it up to invest later (which I need to be more disciplined about tbh)


SaveUkraine2022 t1_j2dba58 wrote

The person is referring to ETFs. They’re essentially securities whose price depends on the assets they contain (more or less a collection of investments)


lost_girl_2019 OP t1_j2dc91k wrote

Got it, thank you!


SaveUkraine2022 t1_j2dcfo8 wrote

The aforementioned index ETFs are generally considered rlow-risk investments relative to other ETFs and stocks.

That being said, investment returns are usually dependent on the level of risk involved. The rate of return is directly proportional to the level of risk


lost_girl_2019 OP t1_j2debfr wrote

So the more aggressive your investment, the higher the likelihood of having a higher "payout" so to speak? I don't know the exact term.


Mountainhollerforeva t1_j2dhbr7 wrote

It’s more about the risk profile than the level of investment. More risk equals more potential rewards. But you want something moderate risk like VOO which is an S and P 500 tracker. Meaning it’s made up of a mixture of s&p500 stocks.


According_Elk_8196 t1_j2ednlg wrote

Yes in general a higher risk investment should have a higher expected payout than a lower risk investment but the range of outcomes (meaning chance of loss) will be higher


pretend_im_not_here2 t1_j2dpfvk wrote

You are definitely not too late. I didn’t really get into it until I was around 30. I invest actively and passively, I’m not getting rich, but if I hadn’t started putting money in the market I wouldn’t have like an extra $100k that just accumulated over time


Luddites_Unite t1_j2e6nuq wrote

Vti is us market including s&p 500 companies and is a good choice. Either way, voo or vti, you only need one of them


[deleted] t1_j2dpd1m wrote



CelticsWin7 t1_j2dr7nh wrote

Yes from a brokerage account, Roth IRA, , HSA, etc.

You can open up all these accounts on Fidelity, that's what I use.

Also most 401k's should have a low cost mutual fund that mimics the S&P 500


MelonMemes t1_j2dr3sb wrote

Just purchase an ETF such as VOO, IVV, or SPY. You can purchase any of these through a brokerage just like you would any stock. And I would recommend maxing your Roth IRA every month before contributing to a taxable investment account to avoid taxes on the gains in the far future


kruel1 t1_j2frq73 wrote

I think I’m trolling myself, because I’ve been putting money into the fidelity index funds because after my reading that’s the kind of fund I thought dca applied to. Is it better to go for one of these etf instead? Is it more efficient because of lack of an expense ratio


EuronXena t1_j2erqun wrote

8% is a lot to bank on…


CelticsWin7 t1_j2etlaj wrote

Not with dividends reinvested. 8% is certainly attainable, especially if you start investing the middle of a bear market.

The average return per year from the very bottom of a bear market to the peak of a bull market is between 15%-19%.

Obviously you can’t time the bottom of a bear market, but you can dollar cost average into it. And eventually the bull market begins and at some point you’ll be up 15%-19% during the bull run (assuming buying at the bottom).


EuronXena t1_j2ets0a wrote

Oh great! So as long as you (time the market) you’ll be set!


CelticsWin7 t1_j2eu4ph wrote

That’s not my point. My point is if you dca into a bear market an 8% return on average per year in a bull market is certainly attainable.


Devilish2476 t1_j2dpfxw wrote

Can you break those numbers down for me please? I’m just not seeing it


FateLeita t1_j2doj1h wrote

Can you explain how you calculated that? (Like the actual formula.) I'm not sure I understand how that works. I'm familiar with compound interest, but I don't know how often something like that would compound, or if that's even the right formula to use.


nkyguy1988 t1_j2c69m2 wrote

Broad market index funds. If it goes to zero, the world has ended and money doesn't matter. Not saying it won't lose value at times, but takes out all single company risk.


lost_girl_2019 OP t1_j2dbgm7 wrote

Thank you! Anyone in particular?


lakehop t1_j2drx6f wrote

Invest inside a Roth IRA. This is a tax advantaged account, where all the gains you make will be tax free when you take them out, after you hit retirement age. The money could grow 3 or 4 times, so that is a big deal. You can take out the money you put in tax free at any time. To do this, open a Roth IRA account at Deposit the $50 in that account. Then buy FSKAX or similar (the entire US stock market).


