NT.. Let's talk investments for the future. School me on Roth IRA's and etc.

Bee

Bee

846
658
Joined
Jul 29, 2006
Reading up on how Social Security could possibly be gone by the time i hit retirement has me thinking,
I don't wan't to be an old man struggling and penny pinching, or having to rely on the government for help.

I'm 21, have a good 6-7 grand just rotting in my saving account, and i have little to no debt.

Rather then blow all of this on frivolous items right now, Is there anything i can start on now that will have me living comfortable
in the later stages of my life?

I vaguely remember a thread a couple of years back where Dirty and a few other NTer's were discussing how
Roth IRA's and taking out life insurance policies on yourself or something like that at a young age could have you sitting on 500k or a Millie by the time you retire
nerd.gif


Did i read wrong? Discuss... Enlighten me
 
Reading up on how Social Security could possibly be gone by the time i hit retirement has me thinking,
I don't wan't to be an old man struggling and penny pinching, or having to rely on the government for help.

I'm 21, have a good 6-7 grand just rotting in my saving account, and i have little to no debt.

Rather then blow all of this on frivolous items right now, Is there anything i can start on now that will have me living comfortable
in the later stages of my life?

I vaguely remember a thread a couple of years back where Dirty and a few other NTer's were discussing how
Roth IRA's and taking out life insurance policies on yourself or something like that at a young age could have you sitting on 500k or a Millie by the time you retire
nerd.gif


Did i read wrong? Discuss... Enlighten me
 
i Send my condolences...



but on the side note i'd like to know also. I see old peeps in suits carrying their suitcases to work... that, i do not want to be
frown.gif
 
i Send my condolences...



but on the side note i'd like to know also. I see old peeps in suits carrying their suitcases to work... that, i do not want to be
frown.gif
 
Bee your right...that post made years ago had alot of good info in it...wish I still bookmarked it...the way dirty put it in the thread is that with a roth IRA you basically have to contribute to it at 21 to see a big return when comes time to retire. Since your 21 right now and if you have a job and are on point with keeping a steady job it would be a good look for you.

I really dont know the specifics but the info is out there.
 
Bee your right...that post made years ago had alot of good info in it...wish I still bookmarked it...the way dirty put it in the thread is that with a roth IRA you basically have to contribute to it at 21 to see a big return when comes time to retire. Since your 21 right now and if you have a job and are on point with keeping a steady job it would be a good look for you.

I really dont know the specifics but the info is out there.
 
It is a good thing to think about and trust that no one will be there to take care of you when you're old, unless your kids do. 

A Roth IRA is a good place to start if you are putting money away that you do not need.  There are great tax advantages for you with one, but that being said, it is a retirement account so you can't dip into the money without a penalty.  Well, from what I know, you can take it out for a down payment on a house, medical emergency and maybe education?  I'm not a financial adviser so I do not know all the stipulations.  But that is only the program, you still have to invest the money into it.  I would talk to a professional, but most of them are fairly worthless in my opinion.

I am a stock guy and like small and mid cap companies personally.  That and value investing.  I do not believe in dumping my money into mutual funds that in the long run will grow your money but at a slower pace.  Most, in the neighborhood of 80%, of mutual funds under perform the market.  You have a decent amount of money for your age to invest.  You can invest in etf's (electronically traded funds) or a spdr, both of which will allow you to invest in the 'market' which I think will give you better returns in the long run than mutual funds.  If it is something that interests you, with some time and work, you can do a pretty good job at managing your money.  If that is not something that interests you, try to find a professional, but choose wisely!
 
It is a good thing to think about and trust that no one will be there to take care of you when you're old, unless your kids do. 

A Roth IRA is a good place to start if you are putting money away that you do not need.  There are great tax advantages for you with one, but that being said, it is a retirement account so you can't dip into the money without a penalty.  Well, from what I know, you can take it out for a down payment on a house, medical emergency and maybe education?  I'm not a financial adviser so I do not know all the stipulations.  But that is only the program, you still have to invest the money into it.  I would talk to a professional, but most of them are fairly worthless in my opinion.

I am a stock guy and like small and mid cap companies personally.  That and value investing.  I do not believe in dumping my money into mutual funds that in the long run will grow your money but at a slower pace.  Most, in the neighborhood of 80%, of mutual funds under perform the market.  You have a decent amount of money for your age to invest.  You can invest in etf's (electronically traded funds) or a spdr, both of which will allow you to invest in the 'market' which I think will give you better returns in the long run than mutual funds.  If it is something that interests you, with some time and work, you can do a pretty good job at managing your money.  If that is not something that interests you, try to find a professional, but choose wisely!
 
