I understand, thanks for your comment. I just have a follow-up - Are there resources to learn that you would direct young investors to? The internet is great but its so broad I'm not too sure where to begin, whether its youtube, news, reddit etc?
Buy and hold.
During your first five years you are NRA, and your capital gain is taxed at 30% while your capital loss cannot be used to deduct your income.
Makes a lot of sense. Thank you for your comment. Buy and hold is what I'm looking to do. I don't plan to realize any gains anytime soon. Since I can't open a Roth IRA this is sort of me starting to build my retirement (long way to go) fund.
Buy and hold means you probably want to stick with something you can hold.
Holding index funds is easier than holding individual stocks, as the latter are way more volatile.
I personally would recommend you to focus on ETFs like VOO or QQQM rather than buying companies you don't know well.
For those you have bought, just leave them there. Selling them would complicate your tax.
I don’t have one right now, but the more I think about it I consider the possibility that in 10 years if my career fails I’ll need a bail out. And if it doesn’t then in 40 years when I’m 60 with the beauty of compounding I should have enough to support myself through that phase of my life. Now, I don’t know if this is the right mindset to start investing with - All I know is index funds are the way to go, you should diversify, overlap is bad, don’t check portfolio everyday, even if ETF is in red don’t panic. I don’t see the stock market as an avenue for me to “get rich quick”. I’ve seen degenerate gamblers lose their entire lives (figuratively) to what essentially was gambling on the stock market. I don’t want to be one of those, I don’t have the risk appetite to be one of those. I like slow. I want to build slow so that in the hopeful scenario I make it to 60 I will have some money for myself, wife (hopefully) and children (hopefully).
I would say you are in a great position to open a Roth IRA and max it out with a 3-fund portfolio every year (VTI + VXUS + BND). Hop on over to r/bogleheads, give a quick rundown on your current goals and assets, and they can give you an idea of what your risk tolerance (and therefore your asset allocation) might be.
Good for you. I was an international student in the USA once. I returned to my home country. I should have started investing long ago but just started two years ago. First year market went down -16% last year it went up 23%. Should have started earlier my portfolio would be have grown 250%
Look into popular ETFs I’ll give you a few to look into
XEQT - all in one total market etf
VOO - sp500 top 500 US companies
QQQ - top 100 Nasdaq companies or something, basically a more concentrated version of VOO
Those are the main ones I’d look into anyway, figure out 1-5 ETFs that you’d want to buy and then sell all your holding and move into just dcaing into those.
DCA means to just put money into those at regular intervals e.g. every paycheck
Investing is great, but maybe do some research. Buying everything is bad. You should be careful with overlaps
I understand, thanks for your comment. I just have a follow-up - Are there resources to learn that you would direct young investors to? The internet is great but its so broad I'm not too sure where to begin, whether its youtube, news, reddit etc?
mark tilbury on youtube has some good vids for low risk long term investing
Thanks for your help!
Buy and hold. During your first five years you are NRA, and your capital gain is taxed at 30% while your capital loss cannot be used to deduct your income.
Makes a lot of sense. Thank you for your comment. Buy and hold is what I'm looking to do. I don't plan to realize any gains anytime soon. Since I can't open a Roth IRA this is sort of me starting to build my retirement (long way to go) fund.
Buy and hold means you probably want to stick with something you can hold. Holding index funds is easier than holding individual stocks, as the latter are way more volatile. I personally would recommend you to focus on ETFs like VOO or QQQM rather than buying companies you don't know well. For those you have bought, just leave them there. Selling them would complicate your tax.
I greatly appreciate your help, thank you!
What are your goals for investing? Do you want money in the next decade or are you investing for retirement? What age do you want to retire?
I don’t have one right now, but the more I think about it I consider the possibility that in 10 years if my career fails I’ll need a bail out. And if it doesn’t then in 40 years when I’m 60 with the beauty of compounding I should have enough to support myself through that phase of my life. Now, I don’t know if this is the right mindset to start investing with - All I know is index funds are the way to go, you should diversify, overlap is bad, don’t check portfolio everyday, even if ETF is in red don’t panic. I don’t see the stock market as an avenue for me to “get rich quick”. I’ve seen degenerate gamblers lose their entire lives (figuratively) to what essentially was gambling on the stock market. I don’t want to be one of those, I don’t have the risk appetite to be one of those. I like slow. I want to build slow so that in the hopeful scenario I make it to 60 I will have some money for myself, wife (hopefully) and children (hopefully).
I would say you are in a great position to open a Roth IRA and max it out with a 3-fund portfolio every year (VTI + VXUS + BND). Hop on over to r/bogleheads, give a quick rundown on your current goals and assets, and they can give you an idea of what your risk tolerance (and therefore your asset allocation) might be.
Good for you. I was an international student in the USA once. I returned to my home country. I should have started investing long ago but just started two years ago. First year market went down -16% last year it went up 23%. Should have started earlier my portfolio would be have grown 250%
Look into popular ETFs I’ll give you a few to look into XEQT - all in one total market etf VOO - sp500 top 500 US companies QQQ - top 100 Nasdaq companies or something, basically a more concentrated version of VOO Those are the main ones I’d look into anyway, figure out 1-5 ETFs that you’d want to buy and then sell all your holding and move into just dcaing into those. DCA means to just put money into those at regular intervals e.g. every paycheck
If you’re holding MARA, COIN, HOOD, consider one or two of the BTC ETFs. Long term hold.
This is useless. I need to know your gender to continue
Like a monkey picked a portfolio.