If you don't have an emergency fund, I would put some or all of it into something like a money market account. It won't grow very much, but it's safe and is quick and easy to withdraw when needed.
Otherwise depends on your age and situation, but an index fund (S&P 500) is almost always the right choice. It's flexible, doesn't usually lock you in, and will generally do very well in the mid-to-long term. If we hit a recession you might get stuck holding the shares for several months to a few years. The last thing you want to do is panic sell in that situation.
If you have any debt, paying that down is a very smart move, especially if the debt is charging more interest than your investment can earn. Future you will thank you.
Index fund, most definitely. And find one that has low administrative fees, I know that Vanguard has at least a few that are super low.
I have my emergency fund, and no debt. If I were to lose this $10K, it wouldn't impact my life. I'm comfortable with taking $10K out of my bank account and doing something with it but I don't know how to go about that. I don't know how to open an index fund or money market account.
I'm going to second (third, fourth, fifth) the Roth IRA recommendation. You can set it up with Schwab or whoever and can make recurring contributions too (set it and forget it) there are income limits so if you are really raking it in one year you can't contribute that year but whatever you put in there is still (usually) going to grow in value. If you have an emergency situation and need the money you can withdraw contributions, not earnings, ahead of retirement, so it's not lost to you, but working for you and much easier at tax time, no worries about how to report it.
Pay down your debts first.
Buy 10 Babies in Arkansas.
it's cheaper than surrogacy.
Does beer come with that?
With zero information on your situation, it's difficult to say. If you have debt, paying that down/off is generally priority one. If you are debt-free, then you have options. Your age, stability, goals, and other factors would generally dictate what type of action to take. Were it me (early 40s, very low interest rate home loan), I'd put it into an index fund where I've already got some investments. In my case, I'm investing for retirement in about 25-30 years (as if I'll be able to do that, but one can hope).
Bees.
Beads?
Peas.
I do enjoy beekeeping vlogs but I'm more of a gardener.
Beads?
An index that either tracks the top 500 companies or the total market. Look up a 3-fund portfolio if you want to go a little deeper.
Alternatively, max out an IRA if you haven't already this year and are in a position where you won't need that money until retirement.
Edit: I realized I'm assuming a lot about your situation. So instead, here's a general list of priorities that applies to more or less any situation. You should only proceed with a step if all the steps above it are achieved. Also keep in mind, I'm not a financial advisor just a random stranger on the internet sharing my personal financial strategy.
Pay your future-self first. Establish regular contributions to your retirement account and HSA if you have one, totalling between 3-5% of your compensation or whatever your company's matching policy is (That's not free money, it's part of your compensation package. Not claiming it is like waving a portion of your income).
Pay off all debt since interest is essentially paying a percentage-based monthly fee for owing money and we're not privileged enough for our assets to cover that expense.
Build and maintain a liquid (cash) holding as an emergency fund. This isn't for investing or expensive new toys, it's insurance that will cover your expenses for 6-12 months. Put it in a high-yield savings account or money market since it will be a significant sum and inflation will otherwise reduce its value over time.
Max out your retirement accounts to the contribution limit, your 401(k), IRA, and HSA if you have one. These accounts have tax advantages that essentially mean you can put more money towards retirement than you could in an individual trading account. This doesn't have to be one lump sum, you can divide it up into monthly contributions so long as you're on track for maxing your contribution limits by the end of the year.
Open an individual trading account with a broker (Vanguard, Fidelity, etc.) and invest in index funds (3-fund portfolios are reliable and low-cost). If you anticipate a significant expense over the next 10 years, i.e. a down payment for a house you can budget between this and the funds going towards Step 4 but keep in mind the tax advantages of retirement accounts means you're likely missing out on some retirement gains.
VT. Don’t gamble on single stocks. But since capitalism rules and all of congress owns stocks, you can be fairly confident the market will go up in the long term 10+ years horizon. And compound interest does miracles.
Leave the country while you still can? 🤓🤘🏽
I kind of agree, moving from USA to for example Switzerland would be an improvement in every aspect of life.
But that might not be what they want.
