OT: Investing - Stocks/Mutual Funds/Bonds/Crypto

[feldm093]

I just continually find myself at a loss of where to begin.

Part of the difficulty is the potential of grad school. I've been accepted to an awesome Master's program, but the school is private and East Coast, and of course the tuition reflects that. Thanks to stupidity as an undergrad, I've already got ~$80k in student loans, so I'm stuck trying to scrounge up as much scholarship money as I can get, balancing how much more debt I could take and survive, and also having to build up savings for living expenses if I did follow through on school.

However, I want to actively work towards saving up for retirement as early as I can. I've got the company 401k going at 10% of income, but I'm only now realizing just how little that is. I want to invest more money elsewhere, but I'm A) Inclined to put money in a fund of some sort and let it work for me B) Not sure how much to put in given the need for quick cash in about a year C) Unsure what broker or service to use (a Vanguard Target Fund? Betterment "risk adjusted" investments?).

I hate the number of times I sit down to look at finances and feel like I'm looking up Mt. Everest.

[HaroldinGMinor]

Robinhood is adding Litecoin and Bitcoin Cash

[HaroldinGMinor]

I just continually find myself at a loss of where to begin.

Part of the difficulty is the potential of grad school. I've been accepted to an awesome Master's program, but the school is private and East Coast, and of course the tuition reflects that. Thanks to stupidity as an undergrad, I've already got ~$80k in student loans, so I'm stuck trying to scrounge up as much scholarship money as I can get, balancing how much more debt I could take and survive, and also having to build up savings for living expenses if I did follow through on school.

However, I want to actively work towards saving up for retirement as early as I can. I've got the company 401k going at 10% of income, but I'm only now realizing just how little that is. I want to invest more money elsewhere, but I'm A) Inclined to put money in a fund of some sort and let it work for me B) Not sure how much to put in given the need for quick cash in about a year C) Unsure what broker or service to use (a Vanguard Target Fund? Betterment "risk adjusted" investments?).

I hate the number of times I sit down to look at finances and feel like I'm looking up Mt. Everest.

If your masters degree will add to your earnings potential (significantly) then taking on the debt is fine. It's like financing an expansion of your business to increase profits later on. If you are getting a master's in social work that is an admirable career but you'll probably never pay off the debt.

[MAC1987]

https://www.newsbtc.com/2018/07/18/mark-lasry-believes-bitcoin-is-heading-for-40000-invests-1-of-net-worth/?utm_source=dlvr.it&utm_medium=facebook

[MAC1987]

Now that Mark Lasry is investing in bitcoin you all going to jump in?

[midranger]

https://www.newsbtc.com/2018/07/18/mark-lasry-believes-bitcoin-is-heading-for-40000-invests-1-of-net-worth/?utm_source=dlvr.it&utm_medium=facebook

I didn’t click on the link, but you know it’s good based on how the author didn’t spell the article’s subject’s name correctly.

[midranger]

I just continually find myself at a loss of where to begin.

Part of the difficulty is the potential of grad school. I've been accepted to an awesome Master's program, but the school is private and East Coast, and of course the tuition reflects that. Thanks to stupidity as an undergrad, I've already got ~$80k in student loans, so I'm stuck trying to scrounge up as much scholarship money as I can get, balancing how much more debt I could take and survive, and also having to build up savings for living expenses if I did follow through on school.

However, I want to actively work towards saving up for retirement as early as I can. I've got the company 401k going at 10% of income, but I'm only now realizing just how little that is. I want to invest more money elsewhere, but I'm A) Inclined to put money in a fund of some sort and let it work for me B) Not sure how much to put in given the need for quick cash in about a year C) Unsure what broker or service to use (a Vanguard Target Fund? Betterment "risk adjusted" investments?).

I hate the number of times I sit down to look at finances and feel like I'm looking up Mt. Everest.

