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Started By
Message
Posted on 3/11/10 at 10:47 am to rmc
Yea but I am gonna be getting engaged within the next year so the way I see it I can only live cheap for about two more years and then I won't have much control of where the money goes.
Posted on 3/11/10 at 11:18 am to Tigerstudent08
quote:
TigerStudent08
Who are you?
Posted on 3/11/10 at 11:41 am to Cash
quote:
Bump that up to 15%.(mostly in index funds)
Also, put $5k a year in a Roth IRA.(mostly in index funds)
Build up 3-6 months living expenses and park it in a money market fund for emergencies.
Don't be in a rush to buy a house. There is nothing wrong with renting for a little while.
You need to educate yourself on personal finance. I'd start with The Richest Man in Babylon.
This times 100.
I haven't read the rest of the thread, but this is pretty much the best advice you will get on the internet.
Posted on 3/11/10 at 11:48 am to Tigerstudent08
quote:
for about two more years and then I won't have much control of where the money goes.
You won't have as much...but at the least let it be 50/50. And don't let yourself be talked into a house you can't afford and no cars etc.
Posted on 3/11/10 at 11:50 am to Tigerstudent08
quote:Congrats !
I graduated from lsu in December
quote:
I am making just over 70k
Awesome !
You have the whole world in your hands.
If you invest wisely in the next five years, avoid car payments, toys etc, live REALLY frugally, and avail yourself of MY professional services (send check today), you can amass a GIGANTIC nest egg that will set me, I mean YOU up for life !
Seriously bro, tap into that company 401k, max out the Roth IRA, and SAVE, SAVE ,SAVE....
Understand that those who become RICH, do it by denying themselves the things their neighbors believe are neccesary.
Posted on 3/11/10 at 11:54 am to Lsupimp
Cars are the dumbest way to blow money. The value car you drive should be no more than 50% of your after tax income.
I see so many people making 50k and driving 50k vehicles, it makes me sick.
I see so many people making 50k and driving 50k vehicles, it makes me sick.
Posted on 3/11/10 at 11:55 am to Lsupimp
Cars are the dumbest way to blow money. The value car you drive should be no more than 50% of your after tax income.
I see so many people making 50k and driving 50k vehicles, it makes me sick.
I see so many people making 50k and driving 50k vehicles, it makes me sick.
Posted on 3/11/10 at 12:24 pm to Lsupimp
Thanks I just bumped my 401k up to 10% and am gonna go open up an ira account as soon as I get back on the main land. I just wasn't really thinking about my finances cause whenever I am done with training, supposedly 6 months, I will have a completely different salary and benefits package. But that is not here now so I need to start investing now.
Posted on 3/11/10 at 2:14 pm to Tigerstudent08
quote:
and am gonna go open up an ira account
Just to be clear, everyone is suggesting a ROTH IRA. There is a difference.
Posted on 3/11/10 at 2:21 pm to carlsoda
quote:
Better than throwing money away on rent
Posted on 3/11/10 at 2:27 pm to Tigerstudent08
I graduated with the same degree last May, so I probably know you. I wish when I started that I only had $200/month in bills.
And congrats It's a good field to be in.
And congrats It's a good field to be in.
Posted on 3/11/10 at 2:55 pm to TigerFanInSoCal
Thanks I am sure you do. I don't remember anyone going to work in California though
Posted on 3/11/10 at 3:08 pm to TheHiddenFlask
quote:
Cars & women are the dumbest way to blow money.
Had to add that in.
Posted on 3/11/10 at 7:38 pm to Tigerstudent08
First thing is increase your 401(k) contributions to the maximum allowed. The more you invest now the more you make from compounding interest, and an early start is the best way to maximize your retirement savings.
Second, prepare a more detailed budget of you cashflows. This will allow you to determine what is possible for things like vacations, car and home purchases.