It's a big undertaking; learning the language and law, changing jobs, being okay with the fact you'll rarely if ever see your family and friends...
The biggest problem for some people is no country wants them.
America seems to take just about anyone given you wait decades, but every other country worth moving to has strict income or professional requirements. I'm just a worthless factory schmuck so I'm stuck here :(
Or that, yes.
Even if you suddenly cash out a lucky 10 000 USD once, a lot of countries' income requirements still filter you out
Going about it that way is like brute forcing a password. There are myriad other solutions, and necessity is the mother of invention.
I'm not sure what you mean by that, so just to clarify what I meant: A lot of countries require you to prove you have a sustainable income, so showing them you've earned 2500-3000 EUR every month for the past three years, and that you already have a contract waiting for you in their country, works. Showing you received 10 000 USD once when you can't prove a sustainable income won't do.
This makes it hard for people to move just because they got lucky with money once.
I'm not saying it's a good thing or not, just that this is the case.
Yes, this is known.
Vanguard S&P 500 fund.
Venmo me
But how do we know that you are use it for drugs and hookers and not just some nonsense?
Damn you got me I was gonna be an idiot and put it in an IRA
yeah that's not good, may get you prosecuted under "material support" laws
Put it in an IRA so you cant touch it and buy high dividedend yeilding stocks that reinvest in more shares and let it sit for the next decade and pray that there is a radical social change in out society so we can save the Planet and Poor from Billionaires.
You can definitely touch an IRA. Had to empty mine since I've been unemployed.
What kind of work are you looking for?
I'm a software engineer but can't even get a call back due to the fact that tons of us are unemployed right now. Many unemployed have more experience than I do.
The best part is that I can't even get a job at a grocery store because I'm "overqualified" according to one store in my neighborhood.
Have you looked into drafting before?
I'm not sure what that means
Depends on your risk tolerance.
A 4% savings account is “safe” but might not keep up with inflation.
An index fund might be “good”, but the value can go down.
IIRC, >6% is the floor to keep up...
The average inflation rate for the last 20 years is under 3%
Edit: why are people downvoting me, refute my statement with a source instead of downvoting because you wish inflation was higher
Oh? That's actually uplifting news! 😅🖖🏽
There is no universally good investment - it all depends on your priorities, risk appetite and timeframe.
Don't disagree about stuffing it in VTI... But, be aware that things can go up and down, so don't obsess over the value one you put it in. It's long term so it should go up over long term, but they're can be months sheets it goes down and even a year where it doesn't do well
I'll reply without knowing your situation fully. If you don't have an emergency fund that would cover several months worth of expenses that is probably the single most impactful thing you can do with $10k. A few high yield savings account offer rates around 4%, some of them have strings attached, so read how it works carefully. Think of this as insurance against unforseen expenses that you might otherwise have to put on a card and consequently pay interest for. Pick a number and always make sure you keep that account at that number.
If you already have an emergency fund, you have lots of options. Personally, I am onboard with the folks recommending index funds. I have an ETF that tracks the DOW and it has outperformed most of my individual stocks significantly over time.
Most importantly, strangers on the internet are likely not financial advisors and may not even know what they are doing. Take everything with a grain of salt and if you talk to any investment companies make sure you understand the difference and overlap between a financial advisor and a fiduciary.
So from what I've read after viewing this thread, I make a vanguard account, either get a money market fund or a brokered CD, put the money in, let it sit for awhile, and then profit years down the line?
Money market or CD is going to have terrible return. You will be lucky to match inflation. Get a low overhead SP 500 index fund. By low overhead I'm taking .15% or less. You should be able to find .125% with a bit of poking around.
5% is terrible? I have 13k in a 9 month CD at 5%
Almost a year and I get like $600, doesn't seem so great to me but there's no risk either I guess :/
Low risk but inflation is above 3% so you are looking at less than 2% effective granted it's a fairly safe investment.
Then that compunds year after year.
Hmmm I see a distinct lack of CDs on here...
(Now I'm considering not renewing my 5% 9 month investment) Lol
I just looked up what a CD is. It seems easier to understand than some of the other suggestions that have been made. I do not understand what a roth ira is or if it's right for me.