A roth IRA is a retirement plan where they invest your money into several companies (Mutual Fund). Usually when you have a job you have a % taken out of every paycheck. This money isnt taxed. But it is taxed when you withdrawal it in your later years (55 and up). A roth IRA is the same thing but the money is taxed now but when you retire and take it out, it isnt taxed. Many people prefer the Roth. For example, If you make $1000 a week and put 15% into a Roth IRA $150 (15%) will be automatically taken out of your check and invested. Most people get paid every 2 weeks. So if your 21 and every two weeks youre saving $300 you can imagine how much that would be in 39 years when your 60. That $300 doesnt just sit there. They have fund managers who invest it for you. The economy goes up and down but over decades it always goes up. The younger you start the longer that $6000 grows. It is also comforting to know that life might be hard. You might struggle from time to time but one day you will be a millionaire. Shoes and clothes are fun but really a waste.

Next, if I were you I'd take that $6000 and put it down on a house. Houses are SOOO extremely cheap now. You can profit off other peoples hard times. If you buy a house and rent out a room to one of your homies they will be the one paying off your house. Before the internet boom of the 1990's I read that 95% of all self made millionaires made there money from real estate. For example, buy a house with that 6 grand and rent out a room. In 5 years save up money and buy another house while you rent out the first one. When the economy rebounds that house will be worth a LOT more. Sell it and profit TONS. Real Estate is where the money is. When you get a job get into real estate and start that ROTH immediately. I GUARANTEE you will be a millionaire at 55 if you follow that game plan.

To be honest its good to hear a young dude is trying to come up. Most people just dream and buy sneakers and Gucci sweaters to pretend like they are rich. Invest that money and buy a house as young as you can. I wish my Dad told me these things when I was younger. Skip the $550 retro cement 4's. Dont waste your pay checks on a fancy car. Invest and learn the real estate game. When youre my age you can laugh at all your boys. A smart young brother like yourself can easily be a millionaire. You just got to pass up the Space Jams and the Louis Vuitton belt.
 
A roth IRA is a retirement plan where they invest your money into several companies (Mutual Fund). Usually when you have a job you have a % taken out of every paycheck. This money isnt taxed. But it is taxed when you withdrawal it in your later years (55 and up). A roth IRA is the same thing but the money is taxed now but when you retire and take it out, it isnt taxed. Many people prefer the Roth. For example, If you make $1000 a week and put 15% into a Roth IRA $150 (15%) will be automatically taken out of your check and invested. Most people get paid every 2 weeks. So if your 21 and every two weeks youre saving $300 you can imagine how much that would be in 39 years when your 60. That $300 doesnt just sit there. They have fund managers who invest it for you. The economy goes up and down but over decades it always goes up. The younger you start the longer that $6000 grows. It is also comforting to know that life might be hard. You might struggle from time to time but one day you will be a millionaire. Shoes and clothes are fun but really a waste.

Next, if I were you I'd take that $6000 and put it down on a house. Houses are SOOO extremely cheap now. You can profit off other peoples hard times. If you buy a house and rent out a room to one of your homies they will be the one paying off your house. Before the internet boom of the 1990's I read that 95% of all self made millionaires made there money from real estate. For example, buy a house with that 6 grand and rent out a room. In 5 years save up money and buy another house while you rent out the first one. When the economy rebounds that house will be worth a LOT more. Sell it and profit TONS. Real Estate is where the money is. When you get a job get into real estate and start that ROTH immediately. I GUARANTEE you will be a millionaire at 55 if you follow that game plan.

To be honest its good to hear a young dude is trying to come up. Most people just dream and buy sneakers and Gucci sweaters to pretend like they are rich. Invest that money and buy a house as young as you can. I wish my Dad told me these things when I was younger. Skip the $550 retro cement 4's. Dont waste your pay checks on a fancy car. Invest and learn the real estate game. When youre my age you can laugh at all your boys. A smart young brother like yourself can easily be a millionaire. You just got to pass up the Space Jams and the Louis Vuitton belt.
 
Originally Posted by GrimlocK

Bee your right...that post made years ago had alot of good info in it...wish I still bookmarked it...the way dirty put it in the thread is that with a roth IRA you basically have to contribute to it at 21 to see a big return when comes time to retire. Since your 21 right now and if you have a job and are on point with keeping a steady job it would be a good look for you.

