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A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing?
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https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380
One of the main points driven into me back during my finance undergrad was that timing the markets & day trading always trends towards proving no better than pure randomness. Chartists & TA is fun but is about the same effectiveness as picking stocks via dartboard or chimpanzee.
This was a good book recommended to me by one of my professors that really does a great job of putting the argument to rest mathematically. The best thing you can do is to find a fundamentally sound investment, some valuable asset that has is growing. And just DCA along the way.
Read <em>A Random Walk Down Wall Street.</em> Totally mind blowing and inspirational.
The tl;dr is that after accounting for the high fees charged by the managers of actively managed funds, they almost never beat the market over the long term. Low fee index funds almost always put more money in your pocket.
But please buy and read the book. When your done with it, give to someone else who needs it.
You could read A Random Walk Down Wall Street. It's 480 pages, but worth it. It basically boils down to "buy low-fee index funds", but I think the path it takes to illustrate that point is worth the read. Ever since I read it, I haven't bought a single companies stock, but have opted for low fee index funds (like .04%) and have never paid an advisor.
If you are seriously interested, I can't recommend the book enough.
If I had these options I would put 60-70% in the Spartan SP 500 Index Fund and 30-40% in the Vanguard Total International. Both are really cheap funds (expense ratio wise) which will give you ample total market domestic and international diversification. Set it and forget it!
That being said, I am not you. You have to judge for yourself what your risk tolerance is, what your goals are, etc. Target date fund is fine as the other commenter said, but I don't think the bonds in such a fund make sense at age 23 unless you don't have a stomach for risk and volatility at all.
I would definitely recommend doing some reading and learning on investing though. I enjoyed the book A Random Walk Down Wall Street and honestly just reading the Reddit Personal Finance Wiki and their resources along with various YouTubers.
The math suggest that I am right to very large degree when the averages are considered. What OP did was essentially the same as gambling.
As proof, I'd offer the very well known book A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing.
I don't believe the market is 100% random and there are certain other caveats. As an example, some market makers with computers can use the simple speed (relative to the market) to extract profit and certainly some people have an information asymmetry (probably insider trading information).
Still, as a general principle, I subscribe to the EMH and the concept that - whether timing the market or picking stocks - such activities are essentially gambling.
It sounds like you're asking someone here to tell you that it's OK to gamble. It's your money so you're free to do anything you want with it.
But before you spend a dime gambling on individual stocks in the stock market, I highly recommend that you read this book...
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
> why do tou think I gambled?
Because:
> Blindfolded monkeys throwing darts and all that.
is a quote from Burton Malkiel's A Random Walk Down Wall Street. And I believe Malkiel more than I believe you.
If you can contribute regularly and avoid touching your money for up to 10 years, I would suggest aggressive every time. For additional details on how to select the proper portfolio for your situation, I highly recommend reading A Random Walk Down Wall Street.
Amazon link for those interested.
Stockbrokers and all other investment experts.
It has been repeatedly proven experimentally that a blindfolded chimp throwing darts will beat the market more often than the professionals. However, people still willingly pay the extortionate fees for said "expertise". You're better off picking randomly or just buying indexed mutual funds than going to any professional broker. And yet...
Buy your dad a copy of this book:
https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380
Google the book to find out more about why I am recommending it.
I fucked up the title
I suggest in you’re interested in why https://www.amazon.co.uk/Random-Walk-Down-Wall-Street/dp/0393358380 as the review of a journalist of that book said more or less “buy it, read it, then put your money in an index fund”
Audible: A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
Amazon: A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
It's one of the classic investing books. I believe the current version is the twelfth edition, so it's pretty popular.
https://en.wikipedia.org/wiki/A_Random_Walk_Down_Wall_Street
Once upon a time I was in your position, knowing I didn't know anything, so I started reading. Let me suggest, based on my reading, two books you might consider. The bonus, too, is they're both just plain ol' good reads. The books are:
A Random Walk Down Wall Street
With Random and Millionaire in your mind, you'll be well-positioned to determine future study, if you think necessary, that might inform your investment choices.
I second the recommendation of A Random Walk Down Wall Street. It's currently on its twelfth edition and definitely worth reading.
I know this is an annoying comment, but I recommend reading more about the basics of investing. Pick one of the two following books, and I promise you will not regret having read them:
A Random Walk Down Wall Street. ETFs beats active funds
https://www.amazon.com.au/Random-Walk-Down-Wall-Street/dp/0393358380/
Value Averaging
https://www.amazon.com.au/Value-Averaging-Strategy-Investment-Returns/dp/0470049774/
Not what you asked for, but I'd probably recommend the audiobook version of this: https://www.amazon.ca/Random-Walk-Down-Wall-Street/dp/0393358380
Personally I'm just holding VGRO and similar stuff. I think most people around here are probably doing the same.
Short conclusion : put a percentage monthy into a Total Market index fund. Sites like Vanguard provide them at low cost.
Avoid day trading unless you work for an investing firm. And if you do you likely legally cannot.
>So where should the rest of the capital in these inherited IRAs go to live out their happy lives providing us stretched distributions?
To maximize the amount you can withdraw, minimize costs. Vanguard, Fidelity and Schwab have excellent options but I prefer Vanguard because of their ownership structure.
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>Should they mostly go to one location and be consolidated?
Do what's easiest for you, consolidate.
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>Is one company any better than the other for the purposes of IRAs?
Low cost is best. See above.
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>We are pretty novice when it comes to investments.
Read:
A Random Walk Down Wall Street by Burton Malkiel
https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380
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