Roth grows tax-free and has more long term flexibility compared to traditional IRA. The tradeoff is that it doesn’t reduce your taxes in the year you contribute. It’s the better option for most.
Does a Roth mean I tell my employer to put the money into the account or do I put it in myself after I get paid?
The latter, for Roth IRA.^A^ If you haven’t set one up before, it’s pretty straightforward.^B^
^A^: There is such a thing as a Roth 401(k) which if offered should definitely be your top priority up to employer contribution match.
^B^: Vanguard is often recommended for simplicity and low fees. You can pick your funds when contributing. Typical starting funds are VTI and VOO (or the mutual fund equivalents with slightly lower fees, VTSAX and VFIAX).
great this is helpful
Passive global technology index tracking fund
I'm going to need this dumbed down so I can understand
They have low cost to you
Global means they have stock in all markets, so if us is going bad is not necessarily bad for you
Technology means they mostly have stock in technology
Index funds follow the market. They have stock on everything in a segment or general so if market does well, you du well.
I got a 7k bonus 20 years ago in the military. I seriously considered investing it in the Vangard total stock market index fund. In '04 it was trading at $54 per share, today $282. Had I invested that $7,000 I would have $365,555 today. Instead I "invested" it at the strip club because I was a young dumb E-3 in Pensacola and New Orleans was only a weekend pass away. Long story short, index funds are the way to go.
I was considering spending this $10K on an extravagant, international vacation but am trying to make a smarter investment.
There is already some good advise, so I will add some of dubious value that might make sense for some people. Buy a better car (or get a motorcycle). I live in the US, so having private transportation is a necessity. I have a car, but mostly I share it with my parents. I do use a motorcycle as my main commute and it is cheaper than a car's running costs. Just saying that $10k + sale of your current car could fetch you just about any other car. It is kind of hard to do a whole lot of life changing things with only $10k. Perhaps dental work if you need any.
Give it to me
I like roboinvester accounts. You put money in, it automatically invests in stocks for you based on your current age and risk tolerance (which you can change whenever you like). I particularly like Wealthfront, and their app/website are really good. They’ll manage $10-15k for free, and then above that you pay a small fee out of your earnings for their service. If you use someone’s sign-up link, they’ll bump your managed amount by $5k. Comment back if you’re interested and I can share mine. Good luck with your investment, whatever you choose!
High yield savings account at SoFi or Ally Bank will give you 4% right now.
Vanguard recently started offering a savings account that currently has a 4.15% APY (their 'cash plus' account).
If OP wants to park the money in a savings account for easier access than a mutual fund, that's both a more reliable institution and a better rate.
$10,000 at 4% gives you $400 interest in one year.
Just about any decent dividend stock will outperform that. Look at PET for example. It is sitting at $3.65/share right now and offers a quarterly dividend of $0.30. That puts you at $1.20/share per year. 10k = 2739 shares = $3,286.80 dividend payout in one year.
Banks are the worst place to put investments. Money in bank accounts are only supposed to be there if you need it liquid, like an emergency fund or your checking account.
*PETS
PETMED EXPRESS INC COM
For all the nay sayers downvoting me as if it is impossible to find dividend stocks that outperform their precious SPY or high yield savings rates, here is a great list I found with shit loads. I count 60 different stocks that offer 10% yields or more. 100 in total all offering over 8% -double what some bullshit 'high yield' savings offers.
Baby steps. Asking someone to go from nothing to investing in stocks is quite a leap.
PET? What stock are you talking about?
PETS, sorry, don't know why my phone cut off the 'S'.
PETMED EXPRESS INC COM
I just checked the top 3 companies there and every share price is through the floor lol
Isn't that the time you want to buy..?
If it was a temporary drop, yes. They're all being slowly hammered into the ground.
Maybe they're paying big dividends because the actual share price is worthless, so you lose your initial investment but think you're getting money back? Dunno, seems shifty as fuck
Have you ever heard of the tbill?
Sure. It is still a lower rate than going into dividend stocks.
Tbill has zero principal risk and a higher yield...
