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Stock Investing VS. Mutual Funds. Which is better?


Jonny Music

Types of Investment  

3 users have voted

  1. 1. Which of these is the more better option for investing?

    • Investing in stocks in the stock market
      1
    • Mutual Funds
      2
    • Other (please explain in a post down below to explain your reasoning)
      0


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I know I already have posted this a while ago today: https://mlpforums.com/topic/142190-stock-investing-is-it-worth-it/.

However, I want to make the right decision here for what I personally should invest in, in order to have a stable financial future and to have some piece of mind in a financial sense.

 

I personally do not want to waste too much time looking into investing in the stock market multiple times because I found out that you need to be pretty committed to do well if you were to invest in the stocks by yourself. Which is why I have also heard about Mutual Funds which is supposed to make stock investments more easier to manage than if you were to handle the stocks by yourself because they are handled by professionals who know their stuff ahead of time.

 

Take me for example: As I am already too busy as a college student trying to get the best out of my education and I also have lots of plans for what I want to do for and with my production company and YouTube channels, I know that money is definitely going to be (or can already be) an issue for me. I can already label myself as an entrepreneur by now.

 

Yes, I know that work through labour is a way to earn money. However, currently as of the time I have posted this, I cannot afford to waste my time trying to apply for a part-time job when I know there are other options out there (especially since I have admittedly procrastinated on some assignments I need to get caught up on :blush:).

 

You may correct anything I may have said incorrect about Stocks and Mutual Funds if you need to, to get your point across (and that I may correct this OP for clarification).

 

Another thing to note is that I personally do not want to borrow money from loans because I have gotten into a small amount of debt a couple of times before with my bank account (going negative) and I freaked out a little when it happened to me and I never want to get in the negative with my bank account (even with my credit card for that matter) ever again. I have vowed myself to never get into serious debt of any amount (unless there should be a good reason that I should not have to worry too much about debt), which means that I can honestly be stingy with my funds at times.

 

I would like to hear what you guys think and what you may suggest for people like me and also options which are more suitable to other people in different walks of life.

 

Post away! :D  :please:

 

Note: Please be respectful, I do not want debates to flame up in this thread. Let's keep this thread polite, friendly and courteous. Criticism is welcomed, just don't forget to give your reasoning as to why you are being critical in the first place.

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I personally vote other,

I invest in food,water, and silver ,my home which is paid in full and mortgage free and I avoid debt like the plauge and I avoid credit cards to. the best investment to me is not being a slave to debt and not working everyday to put money in a credit card or bank company's pocket, if I can't afford it I do without or save until I can buy it,

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I personally vote other,

I invest in food,water, and silver ,my home which is paid in full and mortgage free and I avoid debt like the plauge and I avoid credit cards to. the best investment to me is not being a slave to debt and not working everyday to put money in a credit card or bank company's pocket, if I can't afford it I do without or save until I can buy it,

 

Apparently however, there are stocks that cost in between $1 - $10 per share. So if I invest at least $50 - $100 on some stocks or even a mutual fund and then build up slowly from there, I should be fine.

 

Whoever said that I need $10,000 just to invest in stocks or mutual funds just to get a better investment from it? Building up from a small amount apparently works (from many success stories I've been hearing (even from well known investors like Warren Buffett)).

 

UPDATE: Now that I think about it, Mutual Funds may be a better choice to invest in, even High-Interest Savings account(s) (due to my busy life). :) Don't you guys agree?

Edited by Jonny Music
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Apparently however, there are stocks that cost in between $1 - $10 per share. So if I invest at least $50 - $100 on some stocks or even a mutual fund and then build up slowly from there, I should be fine.

 

Whoever said that I need $10,000 just to invest in stocks or mutual funds just to get a better investment from it? Building up from a small amount apparently works (from many success stories I've been hearing (even from well known investors like Warren Buffett)).

