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Discussion Starter #1
I realize I am probably one of the oldest guys on this board (besides TheX and BimmerX). I also realize that this thread and the advice in this thread will be widely ignored. However if someone could've made me listen to this kind of thing when I was young I'd be so much better off than I am now.

In a recent thread someone asked what they should spend their money on. As a joke I gave the following responses:

If I were you I'd open an IRA and invest in a fairly aggressive Vanguard ETF.

In twenty years you can come back to this thread and thank me.
If you go the IRA route you should make it a Roth.
Make sure whatever ETF/mutual fund you choose has a low expense ratio. Otherwise that'll eat right into your ROI.
Maybe an emerging market fund...
Maybe a dividend paying mutual fund would be a good idea as long as you reinvest the dividends that it pays.
Maybe put the money in a REIT (Real Estate Investment Trust).
As you get older you should ad a higher percentage into bonds. This will reduce volatility.
Whatever you do, make sure you're putting enough into your 401k to get all of your company's match. Otherwise you're just leaving money out there.
I obviously knew he was asking about mods, and I was joking around. But I got to thinking about how little I knew about personal finance when I was the age of most people around here.

At your ages you have the power of time and compound interest, and it can't be understated how powerful that is.

I'm not saying not to have fun, but you should learn a little about how to invest and try to put away 10% of your income (at a minimum) into tax sheltered accounts.
 

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T. BOTM Winner 10/11
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buy more mods???? ok!!
 

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T. BOTM Winner 10/11
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I don't need to save. My retirement plan is to win the lottery! Guv'ment's got my back!
that's the spirit!!

i actually had someone tell me one time "what's the point of putting this money into a 401k? i might not even live that long and then it'll be a waste." i had no words
 

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BOTY Winner 2015 - BOTM Winner 04/2015
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hookers and blow!!! >:)

but on the realzzz..... yeah, putting some away is very important, and the 401k company match is free money so a no brainer...
 

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OG
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Been hanging out at FerrariChat a lot more. There's a business section where I've learned a ridiculous amount regarding investing. The knowledge base there is incredible. Working my way through five recommended books at the mo.



buy these books if ur serious about doing this....if you read these and understand them you will be smarter than 99% of the people out there and smarter than most people in the financial industry. have fun.
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Eleventh Edition): Burton G. Malkiel: 9780393246117: Amazon.com: Books




Reminiscences of a Stock Operator: Edwin Lefèvre, Roger Lowenstein: 9780471770886: Amazon.com: Books
 

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I really need to start looking into this. I've always been curious about how it all works but never actually put anything into action.
 

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+1 on a Roth IRA. My bachelor's is in Finance, I look at people's finances very intimately every day and it's amazing how little people save.

The Roth grows tax free, you can buy individual common stock if you want, ETFs, whatever. Just max out your Roth every year while you can, if you start making 6 figures you can no longer contribute. It is the best investment vehicle there is IMO.
 

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Years ago one of my college professors showed us this chart on one of the last days before we all graduated of what investing for your retirement at a young age would mean.

I'm just talking concepts and the numbers are wrong (this was years ago) but the idea was if you put something like $2,500/yr in an IRA from age 21 to like 26 (5 years) and never put in another dollar you'll make far more money than someone who starts at 40 years old putting $5,000 a year until they would retire. Wish I was smart and was able to do that but at the time I hadn't landed a serious job and didn't start investing until my mid 30's and now know I'll never really be able to retire. I have a buddy who did listen and is now sitting on a pile of money, he'll be retiring early I bet.

Food for thought.....
 

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Discussion Starter #15
+1 on a Roth IRA. My bachelor's is in Finance, I look at people's finances very intimately every day and it's amazing how little people save.

The Roth grows tax free, you can buy individual common stock if you want, ETFs, whatever. Just max out your Roth every year while you can, if you start making 6 figures you can no longer contribute. It is the best investment vehicle there is IMO.
You do that for a living? Want to do it for free for a fellow dot netter? Seriously, I have no idea how much is good or bad for my age.

I have about half my money in Roth accounts, but someone told me that was probably too much. Their logic seemed pretty sound: if you make less in retirement you'll be taxed less... you might want to pay the taxes then. He also pointed out if you move to Florida (or a state without state income tax) you have been paying state taxes when you didn't have to. Just my $0.02, but I really don't know.
 

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Put in at least 10% of every paycheck into your 401k and by the time you retire you will have tons of money. Go buy yourself a new hip and a new bike!
 

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This guy gets it.
This is true but there's a lot of things as important in this thread. I was going to go into the market this last December but other things came up and took up my time. I estimate it cost me $130,000 USD for not being in the market.

NFLX alone went from $200 or so to $280, then, just the other day, the market tanked, and using that stock alone as an example, it went to $233. In the last 1.5 weeks it went up to $300. There you go. And there's lots more like it (that's just ONE example).

Had I been in the market in December (remember, this is late February) I would have been able to buy a Ferrari F430, for cash.

So yeah, pay attention to the wisdom in this thread!! I'm helping my parents right now with a recent car purchase and it's taking up aesveral days of my time. Depending on how the market does, that time could cost me a fortune.
 
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