A Beginner’s Guide to Investing in 2024
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- Опубліковано 8 лют 2025
- A Beginner’s Guide to Investing in 2024
We've got a lot of new audience members that are just starting out with their money. We've also got a lot of you with kids, friends, spouses, or family members that you are wanting to help! We hope this will be a great resource for anyone new to personal finance. We’re going to break down the basics of investing, how to pick funds, what the different account names mean, and a step-by-step on how to actually open the accounts.
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Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.
When I was younger, I thought investing was just for rich people.
Tip of the hat to Mr. John Bogle
My government teacher in high school was really good at giving life tips sometimes. And he told us to start a 401k and roth. He talked about long term capital gains taxes being less than income tax. I didnt think it was something I’d ever do or care about but here we are
I’m mad at myself for thinking the same when I was in my 20s.
@@saraashkir5793damn, wish I had a teacher like that in my adolescent years
I already had a roth ira, a 401k, and invested in the stock market when I found you guys. I have been a follower of you guys for a while. I really like these "beginner's guide" videos to remind me to keep investing
Perfect timing on this episode! Unless I have an emergency pop up between now and the end of the month, I should finish funding my emergency fund this month and be ready to invest beyond just getting the employer match next month.
For context, I'm 23, about 8 months into a job after graduating university debt-free, and my only current debt is to my parents for about $2k interest-free from some moving expenses they helped me cover.
I'm so glad I discovered The Ramsey Show and then this show back in high school. I learned a lot from them in that time that has given me a massive leg up.
Update: I opened a Roth IRA with one of the big three (not saying which one for obvious security reasons). Between that and my Roth 401(k), I have a 25% savings rate. But my income is so high and my cost of living is so low that I make more money than I know what to do with. Naturally, some of that "extra" money is going to even more savings, and some of it is going to lifestyle.
I remember making that next step myself. I now have investments of 183000 and owe 139k on my home with no aditional debt. Keep up the hard work!
Outstanding. You will be wealth. You’ll establish a legacy for your family. That’s so awesome!
Definitely max out that Roth IRA if you can
Buddy i’m 23 too. Low income but i cut corners where I can to make up for it. Proud of you
I had never heard of investing in my entire life until I was about 45 years old. I didn’t grow up in a world where anyone mentioned it at all and so I didn’t even know what questions to ask to learn about it. I always lived below my means and so I have no debt but also never made enough to save much. Maybe a couple thousand dollars at a time. I had heard of 401Ks but have never worked for an employer who offered one. At 47 I am just now starting to invest. :(
Never too late!
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.
The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional like I did. If you get the facts about saving and investing and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.
The stock market rally run is gone, but I'm not sure if equities will swiftly recover, keep falling, or fluctuate in a narrow range for a few weeks, or if things will quickly get worse. I'm under pressure to increase my $150k reserve.
Is this a good time to buy stocks? I know everyone is saying we are in the bull market and all, but obviously there are strategies to maneuver when there is a bear market but these strategies doesn't come common to the average folk, I'm attempting to create a portfolio for me and my children that will at least be $900k in value.
Making touch with financial advisors like Zachery M Demers who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times.
HE'S MOSTLY ON TELEGRAMS, USING THE USERNAME...
Would love to see investing advice for brokerage accounts, specifically for funding large purchases (greater than 5 years out) and optimal withdrawal strategies (lump sum or dollar cost), thanks!
This money should be saved, not invested.
If it's greater than 5 years you could run it like what your portfolio looks like closer to retirement, so 50% or so invested and mostly cash or equivalent. It does depend on if you'll need the full balance or not. The more you need, the more cash.
Absolutely. I would like to know the same thing.
Perhaps a target date retirement fund for the expected date of purchase?
@@BitsOfInterest in my experience, if someone has a tangible purchase planned (whether its 3, 5, or 10 years down the line), you should not subject that savings to the potential for losses. If you are saving for a house for example, losing 20-50% during a market correction can make people make very bad emotional decisions. Especially now with CD’s and bonds paying 5%+, there’s just no reason to get too aggressive for money needed in under 10 years even.