I really dont know the specifics but the info is out there.
Click to expand...
Yup i actually remember bookmarking it on my old comp and telling myself i'd read it in depth when i finally had some $$$ in my possession, that comp is long gone tho.
Originally Posted by xfile 11

It is a good thing to think about and trust that no one will be there to take care of you when you're old, unless your kids do. 

A Roth IRA is a good place to start if you are putting money away that you do not need.  There are great tax advantages for you with one, but that being said, it is a retirement account so you can't dip into the money without a penalty.  Well, from what I know, you can take it out for a down payment on a house, medical emergency and maybe education?  I'm not a financial adviser so I do not know all the stipulations.  But that is only the program, you still have to invest the money into it.  I would talk to a professional, but most of them are fairly worthless in my opinion.

I am a stock guy and like small and mid cap companies personally.  That and value investing.  I do not believe in dumping my money into mutual funds that in the long run will grow your money but at a slower pace.  Most, in the neighborhood of 80%, of mutual funds under perform the market.  You have a decent amount of money for your age to invest.  You can invest in etf's (electronically traded funds) or a spdr, both of which will allow you to invest in the 'market' which I think will give you better returns in the long run than mutual funds.  If it is something that interests you, with some time and work, you can do a pretty good job at managing your money.  If that is not something that interests you, try to find a professional, but choose wisely!
Click to expand...
It definitely does interest me but my concern is the overall risk. At my age i know losing around 5k or so on the market wouldn't be the end of the world but at the same time i would kick myself knowing i could have possibly went a "safer" route.. I know close to nothing about the stock market but at the same time i much rather handle my own money than pay someone to do it.. Anything you suggest reading me up on?

Originally Posted by ncmalko1

A roth IRA is a retirement plan where they invest your money into several companies (Mutual Fund). Usually when you have a job you have a % taken out of every paycheck. This money isnt taxed. But it is taxed when you withdrawal it in your later years (55 and up). A roth IRA is the same thing but the money is taxed now but when you retire and take it out, it isnt taxed. Many people prefer the Roth. For example, If you make $1000 a week and put 15% into a Roth IRA $150 (15%) will be automatically taken out of your check and invested. Most people get paid every 2 weeks. So if your 21 and every two weeks youre saving $300 you can imagine how much that would be in 39 years when your 60. That $300 doesnt just sit there. They have fund managers who invest it for you. The economy goes up and down but over decades it always goes up. The younger you start the longer that $6000 grows. It is also comforting to know that life might be hard. You might struggle from time to time but one day you will be a millionaire. Shoes and clothes are fun but really a waste.

Next, if I were you I'd take that $6000 and put it down on a house. Houses are SOOO extremely cheap now. You can profit off other peoples hard times. If you buy a house and rent out a room to one of your homies they will be the one paying off your house. Before the internet boom of the 1990's I read that 95% of all self made millionaires made there money from real estate. For example, buy a house with that 6 grand and rent out a room. In 5 years save up money and buy another house while you rent out the first one. When the economy rebounds that house will be worth a LOT more. Sell it and profit TONS. Real Estate is where the money is. When you get a job get into real estate and start that ROTH immediately. I GUARANTEE you will be a millionaire at 55 if you follow that game plan.

To be honest its good to hear a young dude is trying to come up. Most people just dream and buy sneakers and Gucci sweaters to pretend like they are rich. Invest that money and buy a house as young as you can. I wish my Dad told me these things when I was younger. Skip the $550 retro cement 4's. Dont waste your pay checks on a fancy car. Invest and learn the real estate game. When youre my age you can laugh at all your boys. A smart young brother like yourself can easily be a millionaire. You just got to pass up the Space Jams and the Louis Vuitton belt.
Click to expand...
[color= rgb(255, 255, 0)]Appreciate the response bro, yea i can't lie i love the Louis Belt's and OG kicks as much as any of my other peers but i'd much rather LIVE that Louis life when im older than try to pretend i do right now [/color]
laugh.gif
30t6p3b.gif


[color= rgb(255, 255, 0)]That real estate idea def seems like a good look, there's always people looking to rent in my area. Problem is i don't think i have nowhere near the amount of capital i'd need to purchase something in my area right now. I'm starting up a new job in the next couple of weeks and the yearly salary is pretty decent so i'm gunna use this opportunity that i have to stack as much as i can and REALLY try to purchase something to rent out as soon as possible.[/color]
 
Originally Posted by GrimlocK

Bee your right...that post made years ago had alot of good info in it...wish I still bookmarked it...the way dirty put it in the thread is that with a roth IRA you basically have to contribute to it at 21 to see a big return when comes time to retire. Since your 21 right now and if you have a job and are on point with keeping a steady job it would be a good look for you.

