Edit:
If you have the opportunity to invest into your 401k with your career, do so. Max it out. Most employers will match whatever you contribute usually from 3-6%.
Body:
If you don't have a ROTH IRA set up, you should. This will compound over the years to when you reach retirement age, you will have millions in retirement. My job currently is international sales with elderly folk, and 50% of them are living off social security alone. They have miserable lives as a result.
Roth IRA you cap out at $130,000 a year. You won't have to worry about that unless you're one of America's top 10%.
You can invest $5,500 a year into your Roth IRA (I'd recommend going through Merilledge). This is essentially investing into stocks or mutual funds each month. Each trade (or share) that you buy is $7 service fee. You should be investing $105 a week into this. If you start with that by age 25, by the time you hit retirement age at 65, you will have over a million dollars in savings due to compound interest, dividends, and then your original investment. Gentlemen, this is the way to do it to provide for yourself.
The way I have it set up is I have an autotransfer of $105 straight into my investment account the day I get paid. So on my pay day every friday, I don't even see that additional money as it goes into investing.
The second thing I would say is be saving $500 a month, every month, for general life savings. You will want this for emergencies, for downpayments on condo or house, buying a new car, etc. This can be easily set up with an autotransfer as well out of your account into an additional savings account of $125 a week. I recommend doing this on your pay day.
You have an extra $230 a week to do this. If you don't, why not pick up an extra shift at your job? If you make shit money, I would highly recommend getting a job in sales. You can make some serious fuckin' money doing sales.
To recap:
$105 a week to investing in stocks. Make an appointment with a financial advisor through your bank. ($5,500 a year)
$125 a week to general savings / emergency funding. ($6,000 a year)
Easy peezy and you reap the benefits.
Stargazer34 5y ago
Need a Canadian version of one of these some day :( Great work!
officeManipulator 5y ago
I do not really like the message you are sending here. Are you telling these people that saving and investing are the same thing and your method can get them to higher financial statuses? I don't think so.
I'm going to define what these words mean:
"Investing" is the act of putting your money in a place where you can control its output by location selection, follow-up management, and clean-up management, and it generates money every month for your perusal, whether you work it or not.
"Saving" is the act of putting your money under your pillow / checking account / stocks that do not grow / Government bonds, where the rate of return cannot be controlled and it often has to fight to overcome inflation/ price hikes.
"Trade" is the act of actively putting money in to a place where the price is low and taking it out when you are comfortable with the high price OR has achieved the highest price possible to sell. Stocks are the most common thing, I know of people who fix cars for profit too.
True wealth is when you become a couch potato and enough money goes into your pocket for you to live for the month (rent, utilities, food). If "You" refers to you + your family, then define that by the amount as rent + utilities + food + other essentials + other stuff you think is important.
If you have that much money in a 401K, you might as well dump the money into a partnership, laundromat, car wash, or a cheap-ass house (something within the 200-300sqft OR 14-16sqm- it;s enough to house 1 person minimally).
I myself, personally have been living as a hermit for 5 years since I got my 1st job, and had nothing to my name to start. I already have 2 rental properties (cheap though; they net me so little but hey it nets me something!) and 1 laundromat (this one is still in recoup stage as I just downed my money recently, so I'm still at a gross loss but a net gain), I'm getting some side income from doing very little (checking my bank account to ensure they pay their rent, checking my laundromat (60 mins per week) to ensure the cleaning lady(ies) do their part) and I STILL need more than what I have now. I may even set up shop in the USA in 5 years time (once I get firmer here).
How do you know if an "investment" is a good investment? Ask a bank to Loan you $150000 to dump in your 401K. See what they say. Then ask the same about an upcoming house or laundromat. See what they say.
bone_shadows 5y ago
Why would i want millions by retirement? I would rather have a decent amount of money while i have the time and energy to use it. And fuck sales, sure its a great paying gig, but the minute the market fluctuates or you dont produce, you're not making shit. After a little while it almost makes you morally sick from dealing with and lying to people all the time. Honestly, which person really LIKES talking to a salesperson. It will start to carry over into your social life as well. fuck that I would rather work with my hands. Like humans are meant to since we evolved. Something physical like construction or mechanical work. The exercise really gets your mind going in the morning. You seldom have to deal with workplace bullshit like sexual harassment, since you work with men and no one really gives a fuck what you say or how you act. Just get the job done and go home, no need to close a deal and rely on someone else to put food on your table.