Which dividend stock can offer this?
How much do you personally have invested in stocks like these?
Little under 30k in higher risk dividend. Bring in about 800 a month.
I have a mix of large cap, small cap growth stocks, then dividend high risk and low risk. Stock like this (I do not own PETS, I was just using it as an example) would be a high risk due to its price instability. But you mitigate that with stop loss orders.
I have a vanguard/roth for my longs (large cap growths and stable dividends with DRIP) and then use etrade for the small cap or high risk ones. I like their tax documents and easy interface.
People make arguments against dividend stocks, I simply call it a different strategy. Some years it beats out my growths, some years it is about on par. Depends on where I have it at the time and slightly more market dependant.
I have recently gotten into ex-date chasing. While it has increased the returns, it is more work.
Ive thought about doing that with my IRA, has the market negatively impacted your yields at all?
When it is easy bull markets, I go heavy on growth stocks. When the market is bear, I go heavy on dividends. Right now though there is a high beta turmoil, so I have a mix of both. My IRA is also set up as more od a "leave this alone" investment. My etrade account has my "fuck around and find out" money. I mention this because it is hard to directly compare the two. So far my dividends have strongly out performed the growth stocks, but only in the last 3 months or so has the gap widened. I credit it to 2 specific ones that are getting me 30%-ish yields with stable prices. They are also new etf's, so the hedge money is still strong before the stripping gets to its prices. I mentioned in a post lower that that my little under 30k is netting me 800/month. Honestly it is paying a higher yield than renting out my condo is getting me.
Thanks for this, 30% is crazy to me. Which ETFs are these two if you don't mind me asking?
ex-date chasing
Don't they call that "stalking"?
Also yes. The more professional name is 'dividend capture strategy'. More work, worth the pay off, do all you can to avoid commissions and fees.
Haha I was making a joke about the terminology but I probably should actually do some reading about the topic
If you don't have an emergency fund, I would put some or all of it into something like a money market account. It won't grow very much, but it's safe and is quick and easy to withdraw when needed.
Otherwise depends on your age and situation, but an index fund (S&P 500) is almost always the right choice. It's flexible, doesn't usually lock you in, and will generally do very well in the mid-to-long term. If we hit a recession you might get stuck holding the shares for several months to a few years. The last thing you want to do is panic sell in that situation.
If you have any debt, paying that down is a very smart move, especially if the debt is charging more interest than your investment can earn. Future you will thank you.
Index fund, most definitely. And find one that has low administrative fees, I know that Vanguard has at least a few that are super low.
I have my emergency fund, and no debt. If I were to lose this $10K, it wouldn't impact my life. I'm comfortable with taking $10K out of my bank account and doing something with it but I don't know how to go about that. I don't know how to open an index fund or money market account.
I'm going to second (third, fourth, fifth) the Roth IRA recommendation. You can set it up with Schwab or whoever and can make recurring contributions too (set it and forget it) there are income limits so if you are really raking it in one year you can't contribute that year but whatever you put in there is still (usually) going to grow in value. If you have an emergency situation and need the money you can withdraw contributions, not earnings, ahead of retirement, so it's not lost to you, but working for you and much easier at tax time, no worries about how to report it.
Pay down your debts first.
Buy 10 Babies in Arkansas.
it's cheaper than surrogacy.
Does beer come with that?
With zero information on your situation, it's difficult to say. If you have debt, paying that down/off is generally priority one. If you are debt-free, then you have options. Your age, stability, goals, and other factors would generally dictate what type of action to take. Were it me (early 40s, very low interest rate home loan), I'd put it into an index fund where I've already got some investments. In my case, I'm investing for retirement in about 25-30 years (as if I'll be able to do that, but one can hope).
Bees.
Beads?
Peas.
I do enjoy beekeeping vlogs but I'm more of a gardener.
Beads?
An index that either tracks the top 500 companies or the total market. Look up a 3-fund portfolio if you want to go a little deeper.
Alternatively, max out an IRA if you haven't already this year and are in a position where you won't need that money until retirement.
