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Ask HN: Investment ideas

6 points by not-ephemeral ↗ HN
Hello! I'm a software developer working for a very large company. I spend a lot of time working and don't have much time to invest (financially). Apart from company retirement plan, and stock options, I keep all my money in a checking account.

There are loads of information available online but being a cautious, controlling introvert, I'm having trouble starting.

I'm 33, make an average salary, in the bay area, single, have no debt, live within my means and willing to take high risks. About 27% of my income goes to company retirement plan and besides real estate what do fellow programmers recommend/do to grow their money? How would you invest 50, 75, 100k, that you don't need immediately? I'm interested in both short and long term.

Thank You!

14 comments

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gauravkumar552
Given your situation, you should not go for short term for sure as you don't have much time to follow it. For long term you should try things like fixed deposit which have sure returns.
tlrobinson
He did say "willing to take high risks" though.
gauravkumar552
He might be willing now. But I have seen many people interested initially who repented later. Also I gave a suggestion based on his busy schedule.
rms
10% in Bitcoin
gjmulhol
wealthfront.com or another such service. Automatically rebalances for you.
jaz
Do you have an account with Wealthfront? I'm curious to hear about peoples' experiences with it.
gjmulhol
I don't actually, mostly because I have been in school since I learned about it and haven't made any money since then to put in an account. Realistically, my understanding is that they are essentially using Vanguard ETFs. Their trick is that they actively manage your portfolio. If you are willing to spend the time to constantly rebalance your holdings (and have a good knowledge of ETF betas so you choose them correctly from the outset), then it is definitely better for you to do it yourself. The fact is that most people don't do this -- I know I won't. Not rebalancing can have a MAJOR negative effect long term on your portfolio, so I would rather be guaranteed to give up a small percent of returns than have exposure to future economic/market downturns as I get older.
larsonf
None of this is advice. I just like talking about this stuff.

One of the ways to get familiar with investing is to buy shares in an ETF on the S&P 500. ETFs are like mutual funds traded on exchanges; you probably know that but maybe you don't.

I mean, it's not about making money so much as you will get to experience being a part of the American growth machine. S&P down 12 points? Well, how come? Oh, this company tanked it? But these other ones are doing well…is an example thought process on a day as owner of said ETF. Owning stocks and funds holding stocks will change how you think about money and value and companies in general. There is something deeply powerful about having skin in the game with the success of others' companies.

terrykohla
"I spend a lot of time working and don't have much time to invest"

vs

"willing to take high risks"

This is only achievable through outsourcing, meaning you'd have to hand you're portfolio to somebody you trust. My advice is to take the little free time you have and shop around for an investment guru you trust.

I have a hard time trusting people with my money so I prefer real estate, it's tangible, it's there, I can see it, only a natural disaster (an act of God) could take it away.

I'm looking at rental property through a real estate management company so that way I don't have to do anything. I think it's a win-win, get some rental income + hold on to real estate over time should go up.

gesman
Buy Buffett's shares. People pay $1M to have a meal with the guy, he might be up to something :)
not-ephemeral
Thank You everyone for the comments. The more I think about it, I should have also put, I'm willing to take risks and put more effort into it.

I've been looking at EFTs Vanguard and stocks mainly Tesla, but worried if I'm late

Are there any stocks y'all like these days? Short or Long term.

mythriel
"Hello! I'm a software developer working for a very large company" --> why not invest in a startup?Or in some good developers who can make a good product. I mean u know software development...why go and invest in domains that you do not know ?
6thSigma
Read 'The Wealthy Barber'

I'll give you a spoiler: compounding interest.

cheae
I'm following the boglehead philosophy http://www.bogleheads.org/wiki/Bogleheads_Investment_Philoso...

Picking individual stokcs requires a lot of time , energy and knowledge.

Since I need to put my focus on the things that is working and brings income, I do not want to distract myself.

If this method can be broken down into steps, it would be 1. Decide your Asset allocation. eg : US stocks 20% US bonds 20% Developed market 20% Emerging Market 10% REITS 20% 2. Pick low MER ETFs for each category. 3. Check & Rebalance your portfolio regularly. 4. No matter what happens stick to your asset allocation.

There are many books explaining this. "THe blogleheads' guide to investing" would be good start.

You cannot become like a next Warren Buffett with this strategy. But you can focus on the things you are good at, while your money is growing.