0. Emergency fund
1. Disability insurance
2. Term life insurance if you have dependents, if not, skip
3. High interest (credit card) debt, if any
4. 401k to Company match
5. Moderate interest debt (typical student loans these days)
6. Max 401k
7. Traditional vs Roth IRA depending on your income
8. Lots of options: brokerage, save for house down payment, low interest debt, etc... at this point you’re doing pretty well

Put your emergency fund in a vanguard or ally money market account. Once you feel you have enough and your debt is paid down, then open brokerage (taxable) accounts. Invest in whatever broad index funds you want. Vanguard target dates are easy and cheap (.14% iirc). Just look for cheap, because fees kill you over the long term. Leave money alone if possible. Dont speculate. Don’t buy stupid stuff. Retire a multi millionaire at 60.

[MickeyDavis]

https://www.newsbtc.com/2018/07/18/mark-lasry-believes-bitcoin-is-heading-for-40000-invests-1-of-net-worth/?utm_source=dlvr.it&utm_medium=facebook

I didn’t click on the link, but you know it’s good based on how the author didn’t spell the article’s subject’s name correctly.

[raws]

I just continually find myself at a loss of where to begin.

Part of the difficulty is the potential of grad school. I've been accepted to an awesome Master's program, but the school is private and East Coast, and of course the tuition reflects that. Thanks to stupidity as an undergrad, I've already got ~$80k in student loans, so I'm stuck trying to scrounge up as much scholarship money as I can get, balancing how much more debt I could take and survive, and also having to build up savings for living expenses if I did follow through on school.

However, I want to actively work towards saving up for retirement as early as I can. I've got the company 401k going at 10% of income, but I'm only now realizing just how little that is. I want to invest more money elsewhere, but I'm A) Inclined to put money in a fund of some sort and let it work for me B) Not sure how much to put in given the need for quick cash in about a year C) Unsure what broker or service to use (a Vanguard Target Fund? Betterment "risk adjusted" investments?).

I hate the number of times I sit down to look at finances and feel like I'm looking up Mt. Everest.

0. Emergency fund
1. Disability insurance
2. Term life insurance if you have dependents, if not, skip
3. High interest (credit card) debt, if any
4. 401k to Company match
5. Moderate interest debt (typical student loans these days)
6. Max 401k
7. Traditional vs Roth IRA depending on your income
8. Lots of options: brokerage, save for house down payment, low interest debt, etc... at this point you’re doing pretty well

Put your emergency fund in a vanguard or ally money market account. Once you feel you have enough and your debt is paid down, then open brokerage (taxable) accounts. Invest in whatever broad index funds you want. Vanguard target dates are easy and cheap (.14% iirc). Just look for cheap, because fees kill you over the long term. Leave money alone if possible. Dont speculate. Don’t buy stupid stuff. Retire a multi millionaire at 60.

re: #1, do you work for NML? Disability insurance over CC debt?

[midranger]

I just continually find myself at a loss of where to begin.

Part of the difficulty is the potential of grad school. I've been accepted to an awesome Master's program, but the school is private and East Coast, and of course the tuition reflects that. Thanks to stupidity as an undergrad, I've already got ~$80k in student loans, so I'm stuck trying to scrounge up as much scholarship money as I can get, balancing how much more debt I could take and survive, and also having to build up savings for living expenses if I did follow through on school.

However, I want to actively work towards saving up for retirement as early as I can. I've got the company 401k going at 10% of income, but I'm only now realizing just how little that is. I want to invest more money elsewhere, but I'm A) Inclined to put money in a fund of some sort and let it work for me B) Not sure how much to put in given the need for quick cash in about a year C) Unsure what broker or service to use (a Vanguard Target Fund? Betterment "risk adjusted" investments?).

I hate the number of times I sit down to look at finances and feel like I'm looking up Mt. Everest.

