Finance/Investing ITT

[nando]

well does anyone have any advice for me?
im an 18 year old fresh out of high school, starting cc in the fall. (my community college has a flight technology program, im learning to be a commercial pilot.
college is paid for, thankfully.
I have around 5 grand saved up in a savings account at my local FCU. I have a part time job and make around 90 bucks a week after expenses. can anyone give me some advice as to where to invest it? im was thinking a roth IRA, since no 401k is available to me

yes, and do the Roth since you don't pay much taxes right now so bringing down your tax bracket isn't very important. but I wouldn't put all of it into an IRA. I would keep 1-2k in savings for emergencies. Otherwise if something happens and you have no cash, you're stuck using a credit card and you don't want to get on that merry go round.

[Alkasquawlik]

Sell out.

Shoot me.
I will still keep the iX for winter driving duties.

[nbio]

well does anyone have any advice for me?
im an 18 year old fresh out of high school, starting cc in the fall. (my community college has a flight technology program, im learning to be a commercial pilot.
college is paid for, thankfully.
I have around 5 grand saved up in a savings account at my local FCU. I have a part time job and make around 90 bucks a week after expenses. can anyone give me some advice as to where to invest it? im was thinking a roth IRA, since no 401k is available to me

[Surtr]

Because I want one. I'm not going to be driving only E30s for the rest of my life. If I can afford it, I'll buy one, if not, then I'll continue saving.

Sell out.

[Vedubin01]

I just finished moving to cash today except stock in an AU. Ore company. These were my final sales today. I expect it to be pretty rough tomorrow due to the debt sale going on.

Anyway here some ideas.

Today Im up 44% for the year.

VICLSOLD100CASH$3.5901$352.00 UYMSOLD50CASH$23.44$1,164.96 PVXSOLD100CASH$5.1101$503.99 PVGSOLD50CASH$15.18$751.98 GESOLD50CASH$14.4402$714.99 DOWSOLD50CASH$21.8302$1,084.48 CHKSOLD30CASH$24.28$721.38

[rwh11385]

NO ONE TALKS ABOUT THEIR LOSSES ONLY THEIR WINNERS

Just like other types of gamblers, haha.

A good part of investing is figuring out your opportunity costs. RWH… although you are on the right track it’s not the complete picture. A house can be a good investment if the real estate appreciating at a higher rate than your interest rate taking into account what you would be spending on rent. Of course you would build a model to take all these factors into account but you have to look at the overall picture.

Yep, here's a starting point for that: http://www.nytimes.com/2007/04/10/bu...T_GRAPHIC.html

Of course, I'm biased because my area has some seriously cheap homes and we never really had a bubble. I as well as both my parents have worked in real estate. I had my "standards" I wanted in a home, ignored cookie cutter houses, and went a few miles outside of the popular but overpriced young area.



An important thing about personal finances is thinking about what you save / invest, versus what you earn and spend. If you get a raise but inflate your expenses in turn, then you'll not really get much wealthier - you just have more expensive stuff. Focus on items that bring you great happiness or great returns, and not stuff that you think you ought to buy. Then you should be to able to see what you don't need to spend on, but save and invest away for important goals in the future.

[Alkasquawlik]

I hope Alkasquawlik isn't one of those kids who jerk off to Boiler Room.

what the fuck is Boiler Room?

What do you mean you want to work in finance? Corporate finance which is balancing the company's investments in other companies? Financial advisor which is annoying your friends to let you manage their money? Investment banker... which is working every waking hour?

I'm in the final week of a summer internship with Credit Suisse's Private Banking division, and will most likely be doing the same thing next summer but in the I Banking division. Not exactly sure which one I would want to do, I have atleast 3 more years to figure it out.

Hey, if Obama gets his way, the government would take 30% of that $6000 instead of just 15%... and what about many more people that tried to be like him and lost most of what they risked on penny stocks?

Like I said earlier ITT, I'm not ignorant, and know that you can lose money, but I am young and willing to take the risk now, rather than when I have a family to look after.

WHY WOULD YOU WANT AN E46 M3? In a financial thread, I can't believe someone else hasn't pointed out a near new car like that is nothing but a pile of debt for a depreciating asset with high maintenance costs.

Because I want one. I'm not going to be driving only E30s for the rest of my life. If I can afford it, I'll buy one, if not, then I'll continue saving.

[John Rocker]

More advice, dont be afraid to pay the tax man. Structuring your investments to try to avert paying taxes one year, leaving them for the next is a bad idea. If you have a reason to sell a stock, sell it. Dont worry about capital gains. Dont try to weigh the tax into your gain/loss.

Additionally, dont chase dividends. Buying a stock just because they announce a dividend, then selling after you collect it is a bad idea. The net effect is really zero, you dont gain by chasing these. Actually, it is even illegal for a broker to suggest this tactic, something they learn when taking the series 7.

[wildstoats]

Now is the BEST time to invest. I feel bad for anyone who's missed out on the 50% run from march because they were afraid.

