If you work 40 hours a week, 50 weeks of the year for five years that equals 10,000 hours. So if you can learn a skill that increases your hourly wage by $1 you will have met your goal.
If you are looking to begin saving for retirement, put it in a Vanguard total stock market etf and let it sit for 50 years.
> If you work 40 hours a week, 50 weeks of the year for five years that equals 10,000 hours. So if you can learn a skill that increases your hourly wage by $1 you will have met your goal.
I have a steady 9-6 job as a React Native developer, where I keep learning and growing and can apply my knowledge to front-end React as well
> or spend it on teaching yourself a skill that will translate into a higher income.
I've just invested in a yoga teacher training and started teaching yoga classes, so some of my time goes there
> Start a side hustle if you want
I'm building http://music.hatharaja.com and http://spotifyxgenius.now.sh in my spare time, making yoga websites for my friends (for free), and building a model to recognize yoga poses.
> Since the amount of money you're dealing with is fairly small, I would suggest putting your energy into a single project instead of multiple ideas.
I really want to start learning about 3d modelling and product design (inspired by https://www.instagram.com/dobu.haishen/ https://www.instagram.com/blankwilliamnyc/)
I'm also learning machine learning.
The Snowball book about Warren Buffet also advises focussing on one thing, which I wish I could do. Anyway, my point is that my time is already diversely invested, which is why I am also looking at some more passive forms of investment. People have been suggesting ETFs as "safe" long-term investments, which I'm looking into. Maybe I can use 50% of my investment capital to build some products after I've learnt 3d modelling and then invest the rest in ETFs.
Do you have an emergency fund? No? make that your investment!
Do you have 3-6 times your monthly expenses set aside? No? make that your investment!
Still money left? invest in MSCI World oder S&P 500 ETFs and let it sit for a decade or two ... that should net you your 10x growth
Edit: removed the MSCI EM ETF recommendation ... S&P 500 performs better.
IMHO £5k is too little to be worth investing in anything if you don't have the three things you mentioned in order.
Personally if I came into £5k and didn't need to clear any debts or top up my safety net I would treat myself to some new clothes, a new computer, a holiday or some other good experience before I think about investing it. Then again I have learnt the hard way that a lot of the time investing is just setting money on fire. These days I rather enjoy money when I get a little bit extra :)
Edit: I didn't account the increase of the value in the stock, saw one that doubled in value, so if someone had invested in it when it opened they would of gotten back twice what they invested, still not necessarily 10x but it's not bad for a safe low risk investment.
So for S&P 500 ETFs I'm seeing for example:
* Boost Issuer Public Limited Company BOOST S&P 500 3X LEVERAGE DAILY
* Boost Issuer Public Limited Company BOOST S&P 500 3X LEVERAGE DAILY 30/11/62
* Boost Issuer Public Limited Company BOOST S&P 500 3X SHORT DAILY
* HSBC Etfs PLC HSBC S&P 500 UCITS ETF
* HSBC Etfs PLC HSBC S&P 500 UCITS ETF $
How would I know about telling the difference between them and which one I should choose?
Similarly for MSCI World:
* Amundi Index Solutions AMUNDI MSCI WORLD ENERGY
* HSBC Etfs PLC HSBC MSCI WORLD UCITS ETF
* Ishares Iii PLC ISHRS CORE MSCI WORLD ETF USD (ACC)
I'm considering picking them based on their Morningstar ratings and past performance over 5 years, would that make sense?
Want to take some time off and do something different? With a lot of debt hanging over your head this may not be possible. Everything paid off? No big deal.
You have to look at risk as well as rewards. You also have to look at flexibility and opportunity.
A mortgage is leverage. Exclude that from typicle debt.
Bad debt is anything nontaxdeductible and over riskfree rate. So consumer debt
Aren't 2 and 3 the same thing?
How is money set aside an investment?