0. Emergency fund
1. Disability insurance
2. Term life insurance if you have dependents, if not, skip
3. High interest (credit card) debt, if any
4. 401k to Company match
5. Moderate interest debt (typical student loans these days)
6. Max 401k
7. Traditional vs Roth IRA depending on your income
8. Lots of options: brokerage, save for house down payment, low interest debt, etc... at this point you’re doing pretty well

Put your emergency fund in a vanguard or ally money market account. Once you feel you have enough and your debt is paid down, then open brokerage (taxable) accounts. Invest in whatever broad index funds you want. Vanguard target dates are easy and cheap (.14% iirc). Just look for cheap, because fees kill you over the long term. Leave money alone if possible. Dont speculate. Don’t buy stupid stuff. Retire a multi millionaire at 60.

re: #1, do you work for NML? Disability insurance over CC debt?

No. I do know that 1/6 people become disabled at some point during their working career. If that happens to you, at 25, without disability insurance, you are destined to live poor forever. You can eventually overcome credit card debt. You can’t overcome the loss of all your future income.

As for NWM. No. I think they are a corporation of flexible morality that preys on the financially unsophisticated. Whole life insurance is a scam intended to build large skyscrapers with lake views. Term life insurance is a commodity, and theirs is the most expensive. Their disability insurance is also the most expensive and never own-occupation, which matters to some professions. So no, I don’t work for them. They got their pound of flesh from my younger self, and I will now return the favor by trying to steer as many people away from them as I can by posting things like this online.

[sidney lanier]

However, I want to actively work towards saving up for retirement as early as I can. I've got the company 401k going at 10% of income, but I'm only now realizing just how little that is. I want to invest more money elsewhere, but I'm A) Inclined to put money in a fund of some sort and let it work for me B) Not sure how much to put in given the need for quick cash in about a year C) Unsure what broker or service to use (a Vanguard Target Fund? Betterment "risk adjusted" investments?).

I hate the number of times I sit down to look at finances and feel like I'm looking up Mt. Everest.

Your 401k may seem puny now, but there will come a day when you wonder how you got to the top of the mountain so easily. Patience, time, and avoiding the mistake of doing too much fiddling will get you to your retirement goal.

[Pachinko_]

I just continually find myself at a loss of where to begin.

Part of the difficulty is the potential of grad school. I've been accepted to an awesome Master's program, but the school is private and East Coast, and of course the tuition reflects that. Thanks to stupidity as an undergrad, I've already got ~$80k in student loans, so I'm stuck trying to scrounge up as much scholarship money as I can get, balancing how much more debt I could take and survive, and also having to build up savings for living expenses if I did follow through on school.

However, I want to actively work towards saving up for retirement as early as I can. I've got the company 401k going at 10% of income, but I'm only now realizing just how little that is. I want to invest more money elsewhere, but I'm A) Inclined to put money in a fund of some sort and let it work for me B) Not sure how much to put in given the need for quick cash in about a year C) Unsure what broker or service to use (a Vanguard Target Fund? Betterment "risk adjusted" investments?).

I hate the number of times I sit down to look at finances and feel like I'm looking up Mt. Everest.

You'll probably get better advice on investing from others here, but here's a practical tip when you're paying off loans (whatever loans). Works great in Australia, I'm guessing it wouldn't be any different elsewhere.

Start an offset account, ie a savings account that counts against the balance of your loans when the interest is calculated.
Tell your employer to deposit your salary directly in that account, do the same with any other income you might have immediately as you receive it.
Take a low fee credit card with the same bank, doesn't matter what interest rate.
Ring your bank and ask them what day of the month they charge interest on your card, it's usually a specific day mid month.
Use that card for everything you can.
Pay it off completely every month from your offset account the last day before your interest is charged.

Trust me those extra days in and out will save you many thousands over time, and you will still have access to your cash if there is a need (or an opportunity). Great way to monitor your expenses as well.
If your bank refuses any of the above it's worth moving everything to another bank, seriously.

[HaroldinGMinor]

I just refinanced my grad student loans and cut the interest rate by more than 50%. To celebrate I will max out my credit cards

[brewbucks]

Some pretty solid advice these last few pages. Props!

