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Dove head first into my first stock market investment today.

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    Dove head first into my first stock market investment today.

    Surprised myself and went with the Vanguard 500 Index Investor (VFINX).

    I was looking at a lot of Hybrid funds like the Bruce Fund, Permanent Portfolio, and Oakmark Equity & Income. These funds were initially attractive to me because they were all no-load, have expense ratios less than 1.0% and had great 5 and 10 year returns that beat the market due to having a larger mix of bonds and other investments. They also only required a minimum investment of $1,000 which was a plus because I don't have a lot of cash right now.

    I managed to scrap together $3,000 and started looking more at Vanguard funds and just decided to go with the low cost index fund. Part of my thinking is that the market seems to be doing pretty well right now, and it seems that in a good market a low cost index fund should beat a hybrid fund. Which has been true so far with the exception of the Bruce fund that still has done well.

    I still really like all three of the hybrid funds I listed above and would like to invest in one of them down the road. And when the market starts to correct itself probably relocate some of my assets from the Index into a hybrid.

    #2
    VFINX has been great for me. It was also one of my first investments.

    And you are so right you can always move the money or simply make a different investment with new cash.
    My other blog is Your Organized Friend.

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      #3
      That's where the majority of my 401k money is sitting.

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        #4
        The Motley Fools are proud of you!
        seek knowledge, not answers
        personal finance

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          #5
          I have all of our IRA and roth ira's in that fund. I have been in it for about 20 years.

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            #6
            Originally posted by feh View Post
            The Motley Fools are proud of you!
            Thats interesting.

            They just recently started their own mutual fund after bashing mutual funds for over a decade. And look like their fund FOOLX has a pretty heavy expense ratio of 1.35%.

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              #7
              So far so good. Up $17.00 after my first day. Here's to many more good days to come.

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                #8
                Originally posted by Andrew Jackson View Post
                So far so good. Up $17.00 after my first day. Here's to many more good days to come.
                Don't measure day by day as the highs and lows will make you seasick.

                Unless you are an active investor (or gambler) you shouldn't be looking at these prices more than once a month or less.

                Good luck.

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                  #9
                  Good on you for taking your 1st leap. I suggest you examine DCA [dollar cost averaging]. Pick a sum, it can be as low as $50. per month, pick a date, and the sum will automatically be withdrawn from your bank a/c. Some months you'll buy more units, other months less but it is shocking how it adds up after a few years. You can stop the program anytime you wish if it makes you uncomfortable.

                  Whatever you do, don't fall into the trap of selling because you have lost money on paper [checking NAV often]. It will take some time - perhaps 3 yrs. before the USA economy recovers.

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                    #10
                    Thanks, I'll look into DCA. I don't plan on watching the account balance like a hawk. But since the account is less than a week old I just enjoy seeing how everything works right now. Watching CNBC at work and seeing that the S&P is up or down and then being able to go home and seeing that the balance has gone up or down by however much and the NAV change is interesting.

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                      #11
                      I would do a self directed IRA because you would have an unlimited number of investment selections (to even include going short) and the account would also have more liquidity.

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                        #12
                        I would do a self directed IRA because you would have an unlimited number of investment selections (to even include going short) and the account would also havI would do a self directed IRA because you would have an unlimited number of investment selections (to even include going short) and the account would also have more liquidity.e more liquidity.

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                          #13
                          Where do you even strart with shares? I would love to get handle on this but it seems so complex?

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