Houston2NYC 5y ago
The poster of this thread clearly isn’t aware that utilizing a financial advisor if you aren’t “wealthy” is a waste of money from the fees they charge. Any advice that a financial advisor can give you can easily be learned online. C’mon, get learnt.
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soulmysold 5y ago
Can you recommend some books to a young guy trying to invest for the future?
_Aaronstotle 5y ago
Sounds great, except I’d use a Vanguard Roth IRA since they don’t charge fees, you do need $3k to start an account though
BrewandRun 5y ago
I'd second vanguard. You can get by with a lot less if you by ETF's. I think 1k off hand.
[deleted] 5y ago
There's investing and there's giving your money to someone else for 40 plus years while they get rich off of it. Additionally if you end their party before you're supposed to you pay through the nose in fines/early withdrawl fees).
This is the latter.
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HerefortheTuna 5y ago
yup seriously do this...Pay yourself first, then pay your bills, you can blow the rest of your money on strippers and coke once you've paid your future self...
mattboy 5y ago
This is funny.
It’s also a drag to mention that health is also wealth. Deposit into that body bank as much as possible when you’re young. You’ll also be making withdrawals from that account as you reach retirement.
thepontiff_ 5y ago
I’m buying a record store / dispensary when I retire
haroldpeters 5y ago
can I come work for you.. I love vinyl and collect also! (also do some radio)
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Immakingamovie1995 5y ago
Thanks for the advice. This is the shit they should be teaching in school instead of lesbian art theory. You scared me a little bit because I am not doing any of these things, and then I saw "By the age of 25" and let out a sigh of relief, because I just turned 23. I have a decent job, but I am contracted so I do not get offered these by my company. My contract ends in September though, and I will probably double my pay with the experience I have, so its not a big deal. Currently I have been putting away about $100 a week into investments, and saving the rest for a downpayment on a house. I am also doing writing on the side which may increase my income in the future. My parents have an in-law apartment, which I am currently living in. Fuck throwing money away to rent.
Bad_nuggets69 5y ago
I agree with the sentiment. Take issue with a few details.
While it is true that you can put money in a 401k and get a match, you need to first do some arithmetic to figure out how to maximize your match. I’m a CPA who audits these benefit plans and I see people leaving money on the table by blowing their load too soon and fucking themselves over because they didn’t learn the match formula.
Second 401k plans are nice, because you get to put more money in them than a traditional IRA or Roth (18k-24k [based on age] vs. 5.5k) but they have more fees. You retain more of your appreciation in a individual account.
You can expect to earn 8% YoY in the stock market over a long period - so what you get out is what you put in. Financial freedom later in life is tied to a few things, but for our purposes - what you save when your young.
Start off with diversified funds or index funds to built a steady foundation. The advice I go by is 90% diversified, 10% play. The 10% is where you research and try to time the market to layer your returns, but if you fuck up it also won’t break the bank.
smk1987 5y ago
This is good advice but keep in mind you have to make the requisite amount of money first to even be able to do this. I'm at ~$50k, my 401k contribution percentage is 34, I've maxed my roth IRA every year for the last 5 but it doesn't leave me much money to do anything else, maybe only a couple hundred a month... It's worth it though when I see my accounts growing a couple thousand each month.
AceMav21 5y ago
Buy crypto, day trade stock options and futures
chrisname 5y ago
Anyone know if there's a UK equivalent of this?
RavelsBolero 5y ago
Get your arse over to a sub called UKInvesting. Ask there. Or just browse and absorb knowledge for a while. You decide. I'm a regular poster there myself. One thing I can recommend is my own broker - Charles Stanley Direct. Good, cheap execution-only broker which doesn't charge trading fees for buying into funds.
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[deleted] 5y ago
I cannot invest due to work restrictions :(
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StrongerFasterBigger 5y ago
Holy shit yes to the TD ameritrade education courses.
VickVaseline 5y ago
...and for the Canadians out there, OP is talking about a TFSA.
EscortSportage 5y ago
Find ways to make money while you sleep, or you will be working forever.
BackandStronger 5y ago
Robinhood. Free trades, managed from your cell phone. It literally doesn't get better than this. You have 100% control over instant investing from your fingertips. At the current time, its much more worthwhile to invest in a good stock than a savings account.
myexile 5y ago
Getting your finances in order is, as a man, incredibly empowering. There's a reason why it's called "fuck you money".
cenie 5y ago
While I agree that it's a good idea, I started one at the beginning of the year. I have to disagree with this:
Not everyone has that much left over, can get extra shifts, or wants to do sales. Overall good advice, but you shouldn't be throwing out hard numbers assuming everyone's situation is the same as yours.
