[johnbryanpeters]

He has $1500 bucks. What you are telling him has no value unless he has min $10k to invest in properties.

As for the IRA's milking fees, know what you say before you say it. IRA's are a type of account, nothing more. They are tax advantaged accounts that allow you to grow funds with no tax liabilities (traditional IRA) until you retire and access the money then. You might be older than dirt, but that does not necessarily mean your knowledge is always correct.

I know what IRAs are and what the advantaged are. An inordinate proportion goes to fees in all of 'em.

There's also a moral question. "Successful" investing fvcks someone. Always. Workers, homeowners, small landowners in countries we extract resources from. My recommendation for investing in land, at the end of the day, would also wind up fvcking someone. It's a morally indefensible game.

 

[Austin Bike]

Here's my tip. Boring wins. And early wins.

We started investing way back when Internet was dial up. We never chased big money, stayed focused on making decent returns, not big returns.

I'm 48 and if I needed to we can retire today. Currently unemployed (with some interesting prospects), having FU money means my next job won't be working for the man, instead I get to take the job I want, I work the hours I want, and I can call it quits any time I want.

Did I mention that I mountain bike 5 or 6 days a week?

Save now, no matter how small, and it will do well for you.

 

[OGRipper]

Lots of good stuff here. Like a lot of things, it's about balance. It should go without saying but there are ways to enjoy your life in the short-term and still be smart about your money. You can have a blast AND take steps to cover your future, but there has to be some give and take.

The fact that you are even asking about this stuff is a good sign. Just don't forget that life can get in the way down the road (job, health issues, or family, etc.) and that there is no guaranty you will be able to enjoy your money in the future. Don't skip important life experiences to save a few bucks you might never see or enjoy.

Or screw it, blow your cash on mad parties and meet someone with a fat trust account who's looking for a partner in crime/life. Win!!

 

[kazlx]

Open a Sharebuilder account. Put little chunks of change in there until you have enough money to make the trade fee worth it, ~$500. Then, buy some stock and forget about it. Repeat.

As soon as my son had a SS number, the first thing I did was open an account for him.

 

[Iridemtb]

Here's my tip. Boring wins. And early wins.

We started investing way back when Internet was dial up. We never chased big money, stayed focused on making decent returns, not big returns.

I'm 48 and if I needed to we can retire today. Currently unemployed (with some interesting prospects), having FU money means my next job won't be working for the man, instead I get to take the job I want, I work the hours I want, and I can call it quits any time I want.

Did I mention that I mountain bike 5 or 6 days a week?

Save now, no matter how small, and it will do well for you.

Thanks man. That would be pretty awesome. I appreciate the advice.

Iride, just to tap into the advice from VB, you can't always guarantee life will be there in the future.
Having watched literally dozens of people I care about get their lives cut short for various reasons, I decided early on to travel/live extensively when younger and rejected the traditional path.
I was fortunate enough to do this on the bike industry's dime and saw/visited/rode all over the world.

I'm financially secure, own my own biz (and about to start another) and have a couple kids now.
Despite having more 'means' than ever to travel, I now lack the time as school/sports/and my and my wifes career all dictate our schedule.

I'm not saying to go on Juggaloo Tour and give up on life, but use your youth to bang chicks, travel and make the kind of rash decisions you won't have time to make up for later in life.
Having nearly been killed several times in the last 5 years, I don't regret my lack of a bucket list one bit.
If you have a work ethic finances always work themselves out.

Hookers and blow it is. I suppose I may be a bit too stoic sometimes. When I was 19 years old, I was the exact opposite, contemplating moving out to California, riding a lot and living on the edge. I suppose I need to find a balance, although it can be difficult with school and work being so demanding of my time.

Lots of good stuff here. Like a lot of things, it's about balance. It should go without saying but there are ways to enjoy your life in the short-term and still be smart about your money. You can have a blast AND take steps to cover your future, but there has to be some give and take.