[brewbucks]

0. Emergency fund
1. Disability insurance
2. Term life insurance if you have dependents, if not, skip
3. High interest (credit card) debt, if any
4. 401k to Company match
5. Moderate interest debt (typical student loans these days)
6. Max 401k
7. Traditional vs Roth IRA depending on your income
8. Lots of options: brokerage, save for house down payment, low interest debt, etc... at this point you’re doing pretty well

Put your emergency fund in a vanguard or ally money market account. Once you feel you have enough and your debt is paid down, then open brokerage (taxable) accounts. Invest in whatever broad index funds you want. Vanguard target dates are easy and cheap (.14% iirc). Just look for cheap, because fees kill you over the long term. Leave money alone if possible. Dont speculate. Don’t buy stupid stuff. Retire a multi millionaire at 60.

re: #1, do you work for NML? Disability insurance over CC debt?

No. I do know that 1/6 people become disabled at some point during their working career. If that happens to you, at 25, without disability insurance, you are destined to live poor forever. You can eventually overcome credit card debt. You can’t overcome the loss of all your future income.

As for NWM. No. I think they are a corporation of flexible morality that preys on the financially unsophisticated. Whole life insurance is a scam intended to build large skyscrapers with lake views. Term life insurance is a commodity, and theirs is the most expensive. Their disability insurance is also the most expensive and never own-occupation, which matters to some professions. So no, I don’t work for them. They got their pound of flesh from my younger self, and I will now return the favor by trying to steer as many people away from them as I can by posting things like this online.

They are the worst! I have a buddy that just started working for them and he asks me to come to his office to talk. I come to his office and we discuss life in general. After the meeting he's like "come by next week my coach will be in our meeting as well and there will be free lunch" and I'm like alright. Before any of this I tell my friend I'm not interested at all in any of the products you guys are selling and considering I work in the financial field I know my **** regarding this stuff. So when I meet with my friend and his coach the bull begins. They start guilt tripping me into buying the whole life insurance and the disability insurance as well as annuities and I'm like no, I'm good on that. I start hitting them with the hard ball questions and **** from research I did regarding everything and I could tell my friend's sales coach was getting pissed off. He kept saying you're going to need this and all sorts of **** and that "your research is wrong and I've been doing this 30 years" and all types of other ****. Needless to say after that meeting I told my friend never to ever meet me regarding this **** ever again.

The guy was really trying to pressure me into signing my life away after 2 one-hour meetings. I'm in my mid-20's so I take it they talk a lot of younger people into doing this dumb ****. I ended up just trolling in one of the meetings with **** I wrote on paper from reddit regarding NWM sales people.

[MartyConlonOnTheRun]

However, I want to actively work towards saving up for retirement as early as I can. I've got the company 401k going at 10% of income, but I'm only now realizing just how little that is. I want to invest more money elsewhere, but I'm A) Inclined to put money in a fund of some sort and let it work for me B) Not sure how much to put in given the need for quick cash in about a year C) Unsure what broker or service to use (a Vanguard Target Fund? Betterment "risk adjusted" investments?).

I hate the number of times I sit down to look at finances and feel like I'm looking up Mt. Everest.

Your 401k may seem puny now, but there will come a day when you wonder how you got to the top of the mountain so easily. Patience, time, and avoiding the mistake of doing too much fiddling will get you to your retirement goal.

The hardest part is not fiddling. I know letting it sit is my best bet but it is boring as hell. I want to get into real estate or other areas but i basically made a deal with myself that I won't do any of that until I'm maxing out all taxable accounts. Anything on top of that is fun money and can do whatever crazy schemes I want after that. I will be a millionaire at that point anyways even my real estate flops.

To echo the "sit back and get rich" crowd, if you wait until you and your wife are something like 35 and max out retirements for 25 years and do nothing else but get modest returns (5.5%), you will retire as a couple with 3m. Add in a paid off house and cars and you can withdraw 4% basically forever ($120k/yr) without denting your stash.

[MilTownBucks]

I love reading this thread as I work in the accounting field and am usually browsing yahoo finance daily.