Edit: I realized I'm assuming a lot about your situation. So instead, here's a general list of priorities that applies to more or less any situation. You should only proceed with a step if all the steps above it are achieved. Also keep in mind, I'm not a financial advisor just a random stranger on the internet sharing my personal financial strategy.
Pay your future-self first. Establish regular contributions to your retirement account and HSA if you have one, totalling between 3-5% of your compensation or whatever your company's matching policy is (That's not free money, it's part of your compensation package. Not claiming it is like waving a portion of your income).
Pay off all debt since interest is essentially paying a percentage-based monthly fee for owing money and we're not privileged enough for our assets to cover that expense.
Build and maintain a liquid (cash) holding as an emergency fund. This isn't for investing or expensive new toys, it's insurance that will cover your expenses for 6-12 months. Put it in a high-yield savings account or money market since it will be a significant sum and inflation will otherwise reduce its value over time.
Max out your retirement accounts to the contribution limit, your 401(k), IRA, and HSA if you have one. These accounts have tax advantages that essentially mean you can put more money towards retirement than you could in an individual trading account. This doesn't have to be one lump sum, you can divide it up into monthly contributions so long as you're on track for maxing your contribution limits by the end of the year.
Open an individual trading account with a broker (Vanguard, Fidelity, etc.) and invest in index funds (3-fund portfolios are reliable and low-cost). If you anticipate a significant expense over the next 10 years, i.e. a down payment for a house you can budget between this and the funds going towards Step 4 but keep in mind the tax advantages of retirement accounts means you're likely missing out on some retirement gains.
VT. Don’t gamble on single stocks. But since capitalism rules and all of congress owns stocks, you can be fairly confident the market will go up in the long term 10+ years horizon. And compound interest does miracles.
Leave the country while you still can? 🤓🤘🏽
I kind of agree, moving from USA to for example Switzerland would be an improvement in every aspect of life.
But that might not be what they want.
It's a big undertaking; learning the language and law, changing jobs, being okay with the fact you'll rarely if ever see your family and friends...
The biggest problem for some people is no country wants them.
America seems to take just about anyone given you wait decades, but every other country worth moving to has strict income or professional requirements. I'm just a worthless factory schmuck so I'm stuck here :(
Or that, yes.
Even if you suddenly cash out a lucky 10 000 USD once, a lot of countries' income requirements still filter you out
Going about it that way is like brute forcing a password. There are myriad other solutions, and necessity is the mother of invention.
I'm not sure what you mean by that, so just to clarify what I meant: A lot of countries require you to prove you have a sustainable income, so showing them you've earned 2500-3000 EUR every month for the past three years, and that you already have a contract waiting for you in their country, works. Showing you received 10 000 USD once when you can't prove a sustainable income won't do.
This makes it hard for people to move just because they got lucky with money once.
I'm not saying it's a good thing or not, just that this is the case.
Yes, this is known.
Vanguard S&P 500 fund.
Venmo me
But how do we know that you are use it for drugs and hookers and not just some nonsense?
Damn you got me I was gonna be an idiot and put it in an IRA
yeah that's not good, may get you prosecuted under "material support" laws
Put it in an IRA so you cant touch it and buy high dividedend yeilding stocks that reinvest in more shares and let it sit for the next decade and pray that there is a radical social change in out society so we can save the Planet and Poor from Billionaires.
You can definitely touch an IRA. Had to empty mine since I've been unemployed.
What kind of work are you looking for?
I'm a software engineer but can't even get a call back due to the fact that tons of us are unemployed right now. Many unemployed have more experience than I do.
The best part is that I can't even get a job at a grocery store because I'm "overqualified" according to one store in my neighborhood.
Have you looked into drafting before?
I'm not sure what that means
Depends on your risk tolerance.
A 4% savings account is “safe” but might not keep up with inflation.
An index fund might be “good”, but the value can go down.
IIRC, >6% is the floor to keep up...
The average inflation rate for the last 20 years is under 3%
Edit: why are people downvoting me, refute my statement with a source instead of downvoting because you wish inflation was higher
Oh? That's actually uplifting news! 😅🖖🏽
There is no universally good investment - it all depends on your priorities, risk appetite and timeframe.
