What would you tell someone who wants to get started investing?

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
ThisGuyNelson
Contributor
Contributor
Posts: 17
Joined: 04 Jun 2016 12:56

What would you tell someone who wants to get started investing?

Post by ThisGuyNelson »

Hey everyone,

I run a blog meant for making saving, investing, and finances simple for people just starting out. I'm curious as to what you would tell a person who wants to get started.

If someone you know said to you "I really want to save, invest, and really do more with my money" where would you get them started?

For me, I would get them into a library, because knowledge is the best investment somebody can make :thumbsup:

Let me know what you think!
Last edited by ThisGuyNelson on 10 Jun 2016 00:22, edited 1 time in total.
I run a blog aimed at helping young investors get started at simplifyingfinance.com.
User avatar
Insomniac
Veteran Contributor
Veteran Contributor
Posts: 2802
Joined: 29 Oct 2011 19:01
Location: Vancouver Island

Re: What is the one thing would you tell someone who wants to get started investing?

Post by Insomniac »

I would tell them to read the FWF finiki and post questions here on this forum.

http://www.finiki.org/

BTW, why are you asking readers of your blog to join the "insider's list"? What will you do with the email addresses that you collect? I don't give my email address out freely and I bet a lot of people would agree with me.
ThisGuyNelson
Contributor
Contributor
Posts: 17
Joined: 04 Jun 2016 12:56

Re: What is the one thing would you tell someone who wants to get started investing?

Post by ThisGuyNelson »

Insomniac wrote:I would tell them to read the FWF finiki and post questions here on this forum.

http://www.finiki.org/

BTW, why are you asking readers of your blog to join the "insider's list"? What will you do with the email addresses that you collect? I don't give my email address out freely and I bet a lot of people would agree with me.
I just update them with blog posts, nothing malicious. If you don't want to sign up no one is forcing you to!

I've checked out the finiki and it's got a pretty solid wealth of information.

On a side note, I see you're from Vancouver Island, which is where I was born and raised. Small world :lol:
I run a blog aimed at helping young investors get started at simplifyingfinance.com.
User avatar
Descartes
Veteran Contributor
Veteran Contributor
Posts: 1856
Joined: 03 Nov 2008 09:59

Re: What would you tell someone who wants to get started investing?

Post by Descartes »

ThisGuyNelson wrote:I run a blog meant for making saving, investing, and finances simple for people just starting out. I'm curious as to what you would tell a person who wants to get started.
Use less white space in your posts, be open about scavenging for material, and tell your readers more about this incredible eye-level cheat sheet tool you can get for just the cost of an e-mail address.
"A dividend is a dictate of management. A capital gain is a whim of the market."
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: What would you tell someone who wants to get started investing?

Post by AltaRed »

Descartes wrote:Use less white space in your posts, be open about scavenging for material, and tell your readers more about this incredible eye-level cheat sheet tool you can get for just the cost of an e-mail address.
Why do I get the feeling FWF is being sourced for blog material?
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
izzy
Veteran Contributor
Veteran Contributor
Posts: 3019
Joined: 19 Feb 2005 19:06
Location: Winnipeg MB

Re: What would you tell someone who wants to get started investing?

Post by izzy »

AltaRed wrote:
Descartes wrote:Use less white space in your posts, be open about scavenging for material, and tell your readers more about this incredible eye-level cheat sheet tool you can get for just the cost of an e-mail address.
Why do I get the feeling FWF is being sourced for blog material?
! suspect its just for ideas since all the information here is explicitly contributed by and for amateurs and frequently prefaced with terms like IANAL etc.
People get ideas from all sorts of sources on the internet and the OP did say he was a student so we are just one source as far as he is concerned!
Last edited by izzy on 10 Jun 2016 10:00, edited 1 time in total.
"I disagree strongly with what you say, but I will defend to the death your right to say it."
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: What would you tell someone who wants to get started investing?

Post by AltaRed »

Sure, that is what we all do. However, if information is specifically solicited on a particular subject and packaged, then I assume the appropriate acknowledgements would also be provided.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
User avatar
Insomniac
Veteran Contributor
Veteran Contributor
Posts: 2802
Joined: 29 Oct 2011 19:01
Location: Vancouver Island

Re: What is the one thing would you tell someone who wants to get started investing?

