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Originally Posted by Sedan_Clan
I admittedly haven’t played with the market up until recently (…our deferred compensation investments are handled via Charles Schwab and our government pension portfolio via the county). That said, I decided to dabble a little bit recently, acquiring shares of DJT, HON and AAOI. Any tips for a stock newbie?
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Tips for a newbie, read a lot. Motley Fool has an annual subscription for about $100 that is pretty good; but like anything take their recommendations with a grain of salt. There are lots of YT channels on stocks as well.
A good strategy for a newbie close to retirement or already retired is to put a lot of the taxable account into SCHD and reinvest the dividends. For an IRA/401(k) use something like JEPQ and/or JEPI, again reinvesting dividends. Those would be the majority holdings and then buy dividend paying stocks in the IRA/401(k) and growth stocks in the taxable account. This minimizes income taxes while growing the accounts.
For a younger person I’d take more risk and put a lot of growth into both accounts. Still using funds like SCHD and JEPI/JEPQ as the base.
Lots of funds to choose from, so do some research to find ones you like.
FYI I don’t reinvest dividends because I like to accumulate chunks of cash to use for other buying; and when I start withdrawing from the IRA I’ll prefer to have cash generated versus having to sell some holdings. But reinvesting is a great “set it and forget it” strategy.