KReddit934 t1_j2c665l wrote

Where are you? How old? What do you have for savings now?

These all make a difference.

There a flowchart in the Personal Finance Wiki..


lost_girl_2019 OP t1_j2dbq1s wrote

I'm in the very middle of the US and I'm in my mid-30's. I started a savings account that my part time job check goes into. Gross base pay per month is $500. I'm using a lot of that to help my husband pay off his debt, but want to put at least $50 into a retirement or investment account. I plan to also use some of that to put into a HYSA for emergencies. The $50 was decided on because I easily blow that amount on stuff I don't need every month and would rather put it to good use.


eatin_gushers t1_j2dc8i4 wrote

Hey just fyi this probably isn’t enough information for most people here. For me, if your husband is also working and you guys can pay all of your bills and you have already contributed to your tax-advantaged retirement accounts, go do it.


lost_girl_2019 OP t1_j2demmb wrote

My husband is retired. He's in his mid-60's. He has a retirement account but is no longer contributing to it. I do not have one. I would like to start one, though, which is why I'm needing some guidance. I'm trying to provide as much info as I can while still maintaining some degree of anonymity on the internet. What other information do you guys need? I'll see what I can answer!


Mountainhollerforeva t1_j2di6x5 wrote

I would try to open a managed retirement account or 401k type account through your primary job. Most jobs offer you matching of some sort. As for me I have most of my money in HYSAs at the moment. Around 3.8% apy. For awhile now that’s looked more attractive than letting it to the whims of the current market. I also bought some us government I bonds while they were paying 9.62% apy. I don’t know if that was a good idea yet or not because they won’t mature til the fall. They’re still paying around 7% because they’re indexed to inflation, so slightly better than hysas


qeqe1311 t1_j2dnb3s wrote

All of these simple but very effective factors, that really does matters.

If Someone is really cautious before investing and care of these things, then he would be most probably in a good place.


BastidChimp t1_j2c65e7 wrote

If you're currently employed, open up a Roth IRA. There is a book you can borrow from your local library. The Little Book of Common Sense Investing by John Bogle. This book was written for beginner investors emphasizing investing in broad market ETFs like VTI or VOO for their simplicity. Just set it and forget it even during market corrections until you retire. Broad market ETFs for the win.


Trusky86 t1_j2d70lr wrote

Thank you for this. Mid 30’s and I feel completely hopeless financially. Hope I can somehow make up for lost time.


dacyman t1_j2e1yrq wrote

If he is unemployed, then I would suggest him to stay away from trading.


ChiSquare1963 t1_j2c6k2o wrote

Are you wanting to invest for retirement or for some other goal?

if for retirement, open a Roth IRA at Fidelity, Schwab, or Vanguard. You can open online. Pick a Target Date Retirement Fund that’s close to the year you turn 65 as your investment. Send your money to new account. You can put up to $6000 a year in IRA, as long as you have income earned from employment.


hvserv t1_j2duetm wrote

He might also invest in gold, if he is having some long term Target.


sirguynate t1_j2cc42s wrote

It can be as simple as putting money in a high yield savings account.

A couple of years ago I stopped drinking coffee. I started a weekly auto transfer for the $25 that I normally spent on coffee in a high yield savings account.

It literally can be that simple.

Other than that, I have most my 401k in index and mutual funds.


tewanderer2 t1_j2d4l1i wrote

Which bank did you use? I have a lot of savings doing jack in my chase account I'd like to move somewhere better


lost_girl_2019 OP t1_j2darw8 wrote

I've read a lot of positive reviews about Ally. Thinking of checking them out myself.


okreallymaam t1_j2e8219 wrote

I like Marcus by Goldman Sachs! It’s incredibly easy to set up a HYSA, no minimum, no fees. I tell my family and friends to set out up if you have a chunk of change in your savings account.


novdomo t1_j2f7kxo wrote

The money which he is putting right now in SIP now, would give him a good return later on in his life.

He would be thanking all those people who gave him this advice for real.


gentlemannosh t1_j2dabo2 wrote

You've started, that's awesome.

Don't worry if sometimes you can't, you'll soon be able to add more and more, but it's these first few years that add the big amounts in 40 years.

