Thread: What to do with my money

Roth IRA....put in the max every year
Always have liquid savings available.


At your income you should be saving 10,000 a year..

Roth IRA is the way to go unless you start making 100 grand or more then a Traditional is the way to go. Id put it into a nice mutual fund of mainly large us stocks. They tend to yield 10% average. I have a mutual fund from vanguard called target requirement 2045 that slowly shifts from stocks to bonds as it gets close to 2045.

u should be putting a good chunk away so ur set latyer in life and can retire earlier..like foreman says..IRA..i don't know jack shit about stocks or bonds though

I suggest you put together a portfolio consisting of indices, some open ended mutual funds, and some risk free assets

Number 1 should be getting that house. Not only are you throwing money away with rent, you are missing out on the huge tax break you get when you pay a mortgage. Not to mention the money made as housing prices rise. The longer you wait, the more it is going to cost to get into a house. You can do it for $3k.

We bought a house in 2000 for $129k. Sold it in 2003 for $195k. We used the $90k we had in equity to buy a $329k house that we could sell for $400k today. We have about $180k in equity in the house right now. This is after 5 years. Our mortgage was actually cheaper than if we had rented... and we got the tax break on top of it.

You're not going to get that type of return paying rent.

Originally Posted by Doublebase

I am 23 years old. I make 50 thousand dollars a year. I live with a buddy of mine in Philly. I pay about 600$/month for housing and utilities. I pay about 400$/month for other bills. I make good money for my age and I get steady raises. What should I be doing with my money? I am single and I don't own a house. I dont' really want to buy a house yet. I just paid off my school loans so I only have about 3 grand in the bank right now. Should I be investing, if so what kind of investments. I am getting involved with my company's 401K next month. This will be my first 401K.

I suggest you consult a professional not IM forum. 50k isn't enough to invest anymore than 10k IMO. Building up your hard assets at your age and your situation is most important.

Originally Posted by Doublebase

I am 23 years old. I make 50 thousand dollars a year. I live with a buddy of mine in Philly. I pay about 600$/month for housing and utilities. I pay about 400$/month for other bills. I make good money for my age and I get steady raises. What should I be doing with my money? I am single and I don't own a house. I dont' really want to buy a house yet. I just paid off my school loans so I only have about 3 grand in the bank right now. Should I be investing, if so what kind of investments. I am getting involved with my company's 401K next month. This will be my first 401K.

buy steroids/flatscreen/car/russian mail-order-bride


have fun!!!

Originally Posted by bigss75

Roth IRA is the way to go unless you start making 100 grand or more then a Traditional is the way to go. Id put it into a nice mutual fund of mainly large us stocks. They tend to yield 10% average. I have a mutual fund from vanguard called target requirement 2045 that slowly shifts from stocks to bonds as it gets close to 2045.

Yep..
Vanguard is a great company.....

Invest in Lottery tickets. Power Ball are the best. Buy one thousand dollars worth every month!

Originally Posted by lnvanry

I suggest you consult a professional not IM forum. 50k isn't enough to invest anymore than 10k IMO. Building up your hard assets at your age and your situation is most important.

I was thinking of doing that. How much would I have to pay someone? Who would I consult? Houses are crazy high right now. They went up so much in the past 5 years.

Start your own drug cartel. The profits are higher then any investment out there.

Originally Posted by Doublebase

I was thinking of doing that. How much would I have to pay someone? Who would I consult? Houses are crazy high right now. They went up so much in the past 5 years.

I am a professional, like someone said real estate is the best investment especially since rates are so low right now. you said you didnt want to buy a house, so you should atleast consider a condo so that your investing. as for other investments I suggest you put together a portfolio consisting of various indices, some mutual funds if you want, and some risk free securities.

Dude buy some cheap land, a trailer, live light for a few years save every penny. You could easily live on 20k a year while saving the rest, after 6 years quit your job and go on a motorcycle trip all the way through South America till you get to Brazil then find Vieope and ask him if you can sleep on his couch for a while.

Originally Posted by bigss75

Roth IRA is the way to go unless you start making 100 grand or more then a Traditional is the way to go. Id put it into a nice mutual fund of mainly large us stocks. They tend to yield 10% average. I have a mutual fund from vanguard called target requirement 2045 that slowly shifts from stocks to bonds as it gets close to 2045.

Plus with a Roth IRA, can't you make a qualified withdraw after 5 years? If memeory serves me first time home buying was considered a qualified withdraw? In which case, invest in the Roth, try and wait out home prices, then make a withdraw from the Roth and still be ahead in long term savings.