Narcissist456 5y ago
The vast majority of people live paycheck to paycheck...
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nefariousdestiny 5y ago
A single male living alone can live extremely comfortably off $50k/yr in most areas of the US if you're not retarded with your money. If you enjoy what you do there's no need to "hit six digits."
Why settle? Because I can. Save money, but don't waste half your life savings money for the next half.
Immakingamovie1995 5y ago
Here are some other options, as I hear this circlejerk often.
-Government jobs are also good. My girlfriends father makes $150k he will get a full pension in 10 years. For every dollar he puts in his investment account the goverment gives him $2. If he invests 500,000k over his lifetime. The goverment gives him a cool 1million.
-Insurance is also a very good field to get in to for young people, as it is most old people who are slowly dying off. My Dad Makes $250k doing that. You can become an insurance adjuster by taking a class, and pretty quickly make 80k a year, and even more so if you own your own business. It can be a cool job, you get to travel to disaster sites, like hurricane sandy and appraise how much things will cost.
-Run your own business. My best friends dad owns a hair salon. You laugh, but do you know how much fucking money women spend on their hair? In addition, he sells wigs. He makes way over 300k a year. He ended up buying the building the salon is in, and renting to tenants around him. Now he owns half the fucking town, and rents out the buildings. He honestly could be making 500k a year at this point. Insane.
- Work in a field for 10 years then become a college professor. I have friends who are college professors. Together they make around 200k. They worked in accounting before that for 10-15 years. Now they get summers off. They recently sold their 1.5 million dollar house on the water, and have 2 condos that they switch between seasonally.
-Get your pilots license. I have a friend who does contracts for google, and fishries, you can also become a commercial piliot. Pretty quickly make 100k
- Sell your asshole for cash.
My background:
I am young so many of you might roll your eyes, but I have always been surrounded by successful people. I am getting a masters in computer science currently and working full time while I do it. My real dream is to become a musician, so I do that in my spare time. I tried insurance but I hated it. I am very creative person (I also do a lot of writing on the side) and Insurance bored the hell out of me.
lorum_ipsum_dolor 5y ago
Should I put this coffee down? Is it for closers?
[deleted] 5y ago
While not always true, it's amazing how many posts here the answer is to "get a sales job and bust your ass."
Social Workers, High School teachers, and others will ask what else they can do when they're $100k in debt and budgeting down to their last penny and grain of rice, then get pissed at all mention that they need to make more money.
I get that you have a chosen field, and I'm not knocking doing necessary, under-appreciated work, but if you're truly fucked and the highest value choice is the one you refuse to make, it's just such a less valuable conversation.
My sister's leaving teaching to go to the private sector and is going to make 75% more money immediately.
Marsupian 5y ago
Fuck that shit. I might be privileged but I love the work I do and it's not in any of those fields (healthcare). If someone hands me a couple million I wouldn't stop working and I can see myself doing this job well past retirement date. That is worth far more than having some extra cash on hand. If you can make your passion into your work shit like retirement has a lot less meaning. If you make shit money you can just spend less instead of selling your soul. Imagine the day you retire and how you'll look back at your working years. Don't be the guy that worked himself to death only to reach retirement and spend a bunch of money on pills and operations. I see that shit too much. There is only so much time a man can spend behind a desk before it fucks him up.
My #1 financial advice is to be extremely critical on what you spend your money on. Some of the happiest people on earth own nothing more than a robe, sandals and a bowl. If you buy anything more than that make sure you have a good fucking reason. If you mindlessly follow the masses in this consumerist society you are basically going down a path of vulontary enslavement. You don't pay with money but with freedom. You decide how much freedom you give up for comfort. If you work your ass off so you can drive home in a better car, lay down on a nicer couch in a larger home and once a year go on vacation to a fancier hotel that is some of the most blue pill shit I've ever seen.
It's a lot easier to get fuck you money if you half your expenses.
ApexmanRP 5y ago
Agree with most of what you have said, especially working past retirement in something you love.. full stop retirement is a trap, it can lead to degradation of the mind and onset of old age diseases.
That said, and its a big one, what if you cant work due to some illness or injury? You need a plan B.
Koryphae_ 5y ago
Best comment. Completely captured my mindset.
