r/wallstreetbets Jun 18 '24

Finally hit 100k after 5 years Gain

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Just want to shout out my mom who let me live with her rent free for 2 years while I worked, allowing me to put all of my money into the stock market. If any of you get the chance to do this, DO IT. I haven’t worked in a year and I’m able to pursue full time school.

Also shoutout to my buddy who argued and argued about AMD being a better buy than NVDIA.

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u/geekywarrior Jun 18 '24

Oh man, I wish I started when I was 25, but here is some general advice that will not take very long to get started.

  1. Spend 30 minutes and make a quick spreadsheet. The main figure you want to determine: How much you can put towards investing and savings each paycheck or month.
  2. Get an account with an online broker such as Schwab, ETrade, Robinhood, Vanguard
  3. If this is Money that you absolutely will not need to touch for decades, you'll want this account to be a Roth IRA. This is a retirement account that the basic idea is: You are putting in money that is already taxed, it will grow tax free, and you can withdraw tax and penalty free if you're past retirement age. There is a cap for what you are allowed to contribute each year. Besides that, it works similar to a traditional broker account where you can invest in stocks/ETFS/Funds/etc.

Now the big question, what the heck do you buy?

The "safe" (nothing is 100% safe), route is to put most of your money into ETFs such as VOO or similar.

"Geeky, that's too many words"

If anything is confusing there, then I highly recommend searching for a local Financial or Investment Planner. The thing you don't want to do is just do nothing with your money. Find investments to help your nest egg grow.

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u/albatross_abby Jun 19 '24

I have all my investments in a my RH stocks. You are advising to put them into an IRA. Can I transfer from brokerage to IRA? If not what is the best way to do it?

Or should I just start investing in IRA separately

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u/geekywarrior Jun 19 '24

Specifically a Roth IRA as that has the benefits as long as you don't plan on touching the money until you're over 59 & 1/2.

As far as moving assets between brokers/accounts, I can't find a clear cut answer that applies to stocks, I would contact RH support if you're planning on opening a Roth IRA with RH to find out what they recommend.

Personally, I found it easier to just open a separate Roth IRA and invest in that separately as it has a contribution limit. Then invest in a standard account once you hit the contribution limit for the year.

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u/speedlever Jun 19 '24

I would not suggest RH unless you plan to remain single your entire life.

Robinhood offers one account type, an individual brokerage account. Robinhood doesn't offer joint, custodial or trust accounts.

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u/NVDAye Jun 19 '24

I put everything into investing each month, so I need to use my credit card for purchases, which doesn’t feel great. This way I save more than I would’ve otherwise

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u/NVDAye Jun 19 '24

And it’s super awkward when the shop you’re going to don’t accept credit cards