Don't disagree about stuffing it in VTI... But, be aware that things can go up and down, so don't obsess over the value one you put it in. It's long term so it should go up over long term, but they're can be months sheets it goes down and even a year where it doesn't do well
I'll reply without knowing your situation fully. If you don't have an emergency fund that would cover several months worth of expenses that is probably the single most impactful thing you can do with $10k. A few high yield savings account offer rates around 4%, some of them have strings attached, so read how it works carefully. Think of this as insurance against unforseen expenses that you might otherwise have to put on a card and consequently pay interest for. Pick a number and always make sure you keep that account at that number.
If you already have an emergency fund, you have lots of options. Personally, I am onboard with the folks recommending index funds. I have an ETF that tracks the DOW and it has outperformed most of my individual stocks significantly over time.
Most importantly, strangers on the internet are likely not financial advisors and may not even know what they are doing. Take everything with a grain of salt and if you talk to any investment companies make sure you understand the difference and overlap between a financial advisor and a fiduciary.
So from what I've read after viewing this thread, I make a vanguard account, either get a money market fund or a brokered CD, put the money in, let it sit for awhile, and then profit years down the line?
Money market or CD is going to have terrible return. You will be lucky to match inflation. Get a low overhead SP 500 index fund. By low overhead I'm taking .15% or less. You should be able to find .125% with a bit of poking around.
5% is terrible? I have 13k in a 9 month CD at 5%
Almost a year and I get like $600, doesn't seem so great to me but there's no risk either I guess :/
Low risk but inflation is above 3% so you are looking at less than 2% effective granted it's a fairly safe investment.
Then that compunds year after year.
Hmmm I see a distinct lack of CDs on here...
(Now I'm considering not renewing my 5% 9 month investment) Lol
I just looked up what a CD is. It seems easier to understand than some of the other suggestions that have been made. I do not understand what a roth ira is or if it's right for me.
Roth grows tax-free and has more long term flexibility compared to traditional IRA. The tradeoff is that it doesn’t reduce your taxes in the year you contribute. It’s the better option for most.
Does a Roth mean I tell my employer to put the money into the account or do I put it in myself after I get paid?
The latter, for Roth IRA.^A^ If you haven’t set one up before, it’s pretty straightforward.^B^
^A^: There is such a thing as a Roth 401(k) which if offered should definitely be your top priority up to employer contribution match.
^B^: Vanguard is often recommended for simplicity and low fees. You can pick your funds when contributing. Typical starting funds are VTI and VOO (or the mutual fund equivalents with slightly lower fees, VTSAX and VFIAX).
great this is helpful
Passive global technology index tracking fund
I'm going to need this dumbed down so I can understand
They have low cost to you
Global means they have stock in all markets, so if us is going bad is not necessarily bad for you
Technology means they mostly have stock in technology
Index funds follow the market. They have stock on everything in a segment or general so if market does well, you du well.
I got a 7k bonus 20 years ago in the military. I seriously considered investing it in the Vangard total stock market index fund. In '04 it was trading at $54 per share, today $282. Had I invested that $7,000 I would have $365,555 today. Instead I "invested" it at the strip club because I was a young dumb E-3 in Pensacola and New Orleans was only a weekend pass away. Long story short, index funds are the way to go.
I was considering spending this $10K on an extravagant, international vacation but am trying to make a smarter investment.
There is already some good advise, so I will add some of dubious value that might make sense for some people. Buy a better car (or get a motorcycle). I live in the US, so having private transportation is a necessity. I have a car, but mostly I share it with my parents. I do use a motorcycle as my main commute and it is cheaper than a car's running costs. Just saying that $10k + sale of your current car could fetch you just about any other car. It is kind of hard to do a whole lot of life changing things with only $10k. Perhaps dental work if you need any.
Give it to me
I like roboinvester accounts. You put money in, it automatically invests in stocks for you based on your current age and risk tolerance (which you can change whenever you like). I particularly like Wealthfront, and their app/website are really good. They’ll manage $10-15k for free, and then above that you pay a small fee out of your earnings for their service. If you use someone’s sign-up link, they’ll bump your managed amount by $5k. Comment back if you’re interested and I can share mine. Good luck with your investment, whatever you choose!
