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Investing for those under 40 or so?

Post in 'DIY and General non-hearth advice' started by daveswoodhauler, Mar 3, 2009.

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  1. daveswoodhauler

    daveswoodhauler Minister of Fire

    Joined:
    May 20, 2008
    Messages:
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    Loc:
    Massachusetts
    Whay kind of farm do you have? (Crops? Beef?)
    Also, able to buy at 21...good deal...where you get your down payment? (just curious)

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  2. struggle

    struggle Minister of Fire

    Joined:
    Oct 24, 2006
    Messages:
    727
    Loc:
    NW Iowa
    For the past five years we have been aggressively paying off our mortgage. We as of this past spring paid our house off and are completely DEBT FREE.

    It is a feeling that is hard to explain as so few people now days get to experience it. IT is worth all the struggle to become this way.

    As for investing we are staying statues quo and maximize our IRA contributions for tax breaks. The left overs go into a account earning a big 2+%. When things start to swing back up then we might go back into some index stocks but me thinks the market is still headed down more for the next year or two.
  3. JustWood

    JustWood Minister of Fire

    Joined:
    Aug 14, 2007
    Messages:
    3,525
    Loc:
    Arrow Bridge,NY
    With record unemployment increasing weekly,mortgage failures increasing,bankruptcies of huge companies increasing,corporate fraud increasing, and almost new record lows on the market almost on a weekly basis for the last 6 months a person must be insane to invest now. I'm holding out putting any more money into the market until these type of indicators start to reverse.
  4. myzamboni

    myzamboni Minister of Fire

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    May 22, 2007
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    Silicon Valley
    so instead of diversification you want to gamble on real estate values holding and the commodity market playing in your favor? Does not sound much safer than a 401K. The key is to invest in what you understand. I hope your mom moved her funds into the more conservative selections her 401K offers instead of pulling it out and getting nailed with the tax as it is a better approach.
  5. stee6043

    stee6043 Minister of Fire

    Joined:
    Aug 22, 2008
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    2,384
    Loc:
    West Michigan
    In the past 25 years 95% of the accumulated wealth made by stock market investments (whether they are stocks, bonds, mutual funds, etc) have been made on 1% of the trading days. Waiting for things to swing back up is pretty much a loosing proposition. You gotta get in and stay in!
  6. Shipper50

    Shipper50 Minister of Fire

    Joined:
    Nov 10, 2007
    Messages:
    604
    Loc:
    Indiana
    I have one bit of advice for younger investors. Start now, don't look at it everyday, diversify, live a long life and when you get old enough,have a cold one and think of me. ;-)

    Shipper
  7. daveswoodhauler

    daveswoodhauler Minister of Fire

    Joined:
    May 20, 2008
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    1,847
    Loc:
    Massachusetts
    I'll have the buddy to the left have a cold one for you too :)
  8. mainstation

    mainstation Feeling the Heat

    Joined:
    Jan 4, 2009
    Messages:
    342
    Loc:
    N.Ont.
    I am done with letting others manage my retirement fund a.k.a RRSP's and Mutual funds. My advice is fix your house up, it is your greatest investment(probably). My next move would be to invest any extra $$ and buy a rental house. Bricks and Mortar, safe as houses and all that. At least with House insurance, if it burns down, you are still covered for the amount you want to insure it for and pick your premiums.
  9. ROYJ24

    ROYJ24 Member

    Joined:
    Oct 3, 2007
    Messages:
    148
    Loc:
    S. JERSEY
    I invested in 401K, then borrowed from it before market plunged. Now I'm paying it back & getting shares cheaper.
    Used loan for buying home. Sometimes it's better to be lucky than good.
  10. SolarAndWood

    SolarAndWood Minister of Fire

    Joined:
    Feb 3, 2008
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    6,770
    Loc:
    Syracuse NY
    Take a good hard look at the options in your retirement plan and find the cheapest way to buy the market. This will be in the fine print of the fees for each of the funds you have access to. Most plans now have an inexpensive way to buy the S&P;or QQQ if you have access to ETFs. No one beats the market in the long run except the guy who whacks your retirement account for fees. Outside of your retirement, the population grows and there is only so much land and so much energy, choose wisely.
  11. mn_jon

    mn_jon Member

    Joined:
    Mar 5, 2009
    Messages:
    54
    Loc:
    northern minnesota
    there are two schools of thought on this :

    1. keep investing the same all of the time, only changing the risk level as your retirement is near (7 years or less away)

    2. sell off everything and prepare for total collapse of society (like in Mad Max !!!!)


    I guess I am somewhere in between, i've developed an emergency fund (thanks suzie orman), don't carry any debt except the mortgage, and most importatly CONTROL MY SPENDING. Geez, advertisers would have you spend your last dime on worthless crap you don't need !
  12. boostnut

    boostnut Member

    Joined:
    Nov 2, 2007
    Messages:
    216
    Loc:
    central IL
    If you're between the ages of 20 and 50 and not currently taking advantage of an employer match with your retirement plan I'd say your f'n crazy. You're giving yourself a raise, its that simple. Say your employer agrees to match 5%, take it, its a 5% raise. No, you dont see it on your paycheck but it'll be there in the end (we hope). The 50 cent gas example back a couple pages is right on. There are bargains out there now, some risky some not. My goal has always been to not work for my money but to have my money working for me. At the ripe ol age of 32 I'm starting to see some serious results. The only debt the wife and I have is less than 100k on a house. No credit card balances carried over, school debt paid for..... Seriously, if you can't afford to invest 5% or so of your income you aren't likely livin right. Yeah, I understand there are a variety of exceptions. People are laid off, hours are cut back at work, etc. but if you're working full time about 5% shouldn't change your lifestyle. The best advise I've ever been given is this: The best time to invest is whenever you have the income to do so. Dont know about ya'll but I'm not working thru my 60's.
  13. jklingel

    jklingel Feeling the Heat

    Joined:
    Oct 23, 2007
    Messages:
    279
    Loc:
    Fairbanks
    Yes, everything is on sale now. Buy what you can afford. Buy WHAT? I spent many years, like many of us, reading, thinking, reading more, investing in "quality" mutual funds, some stocks, etc, and have come to this conclusion: The S&P;500 is where "it" is at. Find me a fund that has beaten the S&P;500 for many years, and I'll show you a fund (that one) that will soon tank and trail it. Many years have I looked at XXXX Magazine's (money guru types) hot funds, and then looked at their long term records; ho hum. Then watch them for a while; they all fall. Index funds are cheap to manage, too, which puts more money into your pocket. CHALLENGE: If anyone knows any mutual fund manager(s) who will GUARANTEE that they will beat the S&P;500 for the next 20 yrs, I'd like to give them all my money. They can have their usual management fees PLUS 50% of the difference between their fund's earnings ("in my pocket" earnings) and the S&P;500. It would be a win-win for both of us, but you ain't gonna find anyone who will take up my challenge. Sermon ended. Good luck w/ your investing, and hang in there. If you have sound managers who look for slow, steady growth, you'll be fine. The folks who get their cookies crumbled are the fast-money gamblers. j
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