Investing help

[Reverend_Maynard]

Let's say I wanted to buy some tesla stock...  I have no prior relationship with any broker, and my only other holdings are in a 401k.  If I wanted to invest like $500 now and $100/month in tesla stock, what would be the best way to go  about that, if possible (do I have to buy by the share?).

TIA

[Dirtyhip]

Open a Fidelity account.  I like them, because trades are free and they are a fantastic company to work with. You ca even sign up for cash management plans and pay your bills through them, etc. 

Sign up for mobile trading.  Buy fractional shares. 

Or, use your Roth to buy, if you have one.  Roth is great, because the growth is tax free.  You have to put taxed money in there.  I assume you are talking about taxable trading.  

Another option is to open a Brokerage link if you have a Fidelity 401K. 

[Ralphie ★]

6 minutes ago, Reverend_Maynard said:

Let's say I wanted to buy some tesla stock...  I have no prior relationship with any broker, and my only other holdings are in a 401k.  If I wanted to invest like $500 now and $100/month in tesla stock, what would be the best way to go  about that, if possible (do I have to buy by the share?).

TIA

Your 401k provider should have an option for stock purchase that you have to sign up for separately. 

[Dirtyhip]

17 minutes ago, Philander Seabury said:

Your 401k provider should have an option for stock purchase that you have to sign up for separately. 

Fidelity has Brokerage link.  

[jsharr ★]

27 minutes ago, Reverend_Maynard said:

Let's say I wanted to buy some tesla stock...  I have no prior relationship with any broker, and my only other holdings are in a 401k.  If I wanted to invest like $500 now and $100/month in tesla stock, what would be the best way to go  about that, if possible (do I have to buy by the share?).

TIA

You need to talk to your 401 fund manager to find out how they are investing your funds.  You probably want to talk to a professional if you are going to access 401k funds to invest, as there can be some serious IRS penalties.

https://finance.zacks.com/use-401k-buy-private-stocks-6923.html

[12string]

first, but the Tesla stock 10 years ago.

second, don't buy any stock right now.  Get your account set up, keep your cash in there.  The market is superstupid right now.  Besides COVID, there's a normal down cycle to deal with.  November to January is going to be really bizarre, markets don't like that.  There should be a pretty big dip coming, just don't know when.  The market has been reacting to good news and ignoring bad news lately, so it's hard to tell

third, buy Square stock.  It's where Tesla was 7 years ago

[jsharr ★]

2 minutes ago, 12string said:

first, but the Tesla stock 10 years ago.

second, don't buy any stock right now.  Get your account set up, keep your cash in there.  The market is superstupid right now.  Besides COVID, there's a normal down cycle to deal with.  November to January is going to be really bizarre, markets don't like that.  There should be a pretty big dip coming, just don't know when.  The market has been reacting to good news and ignoring bad news lately, so it's hard to tell

third, buy Square stock.  It's where Tesla was 7 years ago

Sound advice.

[Reverend_Maynard]

Thanks, everyone!  My 401k was with fidelity.. I opened a brokerage account.  and ignored 12strings advice :p

[Dirtyhip]

Consider a Roth.  Massive tax advantages, unless you are over that high income threshold.  206K jointly is the limit.

We love our Fidelity account.  they are so goods to work with.  I am almost out of checks, but didn't want to order a box.  We are moving semi-soon.  They sent me a book of checks for free to bridge the gap.  Nice.

 

[Reverend_Maynard]

1 minute ago, Dirtyhip said:

Consider a Roth.  Massive tax advantages, unless you are over that high income threshold.  206K jointly is the limit.

We love our Fidelity account.  they are so goods to work with.  I am almost out of checks, but didn't want to order a box.  We are moving semi-soon.  They sent me a book of checks for free to bridge the gap.  Nice.

 

Can you pick individual stocks doing that?

 

[12string]

26 minutes ago, Reverend_Maynard said:

and ignored 12strings advice :p

yeah, I tend to ignore a lot of his advice, too

[Dottleshead ★]

1 hour ago, 12string said:

second, don't buy any stock right now.  Get your account set up, keep your cash in there.  The market is superstupid right now.  Besides COVID, there's a normal down cycle to deal with.  November to January is going to be really bizarre, markets don't like that.  There should be a pretty big dip coming, just don't know when.  The market has been reacting to good news and ignoring bad news lately, so it's hard to tell

It is, however, a good time to buy bonds -- a.k.a. mortgages. Buy a house! Refinance! Ok they're kinda sideways too.

[jsharr ★]

20 minutes ago, 12string said:

yeah, I tend to ignore a lot of his advice, too

Sound advice.

[Dirtyhip]

49 minutes ago, Reverend_Maynard said:

Can you pick individual stocks doing that?

 

Yes. You can buy anything. I strongly suggest maxing this tax free vehicle for investing. If that money is for retiring or if you need it after your 59th b day

You can’t cash it out until age 59 or you are penalized by the irs

People over 50 can put in 7000 a year for Roth. Unless you are a very high earner.

 

 

[Dirtyhip]

I have a feeling that Capital gains taxes will be changing soon, so taxable account income might get heavily taxed. Speculating here.

best case scenario:

max pretax 401k to the limit, max Roth, and then any excess would go in a taxable trading account.  This is assuming that your income will be much lower during retirement. I think it is good to use all three options simultaneously.