how many of you have investments? what are your plans/goals?
i'm looking at either starting a roth ira or just opening a brokerage account. i want to start saving, but i'm not sure if i'm looking at a 5-year investment, 10-year, or longer. it's kinda hard to plan for the future if you have no idea what you're going to do.
i'm looking at either starting a roth ira or just opening a brokerage account. i want to start saving, but i'm not sure if i'm looking at a 5-year investment, 10-year, or longer. it's kinda hard to plan for the future if you have no idea what you're going to do.
It's mainly difficult for me at this age and my current set of obligations because liquidating the money in most investments becomes a cost that I'm not prepared to pay. Investment defaulting costs more than I can bail myself out of. Mainly car payment things (repair, transmission, what have you) and crazy emergencies like getting my vehicle stolen. Accidents or tickets are high cost. Losing a thousand dollars or so drastically affects my living conditions if coupled with vehicular issues.
I'm bulking up on money so I can effectively have accounts that aren't borderline defaulting, where returns are beneficial. I would consider beneficial returns something along the lines of being liquid enough to replace an emergency stockpile. I would consider an emergency stockpile something that will allow me to sustain myself for 3 months without payment from a job.
My goal is to adjust my money management to be arranged so:
Income #1 => liquid checking
Income #2 => high yield savings
Goals:
1. Keeping my checking account at a minimum amount while not having to resort to pulling from savings.
2. Keep consistent balance sheet of recurring expenses.
3. Move the maximum amount per pay check that I can, sustaining the first goal, bi-monthly.
4. Maximize savings yield, move to other investment vehicles when I can surpass the emergency stockpile issue.
I'm bulking up on money so I can effectively have accounts that aren't borderline defaulting, where returns are beneficial. I would consider beneficial returns something along the lines of being liquid enough to replace an emergency stockpile. I would consider an emergency stockpile something that will allow me to sustain myself for 3 months without payment from a job.
My goal is to adjust my money management to be arranged so:
Income #1 => liquid checking
Income #2 => high yield savings
Goals:
1. Keeping my checking account at a minimum amount while not having to resort to pulling from savings.
2. Keep consistent balance sheet of recurring expenses.
3. Move the maximum amount per pay check that I can, sustaining the first goal, bi-monthly.
4. Maximize savings yield, move to other investment vehicles when I can surpass the emergency stockpile issue.
what do you mean when you talk about "borderline defaulting accounts?" most investments, properly diversified, rarely (if never) default.
and who cares about the costs of liquidation of an investment account? you're usually talking about a $10 or less trade fee coupled with the possibility of capital gains taxes.
with all investments, you'll only want to invest what you can stand to lose. this means that you keep money for accidents, tickets, etc. liquid. so there isn't any money at all that you'd like to set aside?
and who cares about the costs of liquidation of an investment account? you're usually talking about a $10 or less trade fee coupled with the possibility of capital gains taxes.
with all investments, you'll only want to invest what you can stand to lose. this means that you keep money for accidents, tickets, etc. liquid. so there isn't any money at all that you'd like to set aside?
What I mean by borderline defaulting accounts is barely making the quota to have the account, and if something occurs and liquidation is required. I think in Options trading there is a minimum of $10,000 up to minimums of millions for certain markets. Different stock brokerages have different deals for minimum investments of course.
What do you mean by 'most investments diversified never default'? How could an investment default except if the brokerage or credit union, or firm with the actual money doesn't pay, regardless of diversification?
I care about the liquidation of an investment account, just not the kind you're talking about in your example. You're right with online stock trading not much attention is given to $10 or less, and capital gains tax. If we're talking IRA accounts those generally have a rough time being liquidated, or some negative attributes that cost more than I'm willing to expend. With a Roth IRA, if you pull out early, federal income tax ensues with a large percent of the withdrawn amount.
