Author Topic: New To Investing Thread  (Read 327231 times)

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Offline Emo EMAW

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Re: New To Investing Thread
« Reply #675 on: January 29, 2014, 08:40:55 AM »
Who cares?  You don't want it.

Offline ben ji

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Re: New To Investing Thread
« Reply #676 on: January 29, 2014, 08:47:26 AM »
Who cares?  You don't want it.

Well if we don't know what it is how do you know you don't want it? HUH?!?! Yeah, that's what I thought, bud.

Offline Emo EMAW

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Offline ben ji

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Re: New To Investing Thread
« Reply #678 on: January 29, 2014, 09:15:01 AM »
Here let me help you:  http://www.usatoday.com/story/news/2014/01/28/obama-state-of-the-union-myra-savings-plan/4992743/

Gracias

Quote
Safe: The new savings bonds would have its principal guaranteed by the U.S. government, much like a traditional savings bond.

Tax benefits: The MyRA bond would be like a Roth IRA: Your contributions would not be tax-deductible, but your earnings would be free from tax when you withdraw it. As with a Roth, your contributions can be taken out tax-free at any time.

Affordable: Minimum initial investment could be as low as $25, and subsequent investments could be as little as $5, through payroll deduction. Savers can keep the same account when they change jobs.

Rates: Savers will earn interest at the same variable interest rate as the federal employees' Thrift Savings Plan (TSP) Government Securities Investment Fund. The fund earned 1.74% last year.

Availability: The MyRA would be open to households earning up to $191,000 a year through their employers. Employers won't incur any cost to offer the MyRAs. You'll be able to save up to $15,000 a year for up to 30 years before transferring to a private Roth IRA.

So basically this will just save lazy people the step of setting up their own IRA/Deposits by having it done with payroll deductions but they can only buy Gov Bonds.

Offline The Whale

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Re: New To Investing Thread
« Reply #679 on: January 29, 2014, 10:09:14 AM »
Tried to work through some scenarios where a myRA would be useful (at least based on the info released so far), but can't come up with much.  After maxing Roth and 401k, you're still going to be better off investing in an IRA and paying taxes on eventual withdrawls, unless you're really, really risk averse.

Offline ben ji

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Re: New To Investing Thread
« Reply #680 on: January 29, 2014, 10:14:52 AM »
Tried to work through some scenarios where a myRA would be useful (at least based on the info released so far), but can't come up with much.  After maxing Roth and 401k, you're still going to be better off investing in an IRA and paying taxes on eventual withdrawls, unless you're really, really risk averse.

I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates. I may look into using the MyRA as a substitute but that's about the only thing I can think of. Would all depend on how easy it is to make withdrawls.

Offline sys

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Re: New To Investing Thread
« Reply #681 on: January 30, 2014, 12:47:40 AM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.
"experienced commanders will simply be smeared and will actually go to the meat."

Offline ben ji

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Re: New To Investing Thread
« Reply #682 on: January 30, 2014, 08:13:50 AM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.

I'm not living in my parents basement anymore sys, got a dog and house to take care of now. Big Boi stuff ya know?



Offline Emo EMAW

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Re: New To Investing Thread
« Reply #683 on: January 30, 2014, 08:58:04 AM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.

I'm not living in my parents basement anymore sys, got a dog and house to take care of now. Big Boi stuff ya know?

He's saying invest it in something with more upside.

Offline ben ji

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Re: New To Investing Thread
« Reply #684 on: January 30, 2014, 09:13:01 AM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.

I'm not living in my parents basement anymore sys, got a dog and house to take care of now. Big Boi stuff ya know?

He's saying invest it in something with more upside.

This isn't really "investing" money, more for money that sits around in case my furnace/AC/Car breaks down or something.

Offline Kat Kid

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Re: New To Investing Thread
« Reply #685 on: January 30, 2014, 09:37:33 AM »
I know.  But I followed sys advice and made like $600 in the meantime before I needed it to pay for grad school.

Offline Emo EMAW

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Re: New To Investing Thread
« Reply #686 on: January 30, 2014, 09:39:34 AM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.

I'm not living in my parents basement anymore sys, got a dog and house to take care of now. Big Boi stuff ya know?

He's saying invest it in something with more upside.

This isn't really "investing" money, more for money that sits around in case my furnace/AC/Car breaks down or something.

Just throw it in a Roth and if the crap hits the fan you can still pull your principal.  Or you can become my butler.

Offline ben ji

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Re: New To Investing Thread
« Reply #687 on: January 30, 2014, 09:43:05 AM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.

I'm not living in my parents basement anymore sys, got a dog and house to take care of now. Big Boi stuff ya know?

He's saying invest it in something with more upside.

This isn't really "investing" money, more for money that sits around in case my furnace/AC/Car breaks down or something.

Just throw it in a Roth and if the crap hits the fan you can still pull your principal.  Or you can become my butler.

Yeah, I thought of that but I don't want to get in the habit of making withdrawls from my Roth. First its because you need a new heater, then its because you want to go to vegas...next thing you know you've got 5k bet on black hoping the roulette ball bounces your way.  :pray:

Offline Emo EMAW

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Re: New To Investing Thread
« Reply #688 on: January 30, 2014, 09:46:33 AM »
Well ya you always bet on black.