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fssbmule1 5y ago
everyone has a price to walk away from their work, yours happens to be a little higher because you enjoy your job. you do you, boo, but respect the hustle.
money is the closest thing to a superpower we have in this world. with enough of it, you can accomplish anything. there is an infinite number of interesting experiences out there; if you can't afford it, how do you know if you'll like it? reaching for the top isn't blue pill, but dropping out of the game is some MGTOW shit.
imagine being retired at 40 and spending the rest of your life never having to do anything except on your own terms and schedule. providing for people you care about, and leaving a legacy to the world. winners scale up, not down.
Marsupian 5y ago
Most people hustling don't have those experiences because they buy things that only tie them down. I have ran multi day races, done ski mountaineering tours and traveled eastern europe and SEA all on a very unspectacular salary working 4 days a week.
I agree that money is a superpower and opens up many doors in life but you can have a wide range of awesome experiences with very little money if you are willing to get out of your comfort zone. Sometimes being limited by money leads you to new experiences.
I personally highly value having a bunch of money properly diversified so you have security and hopefully fuck you money at some point. I also think adjusting spending and lifestyle is highly effective and can make a lot of jobs viable to reach that goal. Instead of an extra shift consider cooking your own food, living smaller and not buying useless shit.
SpellCheck_Privilege 5y ago
Check your privilege.
^^^BEEP ^^^BOOP ^^^I'm ^^^a ^^^bot. ^^^PM ^^^me ^^^to ^^^contact ^^^my ^^^author.
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cenie 5y ago
Wrong. I should be doing whatever I want and makes me happy. I have the opportunity to do something I enjoy, that's challenging, and will allow me to live a comfortable life after I put in the initial work.
Outside of opening an IRA, your advice isn't for everyone and shouldn't be presented as the end all be all.
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Koryphae_ 5y ago
Whoring yourself out for a corporation, where you are expected to arrive on time and leave on time is not happiness either. It is an evolved form of slavery.
The fact of the matter is, one needs relatively little resources to get by. I think it is far more important to learn how to get by with as little as possible, rather than to learn how to amass together as much as possible, since these financial riches are unreliable.
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RedsideoftheMoon 5y ago
Eh I don't wanna say either of you are wrong, but your advice is very uninspiring and for the vastly uncreative in life. Everything around you is made by someone.. somebody is making money on every single part and service that goes into every single thing you buy.
I'm not saying be impractical, I'm just saying that if you love music, the options are not EITHER broke musician or world-class artist. You can make 150k a year running marketing for artists, or 300k a year renting a professional studio. There is money in any industry as long as you're open to new opportunities and a LITTLE creative
PoppinChlorine 5y ago
Alright, be more specific with “sales.”
Also you completely forgot about finance/econ lmao and for the love of god do NOT get a degree in “business.”
There are so, so many opportunities out there to get wealthy, not just in these fields.
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PoppinChlorine 5y ago
I still feel like psych is good. History only if you’re going to a top school, though.
Gotcha, i just wouldnt know where to start to get a job in sales, but thats ok since I’m not looking to.
No1Buck 5y ago
Do not major in finance or economics unless you're going to a top school and have connections at an investment bank. The only worthwhile business degrees for regular people are accounting (assuming you get CPA) and MIS.
blister333 5y ago
Finance and Econ still have good employment rates and salaries. I agree accounting and MIS are better (mis major here) though
PoppinChlorine 5y ago
Ah, yeah. You’re right. I’m going to a t20 so i was speaking from that perspective.
askmrcia 5y ago
Add statistics to the list of worthy business degrees
[deleted] 5y ago
You can make 6 figures pretty easily in IT with no college degree, but honestly sucks all free time out the window and all you end up doing is studying for certifications. Source: am a data center engineering consultant, no college degree, spent 3 years studying instead of living.
reluctantly_red 5y ago
Lots of jobs do this. When I did civil litigation the senior partners thought they could call me anytime they wanted. But it is possible to find a job with reasonable hours. As a public defender I work 9 -5 and still make six figures (barely). As a bonus the job is actually fun.
haroldpeters 5y ago
THIS! no one outside my industry gets it. You spend your nights trying to solve complex issues and non-logical weird bugs.. add to the fact that just about everyone of your clients will contact you directly over the most minute thing.. its like being a doctor without the professional networks and support, kudos or relative pay.. and when things break - all the anger comes at you! TBH anyone thinking about getting into IT I'd tell them unless they are born for it, they should steer clear! The pay has been getting progressively worse for years as young kids hit the streets with fresh degrees and slut themselves out at next to nothing to get their feet in.
