I would like to start investing my Iraq deployment money...how does an amateur start ?

Question

I would like to start investing my Iraq deployment money...how does an amateur start ?

Answer 1

I would recomend buying ETF's and forgetting about it.  It would take years and hours and hours of studying to become a proficient investor.  Do what you do best, and get the market return by investing in index funds and ETFs. Remember that 80% of professionals underpreform the market. Also, remember the Index Funds gets 12%, Mutual Funds only get 10% return due to fees, and the average mutual fund investor only makes 8%.  Be sensible and stay away from active management of money, it is a fools bet. Index/ETF funds are the way to go

Answer 2

Probably with an index fund if you're doing it on your own.

If you're doing it through the TSP, then you can talk to the people at your home base, and they'll help explain all of those options to you.  There may be benefits of doing this through the TSP rather than through a civilian account.

But if you're just doing this on your own, then think about getting an Indexed ETF - it's like buying a piece of the S&P 500 or Dow or whatever you pick.

Historically, the best returns have come from small and micro cap (small and very small companies) indexes.  You can buy an ETF like IWC which tracks a micro-cap index, and can be expected to return about 12-13% in the long-run, which is better than ETFs that track some of the better-known indexes.

But you should know that small-cap indexes, while they will perform better in the long-run, can have larger up and down swings in the short-term.  If you don't plan to need the money for a few years, and don't plan on checking the price every day, this could be a better choice for you.  But, if you are willing to sacrifice a bit of your return to know that your investment will be a bit more stable, an ETF like SPY which tracks the S&P500 could be a better choice.

It might be worth making an appointment with an adviser who can walk you through the pros and cons of other choices, too.  He'll be able to take the time to ask you about your risk tolerance and long-term goals, and can come up with an approach specifically tailored to your needs.

Answer 3

1st as everyone has probably already told you is to educate yourself in order to calculate and make a sound investment. In order to "Invest" you need to research the targets as much as possible, know where they are headed and know the company's objective.

2nd, be aware that you are not going to make a quick buck, it takes time and research to pull in some profit but a sound investment is better than just speculating, which is basically gambling your money.

3rd. in order to become more acquainted on the subject,these books are a great choice:

1.The intelligent investor (by Benjamin Graham)

2.Security Analysis (by the same guy above)

3.Some Jim Cramer is always ok

4.Anything by Bill Gross. He is one of the most respected investors in the business and manages the world's biggest bond fund, his advice is helpful.

(Please don't bother reading anything of what the person above suggested. those authors have made up strategies for making the quick buck but in the long run they end up abandoning their own strategies)

Plain' old simple, its your money so invest in whatever you want as long as you've researched it, know it and feel comfortable putting your money in it.

Hope that helps!

Answer 4

Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Start your education by learning why you should invest and the importance of being able to make your own decisions or what the pro’s make theirs.

Start by reading,

What Works on Wall Street by James O'Shaunessey

Beating the Street by Peter Lynch

One Up on Wall Street by Peter Lynch

The Warren Buffett Way by Robert Hagstrom

How to Make Money in Stocks” by William O’Neil

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance.  (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )

While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why.  This site has some basic information for beginners. If any site offers free information, take it.   Other website that can provide instructions and help with procedures and terminology are

Investopedia - http://www.investopedia.com/  Stock Charts - http://stockcharts.com/

Other - http://www.investorshub.com/  http://www.1source4stocks.com/

Visit some of the more professional websites like Zacks - http://www.zacks.com/

Smart Money - http://www.smartmoney.com/  Schaeffer’s – http://www.schaeffersresearch.com/

Some of these web sites will have advertisers who are worth looking into also.  And remember, if they offer free information, get it.

There are many people just like you that are, or were looking to invest and those that did bought Mutual Funds and/or Exchange Traded Funds (ETFs).  One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no investing experience.  Once you feel you at least have an understanding of investments you should look into ETFs which are similar to mutual funds but are traded on the exchanges.

Mutual Fund companies as well as ETFs have an entire array of products many will fit your needs. You can go to the MSN.Money website

http://moneycentral.msn.com/home.asp  it has an entire section on mutual funds and Exchange Traded Funds.  Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing.

You could also contact the funds companies for more information.  I have found that Vanguard & Fidelity can meet your needs for mutual funds.  The service and information they provide is all free and you will find it helpful.

Good luck for your investments, BUT before you invest one penny, make sure you have a good idea what you are doing,

Do some studying, it will pay off in the long run

AND thank you very much for serving your country, and making my life & my family's a lot safer - God Bless

Answer 5

Learn about stocks on investopedia.com and forex on babypips.com and select whichever feels most right to you.

Answer 6

By reading books called "Mutual Funds for Dummies" or "Investing for Dummies" by Eric Tyson.  Learn first, and then determine goals (car in 2 years?  house in 5?  Retirement in 40?) before deciding what is best investment.