What to do with my money!?

[AntMan530]

I started a better job. I'll be earning more money but my lifestyle will not change. I want to stash it all away. I've paid off all my bills, loans etc... from school, car etc...

Whats the best way to maximize my money? Its all in the bank right now. Its in my savings. Not alot, but a nice amount that I should start thinking about doing something smart with it.

Any ideas? I want to avoid risky investments like stocks etc...Im knew to this, so if you know any books etc. please recommend. Id like to invest in my retirement.

So far, Ive bought some CDs for the kids. Anything you think I can do? Should do?

 

[Epic Fail]

Donate to a good cause.

<- taking donation.

 

[us3rnotfound]

Nigeria is the real hotspot for new investors

 

[jadinolf]

Originally posted by: yamadakun
Donate to a good cause.

<- taking donation.

<--------jadinolf bank and trust

 

[PAB]

Originally posted by: AntMan530
I started a better job. I'll be earning more money but my lifestyle will not change. I want to stash it all away. I've paid off all my bills, loans etc... from school, car etc...

Whats the best way to maximize my money? Its all in the bank right now. Its in my savings. Not alot, but a nice amount that I should start thinking about doing something smart with it.

Any ideas? I want to avoid risky investments like stocks etc...Im knew to this, so if you know any books etc. please recommend. Id like to invest in my retirement.

So far, Ive bought some CDs for the kids. Anything you think I can do? Should do?

Contrary to what you may think, the stock market is not considered a "risky" investment. Over the years, the power of compounding really works to your advantage. You have to make your money work for you, and CD's are not going to do it at all.

Mutual funds are great for low risk short to medium term investment. I've got a decent amount in mutuals, and although the market has had it's ups and downs, I'm certainly better off than if I stuck it in a CD earning 5% a year.

Or, you could invest in tangible items like real estate, 71 Chevy Novas, etc. Anything to make a buck.

 

[alrocky]

Vanguard Diehards readling list and a primer Eric Tyson's books including Mutual Funds for Dummies.

Invest at least 10% of your income in your company's 401k and $4000 in an IRA, possibly a ROTH IRA. Consider a broad based no-load low Expense Ratio mutual fund like Vanguard's (VTSMS) Total Stock Market Index fund and (VGTSX) Total International Index fund, or similar mutual funds with other mutual fund companies. Other mutual fund companies to consider are Fidelity and T.R. Price.

There are several factors that determine who much you'll end up with in retirement - two that you can control are how much you contribute and how long you contribute. The more money and the sooner you start investing the greater the likelyhood you'll retire with a comfortable nest egg. Costs matter so shy away from load mutual funds and high Expense Ratios. A starting point for an Asset Allocation is 20% Bonds and 80% Stocks.

 

[Dragoon42]

Originally posted by: us3rnotfound
Nigeria is the real hotspot for new investors

It's awesome. I get these e-mails where people tell me that I can get 1mil+ for like a 15-20k deposit. I can't wait to do this!!!!! YES!!!! I'll finally turn my 20k into a million. OP you should try this too. In fact if you want, send me 7.5k and i'll split my 1mil with you, which is 500k


We'll both profit!

 

[IHateMyJob2004]

Originally posted by: AntMan530
I started a better job. I'll be earning more money but my lifestyle will not change. I want to stash it all away. I've paid off all my bills, loans etc... from school, car etc...

Whats the best way to maximize my money? Its all in the bank right now. Its in my savings. Not alot, but a nice amount that I should start thinking about doing something smart with it.

Any ideas? I want to avoid risky investments like stocks etc...Im knew to this, so if you know any books etc. please recommend. Id like to invest in my retirement.

So far, Ive bought some CDs for the kids. Anything you think I can do? Should do?

If you want to learn about stocks, buy "The Single Best Investment"
A great starter book on stock investing and all you relally need to know if you ask me. Just stick with the good stocks like JNJ and O.

 

[bennylong]

Risky investment like stocks? Risky investment is a saving accounts because you barely keep up with inflation! The stock market has returned over 12% historically. Even though the market has returned only 10% the last 10 years, that 's still a lot less risky than your saving accounts that doesn't keep up with inflation in most years.

 

[bwatson283]

if you are the age group 35 to younger, you HAVE to invest in retirement! GW even told us so! the Social Secuirty funds will be depleated soon. I cant stress it enough to invest in safe ones, like a IRA, 401k. Put a bigger percentage into your 401k! I am in the financial job market.