Offline michigancat

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Re: New To Investing Thread
« Reply #689 on: January 30, 2014, 10:29:09 AM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.

hmm, interesting. I may consider this.

Offline raquetcat

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Re: New To Investing Thread
« Reply #690 on: January 30, 2014, 11:23:07 AM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.

hmm, interesting. I may consider this.
I have an emergency fund, but I have it in a very conservative index fund and it made good returns last year, it just doesn't make sense to have your money making 0.8% when you could be making much higher returns. Even if you lose a little bit short term, you'll come out way ahead long term. I guess you just need to ask yourself realistically how often will you need that money. If you're car is a pos, and your furnace is 30 years old and it'll really hurt to lose a couple hundred bucks then keep it in your savings account, otherwise put that money to work :dunno:
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Offline Kat Kid

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Re: New To Investing Thread
« Reply #691 on: January 30, 2014, 11:35:00 AM »
what racquetcat said

Offline ben ji

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Re: New To Investing Thread
« Reply #692 on: January 30, 2014, 11:41:35 AM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.

hmm, interesting. I may consider this.
I have an emergency fund, but I have it in a very conservative index fund and it made good returns last year, it just doesn't make sense to have your money making 0.8% when you could be making much higher returns. Even if you lose a little bit short term, you'll come out way ahead long term. I guess you just need to ask yourself realistically how often will you need that money. If you're car is a pos, and your furnace is 30 years old and it'll really hurt to lose a couple hundred bucks then keep it in your savings account, otherwise put that money to work :dunno:

Thanks, will definitely look into it. Any suggestions on "Conservative" Index funds? I'm guessing there is a category of them in my brokerage acct but I have not looked yet.

Offline raquetcat

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Re: New To Investing Thread
« Reply #693 on: January 30, 2014, 08:52:19 PM »
I currently have payroll deductions that go directly to a savings/emergency fund account that has terrible interest rates.

don't do that.  you're young, take some risk, make some money.  you'll come out way ahead.

hmm, interesting. I may consider this.
I have an emergency fund, but I have it in a very conservative index fund and it made good returns last year, it just doesn't make sense to have your money making 0.8% when you could be making much higher returns. Even if you lose a little bit short term, you'll come out way ahead long term. I guess you just need to ask yourself realistically how often will you need that money. If you're car is a pos, and your furnace is 30 years old and it'll really hurt to lose a couple hundred bucks then keep it in your savings account, otherwise put that money to work :dunno:

Thanks, will definitely look into it. Any suggestions on "Conservative" Index funds? I'm guessing there is a category of them in my brokerage acct but I have not looked yet.

well ben ji, knowing everything about you that I do (awesome dad, cute dog, loves to fish, crappy looking kitchen cabinets, lots of flowers in your yard, friend to chipmunks, dog poop picker upper, girlfriend, hot bod, makes bank (cause emaw grad)) I would recommend something along the lines of this: 
https://investor.vanguard.com/mutual-funds/lifestrategy/#/mini/overview/0724

or if you're looking for more or less risk take a look at any of the 4 funds on that page, I'm sure whoever you invest through will have something similar to those
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Offline sys

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Re: New To Investing Thread
« Reply #694 on: January 30, 2014, 08:57:15 PM »
benji don't invest in anything that includes a certain % bonds.  at your age, don't invest in bonds unless you have a specific thesis in which you have high conviction.
"experienced commanders will simply be smeared and will actually go to the meat."

Offline slobber

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Re: New To Investing Thread
« Reply #695 on: January 31, 2014, 06:43:31 AM »
benji don't invest in anything that includes a certain % bonds.  at your age, don't invest in bonds unless you have a specific thesis in which you have high conviction.
I'm 42 with a family and I don't invest in bonds.

Offline Kat Kid

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Re: New To Investing Thread
« Reply #696 on: January 31, 2014, 06:48:26 AM »
Vanguard S&P 500 index is the gold standard.

Offline kim carnes

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Re: New To Investing Thread
« Reply #697 on: January 31, 2014, 06:51:14 AM »
Vanguard S&P 500 index is the gold standard.

For old people

Offline raquetcat

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Re: New To Investing Thread
« Reply #698 on: January 31, 2014, 09:58:48 AM »
benji don't invest in anything that includes a certain % bonds.  at your age, don't invest in bonds unless you have a specific thesis in which you have high conviction.
I'm 42 with a family and I don't invest in bonds.
What kind of stuff do you invest in?
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Offline slobber

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Re: New To Investing Thread
« Reply #699 on: January 31, 2014, 10:13:30 AM »
benji don't invest in anything that includes a certain % bonds.  at your age, don't invest in bonds unless you have a specific thesis in which you have high conviction.
I'm 42 with a family and I don't invest in bonds.
What kind of stuff do you invest in?
Ball bearings

No. I know Ramsey gets a lot of crap on gE for some of his teachings, but I use to listen to him when with some regularity when I was younger. I loved hearing some of the people that turned their mess around. Anyway, he preaches investing in the following manner:
25% each in the following fund classes:
Growth
Growth & Income
Aggressive Growth
International