It never matters how often you stop only that you always start again when you can.


breezyoperation46 t1_j2dbdlz wrote

Appreciate it! This really is inspiring that I can hold on to. Thank you.


Left-Landscape-3890 t1_j2c62um wrote

Vanguard auto contributions into VTSAX in a taxable brokerage or roth ira Or Fidelity into FZROX in a taxable brokerage or roth ira


biondablonde t1_j2c68xr wrote

Are you employed? Does your employer offer a 401k? Do you want to save this money for retirement or a shorter-term goal?


lost_girl_2019 OP t1_j2dbfcg wrote

I am employed on a PRN/part time basis due to disability. I want to save this money for "retirement." I do also have a goal of working on a down payment for a house, but the retirement is my first goal. With that said, can you advise me on both goals?


MissNguyendi t1_j2ddxsk wrote

Either way, put this in a Roth IRA.

Although, it's not recommended to withdraw money from your Roth IRA for a home purchase, you can do it with tax benefits.

> Roth IRA withdrawal rules allow you to take out up to $10,000 earnings tax and penalty-free as long as you use them for a first-time home purchase and you first contributed to a Roth account at least five years ago.


morenodavid661 t1_j2eo7im wrote

Most probably he is going for long term plans, i might also be wrong.


Spare_Cheesecake_580 t1_j2d22kq wrote

Not sure if you have chosen a broker yet but fidelity is probably your best bet, they offer a ton including fractional shares which you will want with your low capital


wolf8sheep t1_j2c87lu wrote

The new provision taking place in 2024 allows 529 accounts that have been opened for at least 15 years to convert to roth so just opening the account and funding it minus the last 5 years is well worth it imo in both furthering a degree and doubling as a 35k roth vehicle which depending on your age can be more beneficial the younger you are.


lost_girl_2019 OP t1_j2db6vh wrote

Since this is all pretty new to me, a lot about your comment is confusing me. I am mid-30's, no children, no possibility of children and have a Master's degree, so no plans to further my education. Most of my money in my early part of my career went to help support my disabled parent.


wolf8sheep t1_j2e2r9l wrote

The new 529 rules can still benefit you because up to $35,000 can be converted to a roth account if the 529 has been opened with you as the beneficiary for 15 years. So it is worth looking into.

Depends too what the goal is and if it is for retirement or just to learn how to trade single stocks or learning your greeks to options trade. If that’s the goal then I’d recommend the think or swim app by TD Ameritrade and start with paper trading which is playing around with fake money to learn by trial and error.


mhsieh33 t1_j2fdlpe wrote

Goverment might bring some new tax rates in this particular slab, to increase the funding.


Historical_Name_6752 t1_j2da54c wrote

Open a Roth IRA. Tax-free growth. If you're young, I would consider a s and p 500 fund.


kevkaneki t1_j2eaz8j wrote

With you, having only $50/month, it’s pointless to learn much about the whims of the stock market. In your situation, you really just need to understand 5 things.

  1. Time is the most important factor. The sooner you can start putting your money to work for you, the better. The longer you have until retirement, the more you stand to gain from your investments. Start today, and don’t look back.

  2. Understand the differences between basic account types such as a 401k, traditional IRA, and ROTH IRA. Especially as they relate to taxes. Taxes are going to have a major impact on your nest egg in retirement, arguably the biggest impact other than your investment selection.

  3. Stick with low cost ETFs or target date funds. Don’t buy individual stocks, buy baskets of stocks. Vanguard funds are generally the gold standard. You’ll want to do at least a bit of research on specific funds like VOO or VTI and ideal allocations based on your age and specific goals… A good place to start would be googling the 4 fund portfolio.

  4. Don’t panic when the stock market tanks. It happens. As long as you aren’t nearing retirement in the next couple years or so, just let it ride.

  5. As you near retirement you’ll want to rebalance your portfolio from aggressive to more conservative. This basically means selling your riskier investments (stocks) and buying safer investments (bonds). You have 30 years before retirement to learn about this stuff, but if it seems too complicated or you’re not interested in learning, just go back to step 3 and stick with a target date fund. With target date funds, all you do is select the date you expect to retire and they will automatically adjust your portfolio as you get closer to that “target date”. Most 401ks have target date options.