Me, opening up a Money Guys episode: I wonder if Bo is going to be excited about this.
Bo: 0:10
It's amazing how history keeps repeating itself, and the urgency to prepare is definitely real! Investing can be the best decision of your financial life. I started my journey in 2021, and it’s been the best choice I've made for my finances.
What's the best way to begin, and how long until it starts yielding profits?
No matter how long you wait, opportunities will arise in the market. Invest for the long term, and avoid being too greedy or too fearful. Making informed decisions is crucial; relying on luck isn’t enough, so partnering with an advisor is essential.
I hope you don’t mind suggesting your sûpervisor, as you mentioned before
Olivia Charlotte Oswald
She's an amazing professional I’ve had the pleasure of engaging with. You can look her up
Thanks guys!! Just opened a spousal Roth last year . Our tax guy says just put it in a regular Ira and convert it as a back door Roth due to the income limits we may hit in the future!!
Never to old to start !!! I’m opening custodial accounts for our grandkids ! Love all your content!!!!
Invest early, invest often, stay invested.
how do i do this? where do i start? i'm so confused
Okay so i advise you start with stocks, When picking stocks my only advise is you buy a good cross section of an economy and you should do well over the long term. The market will be high in 10 to 20 years, and significantly higher in 30. It's almost impossible for a company with no debt to go bankrupt. Canada is about 3% of the global marketplace, U.S. is about 50%, remainder on the globe is 47%. Pay yourself first. It's time in the market, not timing the market. i stay on top of the market with my FA Anna Rounds Fay.
@@katelynrenesse4798 Thank you, this was definitely worth the read, as an Investors may avoid making decisions out of fear of regret. This can lead to inertia, where individuals hold onto cash rather than invest, fearing they will make a wrong decision.
Thanks for sharing, I just looked your FA up on the web because this is equally important to me, and I would say she really has an impressive background in investing. I will write her a mail shortly.
Thanks for the tip, Will definitely work with her
New to the channel. I rolled my ira over to a roth and did not pay the tax 2 months ago. In our other IRA's and brokerage acct, we bought an s/p index fund. In the last 2 months the index fund made enough to pay the tax on the roth by 1 .5X. If we did it 5 months ago we would have had 3x more.
It's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest now, but I don't really know which way to go. These videos are helping, no doubt.
I understand how you feel. It's a little bit difficult to navigate things these days. You don't wanna lose whatever is left. I may suggest that you find a financial advisor who could give you thorough advice on how to go if you want to go the investment route. Also, the fact your business failed doesn't mean you should give up.
That's right. I have tried many failed businesses and it's just a step further. Don't despair. But to add, if you do decide to use a financial advisor, it's best you use someone who understands your special needs and can work with you. I learnt this from experience before finally finding one I can stick with. Now I make six figures from my investments alone, and even more from my businesses.
Thank you for the advice. When you say financial advisor, are you talking about hedge funds? And how do I get in touch with one?
Hedge funds are good, but their large size make them very bureaucratic. You could find most independent financial advisors on the internet. For instance, I work with Sharon Louise Count, and she has a website. I'm sure there are other good ones. Just do your research.
Hedge funds are a good thing, but because of their scale, they are quite bureaucratic. The majority of independent financial advisors are available online. For example, Sharon Louise Count, with whom I collaborate, has a webpage. There must be more excellent ones. Simply conduct research.
You guys are AWESOME! 👏 Thanks so much for the video! I seriously appreciate you guys! You guys are literally one of the most helpful finance UA-camrs I follow, hands down 🙌 THANK YOU so much! 🙏
This is their best show yet!
This is a great video, this one got me really fired up and I went into my retirement accounts right away to evaluate what I can update and increase to hit my goals!
EXCELLENT EPISODE! THANK YOU! THANK YOU! THANK YOU!
Just opened a Traditional IRA a minute ago, can't do my Roth any longer which is sad, but also good.