The fact that you are even asking about this stuff is a good sign. Just don't forget that life can get in the way down the road (job, health issues, or family, etc.) and that there is no guaranty you will be able to enjoy your money in the future. Don't skip important life experiences to save a few bucks you might never see or enjoy.

Or screw it, blow your cash on mad parties and meet someone with a fat trust account who's looking for a partner in crime/life. Win!!

Yea, I have a girlfriend right now who is a little ahead of me. She is incredibly helpful for networking and school work as she is in her second masters program and is in an advanced position within a sister area of my career field. I don't know if it will last forever though. I do hope I find someone someday that is as motivated/passionate as me doing something she cares about, and it would be cool if she was into some hobbies like me.

Open a Sharebuilder account. Put little chunks of change in there until you have enough money to make the trade fee worth it, ~$500. Then, buy some stock and forget about it. Repeat.

As soon as my son had a SS number, the first thing I did was open an account for him.

Kazlx, would you mind elaborating on your personal views of Sharebuilder? As I understand, Sharebuilder has the luxury of automatic investing, however I also read about a brokerage called Scottrade which has lower fees and a few other small advantages.

 

[kazlx]

When I opened my account when I was around your age (early 20s?), they were one of the few, if not the only place that offered no minimum accounts. I mentioned Sharebuilder, but any company that works with your investment and you like will work. Sharebuilder is easy to use and is tied into my ING (which were both purchsed by Capital One fwiw). I can easily transfer between them. Their trade fees are reasonable, and you can open an account with $5 in it if you want. I think it's $7 a trade or something. Some places will be cheaper but you have to have a minimum account or trades or other stuff.

You can look into trade cost percentages and all kinds of other stats and returns, but the way I look at it, if you spend $7 investing $500 instead of on a latte, you will be ahead of the game. For example, look at Johnson and Johnson, one of my solids. You aren't going to make a 500% return in a year, but you won't lose your butt either. Slow and steady with dividends. They pay you money, just for owning their stock. And then the next dividend period they pay you again, even on the money they already paid you. Think about it.

One share is $90, but it pays 3% annual dividends right now. So even if the stock stays flat (which it won't over the long run), you still make 3%, compounded every time they pay you dividends. Or Disney or any other solid company you can think of. Unless an atomic bomb hits Disney they aren't going anywhere...

 

[stoney]

Kazlx, would you mind elaborating on your personal views of Sharebuilder? As I understand, Sharebuilder has the luxury of automatic investing, however I also read about a brokerage called Scottrade which has lower fees and a few other small advantages.

Charles Schwab has great customer service and trades are only $7.95. I do everything there. As for Sharebuilder, you pay slightly lower trade costs, but have no control over timing on purchases. It's still $3/auto investment. If you are only doing ~$100 investments, then you will be paying $15 for an equivalent of a $500 investment. Sharebuilder is great if you don't have the focus to regularly contribute and buy once you have a couple of hundred dollars fora new lot.

 

[Iridemtb]

Charles Schwab has great customer service and trades are only $7.95. I do everything there. As for Sharebuilder, you pay slightly lower trade costs, but have no control over timing on purchases. It's still $3/auto investment. If you are only doing ~$100 investments, then you will be paying $15 for an equivalent of a $500 investment. Sharebuilder is great if you don't have the focus to regularly contribute and buy once you have a couple of hundred dollars fora new lot.

I'll check Charles Schwab out tomorrow. I am looking to be more actively involved, so I don't think Sharebuilder fits the mold for me. Thanks stoney.

 

[kazlx]

You can do timed trades on Sharebuilder. Check them both out...I am still very active with my stocks, however, most stuff I buy to hold for the long run.

Whatever you do, you are headed in the right direction. Another great source of info is Motley Fool.

 

[kazlx]

http://www.fool.com/how-to-invest/thirteen-steps/step-1-change-your-life-with-one-calculation.aspx

 

[stoney]

http://www.fool.com/how-to-invest/thirteen-steps/step-1-change-your-life-with-one-calculation.aspx

Wahoo!!! I'm gonna be rich, bitches.

 

[kazlx]

BS aside, compounding interest matters and that was my point....