All that being said, I’d also recommend you download the Acorns app. It’s a great platform for beginners. Fidelity is great too.


ahj3939 t1_j2cgo8t wrote

Open account with Fidelity and setup an automatic investment into FZROX which is is their total stock market index fund.

Vanguard is no good for this due to the high minimum initial investment on most funds.


chopsui101 t1_j2cikbs wrote

index funds, bonds or cd's....might go for a target date fund or something


GitProphet t1_j2d4g81 wrote

I also have little money to invest and chose a broad market etf (A2JSDA) 300€/quarter instead of monthly to reduce trading fees.


roxwe11 t1_j2d6bfe wrote

You have etoro and / or vanguard, just remember that you can get back less than you invested.


Sammy_Doo t1_j2dpv91 wrote

As I told my younger brother, if you don't know much about it, like index funds, ETFs, mutual funds, CDs, stocks, bonds, etc then research it. Don't invest your money in something you don't understand. You can read books or research online to understand but personally I think YouTube is a good place to get the basics down. I really enjoyed learning about Index funds from Our Rich Journey, they also have a video how to open and put money into a Fidelity account to start investing. With a Fidelity account you can buy index funds, ETFs, stocks, bonds, etc. But like I said, please research first so you know which you want to invest in.


aWormhatForVermhat t1_j2efzht wrote

Do you have a job that does 401k matching? I’d start there by investing at least as much as they match up to $50/month if that’s what you can afford.


metalguysilver t1_j2ekfgx wrote

In case no one’s said it yet, make sure you have a cash emergency fund of 6 months of expenses first


whisky_in_your_water t1_j2es2lg wrote

I recommend opening a Roth IRA at one of the big firms, meaning Vanguard, Schwab, or Fidelity. Here's what I recommend buying at each:

  • Vanguard - VT - spreads your money around to pretty much every public company in the world; when you get up to $3k invested, you can change to VTWAX and set up automatic investments
  • Schwab - SWTSX (US stocks) and SWISX (international stocks) - do 60% SWTSX, 40% SWISX
  • Fidelity - FZROX (US stocks) and FZILX (international stocks) - do 60% FZROX and 40% SWISX

Do that until you have a better idea of what you want.


kboogie82 t1_j2e3mcm wrote

Do you have access to a employer 401k, 403b, Roth 401k. You may be missing out on free money.


EnvironmentalCry3898 t1_j2ejqlv wrote

great idea.

I do not laugh at it.

I was closing my robinhood for a pdt trigger (I ama badass illegal day trader with my 50 dollars)

and I put 33 bucks left into gold.

it is now +40%.. and my only invest that stayed green.

took 1.5 months, I digress.

my other cash account was 213.. now 425. all straight shares, no options, no margin.

+100% in 60 days.

of course investing is exponential to starting money, unless you get a unicorn (ie: KALA) in some premarket scan... while it is low . I do not want to tell you my story about that one...


Serious-Dog-1091 t1_j2ek67q wrote

Open a Roth IRA. Buy shares of SPLG. It's an S&P 500 fund. Same as spy. Same as VOO. Shares are $45 right now. Google everything that I suggested so you can learn. Expense ratios is on par with other top/popular S&P funds. Again Google these terms.


dLat t1_j2f5cgy wrote

Put it in yourself and increase your skill set to get a higher income


ASK_IF_IM_PENGUIN t1_j2cadq7 wrote

First things first, why do you think it's a total loss?

Secondly what are you spending the rest of it on?

This is important. If you need to, do. If there's additional waste that's up to you but that's also ok.


lost_girl_2019 OP t1_j2cktm5 wrote

I said total loss in reference to stocks or something like that where I could easily lose money. With $50 a month, it wouldn't be the end of the world. I plan to put other money in a HYSA, help pay off debt and other things. I'm not sure what you're saying in your last point.


Full_Prune7491 t1_j2cwlpd wrote

Depending on the interest rate or your debt, you should be paying that first before HYSA.


lost_girl_2019 OP t1_j2damy5 wrote

I agree, but here is my situation. Most of the debt is my husband's, who is SEVERAL years older than me. I am happy to help him pay off the debt, but want to start putting some money back for when he is eventually gone. I agree that I should help pay down debt first so I'm not stuck with that in the event he passes, but I also worry about loss of his income. I don't know if that makes sense. Still seems like I should pay the debt down first.