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 Elite Fitness Bodybuilding, Anabolics, Diet, Life Extension, Wellness, Supplements, and Training Boards
 Chat & Conversation
 Financial/Investing brainstorming.
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| Author | Topic: Financial/Investing brainstorming. | ||
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Amateur Bodybuilder 
Posts: 99 |
Okay. I have some ideas and questions to run across you bros. I'm still in college and I'm only 20 at the moment. I really want to have my shit straight as far as my finances and investments go when I get out of college. I'm currently taking a financial management class and I plan on taking an investments class next semester (I'm a business major by the way). I really dont have all that much knowledge about this stuff right now, but I hope to be a financial Jesus by the time I graduate so please excuse my ignorance if what I say and ask you guys is way off. Okay, here we go. Let's just suppose I earn a starting salary of 40k/year when I get out of school. If my company offers a retirement fund that matches up to 5% of my gross salary, how much more should I excede that 5% on my own. Should I invest an additional 5-15% for a total 15%-25% with only 10%-20% being my money. If the retirement plan I choose is a mutual fund that historically earns on average 12% a year should I even seek any other long term investments. Should I invest all of my long term investment money into this for the sheer reason of low risk and compounding? And for the sake of being somewhat liquid should I place some of my money into a Vangaurd account that earns around 6% and can be withdrawn at my discretion. I mean, why even have my money in the bank right? What good does that possibly do when I can earn almost 5% more in a vangaurd and stay just as liquid. ------------------ - Kwai-Chang Caine    | ||
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Cool Novice 
Posts: 40 |
Kwai, Here is some advice for ya---- LIVE IN THE NOW!!!!!!! Why save a boatload of cash now, putting off vacations, etc .Do fun stuff while you are young. You wont want to go to Cancun when you are 55 yrs old.  | ||
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Amateur Bodybuilder
Posts: 180 |
Good idea to think ahead. When I was in my 20's I spent all my "discretionary income" at the bars and now I really regret it. You fund your company 401K with pre-tax dollars which means the money you invest is not taxed. So right away you're ahead of the game. If you like the returns your company funds are generating put all your investment money there. If you think you can do better with Vanguard or Fidelity etc,invest in the 401K up to the amount your company will match and put the remainder of your investment money in the mutual fund of your choice i.e. Vanguard, Fidelity or whatever. You should definitely check out the new Roth IRA. It's advantage over the standard IRA is that the money is Non-taxable when you take it out. As far as how much to save, the standard rule of thumb is 10% of your income. For the more aggressive type, which you sound like, the more the better. I do 15% plus I have some other investments (real estate etc). Good luck. If you start now and do it seriously you will be way ahead of the pack by the time you hit 40, and 40 will be here alot faster than you think. Trust me on that. | ||
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Cool Novice
Posts: 40 |
Now, Poon daddy does not say spend all of your cash. However, saving for the future should not stop you from having fun now. | ||
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Pro Bodybuilder 
Posts: 543 |
Open a Roth IRA, you can put up to 2000 a year in it (depending on your salary) and when you take it out it is tax free. There are rules as to how long it must be in there age 59 1/2 for distributions (there are exceptions). With the Roth you pick what funds the money goes into. You cannot go over the 2k per year or they penalize you 6%. There is also a 10% penalty for early withdrawal. As far as banking, it is a good deal cause it is FDIC insured and return is guaranteed. Plus if your open a cash reserves/money market fund with fidelity there is a mininum limit as to amount check can be written on. Also there is a low balance fee generally around 2k or less. I too went into finance, you won't learn shit ins school (you think you do at the time), wait till you get in the industry. You should of gone into computers, that is where the money is! | ||
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Amateur Bodybuilder
Posts: 99 |
My goal.........virtually retire by age 32. How will I do it? Investing in stocks and real estate. Why will i do it? Because I fucking want to. If it happens earlier great, but it wont happen later. What is the annual appreciation rate for real estate today? Does anyone know? ------------------ - Kwai-Chang Caine | ||
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Pro Bodybuilder
Posts: 543 |
Dream on... finance was the place to be in the early 90's. There is less need for brokers because of the web. Plus you are not coming out of Stanford, or Wharton. 40k to start, Hahaaaa make me laugh. You will start at around 28-30. Realtor? Dime a dozen. Stocks? Bear market. You are getting ahead of yourself! | ||