[deleted] 5y ago
You need to get your certifications up, get promoted a few more times. Your pay will go up and so will your free time. But you’ll just end up spending that extra free time studying more.
ChasingPaperForever 5y ago
Specialize, the cloud and cloud security is where it’s at. No prior exp and no college, and I make almost double what the average bachelors degree makes.
Jagrmystr 5y ago
What are some things people can do to get started?
ChasingPaperForever 5y ago
Get the 3 AWS Associate certs and you’ll be making some decent money. (AWS Developer, Solutions Architect, and sysops) Took me 87 days to get all 3 of them, but I was pretty relentless.
smk1987 5y ago
What did you use to study with? I've been trying to figure out where to go with my next certs and I think this is it. Edit: I see now that the amazon course is seemingly free to train with their videos, guess I'll just start there with the Cloud.
ChasingPaperForever 5y ago
Use acloud.guru , the training is incredible. To supplement that use linuxacademys version of the course. Those two sites will get you all 3 certifications.
askmrcia 5y ago
It's not free lol. And most certifications aren't free. I swear I can't stand when people on reddit throws out the advice that certifications is God's gift.
You have to pay for those. And you have to pay to get those renewed every year.
I did those aws courses on Amazon. It starts off free, but after you get past a certain part they charge you. They even ask for your credit card information as you sign up for the course.
I'm not shitting on certifications. But I am saying people need to stop this nonsense as if it's this super easy and cheap way to go as opposed to college or whatever.
ChasingPaperForever 5y ago
It cost me roughly $550 with all training material and cost to get all 3 certs.
Renewal is every 2 years if you decide you need to renew.
GodOfDinosaurs 5y ago
Don't forget about 401k... arguably more important than your Roth. You should be maxing your 401k first.
Coope1kr 5y ago
I respectfully disagree. I advise my clients to contribute enough to get the full match. Often times employer plans have shitty investment options and bad plan rules IE company match has to be invested in company stock for at least a year.
Only contribute more if you are a high income earner with a tax problem. Your employer sponsored plan does allow for the most efficiency when talking about tax deductibility in that sense.
It’s important to understand that most of each individuals assets will be pre tax at retirement due to the company match and years of compounding. Just the way it works
I prefer options (N/Q accounts in which you are taxed in the year you incur the gains often times at preferred tax rates and Roth IRA’s in which you never pay tax again. Not to mention with N/Q accounts you have liquidity options without penalties compare to qualified retirement accounts)
The old adage of deferring year after year is what I call my “fathers retirement”. Hates taxes so he defers as much as possible and then when retirement hits he will sit his ass on the couch because in order to do anything he will need to draw on his pre tax accounts and won’t because he doesn’t want to pay tax because he didn’t bother to pay attention to taxation therefore he never bothered to save outside of deferring.
GodOfDinosaurs 5y ago
I'd assume most people will have a higher AGI during their earning years and therefore would benefit more from the deduction before retirement. If you're a low earner, might as well do a Roth 401k. Most 401k plans I'm aware of are basically index funds that slowly shift to a higher bond allocation when approaching retirement. That's much better than what most people will probably do with their money unless you can convince them to stick with boring broad-market etfs/mutual funds.
Coope1kr 5y ago
While that is correct higher AGI during working years - it’s important IMO to have assets that are tax free and taxable as I mentioned above. If those options do not exist during retirement there is no ability to control taxable income in retirement. We won’t know what taxes will look like 15-30 years from now one could assume the tax brackets won’t change they might condense them to where you hit the next marginal bracket at a lower income than now. People are living longer - Social Security is Underfunded - Significant healthcare cost concerns.
If you are referencing target date funds those while good for the person who doesn’t pay attention and seek help they are typically costly as it’s a funds of funds approach.
I might be biased that working with an advisor is a must. Vanguard did a study called “Advisors Alpha” and actually pointed out that advisors add upwards of 1% of alpha for individuals compared to doing it yourself.
JamesP2018 5y ago
No, less important. Roth IRA is more flexible and with the current tax rate extremely cost effective. 401k is good for dropping income that would otherwise be taxed at a higher rate.
ChadBroChill68 5y ago
What if you have a Roth 401k option?
vipernick913 5y ago
That’s what I have and I went with that today instead of the traditional 401k.