Post by Insomniac »

ThisGuyNelson wrote: If you don't want to sign up no one is forcing you to!
Obviously, signing up is optional. Personally, I just find requests for my personal info to be a turn off. Why have a mail list at all? Just put everything you want to say on the blog.

Do you expect the blog to make money?
izzy
Veteran Contributor
Veteran Contributor
Posts: 3019
Joined: 19 Feb 2005 19:06
Location: Winnipeg MB

Re: What would you tell someone who wants to get started investing?

Post by izzy »

AltaRed wrote:Sure, that is what we all do. However, if information is specifically solicited on a particular subject and packaged, then I assume the appropriate acknowledgements would also be provided.
One would hope so but if I remember correctly the original discussion site from which FWF evolved was started by a journalist who obviously used it as a source of ideas for his Financial Columns-not that different!
"I disagree strongly with what you say, but I will defend to the death your right to say it."
User avatar
Descartes
Veteran Contributor
Veteran Contributor
Posts: 1856
Joined: 03 Nov 2008 09:59

Re: What would you tell someone who wants to get started investing?

Post by Descartes »

Subscribe now and receive a free "eye-level" cheat sheet tool to help you value stocks at a glance! Whenever I value a stock, I have this cheat sheet handy so I know what to look for and can gather a list of stocks that are worth analyzing.
That's admirable chutzpah from a noobie.

I'd personally like to know more about how he values a stock. I noticed he called Fortis an oil company on that other financial forum.
"A dividend is a dictate of management. A capital gain is a whim of the market."
ThisGuyNelson
Contributor
Contributor
Posts: 17
Joined: 04 Jun 2016 12:56

Re: What is the one thing would you tell someone who wants to get started investing?

Post by ThisGuyNelson »

Insomniac wrote:
ThisGuyNelson wrote: If you don't want to sign up no one is forcing you to!
Obviously, signing up is optional. Personally, I just find requests for my personal info to be a turn off. Why have a mail list at all? Just put everything you want to say on the blog.

Do you expect the blog to make money?
It would be nice if the blog made money obviously but it is not the primary reason for making it. The email list helps drive traffic. They're fairly common.
I run a blog aimed at helping young investors get started at simplifyingfinance.com.
ThisGuyNelson
Contributor
Contributor
Posts: 17
Joined: 04 Jun 2016 12:56

Re: What would you tell someone who wants to get started investing?

Post by ThisGuyNelson »

Descartes wrote:
Subscribe now and receive a free "eye-level" cheat sheet tool to help you value stocks at a glance! Whenever I value a stock, I have this cheat sheet handy so I know what to look for and can gather a list of stocks that are worth analyzing.
That's admirable chutzpah from a noobie.

I'd personally like to know more about how he values a stock. I noticed he called Fortis an oil company on that other financial forum.
Oil/energy in my head are interchangeable (I know this isn't the best way to look at things but that's how it came out.) As for valuations, the cheat sheet contains a couple metrics to look for (kind of like a checklist) that help screen for stocks. P/E, P/B, Div. Yield, Avg. Growth rate. As well as containing the graham number and graham formula.
I run a blog aimed at helping young investors get started at simplifyingfinance.com.
ThisGuyNelson
Contributor
Contributor
Posts: 17
Joined: 04 Jun 2016 12:56

Re: What would you tell someone who wants to get started investing?

Post by ThisGuyNelson »

AltaRed wrote:Sure, that is what we all do. However, if information is specifically solicited on a particular subject and packaged, then I assume the appropriate acknowledgements would also be provided.
If info were every packaged up and directly used, I would obviously reference this forum. As previous poster said, I'm getting a feel for the atmosphere as well as trying to stimulate conversation. I also know I'm not a financial expert and other opinions are important, so I'm trying to be open to what others think.
I run a blog aimed at helping young investors get started at simplifyingfinance.com.
BRIAN5000
Veteran Contributor
Veteran Contributor
Posts: 9063
Joined: 08 Jun 2007 23:27

Re: What would you tell someone who wants to get started investing?

Post by BRIAN5000 »

Borrow, Think, Act, and Invest Like Warren Buffett from the library if you believe it you've got your strategy.

