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Comment by aesthetics1 | Hacker News Reader

I feel like this is terrible advice. If you have $10,000, there are safer ways to invest it. If you are using a short blog post to plan your retirement and ultimately your future, you are in trouble!

Check out mutual funds (managed) and index funds. Get your feet wet slowly in something with a low risk. Don't jump into the stock market and just choose companies you like across different industries. This is a recipe for disaster.

Get started by learning about the market instead of throwing money at it. Don't invest until you know who you're giving your money to, and what expectations you should have.

Some beginner sites that helped me out:

http://www.mrmoneymustache.com/2011/05/18/how-to-make-money-...

http://www.mrmoneymustache.com/2011/06/07/where-should-i-inv...

http://www.reddit.com/r/personalfinance

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This is, categorically, not "terrible advice". There might be better things to do, sure. The author is clearly suggesting that it's just a starting point. He/she is clearly not stating that this is a plan for life, or a plan for a large amount of money, or anything of the sort.

For many people, just getting started is a huge barrier. Index fund? What is that? Mutual fund? What is that? Buying a dozen stocks in some companies you've heard of can at least get you interested. You've got skin in the game. Now you are motivated to learn. The idea that you have to learn a whole load about it first just doesn't make sense. People are busy, it's tough to get the motivation to learn. Skin in the game is a great way to start.

It is definitely terrible advice. It sets people up for a long investing career full of behavioral errors and vain attempts to beat legions of people and machines better than you at actively trading.

No, it just gets them started. There is no mention in the piece about this being the way to invest for the long-term, so no one is getting "set" on anything. It doesn't suggest you can "beat the market" or appeal to anyone's vanity.

I believe you are underestimating the perceived complexity in investing by people who don't understand it at all. I also believe you are underestimating the amount of diversification that a dozen stocks chosen from different industries can provide. It's better to start sub-optimally than not start at all.

The blog post says by stocks (or index funds). Going to Reddit personal finance will just confuses people. The Mr. Money Mustache posts are good, thanks for sharing.

Seconded. ETFs at Vanguard are the most cost effective way to start investing.

also check out couch potato investor

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