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Stocks
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Stocks 2017 was a great year to own stocks. The S & P 500 was up about 27%! I did even better, with some from Chinese stocks in tech and other speculative areas. I did about 32% increase for 2017... I did it in tax deferred retirement accounts so no tax to on the gains, until I take money out. I am self employed, so no employer giving me a 401(k) with a sweet 20% tax free match for my contributions. That is the sweetest investment deal alive! I am not just bragging for the joy of it. Any with a little time, and guts can do the same thing. Bonds are boring. Stocks and exchange traded funds are risky but can make real money. I have invested since the eighties. I have learned many lessons the hard way. Here are some of my suggestions. Go with a discount broker like Charles Shwab. Diversify! No more than 3% in any stock or ETF. That means you will have at least thirty positions in your accounts! I prefer Roth IRA and Keogh retirement plans for the stock trading as the gains are sheltered and taxes deferred until distribution. The Keogh required has minimum distribution at age 70.5... Sell the losers, but keep the winners. Most people do the opposite. Think long term, as in decades. Do not take out money for cars or other stuff you do not need. Think retirement. No options, commodities, limited partnerships, real estate, collectibles, margin, precious metals, or art as investments. Many have done well with these investments but most do not. Stick to easy stuff and win rather than trying to beat the odds and lose. For many people the simple choice is just Large and mid cap US stock ETFs with low management fees. Schwab has many ETFs that charge just .03% per year! Schwab charges just $5 for a trade in or out. Some ETFs have no transaction charge! Many say they do not understand investing. Learn. You learned how to drive. Investing is easier than driving. You can do it from a computer and not have to talk to a salesman broker. Read and figure out what makes sense to you. If it does not make sense, do not do it. You can risk 3 to 5% of your on anything speculative and not be hurt too badly. For example, if you think airlines will do well, you can pick some stocks, or choose the etf JETS which has most of them. The first week of 2018 was another good for stocks... My accounts went up about 8% in trading days... There will be a crash some day, but you can still make until it comes... |
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