JamesP2018 5y ago
You can do a roth IRA, roth 401k, and regular 401k. Taxes are really low right now so the benefits of roth, or "I pay my taxes now and never pay tax again", are higher than a regular retirement account. For an IRA it is especially beneficial as post tax, aka roth, 5500 dollars will go alot farther in retirement than pretax, or regular, 5500 dollars a year. A roth 401k is fine and after a roth IRA is a great option. Note that as someone pointed out elsewhere in this thread an employer match system should be maxed first before the IRA. A regular 401k is great for dropping taxed income that would be in a higher bracket of taxation from that year's income. Most people live on less in retirement(which is a horrible idea, retirement is depression waiting to happen) so the income will either be in a lower tax bracket or enough money will be comeing in that it won't matter.
Max contributions this year IRA $5500 Roth IRA $5500 401k $18500 Roth 401k $18500
One IRA, and both 401k options can be maxed out each year.
rpMadler 5y ago
First, 401(k) enough to get any match your employer offers. Then Roth IRA. Then more 401(k). Then nonretirement investments.
Remember that many 401(k) plans now allow "designated Roth" contributions also.
BrewandRun 5y ago
Traditional IRA's are better then Roth IRA's if your income is over about 50k and you don't have any other deductions.
rpMadler 5y ago
The primary difference between traditional and Roth is paying taxes now or later, and therefore the primary determinant of which is better is whether your marginal tax rate is higher in the year you contribute or higher in the year you withdraw.
Given that marginal tax rates have been at historical lows for about 15 years, it's reasonably likely that many people will be at a higher marginal rate in the future. For anyone under age 50 who's considering investing (i.e., excluding anyone who's living on government handouts and/or whose income is so low that they effectively pay no income tax), I'd say it's nearly certain that they'll experience higher tax rates either by retirement or in retirement, assuming an average life span.
Also, $1 tax free is worth more than $1 that will be taxed. So if you're maxing out contributions but making traditional contributions, switching to Roth effectively lets you shelter more from taxes.
BrewandRun 5y ago
After 38k income tax jumps from 12% to 22%. I will most likely only be paying long term capital gains when I retire which is lower then 22% right now. Since I can't tell the future I have no reason to suggest it to change. A traditional IRA is a tax write-off. If I invest 5k of income taxable at 22% it would cost 5k x 1.22 = $6100 to invest in a Roth IRA. I would rather have the extra 1100 to invest in 401k. Most people don't realize the opportunity cost of paying taxes ahead. But this is my strategy.
[deleted] 5y ago
If you can afford risk do Robinhood and choose your own stocks, zero commission fee and if you choose a decent blue chip dividend stock you can reasonably do the same thing as you would investing in a mutual fund. Except have more control on what your investments are. That being said, I still contribute money into the same mutual fund every pay check, to mitigate risk, but then I started doing options a few years ago and it’s been fun. This year I’ve lost 60K made it all back yesterday only to watch my account drop 6K today, investing isn’t for the faint of heart but if you play the long game you will win big. And as long as you know what your investing in, what goes down will eventually go back up. Don’t panic sell anything, that’s my best advice. Also if you crave risk and want options I highly suggest going to tastytrade’s YouTube channel and watching every video/series.
RatRaceConqueror 5y ago
This is a horiffic idea for any average guy. If you have an interest, high emotional strength, above average IQ, and some money to lose you particularly dont care about then go for it.
If you're not down to teach yourself hundreds of hours worth of risk management, you will fuck up somewhere along the way. You cant afford to fuck up if its not play money
ETFs are the only option for the vast majority
[deleted] 5y ago
Wow you’re quite the dramatic person. ETFs are cool and all, but if you’re TRP, you don’t settle for average.
RatRaceConqueror 5y ago
Yes sure, if you have what I have outlined, then you can give it a try. Being on this sub does not prove whether or not you are capable of being average or above average. Odds are vastly against stock picking. Your advice is the equivalent of trying to fuck guys over financially.
https://www.marketwatch.com/story/why-picking-stocks-is-only-slightly-better-than-playing-the-lottery-2017-06-28
[deleted] 5y ago
Lmao okay bud. That’s rich from a guy responding to someone with the name xxxMomoTraderxxx like you were expecting anything else. You fucking loser.
RatRaceConqueror 5y ago
Holy shit get a life? I wasn't even done with that post 30 seconds ago. I don't give a fuck about you, I give a fuck about the bigger picture. You posting here is not just you in a vaccuum.
circlingldn 5y ago
Better yet open up your own forex academy so you can swindle simps like momotrader
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llcjer 5y ago
Ignore the MerrillEdge sales guy
Instead, read Rich Dad, Poor Dad
circlingldn 5y ago
Read a book written by a MLM hack
Do you even due dilligence mate?
llcjer 5y ago
Top ten personal finance book of all time. Go back to BAML.
