How do you invest?

I do American Funds Mutual Funds, I put in money and only watch the statements. Most of the biznik crowd isn't near retirement...so why watch it like a hawk?

Remember, chances are you're a better web designer than fund manager.

Yeah, what Kevin said. Skim a chunk off the top of my gross and ship it off before I can feel it, and then don't much look at it. Think L O N G term.

I've some in American Funds Mutual Funds, and others--a little portfolio mix courtesy of Biznik, Jessica Hale--lots of long-term investment with a smattering of some high risk but rapid growth, which when I glance at it on my monthly statements I get to feel like my money is multiplying fast ;-)

And someday when I get off my a*s I'll take a chunk and drop it into some investment that is a little more "socially responsible" than the American Funds, but I haven't figured that part out yet.

What motivates you to manage your portfolio yourself? Believing that you can't afford hiring a professional? Or perhaps you think you need to be in control (nothing wrong with that). But if I need a website designed, I go to a professional. Same with going to an attorney for legal needs, a naturopath for health reasons and an architect to redesign my space. Of course I'm biased, being a financial advisor -- What do you gain by not finding the best professional for whatever your needs are and letting him/her do their work? There's many great financial advisors and planners who are competent and reasonable. If you'd like the names of some in the Bay Area, call me and I'd be happy to give you some referrals.
...And they'll all be committed to socially responsible investing, since incorporating your values into your investments may appeal to you. And yes, the returns over the long term are competitive with investments that reflect profit from weapons, tobacco, polluters, etc. SRI can have far-reaching ramifications -- not only the shareholder advocacy all the SRI mutual funds offer but also the experience of actually walking your talk (if you happen to be politically and socially active).

Frank,

It's true that many Advisors have minimum portfolios before they'll take on a new client. But there are many that don't. When the time comes for you to work with a professional (and perhaps give up a bit of control), you'll find the perfect match. Until then, I hope you enjoy your hobby!

I'm coming late to the party, but why don't you look at one of those time-managed funds? You invest your money in the fund is named for the year you think you'll need it . . . like Fidelity Freedom 2030, if you needed it in 2030 for retirement . . . and the portfolio manager maintains an allocation that would be aggressive now, but that becomes more conservative over time. These funds are being offered now for people who don't want to worry about picking and reviewing a lot of different mutual funds or stocks.

You could use that for your "core" investment, then play with your stocks when you feel like it.

You might look into a SEP (Simplified Employee Pension). You can invest up to $44,000/year, or 25% of your income, whichever is list.

Hi Frank,

I take the opposite approach from many re: investing. i don't invest in funds. Instead I roll my own. I don't spend many hours glued to the stock tickers, rather I use google/yahoo to manage my portfolio and just check the status once a day. I am a HUGE fan of the Motley Fool advice by way of subscribing to various advice newsletters. For example, I am subscribed to the Global Gains newsletter and I have done very well by it, and just generally investing in what I know - which is generally to invest in technology.

I've also found it really enlightening to see how my portfolio did against the sp500/nasdaq/etc during the latest stock tumble. That was really informative to me to get a sense of the true value and "ballast" of my stock choices versus the market in general.

You're right. It takes time.

I have no problem treating money and computers as servants.....they can sit there and wait for me. I have no problem leaving money in a money market account while I figure out my next move. I used to feel guilty....inflation passing me by and all that...but some successful clients sit on a ton of cash....so maybe I'm balanced financially.

DO NOT take my advice, ha, ha. As the joke goes, "talk is cheap because supply exceeds demand."

But I can share what I do. First, what's your plan? Growth, dividends, income, conservative 7% returns, socially responsible, certain industries, international, US, large cap, small cap, technology? That may change but at least you'll have a filter. Sounds like part of your filter right now is to diversify.

I enjoy the process and I enjoy controlling my money. I can chose not to invest if there are no women in high positions. I canceled my Motley Fool subscription after seeing that their picks consistently weren't stocks that shared my filter, like Payday Loans, private health insurance, and other businesses that other people may not disagree with, but that's my filter.

I also enjoy studying businesses and learning about investing. It feels like an extension of my work, and it feeds my work too.

Practice learning how to read financial reports and all the numbers. I've been practicing this for years, and don't get it yet, but I'm going to keep practicing.

The funniest audiobook ever is, "God is my Broker". It's high drama, not much about investing, except boy, is there alot to learn if you include options.

In general I prefer dry investment books on CD or tape, so I can listen while I drive. I wish I could get my own book into audio book form. So far, it's either been too expensive, or the people aren't reliable enough to pull off the whole project.

I spent a long time figuring out Quicken for investments. I ended up figuring it out with a colleague, a line from a book, and some hacking. I couldn't manage without it, and the download quotes works great. I sell Quicken for investment purposes off my website but I don't support it professionally (except I'm going to set it up for this one client I've been with a long time and trust.) I wish someone would write a book on this, or support it the way I support QuickBooks. I would like to learn more. It's all in the numbers.

I've had a good experience with Schwab, but I navigate them. I have a short watchlist of stocks I get in my inbox every day.

I've looked at some boards but none I like. I have learned to never take "tips" as investment advice. Huge mistake!

"A Random Walk down Wall Street" is good. He really communicates the magic of compound interest, and so when one Motely Fool writer talked about "why my J&J Corp. dividend is larger than yours", I totally understood what she was saying about compound dividends, stock growth and adding it all up.

I've been reading about tax evasion and off-shore banking for fun and education, although it makes my blood boil what's happening economically in our country (since the first Bush). It's giving me a more global perspective. Now I understand why many companies, including Garmin and SFL (tanker, ships oil) are based in the Caribbean.

I agree with "One Up on Wall Street" Peter Lynch about investing in companies I understand. Apple has been great. I bought a Garmin, and it has performed well. I bought a Pearl, and would have bought RIMM if it crossed my mind. I was too busy with my own business at the time. One choice is to only invest in your own business!

I think the relevant questions are, "can you let money sit in a money market account while you find time to learn?" and "do you enjoy the process?