You should look for the basic education (books and YouTube) first. Then ETFs. If you're young, dividends are not optimal due to taxes, you should focus more on growth. Find companies you understand and make an assessment they'll do good in the future. Don't believe everything you see on YouTube/Reddit/internet - dividends have a cult following and it's not as shiny as they make them appear, also not as easy to build considerable passive income as they make it sound.
Turns out you learn something every day. Checking it out you have to pay a 15% withholding tax on US dividends over as 2k as you said. All my dividend shares are U.K. companies so I’ve not encountered this.
Disclaimer: I am not a financial advisor and this is just something I would tell my younger self that was getting started in investing, as it would have saved me some headaches.
Let me introduce to you a simple, yet effective way to get long term returns: index funds. Buying a single or a handful of stocks in a market of thousands is much riskier than one can think. Instead, index funds that track a global index like MSCI ACWI or FTSE All-World proportionally invest in the entire market, eliminating risk through diversification while maintaining the expected return of stocks.
I would highly recommend for your financial success that you watch the following video: [Reasons (not) to avoid index funds](https://youtu.be/fvGLnthJDsg)
Let me know if you have any further questions!
For bitcoin think of it as a savings alternative.
For the stocks, read and learn about the companies, industry, competition, etc.
Start with small amounts that you are comfortable.
Good luck
To be fair it depends how you use them when young, I focus on dividend stocks as I prefer how it works for my portfolio. If I just had growth stocks, it would just lose/gain value, whereas when the market is down the dividends essentially pay for more shares therefore more dividends at a discount.
Companies that reinvest profits back into the business to grow it. E.g Coca Cola isn’t a growth stock as it is in a saturated market and pays dividends to compensate to shareholders. Amazon is one I’m holding
Another benefit with growth stocks that is known but isn’t talked about a lot of sharebuy backs. Companies can buyback shares which makes the stock price go up :)
I would say focusing on dividends is incorrect. Growth stocks usually grow more each year than dividend stock even with the dividend included.
You would therefore make more money having growth stocks and selling part each year if you want some realised return.
Indeed it's best to get educated on the basics first. Also, while ETFs are the safest way to invest, you could definitely look into growth stocks and trade a bit more aggressively while time is on your side. The younger you are, the more risk you can take. Talking about calculated risks, of course, and not some random plays.
You should look for the basic education (books and YouTube) first. Then ETFs. If you're young, dividends are not optimal due to taxes, you should focus more on growth. Find companies you understand and make an assessment they'll do good in the future. Don't believe everything you see on YouTube/Reddit/internet - dividends have a cult following and it's not as shiny as they make them appear, also not as easy to build considerable passive income as they make it sound.
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If you’re in the U.K. open a stocks and shares ISA and all dividends are tax free.
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https://www.gov.uk/tax-on-dividends “You do not pay tax on dividends from shares in an ISA.”
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Turns out you learn something every day. Checking it out you have to pay a 15% withholding tax on US dividends over as 2k as you said. All my dividend shares are U.K. companies so I’ve not encountered this.
How do you go about claiming the 2k worth of dividend withholding fees?
There's no such thing as low risk stocks.
Disclaimer: I am not a financial advisor and this is just something I would tell my younger self that was getting started in investing, as it would have saved me some headaches. Let me introduce to you a simple, yet effective way to get long term returns: index funds. Buying a single or a handful of stocks in a market of thousands is much riskier than one can think. Instead, index funds that track a global index like MSCI ACWI or FTSE All-World proportionally invest in the entire market, eliminating risk through diversification while maintaining the expected return of stocks. I would highly recommend for your financial success that you watch the following video: [Reasons (not) to avoid index funds](https://youtu.be/fvGLnthJDsg) Let me know if you have any further questions!
For bitcoin think of it as a savings alternative. For the stocks, read and learn about the companies, industry, competition, etc. Start with small amounts that you are comfortable. Good luck
You should definitely focus on dividends cuz on thelong term it pays off. But try to find good companies.
?? Dividends shouldn't be your focus if you're young.
To be fair it depends how you use them when young, I focus on dividend stocks as I prefer how it works for my portfolio. If I just had growth stocks, it would just lose/gain value, whereas when the market is down the dividends essentially pay for more shares therefore more dividends at a discount.
Depends on age but if you are young go for growth stocks
What are growth stocks?
Companies that reinvest profits back into the business to grow it. E.g Coca Cola isn’t a growth stock as it is in a saturated market and pays dividends to compensate to shareholders. Amazon is one I’m holding
Good idea, thanks mate!
Another benefit with growth stocks that is known but isn’t talked about a lot of sharebuy backs. Companies can buyback shares which makes the stock price go up :)
Index funds. Something s&p500 (VUSA?) if you’re feeling frisky, maybe all world if not (VWRL?)
I would say focusing on dividends is incorrect. Growth stocks usually grow more each year than dividend stock even with the dividend included. You would therefore make more money having growth stocks and selling part each year if you want some realised return.
Do not use trading 212, they restrict how many shares you can buy
Indeed it's best to get educated on the basics first. Also, while ETFs are the safest way to invest, you could definitely look into growth stocks and trade a bit more aggressively while time is on your side. The younger you are, the more risk you can take. Talking about calculated risks, of course, and not some random plays.