2 is more of a "oh shit the washing machine/car/stove broke" fund. stuff that costs more than i'm willing to cut from my income on a moments notice.
3 is leverage and runway.
employer fucked up your salary payment? frustrating but you'll live.
negotiating a raise? no need to bluff, bring in your written notice and sign it in front of them. important: ask them for a pen. the look on their faces is priceless and 3 month should be enough to get a new job.
Want to go the extra mile? get a second bank account with another bank and split the money. remove the bank as a single point of failure.
You're trying to get an annual return of 15%. Investments into US index funds over the last 5 years returned ~10% p.a. with minimal risk of a major loss.
Another thought is to give it to a friend or acquaintance who would benefit enormously from it, such as someone who’s not making much money but could use a few thousand for self improvement that would double their income soon.
FWIW I think this is a recklessly dangerous thing to do and I feel dirty giving this advice. But I feel someone should actually answer your question as asked.
If you are investing put it in a low-cost index tracker sheltered in a tax efficient vehicle (in UK that would be ISA or private pension scheme). Let it compound forever. That's probably what I would do.
If you've not heard of him, look up Harry Browne. He recommended splitting your portfolio four ways: gold, cash, bonds, stocks. He reckoned that way you'd do OK no matter what was going on in the world.
If you feel more like speculating perhaps learn poker and take a trip to Vegas? ;)
The cash, bonds, and stocks advice sounds similar to what Ben Graham recommends in the Intelligent Investor. Thanks!
Here's a description on Crowdcube:
In short, you can reduce your personal tax bill for the year by 33% of the EIS eligible investments you make.
1k each in:
1. Teladoc $TDOC (telemedicine)
2. Canopy Growth $CGC (weed)
3. Nvidia $NVDA (gaming, crypto)
4. Bitcoin $BTC
5. Adyen (payments)
Macrodrivers: growth in telemedicine/direct to consumer healthcare, eventual worldwide legalization of weed, gaming, mainstream crypto use, ecommerce payments....
Bitcoins are more like tulips, baseball cards or
Beanie Babies than actual vehicles for investment.
If you are bullish on crypto, gaming, and AR/VR owning either or both is not a bad play...
Of course, investment != stock, but don't speculate on pork bellies if you do not know to which end of a hog one talks.
- Wefunder allows you to invest in companies with small amount. Find something really promising there.
- Spend time researching small-cap companies in the $1-$5 range and invest 1K where metrics and fundamentals seem to line up for you. It can be almost like angel-funding but a bit more proven.
- Learn about derivatives and buy Options calls above the current stock price for something you feel will go up significantly in the public markets. This allows you to leverage huge gains from a small amount of capital. In the worst case you end up with nothing. This is an interesting time due to the recent bear market and there are many many stocks ready to go up given the right macro triggers.
Note that selling Options is dangerous and don't do that unless you're an expert - that can land you in big trouble. Leave that for https://www.reddit.com/r/wallstreetbets :)
- Ride strong momentum and trends for smaller companies that have good fundamentals - momentum can be a strong and proven factor for many investments in the public market. I'd plug my own project  that's designed to detect low-volatility trends and momentum across the entire market. It's soon going to be in Alpha.
- There are many leveraged ETFs in all directions of the market for different segments - they give outsized returns for market moves of all different kinds. You can speculate and get outsized gains (or losses). Again higher risk.
- There is still plenty of money to be made in the ICO market even in this environment by riding momentum, and it's perfect for smaller amounts due to lower volume involved. Many tokens keep on returning outsized gains all the time. If you have the inclination, you can look into that. Here are some examples from my project: https://i.imgur.com/N4H3pka.png
- I can give you many more ideas but they start getting a bit too speculative and into the realm of gambling.
: https://stockquanta.com and http://coinquanta.com (For detecting crypto momentum)
Good answer, and you made me think of something with a bit more risk. There are these micro-loan companies now where you can lend out cash and get at least a higher rate of interest than most savings accounts.
