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Does anyone know of any good resources for learning how to invest? I make decent money as a software engineer and max out my 401k but I don't know what to do wi

Does anyone know of any good resources for learning how to invest? I make decent money as a software engineer and max out my 401k but I don't know what to do with the money I have sitting in the bank earning almost no interest. I have a fidelity account for my 401k and company stock awards but I don't know how to go about investing in other things. I'm looking for resources to learn from, not which specific stocks to buy.

klodolph 5y ago
You can search HN, the typical advice is to go for things like index funds which have low fees... the value rises with the rest of the stock market, but doesn't get eaten by fees. As you get closer to retirement you will want to alter your investments. You have enough money to hire a financial advisor, if you care. They can usually give you much better advice than random resources online (since their advice can be specific to your situation--things like taxes can be a bit complicated).
gregwebs 5y ago
First step is probably to avoid 401k rip-offs. You can find details about different providers including Fidelity here: https://www.employeefiduciary.com/sample-fee-comparisons/ https://www.employeefiduciary.com/sample-fee-comparisons/ You might possibly be able to switch your investments from a Fidelity fund with huge fees to something with normal fees. For your savings, M1 Finance offers 1% interest, which is better than nothing. IMHO it is a difficult time to start investing your non-retirement money because that the market has gone up a lot recently and bonds are at all times low. I wouldn't feel bad about staying out of things right now until you can learn a lot more. I would recommend reading everything written by Lyn Alden if you want to learn about all the macro forces effecting finance.
kinghajj 5y ago
Investopedia, Bogleheads, and Nerdwallet are all great resources to learn about investing. I began investing after graduating and landing my first full-time job. At first, I used a fairly cookie-cutter "three-fund portfolio," as recommended by the Boglehead community. I choose VTI ("Vanguard Total Stock Market"), VEU ("Vanguard All World ex US"), and BND ("Vanguard Total Bond Market") as the three ETFs. In retrospect, I would probably pick VXUS ("Vanguard Total International Stock") in lieu of VEU. But that basic structure is still a good starting point for a new investor. Most brokers these days have features such that you can set up auto deposits from your bank account, and invest them according to a pre-set asset allocation. So say you want 15% in BND, 15% in VXUS, and 70% in VTI. If on the day of deposit your account is at 14% BND, 13% VXUS, and 72% VTI, then only BND and VXUS shares would be purchased, to make the allocation as close to the desired goal as possible. Likewise, any dividends received can be automatically reinvested. Another commenter mentioned M1 finance, which I have not used, but from what I have read, looks like a great platform.
sigstoat 5y ago
bogleheads has both a wiki, and a forum. r/investing has daily question threads you can hit up, where you can also get generally boglehead-themed advice.

klodolph 5y ago

You can search HN, the typical advice is to go for things like index funds which have low fees... the value rises with the rest of the stock market, but doesn't get eaten by fees. As you get closer to retirement you will want to alter your investments. You have enough money to hire a financial advisor, if you care. They can usually give you much better advice than random resources online (since their advice can be specific to your situation--things like taxes can be a bit complicated).

gregwebs 5y ago

First step is probably to avoid 401k rip-offs. You can find details about different providers including Fidelity here: https://www.employeefiduciary.com/sample-fee-comparisons/ https://www.employeefiduciary.com/sample-fee-comparisons/ You might possibly be able to switch your investments from a Fidelity fund with huge fees to something with normal fees. For your savings, M1 Finance offers 1% interest, which is better than nothing. IMHO it is a difficult time to start investing your non-retirement money because that the market has gone up a lot recently and bonds are at all times low. I wouldn't feel bad about staying out of things right now until you can learn a lot more. I would recommend reading everything written by Lyn Alden if you want to learn about all the macro forces effecting finance.

kinghajj 5y ago

Investopedia, Bogleheads, and Nerdwallet are all great resources to learn about investing. I began investing after graduating and landing my first full-time job. At first, I used a fairly cookie-cutter "three-fund portfolio," as recommended by the Boglehead community. I choose VTI ("Vanguard Total Stock Market"), VEU ("Vanguard All World ex US"), and BND ("Vanguard Total Bond Market") as the three ETFs. In retrospect, I would probably pick VXUS ("Vanguard Total International Stock") in lieu of VEU. But that basic structure is still a good starting point for a new investor. Most brokers these days have features such that you can set up auto deposits from your bank account, and invest them according to a pre-set asset allocation. So say you want 15% in BND, 15% in VXUS, and 70% in VTI. If on the day of deposit your account is at 14% BND, 13% VXUS, and 72% VTI, then only BND and VXUS shares would be purchased, to make the allocation as close to the desired goal as possible. Likewise, any dividends received can be automatically reinvested. Another commenter mentioned M1 finance, which I have not used, but from what I have read, looks like a great platform.

sigstoat 5y ago

bogleheads has both a wiki, and a forum. r/investing has daily question threads you can hit up, where you can also get generally boglehead-themed advice.