Hey everyone,
I'm set to start FT soon, and as most of you on here I am interested in maximizing my personal wealth as much as possible, starting early in my career. Are many of you actively investing in stocks or real estate etc.? If so, how do you find the time for due diligence etc. while working FT in a bank? Thanks
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I've been investing since I was 15 with a brokerage account and IRA, but as a college student, I have all the time in the world. It will probably be too hard to do any due diligence once starting a FT job.
must be great to have a trust fund
What the hell does a 15 year old know? Equally, how much money does a 15 year old have?
Before saying something to that Prickish degree throw in your parents gave you $$ to start it up. No 15 year old in their right mind is interested in the stock market and they spend their $$ on booze, movies, and stupid shit like a avril lavigne cd (gulity!)
Don't respond with a reply like " Guy I was in long with apple on my own at 12 years old" or something else like that knob job.
I'd kill to have a trust fund and then tell everyone i manage my own money...owning Disney and IBM doesn't count as shit..especially when mommy and daddy bought it for you
I told my dad to throw some money at SNE before the PS2 hit at 10 years old. Rode that baby all the way up to $300.
Yeah, that was my thinking as well. I don't know how others do it, but there do seem to be some successful "part-time" investors around?
If you're at a MM/BB bank, spend some time with your ER buddies :)
I had the same thought ;)
I would echo what everyone else said... Set up an IRA/brokerage account and invest in some Mutual funds or ETFs since you wont have as much time for research. The earlier you start the better off you will be.
OR if you can find the time, invest in some high quality blue chip stocks with strong dividends and let it sit... Over time the dividends should take care in hedging you against any capital loss should the economy enter another soft patch. Its good to have some exposure to bonds/fixed income too. I would do 70/30 or 60/40 based on how the economy is right now (fixed income/equities).
my 2c
I agree with the ETFs comment. I'd put a majority of your investments into solid ETFs if you don't have the time or desire to research and buy individual equities. Being in Corporate Finance I have some more time so I'm ~75% mutual funds/etfs and ~25% individual investments of my choice. This seems to be the right balance for me and keeps me happy/interested.
I completely disagree with having 60 or 70% of your investment in fixed income. Even if you retire early you won't touch these long term investments until you're 59.5 and you'll likely hold some of them into your 70s (and possibly beyond). Given that time horizon I can't see a good reason to be investing in fixed income at all at this point, let alone having them be a substantial portion of your net worth.
You make a good point, I just recommended it based on how the average retirement portfolio is set up (60/40 from my research) but then again those are for people who are already in their late 40s and 50s. OP seeing as you are young, I think it would be okay to take on some additional risk and venture outside of fixed income a little more... but I'd still recommend having at least some exposure to it.
I see a lot of people mentioning ETFs and for good reasons. I wonder why people are not recommending index funds as often. They both purpose to track performances of a range of stocks and with index funds the dividends are automatically re-invested which can be quite useful especially with high dividend stocks such as utility stocks etc. Index funds are also somewhat easier to manage for a typical retail investor who doesn't want to spend much time following his portfolios.
I would not invest in individual stocks at this time in your life. I would stick to index funds and a solid REIT. You probably won't have enough capital to really diversify your portfolio among different individual stocks...
OK, all good points, thanks guys.
For investing in general, what do you guys think is a reasonable approach: Wait until a larger sum has accumulated or just invest a set amount each month?
Monthly payments work wonders for me. Back of my mind and no risk of me plundering my accounts to get that gorgeous new random gadget that's just popped up.
That makes sense, yes. Thanks for the input.
Anyone here who has made real estate investments in the past?
I invest a small amount but have found it very hard to get the time to do DD.
As I dont have much to invest I focused on ETF's and took a very basic strategy.
Invested in S&P500, FTSE/Xinhua China 25 Index, Gold and S&P Global Energy Sector through ETF's with the rest in a high interest deposit account. Happy to just let it sit at the moment but getting very apprehensive about China 25 and Global energy so may liquidate those soon. Gold prob does not have much steam left in it but I dont mind having it in a portfolio.
Tbh it is very very tricky to make money in the market at the moment especially as a clueless newby with little time for DD. I have lost money since starting about 1.5 years ago.
I keep saying I will devote more time to it and do it properly but it always seems to get pused down in the list of priorities :(
Yeah, I think this time problem really comes with a FT IBD job (I assume that's what you do). I thought about doing some DD on the weekends, we'll see if I really find the time.
Focus on asset class more than individual stocks. Keep duration short on your bond portfolio, you will give up yield but lower volatility.
Unless you already have a significant amount of wealth, any effort is much better spent focusing on learning on the job rather than worrying about your PA. Just put as much as you can in your 401k. It's unlikely you'll be able to max it out ($17k) your first year, and you won't really have many investment choices.
A bunch of guys in my office are actively trading on the side. A few have lost a few 000s, which kinda ruins your day/week/month. So far, I've stayed away from it just because I don't think I have enough time to do all the due diligence on individual stocks and stay on top of my portfolio once I've bought in... that being said, i like the ideas mentioned above on ETFs.
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