AI Overview
Pre-IPO investing can be very good, offering high-growth potential and early access to companies before they go public. However, it is a high-risk, high-reward strategy featuring low liquidity, high minimum capital, and limited public financial transparency, making it suitable mainly for accredited investors seeking to diversify their portfolios.
They are high risk (usually). Buying Pre-IPO is also usually only for "Well financed" investors. Not us little folks.
Here's is a write-up from Fidelity.
https://www.fidelity.com/learning-center/trading-investing/trading/how-to-buy-ipo-stocks
You should be putting in as much funds as you can in a workplace 401K/IRA, at least to get any company match.
When I graduated college with a business degree (in 1980), my wise dad told me "Always pay yourself first". I was a dumb 22 year old kid and went "Uh...What? Dad....Vought Aerospace is paying me". he gave me my first lesson in saving for retirement when I was still in my cap and gown.
You should consider interviewing and hiring an investment counselor. Your bank might offer the service but I've found banks want to just sell their investments, which are usually fairly limited. We were with Ameriprise Financial for a few decades. Then our advisor retired and his practice shifted to another firm. We were not impressed. We talked with friends and went with a person who is with Edward-Jones. He has done us VERY well. We have recommended him to a few of our friends, including a multi-millionaire who is very impressed with the results. You need to stop looking at "the next big splash". Look at how Warren Buffet at Berkshire-Hathaway invests (we have funds thru E-J in BH). For the long term. Many of the large firms that have grabbed headlines for the last 10 years, advisors limit investments in. The firms often don't have a clear chain of management (the head personality....), they often don't have a plan for diversification into similar business's, they often lack a "What if" strategy, they often reinvest (so for us being older, we need stable growth and DIVIDENDS for our cash needs).
Use Morning Star to research all companies you are interested in. Personally I don't have the expertise to pick many stocks or Bond funds, or EFT's. There is also the planning of knowing your risk tolerance and your diversification needs.
My wife and I followed the above formula. We were and are well set. I retired at 58, never needing to work again (while living a comfortable middle-USA life which includes a F250 and three Mustangs). My wife could retire anytime she wants. She just still enjoys working. We also don't take our Social Security until we turn 70. The government 8 percent is better than most investments. We live on the investment plan and took/will take the SS at 70 (a few more years for me).
Pre-IPO investing can be very good, offering high-growth potential and early access to companies before they go public. However, it is a high-risk, high-reward strategy featuring low liquidity, high minimum capital, and limited public financial transparency, making it suitable mainly for accredited investors seeking to diversify their portfolios.
They are high risk (usually). Buying Pre-IPO is also usually only for "Well financed" investors. Not us little folks.
Here's is a write-up from Fidelity.
https://www.fidelity.com/learning-center/trading-investing/trading/how-to-buy-ipo-stocks
You should be putting in as much funds as you can in a workplace 401K/IRA, at least to get any company match.
When I graduated college with a business degree (in 1980), my wise dad told me "Always pay yourself first". I was a dumb 22 year old kid and went "Uh...What? Dad....Vought Aerospace is paying me". he gave me my first lesson in saving for retirement when I was still in my cap and gown.
You should consider interviewing and hiring an investment counselor. Your bank might offer the service but I've found banks want to just sell their investments, which are usually fairly limited. We were with Ameriprise Financial for a few decades. Then our advisor retired and his practice shifted to another firm. We were not impressed. We talked with friends and went with a person who is with Edward-Jones. He has done us VERY well. We have recommended him to a few of our friends, including a multi-millionaire who is very impressed with the results. You need to stop looking at "the next big splash". Look at how Warren Buffet at Berkshire-Hathaway invests (we have funds thru E-J in BH). For the long term. Many of the large firms that have grabbed headlines for the last 10 years, advisors limit investments in. The firms often don't have a clear chain of management (the head personality....), they often don't have a plan for diversification into similar business's, they often lack a "What if" strategy, they often reinvest (so for us being older, we need stable growth and DIVIDENDS for our cash needs).
Use Morning Star to research all companies you are interested in. Personally I don't have the expertise to pick many stocks or Bond funds, or EFT's. There is also the planning of knowing your risk tolerance and your diversification needs.
My wife and I followed the above formula. We were and are well set. I retired at 58, never needing to work again (while living a comfortable middle-USA life which includes a F250 and three Mustangs). My wife could retire anytime she wants. She just still enjoys working. We also don't take our Social Security until we turn 70. The government 8 percent is better than most investments. We live on the investment plan and took/will take the SS at 70 (a few more years for me).