How do i make my money grow 10% a year

[alphatarget1]

My HSBC online savings is only 3.05% APY now... How do y'all invest your money?

 

[her209]

Bet it all on black.

 

[QED]

Originally posted by: alphatarget1
My HSBC online savings is only 3.05% APY now... How do y'all invest your money?

Is your mortgage and any other debt completely paid off? If not, I'd start there instead.

 

[gamepad]

A Nigerian prince promised to let my savings grow 1,000%. Maybe he will give you his blessing as well.

 

[Ticky]

Get lucky in the stock market?


(Anyone else buy NVDA below 19.00?)

 

[Special K]

Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

 

[TheoPetro]

go whole hog into small cap value ETFs with low expense ratios. There some risky mother fuckers but you can gain (or lose) ~27% annually historically speaking.

 

[irishScott]

I dunno about 10%, but check these out for savings accounts (other nice stuff on that site too):
Money-Rates.com

 

[venkman]

Fertilizer?

 

[alphatarget1]

Originally posted by: QED

Originally posted by: alphatarget1
My HSBC online savings is only 3.05% APY now... How do y'all invest your money?

Is your mortgage and any other debt completely paid off? If not, I'd start there instead.

student... loans are deferred (interest free) atm

 

[alphatarget1]

Originally posted by: Special K
Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

I would be happy with about 5% (it was 5% back in december!) in my savings, and put another half of that money into the stock market or something for some more riskier investments. If I were to invest in stocks I'd probably just buy one of the DJIA components. I figure if one of them die America is really screwed, so the risk (of losing all my $$$) is relatively low.

 

[Baked]

Buy random stocks.

 

[SlitheryDee]

Buy low, sell high. Not necessarily stocks.

 

[TheoPetro]

Originally posted by: alphatarget1

Originally posted by: Special K
Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

I would be happy with about 5% (it was 5% back in december!) in my savings, and put another half of that money into the stock market or something for some more riskier investments. If I were to invest in stocks I'd probably just buy one of the DJIA components. I figure if one of them die America is really screwed, so the risk (of losing all my $$$) is relatively low.

the DJIA only includes 30 stocks, not a well diversified portfolio. I would research some sectors and find 4-5 ETFs/MFs that track the ones you like. ETFs have much lower expense ratios compared to mutual funds because there passively managed (the first actively managed one just started by bear stearns but 99% will be passive). You want at least 45 uncorrelated securities to make a well diversified portfolio and 4-5 ETFs should give you that easily.

 

[Special K]

Originally posted by: TheoPetro

Originally posted by: alphatarget1

Originally posted by: Special K
Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

I would be happy with about 5% (it was 5% back in december!) in my savings, and put another half of that money into the stock market or something for some more riskier investments. If I were to invest in stocks I'd probably just buy one of the DJIA components. I figure if one of them die America is really screwed, so the risk (of losing all my $$$) is relatively low.

the DJIA only includes 30 stocks, not a well diversified portfolio. I would research some sectors and find 4-5 ETFs/MFs that track the ones you like. ETFs have much lower expense ratios compared to mutual funds because there passively managed (the first actively managed one just started by bear stearns but 99% will be passive). You want at least 45 uncorrelated securities to make a well diversified portfolio and 4-5 ETFs should give you that easily.

Or you could just buy the Vanguard Total Stock Market Index + Vanguard Total International Market Index.

 

[overst33r]

Originally posted by: Special K

Originally posted by: TheoPetro

Originally posted by: alphatarget1

Originally posted by: Special K
Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

I would be happy with about 5% (it was 5% back in december!) in my savings, and put another half of that money into the stock market or something for some more riskier investments. If I were to invest in stocks I'd probably just buy one of the DJIA components. I figure if one of them die America is really screwed, so the risk (of losing all my $$$) is relatively low.

the DJIA only includes 30 stocks, not a well diversified portfolio. I would research some sectors and find 4-5 ETFs/MFs that track the ones you like. ETFs have much lower expense ratios compared to mutual funds because there passively managed (the first actively managed one just started by bear stearns but 99% will be passive). You want at least 45 uncorrelated securities to make a well diversified portfolio and 4-5 ETFs should give you that easily.

Or you could just buy the Vanguard Total Stock Market Index + Vanguard Total International Market Index.

Or you could buy a Target Retirement fund that has both and instant diversification.

 

[TheoPetro]

Originally posted by: Special K

Originally posted by: TheoPetro

Originally posted by: alphatarget1

Originally posted by: Special K
Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

I would be happy with about 5% (it was 5% back in december!) in my savings, and put another half of that money into the stock market or something for some more riskier investments. If I were to invest in stocks I'd probably just buy one of the DJIA components. I figure if one of them die America is really screwed, so the risk (of losing all my $$$) is relatively low.

the DJIA only includes 30 stocks, not a well diversified portfolio. I would research some sectors and find 4-5 ETFs/MFs that track the ones you like. ETFs have much lower expense ratios compared to mutual funds because there passively managed (the first actively managed one just started by bear stearns but 99% will be passive). You want at least 45 uncorrelated securities to make a well diversified portfolio and 4-5 ETFs should give you that easily.

Or you could just buy the Vanguard Total Stock Market Index + Vanguard Total International Market Index.

True but wheres the fun in that?

 

[Kelvrick]

Buy ammunition.

