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Should I invent in stocks?

Interest in the stock market. #business #finance #college-major #event-planning #small-business #accounting

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Ro’s Answer

Would recommend as a means to study the market and the company (starting small), as you can learn through that. Good luck!
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Paul’s Answer

Hi Andy! Investing is a great idea and the earlier you start the better. My advice would be to view investing with a long-term mindset. The tried and true method to making money in the long-term is invest in an index fund preferably in a Roth IRA for tax advantages. Let that money sit there and grow until you are ready to retire. Google a time value of money calculator to get an idea of how much your money will grow (I suggest using 8% interest for this exercise as a proxy for annual market growth over the long-term). You'll be pleasantly surprised at how much you will have at retirement!
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Christian’s Answer

I think that is a great question to begin thinking about, and especially so when you're younger and beginning to establish roots in ownership.

When looking at investments there are a couple factors that I would say define how you should manage your decisions. All investing, to some degree, is just allocating or moving capital into different forms for future supposed benefit.

You should consider liquidity, risk appetite, and time horizon as your main considerations when deciding.

liquidity: this is relevant just to understand how much cash you would want to have in hand or readily available at a moment's notice. This could be in case of emergencies or unexpected expenses, or purchasing opportunities for the near future. Define how much cash these situations would require and proportion your savings/spending appropriately to live by that standard.

Risk Appetite: This I would say is the biggest factor given the types of investments you could make will have different expected returns. More high risk assets could prove higher gains but higher potential of loss as well. Other assets provide more security in unstable times and it can be beneficial to have a mix of assets to guard against influxes of changing economics, events, disasters, etc. that will be out of your control. Arriving at this point can be difficult but entire jobs are dedicated towards this consistent return rate hedging against the unexpected. For stocks specifically there can be some high risk options with choosing specific hot companies but again, it can lead to a higher chance of losses if not chosen with qualified reasoning. I would suggest to really be curious about the different ways of investing in stocks, where other products exist such as ETFs that capture a category of companies usually. Beyond stocks there could be interesting forms of investments related to real estate, angel investing, or even art collection that can have similar results.

Time horizon: this relates some to liquidity but more so defines what length of time you would want to achieve a return in. This could be in 5 years or 10 or until retirement even. That generally means that you assume this money will stay with its dedicated asset, not to be seen until that expected date of sale/capture of gains.

Hopefully these comments can help you understand the process better, but always research as much as you can and strive for a point of mastering your personal finances even if not immediately applicable now, it will be a lifelong journey regardless.



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Zohra’s Answer

Hi Andy,

I think you should try it with a little bit of money $100 to start, and use robinhood and play around with it. There's a lot of forums on how to buy decent stocks and how to avoid common pitfalls. $100 might be a lot of money but it's better than thousands or billions and you learn a LOT from self education.

Good Luck!
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Andrew’s Answer

Hi Andy! Investing in stocks is a great idea. Before investing in stocks, I would set some money aside to cover a few months worth of your expenses. This is commonly known as an emergency fund. This can be helpful if you need money for an emergency such as unexpected medical bills or if you lose your job. Once you have some money set aside for emergencies, you will be ready to invest! I would recommend doing some research on companies you are interested in and are able to learn about and ultimately understand. For example, you will probably be able to understand a business like Coca Cola versus a complex Energy Company. Setting some money aside and investing every month can also be a good idea. Good luck!
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Shruti’s Answer

Hi!

I do believe investing in stocks is a good idea. If you have companies that you believe in and are showing promising results for the future it is worth putting in some money into them in my opinion. I also suggest investing in index funds that have a slow but steady growth. It is a lot better than just leaving your money in an account with a very little interest late being added on.
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Matthew’s Answer

Yes, but proceed with caution!! If you choose to invest in stocks, you must learn how to identify a safer investment versus a riskier investment. Next, you must be sure to diversify your portfolio, meaning that you should take the amount you are willing to invest and spread it across many different stocks. Lastly, know that the more you research, the more success you are likely to have when it comes to investing in stocks. Don't invest any money you are not comfortable with losing, but know that taking time to learn about stocks can be a smart way to increase your savings!
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Justin’s Answer

Yes, slowly but surely. Putting savings into the stock market over a long period of time (decades) has proven to be a very smart approach to making your money grow. You benefit from capital appreciation, reinvestment of dividends creates compounding benefits. Be patient and stay consistant with your savings approach.
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Bill’s Answer

Hi Andy!

Equities — more commonly known as stocks — can diversify a portfolio and help build value over time.

The chart below shows that large domestic stocks have provided an average annualized return of 10.6% over the past five decades, which is higher than the returns seen on bonds or cash alternatives over the same period.

But remember: Stocks with higher potential returns generally come with higher risk. The value of your shares will tend to fluctuate, and you may lose principal.
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Samantha’s Answer

Hi Andy,

Learning how to invest is always a great skill, and the sooner you can start the better. However, I would start small while you are still in college and make sure you are only investing the amount of money you can afford to lose, as you are still learning. The sooner you begin to understand how investing works however, the better, as you’ll begin to get more comfortable with investing as you graduate college and start your first job. If you don’t have a lot of spare income to invest right now, that’s fine too. It’s still helpful to learn from your professors and read books about how to invest to best prepare yourself for when you do have some spare money to invest.
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Ro’s Answer

Would recommend as a means to study the market and the company (starting small), as you can learn through that. Good luck!
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Anthony’s Answer

The answer is simple. Investing in
stocks is laudable if you are able to note the following :-
1. Identify the type of business you
have INTEREST and
KNOWLEDGE.
2. Consider your vision and goals.
3. Your general EXPERIENCE and
ABILITY to perform your
general activities.

Best wishes to you.
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Soha’s Answer

Hi, I believe investing would be a good idea. I think it is essential to do your due diligence into companies and the market before investing. It would be worth it to start off with a small amount to invest to see what challenges you are running into without having alot of money on the line. Then, over time, as you become more confident in investing, you can increase the amount.
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