You can sell options - they are like selling insurance for market crashes. That gives infinite return in practice since you get money for free.
The downside is you can lose your shirt if the market goes south and are liable for the insurance policy you provided.
I honestly don't know enough about finance to go from correlations between two asset classes to the correct correlation between five, but maybe google will help.
This seems really hard. Sounds like you're asking for some kind of coupling; a set of five stocks such that if any four of them go to zero, one of them will definitely multiply by ten. If anyone here could do that reliably, they wouldn't be here.
Whatever you end up investing in, don't forget to do it inside a taxfree ISA.
Follow satoshi nakamoto
Also, wait to see if the S&P can get up and hold steady above $2750. If it can't hold above that mark for a month or so, expect significant drop.
Read up on simple moving averages (sma), relative strength index (rsi), and stochastic rsi indicators. Then read up on golden and death crosses. Follow the readings up with monitoring daily, weekly, and monthly charts.
Nadaq's site offers a solid chart and indicators at no cost, as does Yahoo and Stock Charts.
Investing blindly in any market is a terrible idea and ignorant advice. Buying and holding is a terrible strategy, especially during crashes or leads up to crashes. "Bob" invested at the peaks of four market cycles and suffered heavy losses of nearly 50% with each subsequent crash. He could have nearly 50% more in gains had he taken the time to read the signs.
Anyone in their right mind would be livid had they just invested a nice chunk of their hard earned pay, only to lose 50% of it in the following month. Best bet to dodge these avoidable pitfalls, is to hold off on dropping money into investments until you feel comfortable enough with assessing markets. Then make an informed decision on what to invest in , instead of throwing shit at a wall to see what sticks
If you're an American, the number isn't 10%. 32% of Americans have a 401k. So 32% are investing and a solid portion let their 401k management bank make decisions for them/go by the typical advice given, by bank reps, of "aggressive portfolio when you're young" (majority stocks), "moderate when you reach middle age" (mix of stocks and treasury bonds), "conservative when you're older" (mostly treasury bonds).
If you're younger and signs are pointing to the market crashing within a year or two, your management bank is going to advise on this and tell investors to move their money to cash (if there's even a cash option) or to treasury bonds. No, it's up to the investor to make a decision based on their own research/reading of the signs. Hell, these banks even use dark patterns to make it more difficult for investors to manually control their own portfolio, leading to users giving up on finding or thinking that they can't manage their portfolio and leave it up to the banks to do so.
There are signs for when things aren't going so well and things are going to take a turn for the worst soon. Certain indicators can help with gauging this. No where near being 100% accurate, maybe 52% accurate, but that's still an edge. On top of certain indicators, monitoring quarterly GDP, yield curve rates, unemployment rates, home owners rates, among other stats, help to show what lies ahead. If one can get out some months before a crash, then great, it's likely that they didn't get out at the peak of the market cycle, but at least they likely saved their 401k from a 20% drop. And in the case that they did move to a cash option at the peak, then they likely saved themselves from a loss of between 40%-60%. If cash isn't an option, then likely saved around a 35-40% loss.
Investing blindly isn't a good strategy no matter how one looks at it, but learning what to look and monitoring periodically can help in preventing catastrophic losses
If you can actually derive meaningful excess returns from market timing that's great for you. I suggest a career in finance, you'll be obscenely rich if you can do it consistently, and probably still very rich if you can at least convince other people of your theories. To suggest that normal retail investors who don't specialize in this can obtain those advantages as well is fantasy.
But whatever works for you man.
I would add, for US markets, keep an eye on Treasury yield curve rates and look for inversions between shorter time frames and longer time frames. This has been an indicator which has preceded the last 9 US market crashes.
The bottoming of unemployment numbers and the start of a turn upwards has also been a signal.
Personally I think Bitcoin is going to go huge soon, perhaps not as big as it originally was, but it's definitely going to go up a bit - bear in mind I'm no crypto expert, merely a CS student.