#1
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Automatic Millionaire / Newbie Investing
Hello, I am new to this forum and inveting in general, and I have a question... I read the book "Automatic Millionaire", and I am interested in doing something like what he suggests, saving $10 a day essentially and putting into a savings account. I would like to start an online account of some kind, (not sure if I should go w/ regular savings, mutual funds, or what...) with a decent return, something that I can add like $70 per week to my investing account with a direct transfer from my bank, with little to no fees. I have a 401K (about $14k value) through fidelity, but I no longer work for the company I started it through. SHould I go with them, and convert it to something else and pile on top of that (I do not know if that is poss.). As you can see, I am VERY new to this, and any help is appreciated...
Thanks, Sean |
#2
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Re: Automatic Millionaire / Newbie Investing
talk to a financial planner...
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#3
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Re: Automatic Millionaire / Newbie Investing
From what I understand, most of them dont know what the F they are talking about... Also, I am looking to do something online, and start w like $2k and add $70 per week, I dont have the $ for a financial planner, and they prob dont have time for me...
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#4
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Re: Automatic Millionaire / Newbie Investing
Read more books, do more research.
It's difficult to tell people how to proceed with their money because not everyone wants to do things the same way with their money. |
#5
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Re: Automatic Millionaire / Newbie Investing
here's my advice.
don't get a financial planner. they'll just try and sell you medocre investments to get their kickbacks. open an online savings account at like ING or HSBC. (Check out www.bankrate.com) save up however much you're goign to save. When you get a decent chunk, like $1k or whatever, put it into some index funds, there a number of good threads on index funds here. If you can, roll the 401k into an IRA so you can have more contol over it. |
#6
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Re: Automatic Millionaire / Newbie Investing
I'd suggest getting a Zecco account and buying ETFs with it. You can buy one every week or two. The $0 fees mean it doesn't matter how often you buy.
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#7
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Re: Automatic Millionaire / Newbie Investing
I have my bank of America automatically pull $400 a month from my checking directly in to my savings. I am going to let the money pile up for a year or so before I start investing. I figure I'm not in store to make a lot of money from just $5,000 anyways so I'll just practice my reading until maybe $10,000 or $15,000 then I'll start investing.
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#8
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Re: Automatic Millionaire / Newbie Investing
VegasGQ, great job for saving and investing. If you think you'll need the money that you're saving in the next few years, a savings account might be best. Today there are many banks, both B&M and online, that offer 5% interest rates. Bankaholic.com lists some of them. If you have a longer horizon, then stocks might be best. I would suggest using index funds/ETFs. The simplest option would be to open an account with Vanguard at vanguard.com. Then simply periodically add money to an index fund. If you're starting with a small amount, watch out for the fund minimums. I wouldn't bother switching your 401(k). Fidelity has a few very cheap "spartan" index funds. If I were you, I'd stick my 401k money in those, and then complement them with my other accounts.
Superadvisor, Bank of America has horrible savings rates (like 0.5%). I would suggest getting a savings account with a higher interest rate (like 5%). I can give you a referral to ING Direct, if you'd like. |
#9
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Re: Automatic Millionaire / Newbie Investing
[ QUOTE ]
Superadvisor, Bank of America has horrible savings rates (like 0.5%). I would suggest getting a savings account with a higher interest rate (like 5%). I can give you a referral to ING Direct, if you'd like. [/ QUOTE ] Will there be any problems or fees associated with moving money from my Bank of America checking account to my savings account in another bank every month? |
#10
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Re: Automatic Millionaire / Newbie Investing
There are no fees, but transfers between banks take a few days.
If you switch to a bank like Washington Mutual which has both checking and high-interest savings (5%), then your transfers will be instant. |
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