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Moderator 
Posts: 1765 |
Sounds to me like MP5 lost money on E-trade today. Kwai, Don't make yourself crazy with goals like retiring by 32. You haven't even worked yet - so you may actually want to do it longer than that. Allow yourself to be flexible for whatever comes down the pipe. Like for example, one day I was fine, the next day I had a skydiving accident and shattered bones. Had to adjust. Life is funny like that. Have gioals, for sure, but don't be too rigid. 40K is a reasonable starting salary. That's not really much but it's probably about where you will start unless you're a Wharton MBA or whatever. Here's what I would do: Take some computer science classes. Even if you don't want to be a tech guy, the professional of tomorrow will be tech savvy or he will not be successful. A quick story: There are guys out there who are true financial wizards. Guys with law degrees from Yale and MBA's from NYU, that type. These men are industry leaders, who can take charge of any situation. Millionaires a hundred times over. Respected, even feared in the circles they live in. Yet they sit there, quiet as a lamb, shuffling papers, nervously avoiding eye contact with others when there is a tech guy talking. They just don't speak the language. But it's the language of the future, and these dinosaurs will die out, no matter how powerful they are today. The education background of tomorrow's successful financial guy will include considerable tech knowledge. Don't know tech, don't know shit.
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Elite Bodybuilder 
Posts: 741 |
Kwai, Its good that your head's not in your ass like mine was at your age  , Seriously the more you contribute into your 401k the lower your tax load is going to be, ie if you make 50,000 and put in 10% your taxable income is 45,000. I put 16% in my 401k (started at 10%) and alrady have in over $5,300 in a years time or less. I think 10% at your age is plenty. You are going to need to be able to access some of your cash at times so a high yield money market fund is alot better than a savings account. If you still have some cash you can put $2,000 a year into a Roth IRA and some of your own mutual funds.LAstly dont save too much at the expense of having some fun. Hats off to you, financially you are going to do well in life with as an early start as you are getting ------------------ | ||
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Pro Bodybuilder
Posts: 543 |
Did not lose money, I work for a mutual fund company so I know what the hell the industry is like. Funny how in college you think you have the answer to the world's questions. | ||
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Amateur Bodybuilder
Posts: 99 |
Actually I'm not going to be a broker or a realtor, rather I'm going to be in sales (probably pharmacauticals but who knows)with some very lucrative hobbies. Real estate investment is not just for REALTORS. And an investment strategy is not just for brokers. I will be extremely successful because I am the game, because the force is strong in me, and because I am the Prince of all Saiyans once again. Ya understand?! ------------------ - Kwai-Chang Caine | ||
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Cool Novice
Posts: 39 |
In regards to some of you saying that there is not as much a need for Stockbrokers or Realtors, now your dreaming! Most busy wealthy businessmen and business owners dont have the time to fiddle fuck around with crap like internet trading!i do alot of business with brokers from real firms like Merrill Lynch, Salomon Smith Barney etc. and these guys buy and sell homes with me mostly in the 600k to 1mm range! By the way I am a Realtor and have yet to make less than six figures in a year.What I have learned is that people with real money seek the services of a professional! | ||
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Moderator
Posts: 1765 |
You're right Florida Guy. I have a "professional" who does my planning but I also do a little on my own. But Internet trading is becoming more common. And from what I have seen, every "professional" needs commissions, so they need transactions, whether or not it is truly in your best interest. Let's just say I've had to hold the reins on my "professional" before. As for realtors - well, I do my deal-making on my own, wihtout the "services" your kind offers. | ||
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Guru
Posts: 2798 |
40k out of college isnt unheard of, I grossed 42k out of college. | ||
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Cool Novice
Posts: 39 |
Well Mat I'm glad that you not only have the time to do everything yourself but you seem to be an expert in everything. By the way people that work on a fee or commission basis ONLY get paid when they successfully complete a task. This is a capitalist system at its best. |
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Ultimate Bulletin Board 5.45c
posted October 27, 2000 03:10 PM