Understanding Investing concern

[amfal]

Hi,

I am new to this and have been browsing around. I am concerned about understanding all of the investing aspects. I can understand cutting cost and making more money, but really lack understanding in investing.
I am not an idiot, but I am really concerned about figuring out how to invest, and how to live off that investment.
Currently I just have a 401k and 2 accounts in Fidelity, both from prior jobs. one is a rollover IRA, and the other seems to still be a 401k (is that possible)
I am looking to start investing some of my savings.
I am looking for any insight. Reading these posts people seem to have extensive knowledge on investing. Most of what is said is going right over my head, even concept wise.
Are there certain things I should focus on when learning about investing?  Especially as it relates to retiring early?

[shuffler]

Here's a good place to start:
     http://jlcollinsnh.com/stock-series/

[surfhb]

....or here:

http://www.bogleheads.org/wiki/Main_Page

Investing is a very easy concept to understand if you follow some basic rules.    Ready both these links was an Epiphany

[catccc]

IMO, you don't need to understand investing all that much to do it.  Stick with tried and true basics like index funds.  Pick a suitable asset allocation.  Understand fees.  I feel like my investing knowledge is pretty rudimentary, and I'm doing just fine.  But I guess it is all relative.

Are there any specific questions you have?

[Chrissy]

Learning to invest is like learning how to ride a bike.  You can read about bike-riding, and watch others do it, and subscribe to a bicycle magazine, and get expert advice from the employees of a bike shop, only none of that teaches you to ride the bike.  Only getting on the bike and doing it teaches you.

[Dodge]

I found the Boglehead video series particularly helpful. Yes, the guy is over the top, but the information is spot- on, and easy to understand.

http://www.bogleheads.org/wiki/Video:Bogleheads_investment_philosophy

[SMCx3]

Some very helpful info.....

Thank you from another inexperienced investor.

[amfal]

Thanks for the tips. I will check out those links.

I don't have any specific questions at the moment. One thing that I am trying to determine is how to draw or cash out. I thought there are tons of fees and such for that.

I'll check the links and come back with any questions!

Thanks everyone.

[dantownehall]

With my broker (TradeKing), it cost $4.95 for a trade of any size.

So if you're retired and have your shares of an index fund in that account, it will cost you $4.95 to cash out a portion for your monthly bills.  Then you can wire transfer that money to your bank account for free.

Other accounts may have higher or lower fees, I don't know.  Or you could decide to live off the dividends, which are deposited into your account quarterly for free.

[Cookie78]

Bookmarked thread! Thanks from another investing noob.

I started years ago without any idea of what I was doing, wasted ten years investing into something that wasn't growing at all, and just changed over to something else 1.5 years ago. Amazed at the difference, but I still have such limited info on what I'm investing in. So far I've mostly left that up to the company that handles it for me.

[Eric]

I don't have any specific questions at the moment. One thing that I am trying to determine is how to draw or cash out. I thought there are tons of fees and such for that.

It varies.  If you're trading with your run of the mill online brokerage, then they usually charge you a per trade fee, usually somewhere between $5-10, for both buying and selling.  But that's per transaction, and not dependent on volume or amount of money involved.  However, if you're investing with Vanguard in their own mutual funds, there's no charge to buy or sell.

There are tax implications of selling, but that's applicable no matter where you hold your shares.  If you're selling* from an 401k or IRA or other pre-tax account, it's counted as regular income.  If you're selling from an after-tax brokerage account, you'll pay the capital gains rate if applicable.  And if you're selling from a Roth IRA, you'll pay nothing.

*Also counted as regular income is rolling over a balance from a pre-tax account to a Roth IRA, which you'll probably be doing in order to access your retirement accounts prior to age 59.5 without paying the 10% penalty.