2 months ago
How to Invest

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As someone who has a career in finance, I often get surprised we don’t teach that topic in our schools. Only recently some colleges have started to do this, as a mandatory subject

Someone asked:  What should I do if I have 12k in savings and I want to invest? It’s is a very good question and the amount could be anything: from 2k to 200k. In this blog, I will assume that you have taken care of all basic needs such as rent, bills, and debt payments.  This way we can just focus on investing. Things to consider before you start:

What is your risk tolerance?

In other words, how much can you stand to lose out of the original amount you have invested? Many in the financial press say that the stock market over the long haul has returned an 8% yearly growth on the average.  While this is true “on the average over the period of many years” it doesn’t mean that each and every year the stock market will be up by 8% always. Over the short term, stocks are quite volatile. You could see one or more years of negative returns. You could see a year that is up by 15% followed by a year that is flat or down. The point I am trying to make is that many people can’t handle this type of volatility and seeing their account bounce around and lose value on any given year. They may panic and pull entirely out of the stock market at the wrong time.  So how much stomach do you have for market swings?

What is your level of financial education and are you willing to do the homework?

Are you interested in learning about this by reading journals and magazines on your own? Do you like being glued to CNBC on a daily basis? Or are you the type that is totally hands-off and just park your money and hope for the best.

Beware of scams, newsletters and all-day seminars that promise you riches and financial independence in 3 easy steps. As far as I have seen it doesn’t exist. Investing over the long haul is actually a lot of grunt work.

Before you start investing in anything you really need to consider carefully the above questions.

So now let’s turn to some investing ideas which depend on one’s risk tolerance ranging from more risk down to less risk

Risk-taker:

100% of the invested amount in the SPY Etf: Gives exposure to the entire S&P500   or

100% in QQQ: Gives exposure only to the technology sector in the US   or

100% VT: Gives exposure to US and international stock markets

Balanced and Conservative:

Gives exposure to both US stocks and bonds

60% SPY

40% BND

Risk-averse:

100% BND: Gives exposure only to various segments of the bond market in the US. No stock market exposure at all.

Of course, the above are just some very basic recommendations. If someone is really interested in investing, they should do their own research and also bounce around their ideas with financial professionals they trust.

And here is a disclosure in case the SEC is reading this: This is not investment advice it is rather an opinion piece and it is only incidental to my regular profession.

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33 Responses to “How to Invest”

  1. Ricky says:

    All this great investing advice from broke black chicks ….. I love it !!

  2. Madison says:

    Thanks for your help. I’ll look more into it

  3. Madison says:

    I was thankful enough to save most of my money from previous SD/SB relationships. I’ve been interested in growing my money but I don’t know where to start. Does anyone know of any websites or books that may provide guidance for beginners interested in investing?

    • Anonymous says:

      best bet is to get a advisor who can find out what your risk tolerance is no one here knows what that is there fore it would be unwise to recommend books or websites about investing i like exchange traded funds but do your own research to see if these are good fit for you

      • Madison says:

        My research so far has led me to wikihow pages, that I’m pretty sure aren’t peer-reviewed. What are exchange traded funds?

      • Anonymous says:

        exchange traded funds are just a basket of stocks or bonds that track some index pretty simple your investment goes up or down with that index or you could buy a index mutual fund that tracks some market as well

      • Madison says:

        Is there a certain margin of money you need at to be at to actually enter exchange traded funds? Or can it vary to as little as 0.01?

      • Anonymous says:

        not sure i understand that question you can buy as little as 1 share usually less than a 100 bucks plus commissions but there are some platforms that will let you buy commission free and fractional shares

    • Anon says:

      Buy Bitcoin and hodl. Then when it pumps 10x or 100x in a few years cash some of it out

  4. Anonymous says:

    I love it when the SB talks about how much their previous SD provided them and yet they are broke. Eg previous SD provided 8k basic a month with vacation allowance for over 3 year and yet she is broke. That’s a quarter million or more.

  5. Anonymous says:

    not many questions on investing that is because most people on here are broke

  6. SD with Open Eyes says:

    I wonder why the “College Girls” teaser on the front page always has girls who are 200-600 miles away?

  7. Vipsanius says:

    Best way to learn wise investment : read the “intelligent investor” from Benjamin Graham. Still true today, and probably always be

  8. Mexy says:

    I just read this and have no idea what I just read, I guess I have a lot of homework to do 😅

    • Randy says:

      It’s just fancy talk for what type of stocks you can buy based on how much monetary risk you’re willing to take. Typically if you are young you can take more risk, the older you get the more conservative you tend to be since you want to preserve the money you’ve made.

  9. Anonymous says:

    Vanguard index funds. Low commission. Solid return. It’s pretty simple.

  10. Anonymous says:

    That’s unfortunate at best. I wish more financially independent babies were available to you and others. To be here because she wants to, not because she needs to, is more flattering and gives her more room to vet all potential relationships.

  11. Anonymous says:

    it would be good to invest some of that allowance you receive but i don’t think any one here has any money every other sugar baby profile says they are broke or has the word broke in it best to get a handle on your expenses first then start working on paying off the debt after that you will have money to invest

    • Anonymous says:

      That’s unfortunate at best. I wish more financially independent babies were available to you and others. To be here because she wants to, not because she needs to, is more flattering and gives her more room to vet all potential relationships.

    • Dave says:

      This site is full of plenty of fish leftovers who now think they have value.

    • BbyBori says:

      Seeing your made me feel good about myself 🙂 I’m independent, single, no kids, 33 yrs old , I work & have my own little apt. I’m just on here because I want to experience what it is to have a SD & be spoiled every now & then

  12. Ricky says:

    What makes you think any of these SB’s bothered with school. It’s the reason they are here.

  13. Ricky says:

    “And here is a disclosure in case the SEC is reading this: This is not investment advice it is rather an opinion piece and it is only incidental to my regular profession.”

    Yeah right … other than pretending you are a soy boy what exactly is your “regular” profession ? Queen Sugar Baby perhaps ?

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