$5k to start, where do I begin?

Hello guys, I’m in my mid 20s, I saved up 5k to start investing by slaving. But before I do, I want to learn. I was recommended this forum by a friend, so I decided to join. I basically want to learn how to better analyze annual reports, and work on other due diligence skills before diving into the investment world.

The markets that I believe will best suit me: Technology, Marijuana, Real Estate.

60% stocks/ETFs
25% REITs
15% Cash for speculation.

If there are some sort of start up guides that you guys can point me towards, I would love that. As well as any input you guys could share on your due diligence strategies and such.

Thank you very much, look forward to learning from you all.

Just a side note, I’m not in school, and I plan on doing Real estate full time once I build enough capital.

 

Back in college I knew a guy who turned $5k into $20k in a year using levered ETFs alone. I don't recommend it though, but you could give it a shot.

Make sure you get a good trading broker. Don't use RobinHood. Get something legit so you can learn the intricacies of bid/ask, volume indicators, etc.

REITS are better suited for larger account sizes. With $5k you're tying up too much capital waiting for a dividend. Could work if you're conservative.

Don't take CNBC seriously.

 

I know a lot of people want to make investing into something complicated, but I personally would keep it simple.

If you are under the ROTH IRA income threshold I would suggest opening A ROTH IRA at TD Ameritrade. Through TD you can buy most Vanguard ETFs commission free. I would suggest investing in VTI (Vanguard Total Stock Market ETF) and VEU (Vanguard FTSE All-World ex-US ETF), maybe some BND (Vanguard Total Bond Market ETF) depending on your risk tolerance.

With that simple three fund portfolio you have exposure to almost all of the world's publicly traded equities and have a solid Bond fund as well. I would read up on the three fund portfolio and check it out https://www.bogleheads.org/wiki/Three-fund_portfolio

If you already have a maxed out Roth or are above the income threshold you could do the same three fund portfolio in a taxable account with TD Ameritrade.

 
Best Response

You don't invest in markets that "best suit you". You invest wherever you can make a buck. How risk averse are you is something you need to answer first. Below are some options I can suggest:

  1. You can loan out that $5k to degenerates that would pay you 10% per week
  2. Double it up (or triple) with a bet on the roulette or Baccarat table
  3. Flip zips: For $5k, you could roughly get 3.5 ounces of HH, you can buff it up at a 50% ratio yielding 7o's of 50/50 good stuff. You can sell each o for $2k to get you $14k, effectively yeilding an ROI of 280% in a matter of a month (depending on how long you need to sell off). Start now and by the time you are in your late 20s you would have made a killing.
  4. Start a ponzi scheme - start small, target a younger and less expereinced market
  5. Start your own business where you have a controlling interest or E-com (Amazon/Kiosk)
  6. Start a YouTube channel with the idea of becoming a social media public figure
  7. Save your money - get a low interest LOC and use the banks money to do any of the suggestions above at a higher scale, depending on your approved credit line and watch your money (or the banks) grow!

Hope that helps. Cheers.

 

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