Man, I picked a hell of a time to dip my toe into the investment game. I picked up a couple of reasonably wide Vanguard ETFs that seemed to be doing fine at the end of last year. I'm currently down 12%, and down 15% in the last month.
I suppose that's what I get. I realize that I should be looking at yearly data and I've only had them for a couple of months, but it's a little hard to look at.
Not to mention with all of the other RobinHood issues I want to move to another platform I'm already on (I've got an account with Schwab for work stuff and they seem fine), but general wisdom says to hold and let this craziness ride out.
Word of warning though: Buying and holding for a few decades is excellent advice, but be sure to log in every once in awhile lest you get escheated[1] out of your nest egg!
IF: you believe in the long term future of the USA.
THEN: dollar-cost-average into the market. Put a fixed amount to work every month. This has been a terrific strategy over the last 50 years or more.
But, caution, you probably don't want to buy a few shares per month of a stock or an ETF in a taxable account. That's because each transaction is a separate taxable event when you go to sell. It would be a nightmare for you to track this yourself. I have no idea how well RobinHood tracks that for you.
If you are investing in an IRA then no worry. The transactions aren't taxable. Of course an IRA has its own problems. Outside of an IRA long-term capital gains are taxed at a lower rate than ordinary income. But when you withdraw funds from an IRA you are taxed at the higher rate.
A Roth IRA doesn't have those tax disadvantages. I've seen a lot of press lately on this issue. For example, in Oregon, the state itself is promoting Roth IRA investing for the "little people":
Participants saving through OregonSaves beneficially own and have control over their Roth IRAshttps://www.oregonsaves.com
All brokers are now required to record and transfer cost basis information for most assets. It happens pretty seamlessly.
There are also tremendous advantages to having differently priced lots -- you can sell the expensive ones, and donate the cheap ones to charity to minimize taxes.
Yep. I don't have a stomach for it. So I've invested my RRSPs into a few different index funds run by Wealthsimple and Tangerine. I literally haven't looked at them in a year. Short term performance is noise, not signal.
Just start a monthly savings agreement. Presumably you've barely put in any signifncant part of your assets. You're much better off than someone who has $400k in the market and might need it soon.
In fact, starting your investment career during a 15% drop is great to inoculate you against panicking in volatile times.
I suppose that's what I get. I realize that I should be looking at yearly data and I've only had them for a couple of months, but it's a little hard to look at.
Not to mention with all of the other RobinHood issues I want to move to another platform I'm already on (I've got an account with Schwab for work stuff and they seem fine), but general wisdom says to hold and let this craziness ride out.