can i just have someone else do all the investing for me???

[rex-craft7]

the topic title isnt how i wanted to word it exactly, but i thought i would get more feedback - anyways, im completely new to the world of investing/money in general, and for the last few months ive just started to look up bits of information, visit investment firms, take some business classes in school for fun, and have begun to read the business section of the paper every couple days, and to say the least it is all very... extremely overwhelming.

ive attempted to get started in stocks by first trying out stock simulations. im not doing so well in that right now. ive tried to get started on forex simulations, but felt overwhelmed from the beginning at how i was supposed to go about not going negative. ive looked around forums for information on the idea of building websites to gain profit from affiliates and ads. ive also tried to dip into website trading, and am currently trying to figure out how to steadily buy domestic products and sell them overseas for more profit (alright, the last bits are not really investing, but still).

overall, im just trying to say i feel like my head is going to explode from all the information out there, and i just thought maybe in the future instead of trying to dive into all of this myeslf, if i could just have someone else take care of my money for me - by way of investment firms, forex funds, hiring someone else to build these sites for me, etc.

im guessing this is what most people end up doing...? i was wondering how you guys mainly go about investing - do you just put all the money away for others to take care of like i have described, and not concern yourself too much about it? and whether you think it would actually be more profitable to do all of this yourselves, as it would cut costs from performance allocations, commissions, etc

[Coleroo]

it depends on the amount of studying you are willing to do. I firmly believe that it's always "cheaper" (thus more profitable) to do it yourself, but that requires a lot of studying.

For me, personally, I tried for a long time...but I ended up with the stark realization that I honestly never want to read a prospectus (i'm not even sure if that's how it's spelled) ever again. I hate it. And I completely suck at picking my own stock.

Thus I just pick out some "growth stock" funds and some "retirement target date" funds and be done with it. I know those who are more dedicated may say I'm foolish, but at this point in life I guess I don't have the mental means...nor the will power...to "want" to learn how to do it the "proper way".

If that makes sense?

Right now we have a Retirement 2045 fund in our Roth, a group of growth stocks in my hubby's 401k and my 403b (I have no idea which individual funds they are), and an HSBC savings account. I also own shares of 3 different companies, which is the only individual stocks I ever bought. This is the extent of our investing because it started to get so complicated the further I got into learning about it...and I just gave up trying to learn for the "time being".

Perhaps one day we'll decide it's time to learn more, but until then the mental taxation is just too much for me. I'd rather "let someone else" do it.

[Duchesse]

You don't have to be a wizard to invest successfully. It doesn't have to be complicated .

Listen to the "experts" when it comes to those "risky" investments. Stay clear of them unless you know what you are doing. It's too easy to lose your shirt. i.e. hedge funds, commodities,options, precious metals, land over the internet, etc.
I sure others here can think of more.



Excluding these "risky" investments, remember diversification , and patience has historically paid off.

Pay attention to your tolerance. You have to be able to sleep at night.

Also look at the amount of time you have for your investment to grow/ when you plan to use the money.

Do as much as you can for yourself. If you lose anything it's harder to stay with your broker.

[disneysteve]

If it is retirement investing you are referring to, the simplest and cheapest route is to put your money in a target retirement fund with a company like Vanguard or T. Rowe Price. You get professional management, instant diversification, automatic rebalancing and low costs. It can't get any simpler than that.

[Aleta]

When I spoke with Vanguard, I asked about Target Retirement Accounts and whether they were just for retirement accounts and I was told no. They have investors who want the diversification that the retirement accounts has and know when they will need the money. (The year of the Target Retirement date).

I have one and I sleep much better since I've had it.

[Broken Arrow]

Geez, you're starting out in a stock and Forex simulator? No wonder you feel overwhelmed.

Good news! Yes, you can most certainly have someone else do all the investing for you. In fact, if you believe in Warren Buffet, 98% of all people should.

I also wouldn't feel bad about feeling overwhelmed. I think most people would. And it's certainly better than feeling overwhelmed and lose a lot of money at the same time!

[maat55]

I just turned down a pushy financial adviser, she pretty much put me to sleep with info I've read in a dozen books. It's a good idea to read and understand personal finance and investing for yourself.

A good way to start is in Stock Mutual Funds as stated above. As you learn more you can tweek your investments. Good luck to ya.

[jIM_Ohio]

How long were you running these simulations- even the best manager out there- Ken Heebner of CGMFX fame- lost money in this market.

If you were running these simulations over 4-10 years, that is a bigger cause for concern.

I would consider doing any of the following:
1) pick a target date retirement fund if money is for retirement. If money is for a given time horizon, these funds make sense. If you do not know what money is for, proceed to #2.
2) pick a mutual fund or group of mutual funds which define a given risk profile.
3) pick dividend paying stocks using "the money paper" or similar media which show companies which grow their dividend payout over 10-20-30 year periods. PG, MSFT, GE all come to mind.
4) Do the Forex thing and get back to me in 20 years to let me know how you did.