 

[imported_Lothar]

Originally posted by: TheoPetro

Originally posted by: alphatarget1

Originally posted by: Special K
Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

I would be happy with about 5% (it was 5% back in december!) in my savings, and put another half of that money into the stock market or something for some more riskier investments. If I were to invest in stocks I'd probably just buy one of the DJIA components. I figure if one of them die America is really screwed, so the risk (of losing all my $$$) is relatively low.

the DJIA only includes 30 stocks, not a well diversified portfolio. I would research some sectors and find 4-5 ETFs/MFs that track the ones you like. ETFs have much lower expense ratios compared to mutual funds because there passively managed (the first actively managed one just started by bear stearns but 99% will be passive). You want at least 45 uncorrelated securities to make a well diversified portfolio and 4-5 ETFs should give you that easily.

One does not need such wide moat diversification.

 

[Gothgar]

Originally posted by: gamepad
A Nigerian prince promised to let my savings grow 1,000%. Maybe he will give you his blessing as well.

sweet!!! I got that offer too, now that I know its legit I am all over it

 

[Special K]

Originally posted by: TheoPetro

Originally posted by: Special K

Originally posted by: TheoPetro

Originally posted by: alphatarget1

Originally posted by: Special K
Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

I would be happy with about 5% (it was 5% back in december!) in my savings, and put another half of that money into the stock market or something for some more riskier investments. If I were to invest in stocks I'd probably just buy one of the DJIA components. I figure if one of them die America is really screwed, so the risk (of losing all my $$$) is relatively low.

the DJIA only includes 30 stocks, not a well diversified portfolio. I would research some sectors and find 4-5 ETFs/MFs that track the ones you like. ETFs have much lower expense ratios compared to mutual funds because there passively managed (the first actively managed one just started by bear stearns but 99% will be passive). You want at least 45 uncorrelated securities to make a well diversified portfolio and 4-5 ETFs should give you that easily.

Or you could just buy the Vanguard Total Stock Market Index + Vanguard Total International Market Index.

True but wheres the fun in that?

I didn't know investing (not trading) was supposed to be fun

 

[TheoPetro]

Originally posted by: Lothar

Originally posted by: TheoPetro

Originally posted by: alphatarget1

Originally posted by: Special K
Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

I would be happy with about 5% (it was 5% back in december!) in my savings, and put another half of that money into the stock market or something for some more riskier investments. If I were to invest in stocks I'd probably just buy one of the DJIA components. I figure if one of them die America is really screwed, so the risk (of losing all my $$$) is relatively low.

the DJIA only includes 30 stocks, not a well diversified portfolio. I would research some sectors and find 4-5 ETFs/MFs that track the ones you like. ETFs have much lower expense ratios compared to mutual funds because there passively managed (the first actively managed one just started by bear stearns but 99% will be passive). You want at least 45 uncorrelated securities to make a well diversified portfolio and 4-5 ETFs should give you that easily.

One does not need such wide moat diversification.

I beg to differ. You get diminishing returns around 30 securities but to get "close enough" to the systematic risk to where adding another security is basically pointless you need ~50 uncorrelated securities.

 

[Special K]

Originally posted by: mariok2006

Originally posted by: Special K

Originally posted by: TheoPetro

Originally posted by: alphatarget1

Originally posted by: Special K
Broad market based index funds with low expense ratios have historically returned ~10% before inflation, but past performance is no guarantee of future results.

The bottom line is that savings accounts only pay 3-6% interest because they are risk free. To make greater returns than that, you must take on some amount of risk.

To learn more about investing, I would recommend you go here:

diehards

I would be happy with about 5% (it was 5% back in december!) in my savings, and put another half of that money into the stock market or something for some more riskier investments. If I were to invest in stocks I'd probably just buy one of the DJIA components. I figure if one of them die America is really screwed, so the risk (of losing all my $$$) is relatively low.

the DJIA only includes 30 stocks, not a well diversified portfolio. I would research some sectors and find 4-5 ETFs/MFs that track the ones you like. ETFs have much lower expense ratios compared to mutual funds because there passively managed (the first actively managed one just started by bear stearns but 99% will be passive). You want at least 45 uncorrelated securities to make a well diversified portfolio and 4-5 ETFs should give you that easily.

Or you could just buy the Vanguard Total Stock Market Index + Vanguard Total International Market Index.

Or you could buy a Target Retirement fund that has both and instant diversification.

That works too, and is actually preferrable in the beginning since it's minimum investment amount is only $3k IIRC. Technically one could hold that single fund for their entire retirement fund, although I would probably go the separate fund route later to have greater control over my asset allocation. Dividing between VGTSX and VTSMX would also make it easier to incorporate things like REITs later on.

 

[TheoPetro]

Originally posted by: Special K


I didn't know investing (not trading) was supposed to be fun

the research, and finding a solid company/fund to invest in is a hell of a lot of fun, for me at least. I can kill whole weekends pouring through financial statements and market data. I have to actually stop myself from getting on ameritrade when I have homework/exams. I guess if you dont enjoy it pay someone to do it for you but there are a lot of people who like it.

 

[Special K]

Originally posted by: TheoPetro

Originally posted by: Special K


I didn't know investing (not trading) was supposed to be fun

the research, and finding a solid company/fund to invest in is a hell of a lot of fun, for me at least. I can kill whole weekends pouring through financial statements and market data. I have to actually stop myself from getting on ameritrade when I have homework/exams. I guess if you dont enjoy it pay someone to do it for you but there are a lot of people who like it.

First of all, I think paying anyone to manage your investments is a huge waste of money, as their management fees will just eat into your returns. A buy-and-hold strategy will probably outperform a financial advisor's loaded comissioned funds in most cases. I enjoy reading about investing, but I'd rather not go down into the detail of individual companies. I'm fine for now with just investing into index funds and leaving it alone.