Third, before you follow anyone's advice, including mine, get a second opinion, and hopefully more than that. The opinions are generally free, but the services the opinion providers recommend, and hope to provide, aren't. Remember it is your goals that any advisors are trying to achieve for you. You should feel comfortable and be able to understand exactly how they will achieve your goals and what it will cost you.
Second, prepare a more detailed budget of you cashflows. This will allow you to determine what is possible for things like vacations, car and home purchases.
Third, before you follow anyone's advice, including mine, get a second opinion, and hopefully more than that. The opinions are generally free, but the services the opinion providers recommend, and hope to provide, aren't. Remember it is your goals that any advisors are trying to achieve for you. You should feel comfortable and be able to understand exactly how they will achieve your goals and what it will cost you.
Posted on 3/13/10 at 1:36 pm to Poodlebrain
OK, my advice, which largely parallels everyone else's:
1) Invest in the 401 up to the company match amount (which you've done)
2) Max a Roth IRA (a traditional IRA is ok, but I prefer the Roth simply because you can withdraw contributions with no penalty. If you absolutely have to you can dig into it.
3) If you can get an HSA, do so and max it out. It is similar to a traditional IRA except that you can withdraw for qualified medical expenses. You don't have to do it if you can pay out of pocket though.
4) Finally, max the 401.
Invest in index funds and ETF's for now. If you are so inclined you can play around a little bit just to see how you handle losses and gains. If you do so I suggest fairly large bets b/c early in life it's still relatively inexpensive but you'll learn a lot about your ability to handle large swings while it's early and relatively inexpensive to make mistakes. Blowing your life savings isn't as huge a deal when you are 25, and you can learn from it. Better now than at 65 (which some people do).
Last item - put your higher-risk, higher-return investments in your Roth, because gains are tax-free.
1) Invest in the 401 up to the company match amount (which you've done)
2) Max a Roth IRA (a traditional IRA is ok, but I prefer the Roth simply because you can withdraw contributions with no penalty. If you absolutely have to you can dig into it.
3) If you can get an HSA, do so and max it out. It is similar to a traditional IRA except that you can withdraw for qualified medical expenses. You don't have to do it if you can pay out of pocket though.
4) Finally, max the 401.
Invest in index funds and ETF's for now. If you are so inclined you can play around a little bit just to see how you handle losses and gains. If you do so I suggest fairly large bets b/c early in life it's still relatively inexpensive but you'll learn a lot about your ability to handle large swings while it's early and relatively inexpensive to make mistakes. Blowing your life savings isn't as huge a deal when you are 25, and you can learn from it. Better now than at 65 (which some people do).
Last item - put your higher-risk, higher-return investments in your Roth, because gains are tax-free.
Posted on 3/13/10 at 2:07 pm to Cash
quote:
Build up 3-6 months living expenses and park it in a money market fund for emergencies.
Don't be in a rush to buy a house. There is nothing wrong with renting for a little while.
You need to educate yourself on personal finance. I'd start with The Richest Man in Babylon.
I would start with N N Taleb's books. He's a Phd in statistics who bets against the common wisdom.
He provides excellent appendices, an education in itself.
He has his own brokerage firm.
Black Swan is famous. Its his second book.
Posted on 3/13/10 at 2:09 pm to Cash
quote:
Build up 3-6 months living expenses and park it in a money market fund for emergencies.
Don't be in a rush to buy a house. There is nothing wrong with renting for a little while.
You need to educate yourself on personal finance. I'd start with The Richest Man in Babylon.
I would start with N N Taleb's books. He's a Phd in statistics who bets against the common wisdom.
He provides excellent appendices, an education in itself.
He has his own brokerage firm.
Black Swan is famous. Its his second book.
Its considered to be one of the most important books of the past 60 years.
Fooled by randomness is his first.
Use a dictionary if you need to.
This post was edited on 3/13/10 at 2:10 pm
Posted on 3/13/10 at 2:34 pm to ottothewise
Not sure I'd recommend either of those books as beginner's books. You need some foundation of basic shite before you can thoughtfully contemplate his points, IMO.
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