Starting out with investing?

[Sheliek]

Due to my health situation (back injury coupled with a mental illness), I'm not able to work, and I want to save up money for when I'm older. Disability welfare will never allow me to afford a house no matter how much I save away each month, so I've decided I want to start investing. I've dabbled with shitcoins for a month or two now, but I want to start exploring less volatile investments.

Where should I begin with this? I'll make an appointment with my financial advisor toward the end of the month, but I'm sure a few of you guys have some advice too.

Just as an aside that isn't really related, me and a few friends might be starting a record label if we can get enough local acts on-board, so I might've found a job that won't cause me physical agony or a mental breakdown if that works out.

[TheEconomist]

Statistically speaking, more times than not, you're better off just putting your money in an index or ETF instead of any kind of wealth management. When fees, commisions, and return are totaled, the VAAAAAST majority of managers don't beat the market, and are far more risky. Even friends are risky, unless they're honest, life-time long friends who somehow were interested in making money with your money but have no interest in your money.

It's usually a peace of mind thing, but, the fact is, it's more likely that someone is going to mess up your investments or steal your money than it is for, say, North Korea to nuke the stock exchange.

If you've got no time to worry about this shit, then just dump it in a S&P 500 index or some kind of low-risk blue chip ETF.

If you want to do a little gambling of your own, buy a leveraged index/ETF in an industry or banking on an outcome you think will LONG-TERM promise.

Unless you're going to devote your working life to this endeavor, don't try to pick your own stocks and don't try to time the market. You lack the flash trading mechanisms of Goldman Sachs and you will be anally raped with no lube.

There's a reason all of my finance friends from colleges who though they were going to manage wealthy client's money are really now just kicking old ladies out of their foreclosed homes.

[Sheliek]

Thanks for the advice. What are your thoughts on spare-change investing apps? Acorn is the most well-known one, but the one active in Canada is Mylo.

[TheEconomist]

I know nothing about those things. If its something that charges relatively large fees, however, just get a cheap passive index fund for like $20 per share. If this is something that invests your money for you, sure, why not. The number of people who should manage their own stocks is pretty few (for a number of psychological reasons). If you're one of those few people, then you already know, because you've always known since birth.

[propoly]

Sounds to me you'r e after a scheme that ultimately is too good to be true

[Saladin]

Actually, I wanted to get into investing for my own peace of mind as well, Economist. I would like to hear more. By the way, nice cover art for the forums.

I heard about another investing app known as Stash. You should check it out Sheliek

Stash is investing simplified. With Stash Invest you can start investing with $5 and learn as you go, all from your smartphone.

When you sign up for a Stash Invest account, we gather some basic information about you and your current financial situation so we can recommend investments based on what we call your ‘Risk Profile.’

Once you sign up, you will need to connect a checking account, and then you can buy fractional shares with as little as $5 and start investing. Your first investment should always be your recommended mix, which is based on your risk profile. After that, you can invest based on your beliefs, goals, and interests. We’ve given the ETFs available on Stash names that help you know what they’re all about, and individual stocks are listed under the company’s name.

That’s it – sign up, customize your portfolio, and boom, you’re an investor.

To open a Stash Retire account, you first need a Stash Invest account. Then you simply need to answer a couple more questions to make sure we match you with the appropriate retirement account, and you can start with as little as $5.