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saving at the beginning of your career.
Posted on 11/12/13 at 11:53 am
Posted on 11/12/13 at 11:53 am
Knowing well the power of compounding interest, I want to be able to start saving and investing as soon as I start my career post graduation. I'll probably be making in the 50-60k range in South LA while saving up to get married and build a starter home on land I already own. What kinds of investments and accounts will work in the short term for saving up for these expenses in the next 2 years and what types of investments are great for saving and building a nest egg in the long-term?
Posted on 11/12/13 at 12:10 pm to kingbob
quote:right now, literally none. Work on your credit and take out a loan for a house asap.
What kinds of investments and accounts will work in the short term for saving up for these expenses in the next 2 years and what types of investments are great for saving and building a nest egg in the long-term?
Posted on 11/12/13 at 12:59 pm to kingbob
quote:
What kinds of investments and accounts will work in the short term for saving up for these expenses in the next 2 years and what types of investments are great for saving and building a nest egg in the long-term?
Mutual funds with Vanguard is a great way to start. Obviously, you will want to make sure you take advantage of any 401k matching with your employer, but, really, 15% of your gross income should go towards retirement, ASAP. You can never get this time in the market back (and that is a more important factor than the percentage, right now.)
As a basic example - every $120 dollars saved in 2013 will be about $20k in 2053 (assuming a modest 6%). If you wait until 2033 - it will cost you about $500 to get that same $20k in 2053.
With more aggressive 12% return projection, that $120 dollars in 2013 will be over $100k in 2053.
Likewise, you'll need $1200 to $1300 invested in 2033, to get that same $100k (again, at 12%) in 2053.
So, even if it is $10 per month (then up it whenever you can) pay yourself first. Then you can laugh at the debt/wage slaves when you're 65 and chartering your own spaceship to the moon.
This post was edited on 11/12/13 at 1:05 pm
Posted on 11/12/13 at 1:27 pm to kingbob
quote:
types of investments
real estate....as a great man once said....
quote:
"It's the cash flow stupid"
You can also put in what your employer matches in a 401k and max out a roth ira. Plenty of good funds out there for you to choose from.
Posted on 11/12/13 at 4:05 pm to kingbob
You won't make much in 2 years off investing only a small amount.
If you had 1000 in the market at the beginning of this year, you'd have what, 1200ish now? And it's been a great year.
Not much when facing a house payment and kids
ETA at the beginning of your career.
Savings rate>>savings placement (unless you put everything in bonds of course)
If you had 1000 in the market at the beginning of this year, you'd have what, 1200ish now? And it's been a great year.
Not much when facing a house payment and kids
ETA at the beginning of your career.
Savings rate>>savings placement (unless you put everything in bonds of course)
This post was edited on 11/12/13 at 4:11 pm
Posted on 11/12/13 at 9:13 pm to kingbob
So what I can tell you is,
Invest towards retirement
Make a lot(or put yourself in a position to)
Don't spend a lot
That's about all you (and me too) can do for now
Invest towards retirement
Make a lot(or put yourself in a position to)
Don't spend a lot
That's about all you (and me too) can do for now
This post was edited on 11/12/13 at 9:13 pm
Posted on 11/13/13 at 8:38 am to kingbob
quote:
kingbob
you want a decent return SECURED by RE?
Do some short term private lending. That is is you are not interested in rental cash flow or flips.
It can give you a decent return without a long term commitment.
This post was edited on 11/13/13 at 8:40 am
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