LogFAQs > #936133334

known2FAIL posted...

This might sound crazy but... would it be smart for someone who doesnt have a massive amount of money in the market to... get a loan and put that money into the Market on very safe stocks? This might be a really dumb idea. I dont know

No, this is a terrible idea.

If you want to start putting a little money aside, I would just open an account with Fidelity and start putting a little cash into index funds/ETFs. There are plenty of funds with no minimum buy ins these days available through fidelity.

I would also take this opportunity to read a basic investment book or two. Imo a really good one is A Random Walk Down Wall Street. The explanations use fairly simple and easy to understand data, it gives you the background on some basic economic principles, and gives you a basic "how to start investing" guide. I wouldn't treat it as gospel, and there are other books that may give you better practical guides based on more or less the same principles tbh. But it is a great way to familiarize yourself with common investment terms and concepts and presents clear and easy to understand arguments for laymen. A good foundation for further reading, but if you don't plan to spend 10+ hours dedicated to investments every week it's basically as advanced as you need to go. Maybe even moreso.

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