If your income is too high for a Roth, consider doing the “backdoor Roth” … allows you to still get Roth dollars with just a little extra work.
Great episode! I love the detailed process at the end on how to open/fund/allocate a Roth IRA - critical info that is very infrequently covered
Just uped my 401k by 2% and set ut to automatically go up to 11% over the next 3 years. I also just increased my monthly roth ira contributions. Ready to start this journey.
you´re my inspiration, greetings from brasil
A Fantastic, fun, practical and useful video. A video that everyone should watch in my opinion. Getting yourself educated on investing is the most important thing! I thought you had to be rich to start investing but today in 2024 you can start investing with only $5! Thank you for the video!
It took 4 years to have 1x income invested (25% savings rate), but it looks like I'll get to 2x two years after that and it's getting shorter to add each multiple, eventually adding 1x income per year closer to retirement.
Thanks for all the valuable information. I’m still skittish when it comes to investing, but I’m compromising for the time being by utilizing high yield savings accounts/CDs and investing half the interest while I figure things out.
Consider giving their advice a try- target retirement index fund in a Roth IRA. You may like it!
@@arh1234 already doubling what my employer matches in a 401K that uses the target retirement, it’s just personal investing that I’m skittish about.
I’ve been watching you guys for months now and I love your content. I am a mailman in Pittsburgh PA. Since I am a federal employee I have a TSP account in lieu of a 401(k). Would it be possible to go over some of the differences between the two?
TSP is almost the exact same as a 40k
Google might work too
I’m a carrier as well. Tsp is the same as 401k
If it’s the same as the military’s TSP, the C Fund (S&P 500) has the second lowest expense ratio and highest returns over the last 10 years.
Lifecycle funds (e.g. L2050) are the target date index fund equivalents
Love all your videos and advice!
Thank you!
20:30 difference between Mutal fund/index fund and ETF
I love your video Money guys. If I can suggest you something about your 1$ beer that could become 88$. A different view that could hit more: with a 3% inflation, a beer you bought at your 18th anniversary (or a coke if you're in a country whose legal age i 21 ;) could have been a pack of 24 at age 65 !
Nice! This!!
Bless The Money Guy Team! You are helping so many ❤
Investments are the roots of financial security; the deeper they grow, the stronger your future will be."
The deeper your investment roots, the stronger your financial security will be in the future.
Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.
I would love an introduction to an adviser who can help me strengthen my financial roots.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
Thank you for this amazing tip. I just looked the name up and wrote her.
And how inflation actually furthers the gap of saving vs investing. The power of your saved dollar lessening over time.
ETF vs Mutual Fund: Which tends to have lower fees, the ETF Index fund or the Mutual Fund Index fund?
For someone who lives in California, does an HSA still make sense?
Does fidelity have a ETF S&P 500 Index fund? I know FXAIX, but that's a Mutual fund S&P 500 Index fund.
Amazing! ❤❤❤
Love this channel. I will have you guys to thank when I get to retirement. Quick question: What is the 20 year old doing with a beer anyway? I don’t know why this clicked in my brain for the first time today.
You mean college kids drink alcohol? Wow
The 20 year old is European 😉
It is their parents beer and they are bringing it to them from the fridge
They usually correct and say it's a 21 year old who retires at age 66... oops😂
Brain Preston is back baby 😊
WHY IS BO ALWAYS SO EXCITED?!
Because he gets to play Robin to the Batman of personal finance. He clearly loves his job.
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
If I work as an independent contractor and dont have access to an employer-matched 401K, what kind of extra investing do I need to do in order to accumulate that wealth I dont have access to?
Go onto fidelity open up a brokerage account and Roth ira. Start off with buying FXAIX which is sp500 mutual fund. Cheers!
You don’t need to do any extra investing, you just allocate what would go to a 401k elsewhere, like a Roth IRA and normal investing in index funds. Look up their FOO, it explains the steps.
