Hey /biz/
I'm fairly new to investing. I invest about 100 bucks a month in index funds (am poorfag college student, just doing it to establish discipline, pls no bully).
I have an account with Stanley Morgan that my parents set up as a custodial account to help pay for college. I got a scholarship that pays for everything so i'm just going to withdraw it. Its about 5 grand.
My idea is that I will invest most of this in a high dividend ETF? Can you smart /biz/ gentlemen tell me why this is a good or bad idea.
If it is a bad idea please tell me what I should do with it instead (pls no cryptocoin/erythrium/ext., I've accepted I will never make the massive gains that you homos do every day).
Thank you. This board is actually helpful, sometimes. I'm also maybe going to take 1000 of it and put it into a robinhood account depending on what their fees and such are, consider it gambling money and follow the meme stocks this board promotes until I lose it all.
>>1374672
Not enough. Sell drugs!
>>1374677
Not enough initial investment?
Why?
>>1374672
>I invest about 100 bucks a month in index funds
>just doing it to establish discipline
>I'm also maybe going to take 1000 of it and put it into a robinhood account
>consider it gambling money
You're considering "gambling money" what it takes you almost a year to accumulate?
This board cracks me up.
>>1374766
That 1000 dollars would be coming from the 5000 that is essentially "free money" to me. I'm still going to invest 100-200 dollars a month in the index funds I have been.
>>1374802
Lol.
So you're saving to "establish discipline", but you're going to gamble 20% of your "free money" away?
The point is, a disciplined person wouldn't gamble an amount that would've taken them 6 months to a year to save.
You know, that money isn't worth less because you "got it for free".
>>1374802
it's still a year of work for you and 20% of your total portfolio. You sound very young; 5 years is probably a huge chunk of your life to date.
On the other hand, losing 1k should teach you a lesson you will never forget, and that has a value in itself.
>>1374766
It's gotta be the dumbest board
>>1374802
OP I just wanted to jump in really quick and call you a retard for thinking that's it's okay to waste money that you get for free. You retard. All money is the same. Lets say you have 6000 in the bank, 5k of which was "free" and 1k of your personal savings. You understand that if you withdraw 1,000, that is the exact same thing as wasting your entire personal savings and keeping the 5k in full. So don't fucking think of it as keeping your 1k in savings and only 4K of scholarship money. It's all the fucking same because every dollar is identical to every other fucking dollar. Now that you have the money IT DOESNT MATTER WHERE IT CAME FROM BECAUAE THERES NO WAY TO TELL BECAUSE ALL DOLLARS ARE THE SAME.
>>1374907
>>1374909
>>1374915
>>1375088
I have more than 1000 dollars in savings, I've only invested 1000 dollars up to this point.
I work a $15/hr part time job so its not like i'm saving up super hard to invest the 100 dollars a month, its just to instill the fact that part of my paychecks needs to be consistently put in index funds.
And the 5000 dollars is legit free money.... my parents told me like a week ago "by the way we saved some money for you for college, since you got a full ride here you go". So I don't understand why me wanting to gamble away 1000 dollars is causing such an erection. I'm still committed to investing the 4 grand over time, and the 1 grand is "fun money" that i'm choosing to gamble on stocks. Most kids my age would buy clothes and weed, however I am autistic.
Thank you for all of the advice about whether or not investing in High dividend funds is retarded or not. Helpful board....
>>1375111
Wow.
Do you know how long it will take you to generate $1,000 with your "4 grand invested over time", regardless of what you put it in?
So you're starting off in the hole, and if you really gave a fuck about your investment and its returns, you wouldn't kneecap it before you even begin.
That's why anons here are addressing it, because it makes much more of a difference than percentage points of return between investments.
>>1375134
So whats the difference between investing 4 vs 5 grand if it is obviously such an insignificant amount to generate a meaningful return.....?
My starting salary in 4 to 6 years will be around 105,000 and I live in the midwest so that's solid. I'll be able to put away 2,500 a month then and have no debt accrued from college.
Again I don't see why everyone is shitting on me for using 1000 dollars for fun when you yourself regard 4000 as useless in generating a meaningful return.
Learn to do covered calls, Dividend like behavior on growth stocks.
TastyTrade.com
>>1375201
Yep, you don't see it because you are a punk with a Nigger brain. Just delete the thread, retard
>>1375201
>My starting salary in 4 to 6 years will be around 105,000 and I live in the midwest
>>1375201
>My starting salary in 4 to 6 years will be around 105,000
A certain saying about counting chickens springs to mind.
>>1375201
You're probably going to start out in the 40-60k range if you're lucky. If we had this conversation during the interview I'd buy you lunch just to have you leave my presence.
>>1375201
>So whats the difference between investing 4 vs 5 grand
>"oh I won't make that much money anyway, might as well make as little money as possible"
For simplicity lets say you make 5% return a year.
If you wasted your 1,000 and only invested 4K, after 4 years you would have 4,862. That's less money than you have now. So after all that hard work, and many /biz/ threads later, you've lost $138.
Compare that to investing 5000 now. By the time you graduate you'll have 6,077. That is 1,215 more dollars, and a 1,077 profit. Basically, you would be missing out on $1,215 bucks. You would have to wait 9 years to reach break 6,000 if you started with 4K.
>>1375320
No.
I Just got admitted to pharmacy school.
Entering salary is near 105,000. It will probably be higher in 4 years.
I personally know 2 people who just got jobs as pharmacists who both make over 100 a year.
>>1375326
Thanks for actually explaining what difference 1k would make.
You're assuming 5 percent return/year though. I've read about how there will be another housing bubble burst for us, and china coming up and how it will fuck us. So is 5 percent realistic to expect.
That was from this board
Why do news articles even suggest anywhere near 10% annually for index funds? We're gonna be lucky to get 6%
>>1375332
you fucking idiot. You have no idea how jobs work. Get a job first.
>>1375332
Hope you're going to a top school because pharmacy is saturated and that starting wage is unrealistic.
t.pharmacist.
>>1375111
>Thank you for all of the advice about whether or not investing in High dividend funds is retarded or not. Helpful board....
I see you've learned how pointless it is to ask a board full of NEETs about business and finance questions on an anonymous Mongolian yao board.
To answer your question, no it doesn't sound like a retarded idea. I personally invest my savings in VNQ, which is Vanguard's REIT (Real Estate Investment Trust) because it pays pretty decent dividends. The most recent unadjusted effective yield was 3.77% and that's on top of its 10 year growth of an average of 10% per year.
I wouldn't mess with individual stocks for reasons that you should already know. You're much safer with ETFs and mutual funds if you're looking at long term investing.
>>1375354
I have a job.
And like I just said, I personally have 2 friends who just graduated from pharmacy school, and got jobs paying 105, and 107/ year before taxes.
My jimmies are too rustled to stay on this thread.
>>1375111
youre messed up kiddo. i cant beleve you got given 5000$ and you dont even give a shit. dont fucking gamble it away dude. im so triggered right now
>>1375111
I sure hope your scholarship is not for an economics degree.