High yield savings account at SoFi or Ally Bank will give you 4% right now.
No offense, but that sounds like a terrible idea.
https://wallethub.com/profile/pl/sofi-13798023i
https://wallethub.com/profile/ally-bank-13000140i
WalletHub.com 🤡
Vanguard recently started offering a savings account that currently has a 4.15% APY (their 'cash plus' account).
If OP wants to park the money in a savings account for easier access than a mutual fund, that's both a more reliable institution and a better rate.
$10,000 at 4% gives you $400 interest in one year.
Just about any decent dividend stock will outperform that. Look at PET for example. It is sitting at $3.65/share right now and offers a quarterly dividend of $0.30. That puts you at $1.20/share per year. 10k = 2739 shares = $3,286.80 dividend payout in one year.
Banks are the worst place to put investments. Money in bank accounts are only supposed to be there if you need it liquid, like an emergency fund or your checking account.
*PETS
PETMED EXPRESS INC COM
For all the nay sayers downvoting me as if it is impossible to find dividend stocks that outperform their precious SPY or high yield savings rates, here is a great list I found with shit loads. I count 60 different stocks that offer 10% yields or more. 100 in total all offering over 8% -double what some bullshit 'high yield' savings offers.
https://www.tradingview.com/markets/stocks-usa/market-movers-high-dividend/
Baby steps. Asking someone to go from nothing to investing in stocks is quite a leap.
PET? What stock are you talking about?
PETS, sorry, don't know why my phone cut off the 'S'.
PETMED EXPRESS INC COM
I just checked the top 3 companies there and every share price is through the floor lol
Isn't that the time you want to buy..?
If it was a temporary drop, yes. They're all being slowly hammered into the ground.
Maybe they're paying big dividends because the actual share price is worthless, so you lose your initial investment but think you're getting money back? Dunno, seems shifty as fuck
Have you ever heard of the tbill?
Sure. It is still a lower rate than going into dividend stocks.
Tbill has zero principal risk and a higher yield...
Which dividend stock can offer this?
How much do you personally have invested in stocks like these?
Little under 30k in higher risk dividend. Bring in about 800 a month.
I have a mix of large cap, small cap growth stocks, then dividend high risk and low risk. Stock like this (I do not own PETS, I was just using it as an example) would be a high risk due to its price instability. But you mitigate that with stop loss orders.
I have a vanguard/roth for my longs (large cap growths and stable dividends with DRIP) and then use etrade for the small cap or high risk ones. I like their tax documents and easy interface.
People make arguments against dividend stocks, I simply call it a different strategy. Some years it beats out my growths, some years it is about on par. Depends on where I have it at the time and slightly more market dependant.
I have recently gotten into ex-date chasing. While it has increased the returns, it is more work.
Ive thought about doing that with my IRA, has the market negatively impacted your yields at all?
When it is easy bull markets, I go heavy on growth stocks. When the market is bear, I go heavy on dividends. Right now though there is a high beta turmoil, so I have a mix of both. My IRA is also set up as more od a "leave this alone" investment. My etrade account has my "fuck around and find out" money. I mention this because it is hard to directly compare the two. So far my dividends have strongly out performed the growth stocks, but only in the last 3 months or so has the gap widened. I credit it to 2 specific ones that are getting me 30%-ish yields with stable prices. They are also new etf's, so the hedge money is still strong before the stripping gets to its prices. I mentioned in a post lower that that my little under 30k is netting me 800/month. Honestly it is paying a higher yield than renting out my condo is getting me.
Thanks for this, 30% is crazy to me. Which ETFs are these two if you don't mind me asking?
Don't they call that "stalking"?
Also yes. The more professional name is 'dividend capture strategy'. More work, worth the pay off, do all you can to avoid commissions and fees.
Haha I was making a joke about the terminology but I probably should actually do some reading about the topic
It is also called 'dividend stripping'.
Sofi isnt a bank.