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BloodRedPillz 5y ago
Yes, this book is an absolute must for anybody. Completely changed my view on finances and my future plan. Would wholly recommend reading.
askmrcia 5y ago
Lol fuck that book. I keep getting harassed by Indian males trying to get me to read that shitty book because it has ties to Amway.
That's the book they use to rope you in on their pyramid scheme
_JustASnowFlake_ 5y ago
Million Dollar Fast Lane should be your next book...
BloodRedPillz 5y ago
I will check that one out. Thanks for the suggestion!
progex 5y ago
Chances are, you won't retire rich unless you start your own successful business. The tax codes are written in favor of self-employment entrepreneurs and small business owners. For example, you can contribute up to $55,000 annually into a Solo 401k plan. Benefits from tax-deferred gains and minimizing income for taxes will go much further than socking away a measly $5,500 for a Roth IRA.
Get into an industry where there's no salary cap like Sales. Work your ass off, build your client base and then branch off on your own to start your own consulting business.
shulgin_ 5y ago
Wow, didn’t know this. Thanks a lot!
hstabley 5y ago
Where would you start if you were looking to move towards a salesman job?
progex 5y ago
Look into IT sales, medical devices or pharmaceuticals at a Fortune 500 company. It takes grit and persistence if you want to crush it as a traditional salesman. If you're technologically inclined, look into Internet marketing where you can scale your products or services worldwide.
womans_algorithm 5y ago
Mind expanding your comment on IT sales? I'm getting my master in computer science, and don't think 8h boring job is a way to go for me. I can have that if I want, but I want more than that.
circlingldn 5y ago
Get a job at cisco etc...technical sales
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whiteleather70 5y ago
Definitely not making large returns in 2018 on Crypto. The market is down about 60% for the year!
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JamesP2018 5y ago
Correct my understanding if I'm wrong, cryptocurrencies are based on open source code that is available to everyone. Currently Bitcoin for instance is really high due to speculators(kinda like investors except the gambling version). Unless pretty much everyone agrees to use a given group of cryptocurrencies as currency, why would average Joe throw money into a system that would disadvantage the power of his dollar when the dollar is still buying his groceries and paying the water bill? The system is good but intrinsically there is no reason why it must be used over another, and even if so, the code to create a cryptocurrency platform is open source. What am I missing?
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PoppinChlorine 5y ago
Yeah if you get lucky lmao no one knows enough about crypto for it to be a better investment than mutual funds.
You can totally get rich off crypto, you just need a ton of money to begin with and/or be able to make it your full time job.
Again, M U T U A L F U N D S, especially for those of us with insufficient time to do intensive research on other investments (like crypto).
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AceMav21 5y ago
MUTUAL FUNDS are gayyyyyyyyyyyyyyyyy! Buy fucking etfs in a Roth IRA god damn man. Wait for the economy to contract again a buy $QQQ or something. Go with foreign etfs in developing nations Indonesia, Nigeria, India etc.
PoppinChlorine 5y ago
Leveraged or no? Developing nations is solid but etfs are volatile, which is not what we want.
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hstabley 5y ago
I'm working on transitioning into a sales career. Could you elaborate more on this for a young guy?
Currently working for comcast tech support inbound. I'd prefer to do inbound sales but open to anything.
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ThatGuyIam123 5y ago
What if u make over 135k per year and can't do a Roth? I max out my 401k at 18500/yr and get a 3%match
wkndatbernardus 5y ago
Backdoor Roth if you exceed the income cap, homie. Just put the max in a traditional IRA and then rollover to a Roth every year. It's dumb that you have to jump through these hoops but, no one said our tax code was logical.
WillSteinmetz1 5y ago
I think you’ll be fine. The 130k cap on the Roth is news to me. I’m sure investing companies have other ways for you to invest your money and will be drooling to reel you in!
Personally I have a Roth and I’m about to head to medical school so I’ll be making above the cap when I’m out so I hope I’ll be able to keep my account at least. Gonna ask my brother who works for Fidelity about that. I’ll comment what he says.
Edit: Bro said 130,000 is the max for you to contribute into a Roth so ya probably can’t set one up. He did say you can send part of your 401k into a Roth through what he called the “backdoor loophole”. Definitely look into it when ya get the chance!
