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Question for Investing With a Given Scenario
Posted on 10/9/12 at 7:35 pm
Posted on 10/9/12 at 7:35 pm
Simply put, I am interested in learning how to make use and maximize a savings account. I want to know what some of you either did do, or would do if you were in the following situation.
1 year removed from college
No debt, consistent and stable income.
All bills/rent covered and money left over to manage retirement, insurance, and drop into a savings account.
$1000-$2000 in a checking account at all times before and after monthly bills are paid.
$20,000 in a savings account
I want to take the $20K and split it out into an emergency fund, and then use the rest to invest. This is a discovery stage in my financial life. I have a technical background with little to zero knowledge of investing besides the simple saying of always pay yourself first.
Thanks to any advice you guys can provide. I did run across a book thread on here last week that I have bookmarked for when I get some down time in the following weeks. I am going to use it and any advice in this thread to build a foundation.
//Also interested in any online radio shows to tune into during the day, etc...
//One more edit, I have no interest in starting a business or helping start one at this time
1 year removed from college
No debt, consistent and stable income.
All bills/rent covered and money left over to manage retirement, insurance, and drop into a savings account.
$1000-$2000 in a checking account at all times before and after monthly bills are paid.
$20,000 in a savings account
I want to take the $20K and split it out into an emergency fund, and then use the rest to invest. This is a discovery stage in my financial life. I have a technical background with little to zero knowledge of investing besides the simple saying of always pay yourself first.
Thanks to any advice you guys can provide. I did run across a book thread on here last week that I have bookmarked for when I get some down time in the following weeks. I am going to use it and any advice in this thread to build a foundation.
//Also interested in any online radio shows to tune into during the day, etc...
//One more edit, I have no interest in starting a business or helping start one at this time
This post was edited on 10/9/12 at 7:38 pm
2
Posted on 10/9/12 at 9:42 pm to RickAstley
I'm betting the popular answer will be to start a Roth IRA with someone like Vanguard
Posted on 10/10/12 at 8:31 am to The Easter Bunny
Ok thank you. I will add that to my list for research. I should have stated I want direction in starting out.
Posted on 10/10/12 at 9:18 am to RickAstley
Congratulations! You are in an awesome position that few are wise enough to put themselves in at your age.
When I was about your age, I read a book that turned me on to index investing. Probably the king of books on this (not the book I read back then) is A Random Walk Down Wall Street.
I've seen advice on here that you should play the market with a small amount early on to get that out of your system, but you sound like a smart guy who makes decisions based on reason, not emotion, so you might forego that step.
Vangaurd is.an excellent choice for index investing. Cost is about the only thing you can control, and they are rock bottom on cost.
My 2c
ETA: on the same line as the other poster, make sure to max out your tax sheltered accounts. The order I like is 401k up to the match, Roth IRA up to the max, then 401k up to the max.
When I was about your age, I read a book that turned me on to index investing. Probably the king of books on this (not the book I read back then) is A Random Walk Down Wall Street.
I've seen advice on here that you should play the market with a small amount early on to get that out of your system, but you sound like a smart guy who makes decisions based on reason, not emotion, so you might forego that step.
Vangaurd is.an excellent choice for index investing. Cost is about the only thing you can control, and they are rock bottom on cost.
My 2c
ETA: on the same line as the other poster, make sure to max out your tax sheltered accounts. The order I like is 401k up to the match, Roth IRA up to the max, then 401k up to the max.
This post was edited on 10/10/12 at 9:23 am
Posted on 10/10/12 at 9:51 am to CoolHand
Thank you for the response. The book thread I ran across discussed reading A Random Walk Down Wall Street. That is certainly on my to do list, seeing how many of you have recommended it.
You mention to take a subset of the money and play around with it. What has been your experience in the past as far as playing around and learning the market?
My only experience with playing around with money has been going to a casino a few times and realizing that I do not like the casino as much as I did beforehand. The other money I have played around with has been in regards to buying a set of college football tickets and reselling. That was a much more memorable experience then the casino trips.
You mention to take a subset of the money and play around with it. What has been your experience in the past as far as playing around and learning the market?
My only experience with playing around with money has been going to a casino a few times and realizing that I do not like the casino as much as I did beforehand. The other money I have played around with has been in regards to buying a set of college football tickets and reselling. That was a much more memorable experience then the casino trips.
Posted on 10/10/12 at 10:02 am to RickAstley
quote:
You mention to take a subset of the money and play around with it. What has been your experience in the past as far as playing around and learning the market?
Just to clarify, I DON'T recommend doing this. It has been recommended on here as a teaching moment when the ramifications aren't as severe (later in life this can be tragic). Your casino experience is equivalent and sufficient.
Posted on 10/10/12 at 10:29 am to CoolHand
Very interesting. It is fun going to the casino, but it is a bad feeling knowing you could have spent the money on something worthwhile or a cheap weekend vacation instead of throwing it away like that.
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