r/investing Apr 7, 04:22 AM
Done very well with a managed portfolio, opened a brokerage acct for my gf. What I learned, and my broker's advice. This may be of no interest to anyone, but I've learned a lot lately about investing.
The short backstory is that I've been invested for my entire life, and I'm in my 50's. It's always been managed by a broker, and until very lately, I rarely looked in it. When I had paper statements, I'd just file them away without looking at them. It put me through college, I have a sizeable IRA waiting for me, all is going well.
I got a new gf, who is both a successful business person, and an immigrant. That's relevant because she's been financially scammed as has most of her immigrant friends and family. She doesn't know the difference between a Ponzi scheme and a Roth IRA.
So I showed her my Schwab account, and explained investing to her. She knows it's a great thing to do, but doesn't know how or who to trust, so I said I'd get her started. Which means I needed to brush up on things and have some conversations with my broker. From here, this may be some good knowledge that may help those who are looking into getting into safe, traditional investing.
I opened her a Schwab portfolio (I hope this doesn't violate Rule 4, there are many other investment firms you can do exactly the same thing with). Then we opened a traditional IRA and individual accounts. She loaded the IRA to almost the annual maximum, and we split that evenly between two ETF's - the Schwab 1000 index, and the Schwab S&P 500 index. Basically the same things, just a tiny bit of diversity to compare between the two going forward. These IRA ETFs are very safe, long-term growth index funds.
We'll probably just leave those forever, and when next year's IRA contribution opens, we'll load that then decide on a few new things.
Then for the Individual account, I asked for 5 stocks to get started on, and we'll manage these (sell or hold, manage, etc). I was recommended these 5:
REGN Regenoran, ADBE Adobe, TMO Thermo Fisnet, AGCO Agco, and MRVL Marvel. We'll evenly split the Individual load-in balance amongst these 5 and see how things go.
That's beginning investment for the short and long-term, in the traditional model that's done myself and my family really well. I'm personally very gratified to help an immigrant get established in the American financial system. Since I'm finally getting financially literate after all these decades of benefiting from it, I'm curious for feedback or discussion.
submitted by /u/Vitis_Vinifera
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