A large amount of money can be made by investing small amounts of money over time. Investment knowledge can be accumulated the same way as well.
This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed
User avatar
deaddog
Veteran Contributor
Veteran Contributor
Posts: 3422
Joined: 19 Jan 2008 19:59
Location: Central BC/Arizona

Re: What would you tell someone who wants to get started investing?

Post by deaddog »

ThisGuyNelson wrote: If someone you know said to you "I really want to save, invest, and really do more with my money" where would you get them started?
I would have them read Darvas "How I made 2 million" to see what is possible.

Then read O''Neil "How to make money in stocks" for basic fundamental and technical methodology.

Then read Douglas "The Disciplined Trader" to help you stay on plan.

Always question conventional wisdom.
"And the days that I keep my gratitude higher than my expectations, well, I have really good days" RW Hubbard
DenisD
Veteran Contributor
Veteran Contributor
Posts: 4081
Joined: 19 Feb 2005 01:24
Location: Calgary

Re: What would you tell someone who wants to get started investing?

Post by DenisD »

I would ask how much time do you want to spend/can you spend managing your money?
izzy
Veteran Contributor
Veteran Contributor
Posts: 3019
Joined: 19 Feb 2005 19:06
Location: Winnipeg MB

Re: What would you tell someone who wants to get started investing?

Post by izzy »

I would say don't buy tax shelters.If a special tax concession is needed to encourage people to invest the investment itself is unlikely to make money and it will be a bit like buying a lottery ticket!
"I disagree strongly with what you say, but I will defend to the death your right to say it."
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: What would you tell someone who wants to get started investing?

Post by AltaRed »

I like 3 things in particular that others have mentioned:
1. Don't fall for tax shelters that need to give you the tax break to compete
2. Decide how much time one wants to spend on the portfolio long term relative to other pursuits in life
3. Read and comprehend finiki

and to add a few more:

4. Spend well below your means, or viewed another way - pay yourself first
5. Don't invest money you cannot afford to lose
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
DenisD
Veteran Contributor
Veteran Contributor
Posts: 4081
Joined: 19 Feb 2005 01:24
Location: Calgary

Re: What would you tell someone who wants to get started investing?

Post by DenisD »

And it depends on age and financial circumstances. A 55-year-old with a substantial sum in GICs would be harder to advise than a well-paid twentysomething with 5 or 10 thousand dollars. The 55-year-old has less margin for error.
Flaccidsteele
Veteran Contributor
Veteran Contributor
Posts: 4523
Joined: 06 Mar 2014 12:52
Location: Retired Gen Xer somewhere on the planet earth

Re: What would you tell someone who wants to get started investing?

Post by Flaccidsteele »

Invest 10-20% of your gross income regularly in a low fee U.S. index fund as soon as possible. The amount of time spent compounding is the largest contributor to wealth building by a massive margin.

Another semi-related observation. I spent a bit of time chatting over lunch or coffee with people that I've known for a long time. What I've noticed is that a lot of people seem to live their life in fear. They're afraid of everything. But it didn't start this way. It seems to get worse over time. Scared of investing. Scared of leaving the 10km radius around their home. Scared to speak up in their relationships. Scared to ask for a raise. Scared to lose their job. Scared of looking for a new job. Scared of their kids. Scared of dating. I've known some of these people when they were fearless in their 20s. And now they just seem like a shell of their former selves. Not sure what kind of advice there is to keep people from this kind of change.
Last edited by Flaccidsteele on 15 Jun 2016 16:20, edited 1 time in total.
steves
Veteran Contributor
Veteran Contributor
Posts: 3200
Joined: 01 Mar 2005 15:02
Location: Hornby Island BC
Contact:

Re: What would you tell someone who wants to get started investing?

Post by steves »

If you are under 30, concentrate solely on your most important investment... your carreer.
Live Rich, Die Broke (but not too soon).
User avatar
kcowan
Veteran Contributor
Veteran Contributor
Posts: 16033
Joined: 18 Apr 2006 20:33
Location: Pacific latitude 20/49

Re: What would you tell someone who wants to get started investing?