You should add the disclaimer: "If you can time the next downturn correctly". I'm still in the camp that thinks this is a sucker's rally.

[E30ownerwithanopinion]

I have been investing for years… here are some lessons I have learned along the way….


Higher the risk higher the return
Don’t fall in love with a stock
Don’t be greedy
Know when to take a loss
Stick to companies you know and understand
NO ONE TALKS ABOUT THEIR LOSSES ONLY THEIR WINNERS


A good part of investing is figuring out your opportunity costs. RWH… although you are on the right track it’s not the complete picture. A house can be a good investment if the real estate appreciating at a higher rate than your interest rate taking into account what you would be spending on rent. Of course you would build a model to take all these factors into account but you have to look at the overall picture.

[rwh11385]

A house can be a good investment if lived in, since rent has zero ROI. There are upkeep expenses, and lawncare if a SFH instead of condo, ... but these can rewarding and fun weekend activities. Think about multi-line discounts on your auto insurance, too. Heck, if you find the right IRS tax form and have friends willing to pay rent, you can make a profit.

I hope Alkasquawlik isn't one of those kids who jerk off to Boiler Room. The truth is that finance isn't always heroic or sexy... and you don't need it to be to get good returns, unless you're only goal is try to impress people about talking about stocks and "what's hot".

What do you mean you want to work in finance? Corporate finance which is balancing the company's investments in other companies? Financial advisor which is annoying your friends to let you manage their money? Investment banker... which is working every waking hour?

A friend of mine started investing in June this year with $500, and as of today, he has made over $6k. I need to hop in, I want an E46 M3.

Hey, if Obama gets his way, the government would take 30% of that $6000 instead of just 15%... and what about many more people that tried to be like him and lost most of what they risked on penny stocks?

WHY WOULD YOU WANT AN E46 M3? In a financial thread, I can't believe someone else hasn't pointed out a near new car like that is nothing but a pile of debt for a depreciating asset with high maintenance costs.

Along with Get Rich Slowly, The Simple Dollar is good as well.

[Vedubin01]

Alkasquawlik,

It's good to see a lot of people on this board interested in investing. I was thinking about making a thread about this a few weeks ago,

Funny I was as well. But I am not well liked by some so I just kept it on the low. I commend anyone in the lower 20s thinking of their future and have enough brain to step out and do so. Just remember with every reward, it took some type of risk to get it. Do what you can and it will end up adding up down the road.

Just seems these bank stocks aren't slowing down. I know there is another correction coming so Ive been playing safe and or building money.
Some real numbers came out today saying a real correction in the unemployment is more like 16% not the posted 9.4% Not good when your looking into the future for some positive signs.

[nando]

I basically agree with everything you're saying there. The only thing is, buying a house CAN help you retire, since you will require a lot less money to live if you're not paying rent or a mortgage.

Basically my advice summed up is that you shouldn't try to get rich quick, unless you can afford to lose everything you invested. There's a reason you see a lot of old guys in sports cars. It took them that long to be able to afford them.

that's what I'm saying - investing in stocks isn't neccesarily getting rich quick. Yes, you can do it, but you have to take on a lot more risk.

Diversifying and owning different assets (bonds, stocks, a house, land, etc) reduces the risk of losing everything significantly (investing 101 anyone?). Over the long term investing in stocks (and a mix of bonds, as you get older) you can build up enough wealth to retire in the mediterranean or something instead of ending up in an old folks home (like most of my family does).

I don't invest so I can have enough money to buy a bentley or a yacht tomorrow. I already own a house and a car. I do it so I won't have to scrape by on social security and government handouts when I'm in my 70s. and I want to actually leave my kids something when I die. The only things I've ever inherrited from my wealth squandering family was my grandpa's wheelbarrow and a couple post hole diggers.

[Surtr]

Lots of stuff.

I basically agree with everything you're saying there. The only thing is, buying a house CAN help you retire, since you will require a lot less money to live if you're not paying rent or a mortgage.

Basically my advice summed up is that you shouldn't try to get rich quick, unless you can afford to lose everything you invested. There's a reason you see a lot of old guys in sports cars. It took them that long to be able to afford them.

[BillBrasky]

Alkasquawlik,

Congratulations on deciding to take up investing. I started out back in Sept. 2001 with $50/month in a Roth IRA (I don't have access to a 401K) while the market was still on its way down from the dot com bubble. I soon realized, after running the numbers, that I could retire years, even decades earlier if I maxed out my contributions. I rode the '03-'07 rally all the way up and decided to go cash in early '08 and missed a good chunk of the market collapse, then bought back in first quarter 2009. I also opened another private equity account with TDAmeritrade in 2007. I use that to play around with some high risk stuff and the volatility in the markets over the last year has been VERY kind to me.



It's good to see a lot of people on this board interested in investing. I was thinking about making a thread about this a few weeks ago, but never got around to it. The earlier that you can start saving money and investing, the sooner you'll rise above the masses of people slaving away to buy stupid stuff that they don't need and probably can't even afford.