IGX

Curious as to your thoughts on the options out there and whether it is worth it in this market?

Etrade, Ameritrade, etc, etc.....all have different options. Looking at no minimums and hopefully low commissions. Got a few guys at my unit that swear that they make a but here and there, enough to warrant it, but I am dubious.

Any of you yahoos have any experience or should I continue stuffing my extra money under my mattress?

James Krieger.. the nutrition/exercise guy makes his living this way. He's very open to pointing to sources. His blog is no longer online unless you search Way Back.

From a guy who doesn't know what he's doing...(me)...

Keep it simple.

It's hard to beat the market. Invest in low cost Index Funds.

Open an account with Fidelity, Schwab, etc. Consolidate your investing/banking/money with them to get free checking, online bill pay, etc. I keep extra cash in my investment account to pay bills, so all is in one place without bank fees, etc.

I have few big winners, but also no big losers this way; unlike when I tried to get fancy.

Save cash and then get in when the next crash happens

There's an app called Robinhood that is either fee-free or close, the only downside is that it's only via the app, no web interface.

Cattle futures. Hillary made 100K with only a 1K investment and absolutely no experience at all. What could go wrong?
Seriously, I've used Scottrade about 15 years and love their options and low costs. As Thud said unless you want to spend a LOT of time analyzing the markets, just go with index funds or low cost ETF's at a well known reputable firm. In my own case, it started out as a hobby for many years, then it was my business for several years, and now it's something closer to an avocation. They have advisors that will help you develop a plan at no cost.

Fidelity's online brokerage offers a shit ton of commission free ETFs. I moved mine there recently (for other reasons), the interface sucks compared to ETrade though.

ETrade was expensive, I think like 10 bucks per trade if you have less than 250 in the account. That means you can't invest as frequently without appreciable commission penalty. e.g. if you're spreading money across 4 ETFs, that's 40 bucks every time you put money into the market... you need at least $4000 to not get killed and even then starting down 100bps is a shitty way to go.

ETFs are the way to go unless you're going to do a lot of research. Vanguard tend to be the cheapest and they track well.

First and foremost, what are you investing for? If it's retirement, put your money in the best retirement option(s) you and your wife have available (a 401k with a match is nearly always the best choice). Just guessing but the TSP won't be one of them unless you're deployed making tax free money. Depending on your employment situations, a SEP or Simple IRA may make sense (especially if one or both of you receive a 1099). Do not make a decision on a SEP or Simple without speaking with your tax preparer/accountant (the guy at H&R Block doesn't count) first; in general don't make more complicated investment decisions with tax consequences without talking to your tax preparer.

If you decide you want to become a relatively active trader, you may want to use a small separate IRA for that money. Putting the rest in an Index fund (in a separate account) is never a bad way to go, at least to start. Do not make investment strategy decisions without full spousal concurrence. If she's uncomfortable with the ups and downs of investing, suggest she take some free classes (a lot of brokers will offer them) or join a local ladies investing club to learn more. If momma ain't happy...

Personally, I'm a big Nick Murray fan-- picking up a used copy of 'Simple Wealth, Inevitable Wealth' for around ten bucks is money well spent. You don't necessarily need an investment advisor, but they can be useful in a lot of ways-- it really depends on you and your family. Nick calls it straight, and his advice ages well (especially regarding value funds). Advisor fees and commissions are often cheaper than mistakes.

Basic rules:
1. Get your will and your wife's will updated with every life change (new kid is a big one)-- a military attorney is fine for this.
2. Make sure you have the right amount and kind of auto and home insurance (especially regarding the different types of replacement value-- ask lots of questions regarding proof needed for replacing furniture, tools, guns, and jewelry and where to store that proof in case of a fire or whatever).
3. Make sure the beneficiary info on every single retirement account you have is current.
4. Never take tax advice from an investment advisor at face value.
5. Never take investment advice from a tax advisor at face value.
6. If you decide to get a living will or advanced medical directive done (necessary once you hit 40), go to a real attorney who is bonded and insured.
7. Trust your instincts-- the guys in your unit are probably full of shit.

Personally, I use USAA for my investment accounts. Not the cheapest; not the most options; but it's the most accessible through the internet filters you'll deal with overseas. You shouldn't be day trading anyway.

Turdacious wrote:First and foremost, what are you investing for? If it's retirement, put your money in the best retirement option(s) you and your wife have available (a 401k with a match is nearly always the best choice). Just guessing but the TSP won't be one of them unless you're deployed making tax free money. Depending on your employment situations, a SEP or Simple IRA may make sense (especially if one or both of you receive a 1099). Do not make a decision on a SEP or Simple without speaking with your tax preparer/accountant (the guy at H&R Block doesn't count) first; in general don't make more complicated investment decisions with tax consequences without talking to your tax preparer.

If you decide you want to become a relatively active trader, you may want to use a small separate IRA for that money. Putting the rest in an Index fund (in a separate account) is never a bad way to go, at least to start. Do not make investment strategy decisions without full spousal concurrence. If she's uncomfortable with the ups and downs of investing, suggest she take some free classes (a lot of brokers will offer them) or join a local ladies investing club to learn more. If momma ain't happy...

Personally, I'm a big Nick Murray fan-- picking up a used copy of 'Simple Wealth, Inevitable Wealth' for around ten bucks is money well spent. You don't necessarily need an investment advisor, but they can be useful in a lot of ways-- it really depends on you and your family. Nick calls it straight, and his advice ages well (especially regarding value funds). Advisor fees and commissions are often cheaper than mistakes.

