If this is your first visit, be sure to check out the FAQ by clicking the link above.
You may have to register before you can post: click the register link above to proceed.
To start viewing messages, select the forum that you want to visit from the selection below.
Politics & ReligionWell Since every damn forum has one. Might as well leave it out there. This place is loosely moderated and should not be entered if you're weak of heart.
My new goal this year is to quit pissing away my money. After two and half years out of school I decided I don't have that much to show for it. Granted I bought alot of toys, treated my friends to nights out on the town, and had a good time, but I decided its time to quit wasting my paycheck.
I'm trying to find some reliable sources on the internet that can give me sound financial advise and accurately report what the market is and will be doing.
Mutual funds? Understanding the market? What sort of investing are you going to be doing? My advice would be to:
Read: "One Up On Wall Street" by Peter Lynch - Mr. Lynch describes a basic methodology for finding investments; buy securities based the products that you and the people you know buy. I'd suggest augmenting his approach with some good fundamental research, also so:
"Security Analysis" by Benjamin Graham and David Dodd - The holy bible of bottom-up investing; i.e. picking stocks based on their fundamental finances. IMHO, ignore their stuff about efficient market theory. If financial markets were truly efficient (in an economic sense), ever asset would always be prices at it's fair market value. Warren Buffet once said that 90% of investors are governed by two emotions; fear and greed. To be a successful investor you need to approach buying and selling stocks from a intellectual perspective. Buy good stocks when no-one else likes them, and sell them when they are overvalued, which is often when everyone else is saying 'Buy!'.
If you're just starting out, subscribe to Morningstar and research some mutual funds with low expense ratios, with a broad mix of market exposure. A good, low-cost index fund is a way to do this. Start a Roth IRA if you're working and contribute the full amount every year. If you have access to a 401(k), contribute the maximum you can by law. Remember the old adage: pay yourself first before you spend money on toys.
Last piece of advice - a long time ago someone told me the secret to financial security. "Spend less than you make, and put the rest into something good." Buy with credit only when you have to and save your money when you can. Avail yourself to all the free stuff that's available to you (libraries, free days at museums), and be smart with your spending.
I've been reading Ramsey's books and they're awesome, however, I found his website to hold very little useful content.
I only owe $500 on a zero interest gun loan, and $4,800 on my truck that is also zero interest. I can have all this paid off in roughly 2 to 3 months without putting much strain on my budget.
I put $500 a month into my Traditional IRA. I'm in the 30% tax bracket so I need the tax break up front not when I'm 65. When my debt is paid off, I plan on investing around $750 a month into my retirement. That will max out my IRA (I think next yr I will get to invest 6K tax free), but I don't know how to invest the last 3K. My company's 401K sucks donkey nuts, no matching and the mutual funds the 401K is investing in kind of sucks also. But if it is tax free, maybe that is a big enough plus.
After bills, food, gas, and retirement, I have about $2200 to 2500 a month to invest into buying a house. Those number are after I get out of the little debt I have.
As far as investing goes, I don't really have a clue. I just know I need to do it, but I'm smart enough to know that this is an subject that I need to spend alot of hours doing my homework on so not to piss away my money.
Don't get caught up in the actual financial instruments and the nuances of the different financial markets. Sure, you'll have to become somewhat familiar with them, but that will happen over time.
Best advice is to speak to a qualified financial planner. There are a few on this site, but may not speak to you because they are not licensed in your state (know of two from California, one New York?).
They'll discuss with you your life goals, at different life intervals, your risk tolerance, and other factors.
Then you can come up with a solid plan for your future.
After maxing out your IRA, I'd say max out your 401K, even with no match. 1st, it's slightly tax advantaged because it's taken out of your check pre-tax, and 2nd it's slightly tax advantaged because it lowers your gross income (could possibly drop your tax bracket).
Don't worry too much about the mutual funds in the 401k. At your age, they should pretty much be 80-100% in aggressive funds.
Next build up that emergency fund for yourself AFTER you get the house. I'd say $10,000 is a good number.
Then save up for a house as much as you can, and if you're not renting cheap try to get into a house asap. If your rent is cheap (sub $500 a month) then screw it and save as long as you can.
Anything additional, look into Vanguard for good mutual funds. There's other good mutual funds out there, but Vanguard has been great to me (so far).
I wouldn't advise playing the stock market until you're willing to throw money away. Treat it like Vegas spending cash and you'll be fine.
__________________
bzb - SBN's resident DJ
2006 Ducati SuperSport 800 - Carbon fiber fender & heel guards, 14T front sprocket, CA integrated tail light, fender elim, air box mod, cut DP cans, Sargent seat
--stop eating out
--libraries usually have a lot of movie DVD that are uniformly excellent
--spending 30 bucks on weekends on alcohol is really stupid
--getting a wife essentially doubles your income because you halve your rent while doubling your income
Learning how to invest
Linear Mode
