(02-08-2018, 07:58 PM)Scarecrow Wrote:

(02-08-2018, 07:21 PM)jagibelieve Wrote: The first step is to select a broker and open up one or more accounts (depending on what you want to do).  I personally use Fidelity, but there are other options.  I have both a Roth IRA and a Traditional IRA as well as a cash account with them.

My advice is to stick with ETF's rather than mutual funds.  ETF's are similar to mutual funds, but they trade like a stock, and depending on the ETF carry far fewer costs.  For the most part, The advice that TRM gave you about getting an index fund could be done via ETF.  As an example SPY is an ETF that follows the S&P 500 index.  An option that I use is buying IVV through Fidelity instead which is the same thing, but trades commission free.

There are also many sector based and "specialty" ETF's that you could trade in.  As an example, I bought several shares of ITA which specializes in aerospace and defense back in November of 2016 (right after the election).  So far my return to-date on those shares is up 36.98% as of today.  I've added more throughout last year with my most recent purchase November 15, 2017 and those shares are currently up 6.25% as of today.  That's not a bad 90 day return.

If you are investing for retirement, I suggest opening up both a Traditional and a Roth IRA.  Both have significant tax advantages.  On the other hand, if you are investing for savings, keep in mind that any gains that you make will be subject to capital gains taxes when you sell your investment.

One last piece of advice that I would give you is to invest for the long term.  Sure some people are successful day trading, but more often than not people that trade frequently end up either losing money or make horrible gains.

I am by no means a financial adviser, I'm just sharing my strategy that has worked for me.

Thanks JIB. I enjoy hearing from others about this and you certainly have more experience than I do.

I have started looking at Fidelity and other options. Do you have any thoughts on Vanguard?

My current retirement through my employer is a solid plan which includes my employer matching a high percentage. I don't want to rely on that, however, and any serious investing or ETF/index purchasing would be done with long term gains in mind.  I do well enough with savings. For my area I make a good income and that has allowed me to pay cash for many things without needing to take out a loan.

When I mentioned the day trading I only dabbled in trading mostly penny stocks just for kicks. I didn't make much money but I didn't intend to.

I have seen you mention ITA and have been watching that one.

ETF's are where I've been leaning. I simply need to move forward either choosing an avenue to purchase them and make the decision on which to start with.

I really like Vanguard because they have very easy to understand funds but I feel that Fidelity and ETrade are both solid as well. I believe both of the latter allow you to attach a checking/saving account as well. I know Charles Schwab does. I also like a newer one called Motif but they’re much less established if that’s a concern.

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