I really dont know the specifics but the info is out there.
Click to expand...
Yup i actually remember bookmarking it on my old comp and telling myself i'd read it in depth when i finally had some $$$ in my possession, that comp is long gone tho.
Originally Posted by xfile 11

It is a good thing to think about and trust that no one will be there to take care of you when you're old, unless your kids do. 

A Roth IRA is a good place to start if you are putting money away that you do not need.  There are great tax advantages for you with one, but that being said, it is a retirement account so you can't dip into the money without a penalty.  Well, from what I know, you can take it out for a down payment on a house, medical emergency and maybe education?  I'm not a financial adviser so I do not know all the stipulations.  But that is only the program, you still have to invest the money into it.  I would talk to a professional, but most of them are fairly worthless in my opinion.

I am a stock guy and like small and mid cap companies personally.  That and value investing.  I do not believe in dumping my money into mutual funds that in the long run will grow your money but at a slower pace.  Most, in the neighborhood of 80%, of mutual funds under perform the market.  You have a decent amount of money for your age to invest.  You can invest in etf's (electronically traded funds) or a spdr, both of which will allow you to invest in the 'market' which I think will give you better returns in the long run than mutual funds.  If it is something that interests you, with some time and work, you can do a pretty good job at managing your money.  If that is not something that interests you, try to find a professional, but choose wisely!
Click to expand...
It definitely does interest me but my concern is the overall risk. At my age i know losing around 5k or so on the market wouldn't be the end of the world but at the same time i would kick myself knowing i could have possibly went a "safer" route.. I know close to nothing about the stock market but at the same time i much rather handle my own money than pay someone to do it.. Anything you suggest reading me up on?

Originally Posted by ncmalko1

A roth IRA is a retirement plan where they invest your money into several companies (Mutual Fund). Usually when you have a job you have a % taken out of every paycheck. This money isnt taxed. But it is taxed when you withdrawal it in your later years (55 and up). A roth IRA is the same thing but the money is taxed now but when you retire and take it out, it isnt taxed. Many people prefer the Roth. For example, If you make $1000 a week and put 15% into a Roth IRA $150 (15%) will be automatically taken out of your check and invested. Most people get paid every 2 weeks. So if your 21 and every two weeks youre saving $300 you can imagine how much that would be in 39 years when your 60. That $300 doesnt just sit there. They have fund managers who invest it for you. The economy goes up and down but over decades it always goes up. The younger you start the longer that $6000 grows. It is also comforting to know that life might be hard. You might struggle from time to time but one day you will be a millionaire. Shoes and clothes are fun but really a waste.

Next, if I were you I'd take that $6000 and put it down on a house. Houses are SOOO extremely cheap now. You can profit off other peoples hard times. If you buy a house and rent out a room to one of your homies they will be the one paying off your house. Before the internet boom of the 1990's I read that 95% of all self made millionaires made there money from real estate. For example, buy a house with that 6 grand and rent out a room. In 5 years save up money and buy another house while you rent out the first one. When the economy rebounds that house will be worth a LOT more. Sell it and profit TONS. Real Estate is where the money is. When you get a job get into real estate and start that ROTH immediately. I GUARANTEE you will be a millionaire at 55 if you follow that game plan.

To be honest its good to hear a young dude is trying to come up. Most people just dream and buy sneakers and Gucci sweaters to pretend like they are rich. Invest that money and buy a house as young as you can. I wish my Dad told me these things when I was younger. Skip the $550 retro cement 4's. Dont waste your pay checks on a fancy car. Invest and learn the real estate game. When youre my age you can laugh at all your boys. A smart young brother like yourself can easily be a millionaire. You just got to pass up the Space Jams and the Louis Vuitton belt.
Click to expand...
[color= rgb(255, 255, 0)]Appreciate the response bro, yea i can't lie i love the Louis Belt's and OG kicks as much as any of my other peers but i'd much rather LIVE that Louis life when im older than try to pretend i do right now [/color]
laugh.gif
30t6p3b.gif


[color= rgb(255, 255, 0)]That real estate idea def seems like a good look, there's always people looking to rent in my area. Problem is i don't think i have nowhere near the amount of capital i'd need to purchase something in my area right now. I'm starting up a new job in the next couple of weeks and the yearly salary is pretty decent so i'm gunna use this opportunity that i have to stack as much as i can and REALLY try to purchase something to rent out as soon as possible.[/color]
 
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