139: How to Buy Stocks and Index Funds for Newbies: Investing 101

People across the world are shaken by the rapid spread of the coronavirus. Stocks are plunging and the economy crash feels inevitable. And as bad as news seems to every person this situation might have some new opportunities for everyone to finally start investing. In this episode, Sam and Johnny, who are long term investors, discuss the current situation with the market. They explain why this might be the best time to look into investing. They explain the basics of investing for beginners, give advice on what stocks to look into, how to avoid typical mistakes and what books to read about the topic. Learn why investing in index funds the safest way and how to balance your stock portfolio. Where we are: Johnny FD - Sri Lanka Sam Marks - North Carolina Discussed: Patreon Automation Finance Unshakeable Book Simple Path to Wealth Interactive Brokers Recommended: ArtofFX – Start with just a $10,000 account (reduced from $25,000) Fundrise – Start with only $1,000 into their REIT funds (non-accredited investors OK) Betterment – Get up to 1 year managed free PeerStreet – Get a 1% yield bump on your first loan Wealthfront – get your first $15,000 managed free Vanguard - Open an Online Account Time Stamps: 05:37 - Investing in individual stocks vs investing in index funds 10:15 - "You are not investing in stocks to make 10x, you are investing in stocks to make 8% over the next 20-30 years."  - Sam Marks 10:23 - Understanding investment fees 15:05 - Creating an emergency saving fund before investing 21:45 - Books to read before investing 25:00 - How much money should you invest 27:00 - "If you put the money all at once and the market is going down, you are losing in total value, but if you are putting money each month, you are actually buying when it's going down and it's gonna benefit you in the long-run." - Sam Marks 30:22 - Index funds to choose for first-time investing 35:00 - Advice for investors outside of the USA 40:00 - Situation with stocks right now 43:43 - "And the reason why we know the economy is going to recover, it's because it always has." - Johnny FD 47:58 - Stocks vs bonds 50:00 - Taxable and Non-Taxable accounts in the USA 55:46 - Websites where you can invest If you enjoyed this episode, do us a favor and share it! Also if you haven't already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here!  Copyright 2020. All rights reserved. Read our disclaimer here.