"TheJWT" (thejwt)
09/03/2016 at 17:02 • Filed to: THEJWT'S WILD FRIDAY NIGHTS
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"TheJWT" (thejwt)
09/03/2016 at 17:02 • Filed to: THEJWT'S WILD FRIDAY NIGHTS | 0
| 25 |
(I’m only reposting this because I initially posted it at perhaps the dumbest time for people to see, and I know there are a lot more people here with experience and advice.)
I’ve been thinking lately about investing some of the money I have saved up from 2 summers of working, because A) It’s what experts say that young people should do and no one really does, and B) I’d probably just spend it on dumb shit like a 30 year old Pontiac otherwise.
I’ve read a few articles, and it seems like low cost index funds are the best way to go, but I’d feel more comfortable getting some unbiased first-hand experience. Also, how in the hell do I even get started, and what can I expect from it?
415s30 W123TSXWaggoIIIIIIo ( •_•))°)
> TheJWT
09/02/2016 at 22:52 |
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Start an IRA young and max it out every year. Compound interest is your friend.
for Michigan
> TheJWT
09/02/2016 at 22:55 |
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Came for 30-year-old Pontiac, didn’t see said Pontiac, so here:
No investment advice here. Just another young person who isn’t investing his money...
Supreme Chancellor and Glorious Leader SaveTheIntegras
> TheJWT
09/02/2016 at 22:57 |
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Buy an Integra Type R, store it overseas, sell it once they become legal to import, profit
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TheJWT
> for Michigan
09/02/2016 at 22:57 |
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This is all the investing I need*
*probably not though, unless F-bodies undergo aircooled 911 levels of inflation...
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for Michigan
> TheJWT
09/02/2016 at 23:02 |
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My brother’s (V6, not a T/A) just went to the scrapyard for $150, so I would suggest diversification for sure.
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TheJWT
> for Michigan
09/02/2016 at 23:05 |
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I think if I clean it up a bit more cosmetically I’ll be able to make a few thousand in a year or two. Not that I bought it with that intention, but it’s a nice little bonus (hopefully)
E92M3
> TheJWT
09/02/2016 at 23:10 |
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My advice since you are new to investing is to open a brokerage account thru Scottrade, Fidelity, etc. Then put your money into a Vanguard Target Date Mutual Fund. They are relatively safe, low fee funds, that automatically change the risk ratio as you age. You might want to consider opening a Roth IRA over a traditional brokerage account. You can avoid paying taxes on money earned if you wait till retirement to take it out. You can withdraw your initial contributions at anytime without penalties.
The last thing you want to do is start trading individual stocks unless you are comfortable losing that money.
The time to start is yesterday. The earlier you start investing the more it compounds, the less you have to save late in life. People that wait till their 30's, 40's, 50's have to save a lot more each month to reach the same retirement target.
wafflesnfalafel
> TheJWT
09/02/2016 at 23:10 |
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Have access to a pretax 401k type product through an employer? If so, use that. If not then look at an IRA through one of many providers (Fidelity and Vanguard are two good low fee options but there are many out there.) I am partial to S&P index funds - but there are many different kinds out there.
wiffleballtony
> TheJWT
09/02/2016 at 23:13 |
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Ok so I spent around 6 years as a registered investment advisor. The absolute first most important rule of investment is: don’t invest any money you’re not willing to lose completely. The second thing is to guage your tolerance for market fluctuations. Can you stomach your money going up and down. And finally unless you’re watching your money everyday mutual funds are your best bet.
Personal recommendation: www.vanguard.com
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TheJWT
> wafflesnfalafel
09/02/2016 at 23:14 |
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Nah, I’m an unpaid intern during the schoolyear... How would an IRA compare to something like a low cost ETF? (Please bear with me if that’s a stupid question, I don’t really know how any of this works yet...)
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wafflesnfalafel
> TheJWT
09/02/2016 at 23:29 |
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An ETF is like a low cost, super automated Mutual Fund, (so they could make up part of an IRA or purchased separately through a broker directly. By itself, an ETF is not an investment vehicle that allows your money to grow tax free, (like an IRA or 401k would.)
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for Michigan
> TheJWT
09/02/2016 at 23:46 |
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They definitely can’t get much cheaper than they are now. I saw a clean, automatic Formula 350 for $4000 this summer.
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TheJWT
> wafflesnfalafel
09/02/2016 at 23:47 |
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Ah I see... And IRAs are tax free unless I withdraw from them before retirement from my understanding, is that right?
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wafflesnfalafel
> TheJWT
09/03/2016 at 00:07 |
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Yep - IRAs grow tax free, (the money you input has already been taxes.) 401k’s are pre-tax money upfront, (so those are great if you have access to one.) Then you pay tax as you withdraw after you retire (or tax plus penalties if you have to withdraw early, with a few exceptions.)
It really kinda depends what you want to do. You could get an account through a brokerage (Ameritrade, etc.) and dabble with a few stocks or ETFs, have a good time and hopefully don’t loose your shirt. If you are looking for a long term, set it and forget it, then a traditional IRA is probably a better option.
FTTOHG Has Moved to https://opposite-lock.com
> TheJWT
09/03/2016 at 02:17 |
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A 30 year old Pontiac is not “dumb shit” Unless it is a LeMans. But I say jay buy old cars. Then again I’m 32 and have no investments unless you count a house and a retirement fund with nowhere near enough money in it.
BackfiringDatsun
> TheJWT
09/03/2016 at 09:28 |
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Pick a low cost ETF that tracks the S&P 500. It is really hard to beat the market. Tracking it has treated me very well.
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TheJWT
> FTTOHG Has Moved to https://opposite-lock.com
09/03/2016 at 09:59 |
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I kid, I kid... I love my GTA like it’s a faithful old dog. (But not as much as I love my faithful old dog...)
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TheJWT
> for Michigan
09/03/2016 at 10:04 |
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Top level GTAs and IROCs are definitely on the rise. I routinely see people asking 5k on the low end to 15k+ for really nice ones. That’s why when I saw one for 2500 I jumped on that shit!
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TheJWT
> BackfiringDatsun
09/03/2016 at 10:04 |
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What’s the risk of that like, and how much involvement does it take on your part?
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FTTOHG Has Moved to https://opposite-lock.com
> TheJWT
09/03/2016 at 10:06 |
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Ooh did you see the basket weaves on that apparently abandoned TA S65 posted yesterday?
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TheJWT
> FTTOHG Has Moved to https://opposite-lock.com
09/03/2016 at 10:21 |
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Yeah! I believe they were optional on Trans Ams, but standard on GTAs. I had to track a set down because mine had the base v8 wheels on it. Probably the best $500 I’ve ever spent...
Joe6pack
> BackfiringDatsun
09/03/2016 at 17:39 |
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Yep. I don’t know much about ETFs, but I agree - don’t try to beat/time the market. This is the advice my MBA Finance professor gave years ago. Did I listen? Hell no! But, I should have.
Audistein
> TheJWT
09/03/2016 at 18:06 |
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If it tracks the S&P 500 that's means it's very low risk and you buy it with the intention of letting it sit for years if not decades.
Kanaric
> TheJWT
09/03/2016 at 18:43 |
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probably not the best iea to ask oppositelock for investment tips lol
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TheJWT
> Kanaric
09/03/2016 at 19:57 |
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I’ve already had an old money pit car, it wasn’t a good investment