 

UPDATE: Now that I think about it, Mutual Funds may be a better choice to invest in, even High-Interest Savings account(s) (due to my busy life). :) Don't you guys agree?

those 1-10 dollar stocks are called "penny stocks" they are a great way to lose everything! penny stocks are more for pro stock traders that know how to research and pick good stocks, the majority of penny stocks go to zero and never go back up. if you are going to invest stick with well known brands like apple, walmart, amazon, microsoft. 

problem with starting with small amounts is like i said the fees, you might pay 10 dollars for a stock but then you are going to pay say 10 dollars in brokerage fees to buy it, so your 10 dollar stock is going to have to double in value just so you can break even and that is BEFORE the income taxes. not to mention most brokerage firms won't even give you the time of day for 50-100 dollars every now and then, brokerages want big accounts with tons of money. i did a lot of research and decided not to invest in stocks because when you look at the fees they charge they pretty much get you coming and going, most even charge a yearly fee on your account, like 1% a year on top of brokerage fees. if you don't have  like 10,0000 to invest then all the fees will eat your money down to nothing

 

the highest savings account interest rate i have seen is like a 1%APR so you put in 100 dollars you have 101 at the end of the year, CD rates are a little higher. what's good about savings and CDs are they are no risk investments, they don't go down and lose value so i guess they are better than nothing but they have super low returns, government bonds are HORRIBLE by the way, they are currently paying ZERO interest!

Edited by simba86
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the highest savings account interest rate i have seen is like a 1%APR so you put in 100 dollars you have 101 at the end of the year, CD rates are a little higher. what's good about savings and CDs are they are no risk investments, they don't go down and lose value so i guess they are better than nothing but they have super low returns, government bonds are HORRIBLE by the way, they are currently paying ZERO interest!

 

Which is why I mentioned that I can build that up by sometimes adding random deposits once in a while (which I hope banks do allow that to happen).

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I voted for mutual funds. I don't know much about the stock market, but (and perhaps because of that very reason) I think mutual funds are the better choice since they're handled by professionals.

 

That said, if you're very knowledgeable about investing, then you can probably make more money by choosing the stock market.

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  • 5 years later...

6 years later, and oh my have I changed my mindset so much!

As of today, after putting in the work of investing, I have found out for me personally, investing in the stock market tends to be the most rewarding as long as you know what you are doing.

To go on the safer route also, I have invested into a tax-free savings account and also into the Canadian-equivalent of a government-issued (registered) savings plan/account.

In conclusion, it all depends on what you want to do in the short-term and long-term.

There are savings solutions for the short-term, and for the long-term. You should choose what is best for your own personal case, as not all of our financial goals are exactly the same (whether it's to retire early with millions (or more), or just settle for the average lifestyle like almost everyone and retire much later, or anything else).

Best of luck to everyone else in their investing endeavours.

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8 minutes ago, Califorum said:

When I get a job someday I want to start investing as soon as I start. If you don't make money while you sleep, you will forever be a slave. @Jonny Music

And not only that, though you can kickstart it further by investing in your own business (as I currently have two, one in the Construction Industry as a Drywall Subcontractor, and the other being my own independent media company which my music division, Jonny Music, is a part of).

I'm not implying that you should start your own business, as it's not for everyone, since running a business is not all sunshine and rainbows. It takes lots of hard and smart work and you must have resilient persistence & perseverance to make sure it/they succeed, no matter how long it may take.

Again, it all depends on what you want to do with your life. One solution may not work for everyone, so make sure you do your own research to find out what will be best in your specific case. :)

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@Jonny Music

Perhaps some day. I personally want to rack up as much savings as possible, put into retirement, emergency fund, etc right from the start. I don't care about fancy cars, clothes, etc. If it works good it is good enough for me. I will probably buy things used instead of at a higher price upfront. I intend on being an extreme cheapskate and invent various methods like, collecting rain water and filtering it to use for water. Buy my own water instead of using the city's water. Use solar battery banks instead of household outlets to save cash. Things of that nature. What do you think of that?

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18 minutes ago, Califorum said:

@Jonny Music

Perhaps some day. I personally want to rack up as much savings as possible, put into retirement, emergency fund, etc right from the start. I don't care about fancy cars, clothes, etc. If it works good it is good enough for me. I will probably buy things used instead of at a higher price upfront. I intend on being an extreme cheapskate and invent various methods like, collecting rain water and filtering it to use for water. Buy my own water instead of using the city's water. Use solar battery banks instead of household outlets to save cash. Things of that nature. What do you think of that?

I don't have a problem with that. We all have different paths and plans of what we want to do with our lives, so no worries. :)

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