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wkndatbernardus 5y ago
An IRA is a tax advantaged investment account. The stock market is a listing of publicly traded companies into which you can invest within accounts like IRAs. Other types of investment accounts may be tax advantaged (401ks, for example) or not (taxable brokerage accouts). My advice; use Vanguard. They charge zero fees outside of expense ratios, if you buy their funds (vtsax is a great one to use for broad diversification and low expense ratios).
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mattizie 5y ago
Serious question. Do any of these investment strategies have a risk of losing money?
I only ask because you mentioned index funds and other stocks, which are at an all time high right now.
I know that Australian SUPER funds (similar to your 401k) invest heavily in property, so if that bubble pops, there is a chance that the company that manages your money goes broke.
...
Maybe I've just been watching too many "Margin Call" movies.
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mattizie 5y ago
I've been listening to a few shows/podcasts that are pointing out similarities and indicators that show the same patterns as in the lead up to the 2008 financial crisis. The return of things like no or very low deposit home loans etc.
Some are even going as far as to say that both the deep state/ reserve bank and the trump administration are trying to actively collapse the American economy in the hope of restarting it completely: the reserve bank with another fiat system, and Trump with a gold backed currency.
In your opinion, is this all just garbage? Or does it have some merit? I consider folks on TRP to generally be more intelligent than other groups, so I'd like to know what you think.
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mattizie 5y ago
I understand that, but I think that many people are under the assumption that the returns are guaranteed.
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mattizie 5y ago
I'm not worried about it at all because I live in China.
But I've been doing study into finance and trading, and are hoping to make some money off of whatever happens.
gnaavatar21 5y ago
What are some beginner steps to getting started in sales?? And what industries are most lucrative?
talexanderc 5y ago
Pro tip, Roth IRA day is January first. This is when you should put in your full years contribution ($5,500) to get the most interest. Start saving in the fall and have it ready in January
BoogersAreTasty 5y ago
Lots of great advice in this post!
Allow me to elaborate on this.
Many people think you can't invest in a Roth if you make too much money. Poppycock.
If you make too much, then just invest the maximum amount you can into a NON-deductible traditional IRA. Then convert it to a Roth.
Bingo! Roth IRA!
If you want inexpensive trades and have some money, then look at Interactive Brokers. They have the best trading cost (my firms average trading cost is $1.38), get you great execution and pay pretty well on cash balances. However, IB does have a minimum account charge of $10/month. So if your trading costs don't exceed $10/month, they'll charge you the $10. So you'll need some money and to make a few trades each month to cover that fee.
With all due respect to brokers from the bank.....don't. Any broker worth his salt won't be sitting in a bank. He'll have his own firm or be, at the very least, semi-independent.
If you are just getting started, Vanguard is a good place.
In the meantime, max out your 401k at least to the point of getting matched by your employer. Once you max out your deposit that your employer will match, consider investing in an outside (outside of your 401k) Roth IRA.
Take half of any bonuses you receive and put it into your investments and use the other half to pay off debts. When your debt is paid off, the put the entire bonus towards your investments.
Do the same with every other raise you receive. Take half and put it towards investments and half towards your debt. Once debt is paid off, put 100% towards your investment.
The raise (remember, every other raise) you get that doesn't go towards investments or debt, and use it for fun and to save. Use this savings to pay CASH for your next step up in lifestyle.
And finally (and this is so very important): LIVE BELOW YOUR MEANS.
fokm 5y ago
If you’re young do everything you can to get a foreign bank account in a country whose currency is backed by real gold. This would today be Hong Kong/Singapore.
Don’t put all your eggs into one basket. That includes your currency.
cBIGONE 5y ago
Is there a CAD equivalent of a Roth IRA? Should I do stocks?
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kalidaas 5y ago
Why not go for a traditional IRA. I know this is not a finance subreddit, but just curious Im new to this.
wkndatbernardus 5y ago
You can't deduct contributions to an IRA if you make over a certain amount so, most high income earners opt for the Roth which isn't tax deductible but grows tax free and can be withdrawn from without paying taxes as well. Both accounts have a max contribution of $5500/year.
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manwithoutwire 5y ago
I'm just trying to get off the streets and a brotha has got to eat! You can't bodybuild and dress well when you're young AND save money. Unless you somehow have rich parents, this advice is like for the top 0.1% of this sub who make bank young.
The1WhoCsAll 5y ago
Top 25% income. Its not that farfetched to have a career and plan for retirement. Keep grinding, you’ll get there