How to Start Investing from Zero?

[Matt_2190]

Hello, everyone!

Finally with the new year I have decided to take an important step and start saving a portion of my company's profits each month in another account, so as to keep them in a "piggy bank" and invest them.

But now I have a problem.

My intention was to leave the money in cash and, when I'll have some free time, start studying investments seriously.

But everyone has seen that inflation is very high these days. I don't want to park my money only to see its value go down every month. If I start investing a year from now I risk burning a lot of money.

SO...

What is a brain-zero investment to maintain the value of money?

The choice that makes the most sense to me at the moment is something like a index funds that follow the S&P 500, or precious metals such as gold. In this way I can start to become familiar with these instruments without risking much.

Then, when money becomes more, I can diversify by choosing other investments .

Does anyone have better advice or does it make sense?

 

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[Martzee]

Hello, everyone!

Finally with the new year I have decided to take an important step and start saving a portion of my company's profits each month in another account, so as to keep them in a "piggy bank" and invest them.

But now I have a problem.

My intention was to leave the money in cash and, when I'll have some free time, start studying investments seriously.

But everyone has seen that inflation is very high these days. I don't want to park my money only to see its value go down every month. If I start investing a year from now I risk burning a lot of money.

SO...

What is a brain-zero investment to maintain the value of money?

The choice that makes the most sense to me at the moment is something like a index funds that follow the S&P 500, or precious metals such as gold. In this way I can start to become familiar with these instruments without risking much.

Then, when money becomes more, I can diversify by choosing other investments .

Does anyone have better advice or does it make sense?

I had the same issue many years ago when I was starting. I landed on "parking" my money in high-quality dividend stocks, so while I was learning what to do, my money was delivering dividends. There are tons of great dividend stocks such as JNJ, Realty Income, etc. Look for dividend aristocrats or dividend kings. Then pick a few stocks from those lists and park your money there. Short term, there will be fluctuations in price, but long term you will not lose money and you will generate income.

For example, I purchased JNJ in 2013 for $58 a share. It trades at $170 today while during the entire time I was receiving dividends (3% annually with 4% increases every year).

Or Realty Income, I purchased that stock at $38 a share many years ago. Now it trades at $71 a share. And again, during the entire time, I was getting around a 4% dividend.

Once you want to know what you want to do, you may liquidate the positions and use your cash elsewhere. But as with any stock, if you plan on taking your money out sooner than 5 years, it is probably better to look for some high yield savings accounts (or you may use cash-like ETFs, for example, BSV that pays 1.6% and holds value). Later on, I started receiving enough dividends to make meaningful reinvestments, so I still hold my original positions and invest dividends in options and futures. So, it all depends on what you want to do overall.

 

[Johnny boy]

Your company wouldn't be able to return a 15% increase in profits from reinvestment? I am sorry to hear that. Maybe try to fix that problem.

And if it can....then what the F*ck is an index fund going to do for you that's better?

If your company makes 100k profit, and you can put aside 20k after a year that you want to invest, you can expect the market average return of 10.5%. So you'll make just over 2 grand profit.

Are you telling me that if you put another 20 grand into your business, it would return you the same or less than a 2k profit?

 

[MJ DeMarco]

How much money are we talking about? $10K? $100K? $200K? $1M?

The answer depends on the amount ... inflation is a negligible concern with minimal capital.

 

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[Matt_2190]

How much money are we talking about? $10K? $100K? $200K? $1M?

The answer depends on the amount ... inflation is a negligible concern with minimal capital.

At the beginning we're talking about a few thousand.

But I would like to set a fixed percentage every month for this purpose: since the company is growing, if all goes well in a year's it could be 100K.

 

[MJ DeMarco]

Hello everyone,
For many people, the word “investing” sounds like a very big and scary deal.
The key to building wealth is developing good habits—like regularly putting money away every month and nixing your Planet Fitness membership that you haven’t used in years. Companies like Jumac Cans always keep these points in mind even when they started their business with Zero investment.
2. Enroll in your employer’s retirement plan
3. Open an IRA as well
For starters, you’ll have more control over your account, since you’re opening your own personal IRA rather than going through your employer, who determines your investments for you.
4. Let a robo-advisor invest your money for you :
Robo-advisors entered the investing scene about a decade ago and make investing as simple and accessible as possible. You don’t need any prior investing experience, as robo-advisors take all of the guesswork out of investing.
5. Dip your toe in the real estate market.

Are you a bot? Because your posts are robotic and boilerplate, as if you pulled them out of a textbook, or the mainstream narrative playbook. That's not going to work here.