Basic rules:
1. Get your will and your wife's will updated with every life change (new kid is a big one)-- a military attorney is fine for this.
2. Make sure you have the right amount and kind of auto and home insurance (especially regarding the different types of replacement value-- ask lots of questions regarding proof needed for replacing furniture, tools, guns, and jewelry and where to store that proof in case of a fire or whatever).
3. Make sure the beneficiary info on every single retirement account you have is current.
4. Never take tax advice from an investment advisor at face value.
5. Never take investment advice from a tax advisor at face value.
6. If you decide to get a living will or advanced medical directive done (necessary once you hit 40), go to a real attorney who is bonded and insured.
7. Trust your instincts-- the guys in your unit are probably full of shit.

Personally, I use USAA for my investment accounts. Not the cheapest; not the most options; but it's the most accessible through the internet filters you'll deal with overseas. You shouldn't be day trading anyway.

The Investment club idea is great for both of you. Forgot that I was in one for a couple years.

Are you talking about investment or trading? Investment is easy: choose good companies and keep them for long term.

Shortt term trading - one of the hardest activities you can imagine.

Put it in the Schwab etf that mimics all us stocks SCHB. That's it. Lowest cost.

When do you get out? Almost never. But if the sky seems to be falling, do this: get out when the 200 day SMA falls below the stock price line
If you don't know how to do that I'll be happy to explain.

seeahill wrote:Put it in the Schwab etf that mimics all us stocks SCHB. That's it. Lowest cost.

When do you get out? Almost never. But if the sky seems to be falling, do this: get out when the 200 day SMA falls below the stock price line
If you don't know how to do that I'll be happy to explain.

Tim, that would have gotten us in and out of SCHB 11 times over the last five years. Not that going in and out of an investment can't be successful.

seeahill wrote:Put it in the Schwab etf that mimics all us stocks SCHB. That's it. Lowest cost.

When do you get out? Almost never. But if the sky seems to be falling, do this: get out when the 200 day SMA falls below the stock price line
If you don't know how to do that I'll be happy to explain.

I'd like to know. Thx.

Go to a charting program. I use Big Charts at bigcharts.marketwatch.com

Enter SCHB (or VTI, vanguard's total market index). SCHB is cheapest, therefore best.

Once entered, choose "Advanced Chart" to the right.

Go down the stuff in blue on the left. At the bottom, for "chart style" choose "big."

Go up to Indicators. Click.

Choose your first option (SMA or simple moving average). There is a teeny window to your right on that. Clear it and enter the number "200" Then Hit "draw chart." SCHB will be in black. The 200 day sma will be in red. Notice that when the black line drops below the red, it is a good time to get out. When the black line crosses the red on the way up, it's time to get back in.

Since it's free to trade schwab funds at Schwab, there's no cost to do this.
Back test the system. Look on the left where it says time. Does the system work for 2 years, for 5, for 10? Hell, you can do a "custom time period" and go back to 1929 and test the system using the S&P 500 as your index fund.

Pretty amazing, huh?

Thanks all for the info. Definitely some stuff to think over and research.

Sangoma wrote:Are you talking about investment or trading? Investment is easy: choose good companies and keep them for long term.

Shortt term trading - one of the hardest activities you can imagine.

Both.

Dunn wrote:

Sangoma wrote:Are you talking about investment or trading? Investment is easy: choose good companies and keep them for long term.

Shortt term trading - one of the hardest activities you can imagine.

Both.

I don't recommend short term trading...the Tech Bubble was the most expensive financial mistake of my life. (Of course, we could never have another bubble.)

Ultimately, I survived to be in good shape.

DikTracy6000 wrote:

seeahill wrote:Put it in the Schwab etf that mimics all us stocks SCHB. That's it. Lowest cost.

When do you get out? Almost never. But if the sky seems to be falling, do this: get out when the 200 day SMA falls below the stock price line
If you don't know how to do that I'll be happy to explain.

Tim, that would have gotten us in and out of SC
HB 11 times over the last five years. Not that going in and out of an investment can't be successful.

Yeah, you can get whipsawed. I try to wait until the trend is very clear.

seeahill wrote:Go to a charting program. I use Big Charts at bigcharts.marketwatch.com

Enter SCHB (or VTI, vanguard's total market index). SCHB is cheapest, therefore best.

You should look at more than just the expense ratio. I don't even think these funds track the same index... EDIT- they track pretty closely. I think the tiny difference in management fees is probably less important than spread and comms though, especially if you're going to be investing regularly.

I also think Schwab may have run into some problems with payment for order flow, maybe not as big of a deal as it's sometimes made out to be but possibly worth a look.

Well, they track all the stocks in the US market. Small caps, medium large. Very similar.

Dunn wrote:Thanks all for the info. Definitely some stuff to think over and research.

Sangoma wrote:Are you talking about investment or trading? Investment is easy: choose good companies and keep them for long term.

Shortt term trading - one of the hardest activities you can imagine.

Both.

Trading you have to learn. Lots of professionals make this mistake, thinking that they can just start trading and make good money. Like any other craft it requires a lot of input. Set ups, entry, stop losses, profit objectives, psychology and - most importantly - money management all of these topics deserve several volumes written on them. Start with the Reminiscences of a Stock Operator, it's a good book. Pitt Bull by Marty Schwartz shows how psychotic this business can become.

Fuzzy Dunlop wrote:

seeahill wrote:Go to a charting program. I use Big Charts at bigcharts.marketwatch.com

Enter SCHB (or VTI, vanguard's total market index). SCHB is cheapest, therefore best.

You should look at more than just the expense ratio. I don't even think these funds track the same index... EDIT- they track pretty closely. I think the tiny difference in management fees is probably less important than spread and comms though, especially if you're going to be investing regularly.

I also think Schwab may have run into some problems with payment for order flow, maybe not as big of a deal as it's sometimes made out to be but possibly worth a look.

Points to consider. I wanted to make it as simple as possible. Also, if you have a Schwab Acct, it is free to trade Schwab Funds.