I do have money that I'd like to set aside, right now the whole of my money isn't much, but before locking it in longer term investments when I could really need it in the volatile short run. I am looking for an investment opportunity though so this thread is pretty awesome!
Which brokerages are you looking at? Some of my coworkers use a combination of Scottrade, and Etrade, and some use Ameritrade... for stocks.
What do you mean by 'most investments diversified never default'? How could an investment default except if the brokerage or credit union, or firm with the actual money doesn't pay, regardless of diversification?
I care about the liquidation of an investment account, just not the kind you're talking about in your example. You're right with online stock trading not much attention is given to $10 or less, and capital gains tax. If we're talking IRA accounts those generally have a rough time being liquidated, or some negative attributes that cost more than I'm willing to expend. With a Roth IRA, if you pull out early, federal income tax ensues with a large percent of the withdrawn amount.
I do have money that I'd like to set aside, right now the whole of my money isn't much, but before locking it in longer term investments when I could really need it in the volatile short run. I am looking for an investment opportunity though so this thread is pretty awesome!
Which brokerages are you looking at? Some of my coworkers use a combination of Scottrade, and Etrade, and some use Ameritrade... for stocks.
> What do you mean by 'most investments diversified never default'? How could an investment default except if the brokerage or credit union, or firm with the actual money doesn't pay, regardless of diversification?
that's exactly what i meant. stocks don't default. most investments don't. and if you're trading bonds, if you buy investment grade and you are diversified, default risk is very very low. so i didn't understand why you mentioned default risk.
> With a Roth IRA, if you pull out early, federal income tax ensues with a large percent of the withdrawn amount.
this isn't true from what i've read. you can liquidate up to the amount you invested at anytime, no strings attached. if you liquidate your gain early, then there may some problems.
i'd probably go with scottrade.
for me, i see these options:
short term: money market savings accounts
medium term: trade indices (S&P 500, DJI)
long term: roth ira in indices (S&P 500, DJI)
i'd probably never trade options or bonds.
that's exactly what i meant. stocks don't default. most investments don't. and if you're trading bonds, if you buy investment grade and you are diversified, default risk is very very low. so i didn't understand why you mentioned default risk.
> With a Roth IRA, if you pull out early, federal income tax ensues with a large percent of the withdrawn amount.
this isn't true from what i've read. you can liquidate up to the amount you invested at anytime, no strings attached. if you liquidate your gain early, then there may some problems.
i'd probably go with scottrade.
for me, i see these options:
short term: money market savings accounts
medium term: trade indices (S&P 500, DJI)
long term: roth ira in indices (S&P 500, DJI)
i'd probably never trade options or bonds.
How much money do you have to invest to invest?
depends on how you're investing.. good savings accounts generally have no minimum; online brokerage accounts may have a $500 to $1,000 minimum.
Why no options or bonds? I'd think options in futures markets would be interesting.
it might be interesting, but it seems pretty risky to me. and why would i want to even consider bonds?
man the markets are sooo bad right now... i hope no one is exposed
Yes they are ... How are options looking? I'm still interested in Forex Currency exchanges. Anyone have any info?
I have a 401k
yeah, my mutual fund is eating shit. But it doesn't matter because soon the American dollar won't be worth the material it's printed on.
it won't be worth the material it's printed on to whom?
remember that trade deficits are not universally bad.
remember that trade deficits are not universally bad.
But they'll still be bad to some people.
yeah.
to the rest of the world
did you ever open a roth ira? This is what i was considering and wanted to start last year but I ended up buying a house. However i'm reading that if you do it before april 15 i can count it towards 2007 and have till tax day 09 for 08. + this year the limit is 5k
apparently I have a deferred comp account from my library job that I worked when I was like 15. they never told me about it but my mom's been getting statements for it. I need to see if I can transfer the balance of that into my deferred comp account I have at my current job.
interest on it?
muaha
muaha
hm?
has the deferred comp earned interest?
good question. I'll have to check the statement I have.