Post by kcowan »

AltaRed wrote:4. Spend well below your means, or viewed another way - pay yourself first
5. Don't invest money you cannot afford to lose
That 4th point should be first because otherwise it is all margin investing and violate point 5! It might be restated as "5. Only invest money that you can afford to lose."
For the fun of it...Keith
2 yen
Veteran Contributor
Veteran Contributor
Posts: 4116
Joined: 09 Apr 2005 09:15

Re: What would you tell someone who wants to get started investing?

Post by 2 yen »

Flaccidsteele wrote:Invest 10-20% of your gross income regularly in a low fee U.S. index fund as soon as possible. The amount of time spent compounding is the largest contributor to wealth building by a massive margin.

Another semi-related observation. I spent a bit of time chatting over lunch or coffee with people that I've known for a long time. What I've noticed is that a lot of people seem to live their life in fear. They're afraid of everything. But it didn't start this way. It seems to get worse over time. Scared of investing. Scared of leaving the 10km radius around their home. Scared to speak up in their relationships. Scared to ask for a raise. Scared to lose their job. Scared of looking for a new job. Scared of their kids. Scared of dating. I've known some of these people when they were fearless in their 20s. And now they just seem like a shell of their former selves. Not sure what kind of advice there is to keep people from this kind of change.
Maybe your observation is directly related to the discussion. Over-saturation by sensationalist, celebrity-driven 'news', on multiple devices for long periods of time is making people conformist, boring and scared. I agree with your point. People are scared to challenge what the media tells them about investing because it means going against the system, to a certain extent. E.g.I know plenty of people who have complete faith in their advisor, but have no clue what the particular investments they hold actually are, what they are costing or how those funds will translate into retirement income.

2 yen
izzy
Veteran Contributor
Veteran Contributor
Posts: 3019
Joined: 19 Feb 2005 19:06
Location: Winnipeg MB

Re: What would you tell someone who wants to get started investing?

Post by izzy »

kcowan wrote:
AltaRed wrote:4. Spend well below your means, or viewed another way - pay yourself first
5. Don't invest money you cannot afford to lose
That 4th point should be first because otherwise it is all margin investing and violate point 5! It might be restated as "5. Only invest money that you can afford to lose."
The corollary to that is that the only money you can AFFORD to lose is money you can easily replace .
"I disagree strongly with what you say, but I will defend to the death your right to say it."
User avatar
SkaSka
Contributor
Contributor
Posts: 727
Joined: 29 Nov 2012 01:21
Location: Raincouver

Re: What would you tell someone who wants to get started investing?

Post by SkaSka »

2 yen wrote:
Flaccidsteele wrote:Invest 10-20% of your gross income regularly in a low fee U.S. index fund as soon as possible. The amount of time spent compounding is the largest contributor to wealth building by a massive margin.

Another semi-related observation. I spent a bit of time chatting over lunch or coffee with people that I've known for a long time. What I've noticed is that a lot of people seem to live their life in fear. They're afraid of everything. But it didn't start this way. It seems to get worse over time. Scared of investing. Scared of leaving the 10km radius around their home. Scared to speak up in their relationships. Scared to ask for a raise. Scared to lose their job. Scared of looking for a new job. Scared of their kids. Scared of dating. I've known some of these people when they were fearless in their 20s. And now they just seem like a shell of their former selves. Not sure what kind of advice there is to keep people from this kind of change.
Maybe your observation is directly related to the discussion. Over-saturation by sensationalist, celebrity-driven 'news', on multiple devices for long periods of time is making people conformist, boring and scared. I agree with your point. People are scared to challenge what the media tells them about investing because it means going against the system, to a certain extent. E.g.I know plenty of people who have complete faith in their advisor, but have no clue what the particular investments they hold actually are, what they are costing or how those funds will translate into retirement income.

2 yen
Back in 2008, I didn't know anything about the markets, nor paid attention to the markets, nor had any interest even reading anything in the news related to the markets.

I honestly went through the financial crisis - the "Great Recession", the "nothing like this before since the Great Depression" - without blinking an eye or even knowing it was even going on. Life seemed to be going just fine from the reality I was observing. I do understand I was young, ignorant, and had minimal responsibilities.

I don't know, maybe an amount of ignorance is bliss and paying too much attention/taking things too seriously makes you more susceptible to fear?
Post Reply