 

[IHateMyJob2004]

S&P 500 has done something like 10.5% historically.
S&P mid-cap has done sometihng like 12%

mid-caps are slightly more volatile .. but over a long time period ... it is not an issue.

 

[alien42]

invest in a solid growth company like ISRG

 

[IHateMyJob2004]

Originally posted by: bwatson283
if you are the age group 35 to younger, you HAVE to invest in retirement! GW even told us so! the Social Secuirty funds will be depleated soon. I cant stress it enough to invest in safe ones, like a IRA, 401k. Put a bigger percentage into your 401k! I am in the financial job market.

Man ... I hate people like you.

What you say is a generalization. In gerneal .... Roth-RIAs and 401Ks make sense. To the average person, you are right.

To the savvy investor .... those will make plenty of sense ... but only when you are older.

Not going to get into it ... options (naked puts) + knowing how to properly value stocks + not buying crap will kick any Roth-IRA or 401K in the ass over 25 years .... even when you cosndier the tax incentives of retuirement accounts.

Nothing perosnal ..... but I hate it when "experts" think they have THE anwwer that applies to everyone.

 

[IHateMyJob2004]

Originally posted by: alien42
invest in a solid growth company like ISRG

And watch it go up and down till it's just down.

Took a peak at the stock. Seems OK at a glance but I have no idea what the companies financial opcndition is.

1) Never refer to a non dividend yielding company as "solid".

 

[bwatson283]

I am not saying for everyone! I am just make a opinon. No one has to take my OPINION! It is an opinion.

 

[fire400]

save it so you don't drop out of college if you get into a car accident or need to pay something off at the time

john smith: take a loan for another car, you're just stupid for getting one way

poca: yeah, but I was kind of drunk you see?

john smith: you should of saved money then.

poca: nah, I should have invested it,

john smith: doesn't matter now, I don't date girls who don't have any money.

poca: looks like I'll be visiting my job more and probably drop out of the U

john smith: yeah, you didn't even have to write me a Dear John letter either, I'm the one dumping you...

poca: so are we still up for tonight?

john smith: just delete my number off of your phone, in fact, umm, you know what, it doesn't matter, I know you won't be able to hold onto your stupid T-mobile phone any longer anyway.

poca: umm.. excuse me?

john smith: have you learned anything from your school?

poca: ABCDEFG... HIJKLMNOP... QRSTUV... WX.. Y and Z.... now I know my ABC's... next time won't you sing with me?

john smith: 1.. 2... 3, 4... 6... 7... 11, 12, blah blah, I'm gonna go get a lotter ticket, see you hun~

poca: rude.. didn't even clap for me, I should of saved my money, I'm stupid, my IHOP job sucks.

john smith and poca: NEVER EVER GO TO THE RESTARAUNTS IN BROOKLYN CENTER, MINNESOTA __________________________ HOLY FVCK they are grossssssssssssssssssssssssssssssssssssssssssssssssssssss....

 

[doze]

IRA or 401K will make more money than a savings account. Check out something like vanguard that doesn't have much in the way of fees.

 

[ChaoZ]

Quit your job and go flip a house.

 

[doze]

My dad gave me this book called the Wealthy Barber a while back. Kind of like an overview of different ways to manage your money in a format thats easy to read.

http://www.wealthybarber.com/

 

[DaveSimmons]

Originally posted by: alrocky
Vanguard Diehards readling list and a primer Eric Tyson's books including Mutual Funds for Dummies.

Invest at least 10% of your income in your company's 401k and $4000 in an IRA, possibly a ROTH IRA. Consider a broad based no-load low Expense Ratio mutual fund like Vanguard's (VTSMS) Total Stock Market Index fund and (VGTSX) Total International Index fund, or similar mutual funds with other mutual fund companies. Other mutual fund companies to consider are Fidelity and T.R. Price.

There are several factors that determine who much you'll end up with in retirement - two that you can control are how much you contribute and how long you contribute. The more money and the sooner you start investing the greater the likelyhood you'll retire with a comfortable nest egg. Costs matter so shy away from load mutual funds and high Expense Ratios. A starting point for an Asset Allocation is 20% Bonds and 80% Stocks.

Good starting advice, much safer for most people than going deeper into aggressive investing like IHateMyJob2004 does.

You're young, you need to invest in stock index based mutual funds. Over decades they are not risky at all even though the market bounces up and down a little in the short term.

I'd stay out of bonds for now though and put that part of your investment into a high-interest savings account at INGDirect.com or similar instead.

Once you have several months worth of living expesnses then you can consider bond funds which aren't doing well now because their value falls as interest rates rise.