Roth IRAs!

[weekender21]

i think when it comes to investing, a good solution now is better than a great one later. You can tweak things as you go, as you learn more. Which is not to say you can’t make bad investments, so don’t rush into it either.

Best advice ever. Do some research and get a good option going ASAP.


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[weekender21]

I agree with starting sooner than later. Time is the biggest factor in investing, see “compound interest”

An advisor is good, I recommend it. They can let you know what type of accounts you should open. Your bank may offer some of this “for free”. Just be careful that they maybe incentivized by an investment company.

When investing, watch out for fees. Some funds will charge more fees than others to “manage”. Places likes Vanguard have lower fees. American funds is good too. Just look for “index funds”. Those will have lower fees.

the robo investing apps are ok, but I wasn’t liking it as much as my American Funds account.

I have several American Fund accounts, higher fees than Vanguard but they are good performers.


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[woodsdog2]

Vanguard's Wellington Fund is an excellent stable market fund with a very low cost per earnings or (PE ratio) which is important to look at when you're shopping for mutual funds. Stated simply, a fund with a lower PE ratio will make you money at a lower cost than one which has a higher PE ratio. Ideally, if you are working for someone and they match your investment that's the best case scenario. If you are the type that can't stand losing anything at all at any time, then invest in something like this. If you're the type that can understand some risk and is willing to take a little to perhaps make great gains too and you are relatively young, go with more capital type funds rather than ones with a lot of bonds and low risk stocks. International funds can be hot with returns up into the double digits percentage wise but they can also crash hard too. The key is diversification. I agree with another poster here too where you think you can predict the market etc. Never buy one stock. TR Price has mutual funds that are based on your year of retirement and they get less risky as you go along. Investment vehicles like these are probably the best option for people that do not want to spend a lot of time picking funds and just want to be sure that as they get closer to retirement they will not lose everything to a super risky common stock or international type fund. Anyway, now is the time to do this because with our current President, the markets are surging and records keep breaking. The DOW will hit 30,000 this year!!!! I know we are to stay out of politics but facts are facts.

 

[Peterk1234]

Talk to your account as well to make sure you q

My dad always taught me there's 2 basic rules to saving...
Rule 1: Pay yourself first (retirement savings, 401k, Roth IRA, etc.)
Rule 2: if you can't afford to do rule 1, change your lifestyle

This is sound advice. I am self employed. My "regular pay" is used for bills. If I have no regular pay, I use my home equity. Then I have "extra income" which is income I generate from other than my main line of business. All of that is used for investments. It is hard to stick to the plan when you see your home equity creeping but we do whatever is necessary, including curbing spending.

Well, last year it paid off. We wiped out our home equity, home mortgage as well as the one on our little ski condo. We saved a big chunk over the past ten good years in this economy. Kids colleges are also all paid for. We have set a number we are trying to hit, which I think we can do in 4 years. We will be 57. If all goes right, I'm done and my wife is done.

Always live below your means. If your income increases over time, still live your life like when your were just starting out. Question all expenses. You know that coffee you get at Dunkin Donuts or Starbucks every day? Ya, that is about $1500 per year of after tax income. Ouch. Multiply that over thirty years and factor in compounding. You will puke.

Pay yourself first is sound advice. Pete

 

[ofor]

Make sure that the advisor you find is acting as a “fiduciary” with your best interest in mind. They are legally required to disclaim this honestly now. Some advisors are compensated by selling only their companies investment vehicles instead of what might be best for your situation. Also get your estate in order (especially if you have a spouse and children) with a signed power of attorney and living will document for you and your spouse.

 

[bj139]

Save 10% of your income in a retirement account all your life. It becomes easy to live on the other 90%. That is you new income. If you do this all other factors are secondary.

 

[onestringer]

Feel free to hit me up if you would like some info. In a previous life I was a Financial Advisor for Edward Jones. There are many things to take into consideration with your specific situation being self employed that play a larger factor than just paying taxes now versus later.


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And now you are a nuclear physicist. You are a smart dude.