What do you think about Bitcoin? There are so many speculators and diamond hands and I’m curious if this is an actual good investment in the future. I am not in Bitcoin because I do not think it will ever replace cash.
Bitcoin doesn’t represent anything. It’s like Santa, as long as people believe in it, it’ll be worth something, but as soon as people decide they aren’t interested in bitcoin anymore, there’s no physical assets making it worth anything.
Okay so you contribute to roth IRA then what. Do you have to choose what its invested in? Let is sit and get intrest like how do you use a Roth IRA?
Yes, then you need to pick an investment.
Pick an index fund
Pick a target date index fund😁
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
After viewing this, I can safely say I now know what that beer holder means. 👍
For Target Date Retirement funds, would it wise to buy into that fund in a ROTH IRA, or should we be using those retirement funds in a different account?
Target date is definitely ok, but just keep in mind ROTH should be the last bucket you pull from if possible and they are tax free later, so this account can be your riskier account (with out going crazy- still stick with an index fund at least like SP 500, etc)
@@Zombiebeast1995Thank you. Makes sense! I am about 90% stocks and 10% bonds in my current Vanguard Retirement Fund. I have a high risk tolerance and I am 34 years old.
Roth IRAs are great for target date funds! Target date funds in brokerage accounts are actually somewhat nonideal due to possible tax issues, so 401k and IRA are best.
@@bpenguin I’m close to the same, I’m about 95/5 and I am 28. I do SP500 and target date, I’ll be focusing target date a bit more when I’m closer to 35ish.
I tell my 24 yr old daughter this weekly. She rather get a car she can barely afford and not save. How can I convince her to save?
Teach her not to be high maintenance…that’s on you
Too late mate. You should have been doing this when she was 4 or 14. She's an adult now and will make her own bad decisions.
I had a friend who decided to lease a new car in his 20s. I think this was the best life education he had. 6 months in he realized how expensive it was. He ended up buying out the lease, returning the car and buying a 2k vehicle. He now buys cars 10+ years old with cash to save on tabs, insurance, and depreciation.
Some people need the life lesson for themselves. And that is okay.
She is an adult. Nothing you can do.
What is meant by savings rate? Does that mean save more money each month?
How much you save monthly. If you save 20% of your income every month you have a 20% savings rate. No increase. They recommend 25%.
When does million dollars mission come out
May 28
Match, Roth, Brokerage in that order.
When they mentioned the monkeys I remembered Michael Reeves's goldfish video. Would love for them to react to it, don't expect them to though, way too much filth.
What about Japan? If we stop producing the ever expansion will slow down and come to an end
Don't save cash
Brian, some of the shit you say is starting to sound out of touch. I followed you guys a while and your content is changing. You used to sound like average people give advice to average people. Recently, you guys are sounding like rich people who give impractical advice.
What advice are you referring to?
Still very valuable information. Still better than MOST others, but they can't help it. It's also just psychology. They TRY to stay relatable and they still are, but it'll never be THE SAME message as years ago. The confidence they obtained slowly eroded the "humility" of the overall message.
Don't be a crab in a barrel. You can buy into a target date fund with, for example, a 1k minimum at Vanguard. That can be in a Roth IRA. Workplace 401ks usually have similar options. If all that is too complicated then you just need to do more reading. But this is basic financial literacy. You can do it. And if you can't get 1k or access to a 401k then it might be prudent to invest in training/education to increase income / total comp. Reddit Personal Finance sub has a helpful community. Ditto for Bogleheads. (VTSAX and chill baby!)
I feel like their content has always leaned towards people making $200k + but they still do include lower income people generously. I’ve been watching around 5-6 years and I think they include the little guy more now than before.
If you’ve watched more than like 2 videos from them you’d know all their advice is what you shoot for, none of it is a requirement for right this second if it isn’t feasible.
Investments are the roots of financial security; the deeper they grow, the stronger your future will be."
Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.
I would love an introduction to an adviser who can help me strengthen my financial roots.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
Thank you for this amazing tip. I just looked the name up and wrote her.