Originally Posted by Doublebase

I am 23 years old. I make 50 thousand dollars a year. I live with a buddy of mine in Philly. I pay about 600$/month for housing and utilities. I pay about 400$/month for other bills. I make good money for my age and I get steady raises. What should I be doing with my money? I am single and I don't own a house. I dont' really want to buy a house yet. I just paid off my school loans so I only have about 3 grand in the bank right now. Should I be investing, if so what kind of investments. I am getting involved with my company's 401K next month. This will be my first 401K.

Buy a small piece of land or a shitty ass hut on a piece of land on a small tropical island. If your going to take risks with your money do it now while you're young, and don't have a family depending on you, and don't put up more than you can afford to lose. If you have a family or wife, it's not easy living off of $20k a year.

Originally Posted by Doublebase

I am 23 years old. I make 50 thousand dollars a year. I live with a buddy of mine in Philly. I pay about 600$/month for housing and utilities. I pay about 400$/month for other bills. I make good money for my age and I get steady raises. What should I be doing with my money? I am single and I don't own a house. I dont' really want to buy a house yet. I just paid off my school loans so I only have about 3 grand in the bank right now. Should I be investing, if so what kind of investments. I am getting involved with my company's 401K next month. This will be my first 401K.

Give it to me of course...

Originally Posted by Devlin

Plus with a Roth IRA, can't you make a qualified withdraw after 5 years? If memeory serves me first time home buying was considered a qualified withdraw? In which case, invest in the Roth, try and wait out home prices, then make a withdraw from the Roth and still be ahead in long term savings.

My Roth Ira I can withdraw all the contributions I make when ever I want with no penalty or tax......but you cant withdraw the growth/interest..

Thanks for all your input. I just wanted to get some ideas as to where I should put my money. I want to be able to retire and have a lot of money. I think I should start preparing for that now. I will research some more and maybe take a look at some houses in the Philadelphia area. I just don't know if I will be able to afford it on my own.

Originally Posted by devildog88

Invest in Lottery tickets. Power Ball are the best. Buy one thousand dollars worth every month!

Not a good idea.... Everyone knows you have to 85 years old and close to death before you are allowed to win the lottery. In his 20s, it just isn't going to happen.

could you spot your boy carlito here about 50 i'm good for the money

Originally Posted by NeilPearson

Number 1 should be getting that house. Not only are you throwing money away with rent, you are missing out on the huge tax break you get when you pay a mortgage. Not to mention the money made as housing prices rise. The longer you wait, the more it is going to cost to get into a house. You can do it for $3k.

This should be your first priority. For all of the reasons above and because interest rates are low right now. Go to Bank of America and find out what your payment would be per month using a calculator for a 150k house. Next, recalculate monthly payment at incremental higher interest rates. Interest rates are going to go up, guaranteed. The thirty year average is somewhere around 10% if I remember right. Take advantage of the huge tax break, build equity with the $600 you toss in the garbage every month and have an investment that you live in and returns around 10% resale per year. It's a no brainer. Take care of the house first, then invest in stocks, not bonds at your age.

Originally Posted by Doublebase

Thanks for all your input. I just wanted to get some ideas as to where I should put my money. I want to be able to retire and have a lot of money. I think I should start preparing for that now. I will research some more and maybe take a look at some houses in the Philadelphia area. I just don't know if I will be able to afford it on my own.

Define what part of the Philadelphia area? Center City? North East? little outside say West Chester? King of Prussia? or why not head across the river to Jersey? Cherry Hill, Medford, Marlton for examples?

Originally Posted by NeilPearson

Number 1 should be getting that house. Not only are you throwing money away with rent, you are missing out on the huge tax break you get when you pay a mortgage. Not to mention the money made as housing prices rise. The longer you wait, the more it is going to cost to get into a house. You can do it for $3k.

I agree with this, the best investment you can make is buying your own house. Start saving up for a down payment. Once you buy a house you can rent a room out to your current roommate.

Originally Posted by Doublebase

Thanks for all your input. I just wanted to get some ideas as to where I should put my money. I want to be able to retire and have a lot of money. I think I should start preparing for that now. I will research some more and maybe take a look at some houses in the Philadelphia area. I just don't know if I will be able to afford it on my own.

even if you cannot afford a house you could look for a condo or townhome.

it is good to think about your future and retirement, but I see no reason to invest more than 10% in retirement at your age.

You know, since you have all this money you don't even know what to do with, is it really that much to ask to spend .000000000000001% of it to become an Elite Member?

Originally Posted by BigDyl

You know, since you have all this money you don't even know what to do with, is it really that much to ask to spend .000000000000001% of it to become an Elite Member?

Originally Posted by lnvanry