investing at 40 yrs old,…again

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[ARCHIVED THREAD] - investing at 40 yrs old,…again

Posted: 5/16/2017 10:50:40 PM EDT

So Im starting to invest back into the market at 40, I pretty much did what almost all Americans did and pull out assets to survive 10 yrs ago.
But now Im in a better place and I need to get back into the game and was wondering if you had 5K to invest or buy what would it be?
I already started a Roth but I want to find out and know what smart making is going on in the market I can get into? Any finiance bros
with knowledge please educate!

Posted: 5/16/2017 11:42:11 PM EDT

[#1]

I'd throw it all in some mutual funds, but this is the internet.

Use your head, see what's hot, and not going away anytime soon. I've done well with my large cap picks.

Posted: 5/17/2017 12:10:04 AM EDT

[#2]

Have you maxed out that Roth, and any 401k options (if available)? Basically prioritize investments in tax advantaged accounts first, then move on to non-tax advantaged investing.

In general though, I'd sit on the sidelines till the next correction. Markets are up 15-20% since the election on expections of big infrastructure spending, regulatory rollbacks and tax reform. Once the markets realize those agenda items aren't going to be as grand or easy/quick to accomplish (happen this year), there will be a pullback. Buy when others are selling, just try not to buy too early and ride the whole wave down.

Posted: 5/17/2017 12:43:56 AM EDT

[#3]

100% S&P500 mutual fund or better yet, ETF and forget it other than adding to it when able.

Easy peasy.

Now if you want to make it complicated, you can make it complicated.

Max out your 401(k) if able; Roth if available.

Catch up (that's why it's called "catch up") $ if you're "old" (>50).

Roth IRA if you're eligible.

Posted: 5/17/2017 1:26:35 AM EDT

[#4]

Regardless of the type of investment, let the earnings reinvest.

Posted: 5/17/2017 10:52:42 PM EDT

[#5]

Quote History

Quoted:
Have you maxed out that Roth, and any 401k options (if available)? Basically prioritize investments in tax advantaged accounts first, then move on to non-tax advantaged investing.

In general though, I'd sit on the sidelines till the next correction. Markets are up 15-20% since the election on expections of big infrastructure spending, regulatory rollbacks and tax reform. Once the markets realize those agenda items aren't going to be as grand or easy/quick to accomplish (happen this year), there will be a pullback. Buy when others are selling, just try not to buy too early and ride the whole wave down.

View Quote

Heard all sorts of people say sit on the sideline as the market continued to go up, always saying a correction was going to happen. For those that did sit on the sidelines they lost out. Perhaps those that stayed in will give it all back and more one day, but that is the reality of the ebb and flow of the markets. Has it not always been said to buy in over time so you reduce your risks of buying in on just up markets.

Posted: 5/18/2017 12:08:12 AM EDT

[#6]

After the drop today, time to jump in, the water is still warm.

Posted: 5/18/2017 12:46:09 AM EDT

[#7]

Quote History

Quoted:
Have you maxed out that Roth, and any 401k options (if available)? Basically prioritize investments in tax advantaged accounts first, then move on to non-tax advantaged investing.

In general though, I'd sit on the sidelines till the next correction. Markets are up 15-20% since the election on expections of big infrastructure spending, regulatory rollbacks and tax reform. Once the markets realize those agenda items aren't going to be as grand or easy/quick to accomplish (happen this year), there will be a pullback. Buy when others are selling, just try not to buy too early and ride the whole wave down.

View Quote

I did max out my Roth and planning to max every 1st of the year. I don't have a 401k per I'm self employed and was looking to seek other
investing areas. So I'm hoping I'd get some input on those who have and share their success or unsuccess stories.

Posted: 5/18/2017 10:59:51 PM EDT

[#8]

I'd put it in vanguard growth index fund

Posted: 5/24/2017 9:37:29 AM EDT

[#9]

Assuming you have 3-6 months living expenses set aside I would just do a diverse growth stock mutual fund.

If you dont have living expenses set aside just leave it in a 1% interest money market account for a rainy day. That way when (not if) the next recession hits you dont have to sell all of your assets (likely at a reduced value) to keep food on the table.

Also might consider something simpler like paying off some principal on your mortgage. Its nice having a paid for home when the recession hits. That combined with an emergency fund and a well stocked pantry means you can probably just can easily ride out a job loss.

Posted: 5/24/2017 11:15:14 AM EDT

[#10]

Quote History

Quoted:

I did max out my Roth and planning to max every 1st of the year. I don't have a 401k per I'm self employed and was looking to seek other
investing areas. So I'm hoping I'd get some input on those who have and share their success or unsuccess stories.

View Quote

Since you're self-employed, open a SEP IRA. You can do up to 25% of your income.

Posted: 5/24/2017 11:29:52 AM EDT

[#11]

Will give you one tip....

Buy some FNF - it is an insurance company that does title ins. (buffet loves insurance companies) currently paying 2.5% and getting ready to spin out Black Knight - so the stock is going to grow and you get the bounce of the Divy going up and have a stock to sell if you want to.

Of course YMMV and this is not any advice that you paid for.

Red

Posted: 5/25/2017 2:47:39 PM EDT

[#12]

Quote History

Quoted:

Since you're self-employed, open a SEP IRA. You can do up to 25% of your income.

View Quote

I just read about that

Posted: 6/4/2017 9:37:06 AM EDT

[#13]

Quote History

Quoted:

Heard all sorts of people say sit on the sideline as the market continued to go up, always saying a correction was going to happen. For those that did sit on the sidelines they lost out. Perhaps those that stayed in will give it all back and more one day, but that is the reality of the ebb and flow of the markets. Has it not always been said to buy in over time so you reduce your risks of buying in on just up markets.

View Quote

In high school the guys who stayed on the sideline didn't get to dance with the beauty queen and didn't get to screw her in the broom closet afterwards either.

The same applies to investing, the cowards miss out and fortune favors the bold.

Posted: 6/5/2017 2:42:24 PM EDT

[#14]

Quote History

Quoted:
In high school the guys who stayed on the sideline didn't get to dance with the beauty queen and didn't get to screw her in the broom closet afterwards either.

The same applies to investing, the cowards miss out and fortune favors the bold.

View Quote

But to continue the analogy: If you knock up the beauty queen you may be out a lot of money for a couple decades. There's a lot of value in a strategic pull out.

Posted: 6/5/2017 4:30:54 PM EDT

[#15]

I've been following the advice from this newsletter for years and have done very well.
Up $40,000+ in the last 3 months.
https://mutualfundinvestorguide.com/category/investor-guide-to-fidelity-funds/

Posted: 6/5/2017 4:59:23 PM EDT

[#16]

Quote History

Quoted:

But to continue the analogy: If you knock up the beauty queen you may be out a lot of money for a couple decades. There's a lot of value in a strategic pull out.

View Quote

Is there more to life if you've knocked up the beauty queen, though?

[ARCHIVED THREAD] - investing at 40 yrs old,…again

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