I'm 27, have a 3k emergency fund sitting in a money market (only .11%), contributing to my companies 401k (not maxing it out - only on pace for contributing 4k compared to the max of 18k), no cc debt, student loans paid off, no disability insurance, and have a car loan of about 8k.

My question is what advice anyone would have on what to do next. I've been looking at a few stocks to invest in and Canopy has been really catching my eye. I'm hoping for it to go below 20 until I throw money into it but I'm wondering if that is even a smart move. Is there something I need to be doing first? I've been reading that I should just throw my money into a vanguard index fund and watch it build up. I realize that that is probably much safer but I know there are a few of you who are watching the marijuana stocks pretty closely and would love to hear your thoughts.

I am new to this but my coworker has just started putting money into stocks through fidelity and has made a decent amount of money in just a few short weeks so it has me thinking that I should get in on this.

[midranger]

The thing to know about Northwestern Mutual Life (and this is very important here in Milwaukee given half the populous works for them), is that the guys in the ground who befriend you, and buy you lunch, and give you free tickets are not your friends. They have no real credentials. They are not fiduciaries. They aren’t really financial people. They are people who attended a three week seminar in sales. They are insurance salespeople who were taught that the best investment is insurance. Not shockingly, NWML insurance (because they’ve been around the longest, etc...).

This doesn’t make them bad people, it just makes NWML a bad corporation. If you knew that your entire first year’s payment on whole life insurance was going to the guy sitting across the table from you in commissions, what would you say? If you knew that the “projected” dividend structure that they show you is far different for the “guaranteed” (read: actual) dividend structure, what would you say? If I told you it’d take you at least a dozen years to break even on this investment regardless of the massive run up we’ve experienced in the market, what would you say? If i told you that you DON’T get both the death benefit and the cash value they keep showing you (it’s one or the other), what wouldn’t you say? If I told you if you wanted to access any of the cash value (as in, before you die) in the policy you’d have to pay 8% interest to NWML until paid back, and you can probably get a HELOC for about 4.7%, what would you say? What if I told you they won’Ut tell you any of this stuff when selling you?

Not bad people. Just taught bad info with all the motivation to sell, sell, sell. Just stay away y’all.

[midranger]

I love reading this thread as I work in the accounting field and am usually browsing yahoo finance daily.

I'm 27, have a 3k emergency fund sitting in a money market (only .11%), contributing to my companies 401k (not maxing it out - only on pace for contributing 4k compared to the max of 18k), no cc debt, student loans paid off, no disability insurance, and have a car loan of about 8k.

My question is what advice anyone would have on what to do next. I've been looking at a few stocks to invest in and Canopy has been really catching my eye. I'm hoping for it to go below 20 until I throw money into it but I'm wondering if that is even a smart move. Is there something I need to be doing first? I've been reading that I should just throw my money into a vanguard index fund and watch it build up. I realize that that is probably much safer but I know there are a few of you who are watching the marijuana stocks pretty closely and would love to hear your thoughts.

I am new to this but my coworker has just started putting money into stocks through fidelity and has made a decent amount of money in just a few short weeks so it has me thinking that I should get in on this.

see above. I Can't stress this enough, get disability insurance. Especially when you’re young and healthy. It’ll be relatively cheap, and it’s great protection. Then max out the 401k. The returns on canopy would have to be great (they haven’t been unless you beat legalization fever around the first of the year) to offset the tax savings. Then the ira, where you can buy whatever you want including canopy. Only once all this is maxed, then funny money in brokerage or poker or gold or bitcoin or fantasy football or pork bellies or beanie babies.

[HaroldinGMinor]

Maxing out a 401K is incredibly difficult for people in their 20's. The max is $18,500 so if you're making $40K that's almost half your income. At the very least put in as much as your company will match then work your way up to 15% and go up from there as time goes by. If you get a raise don't buy a new TV, add another percentage point to your 401K. It all depends on your spending habits too but remember that sometimes putting more into a retirement plan forces you to be more budget conscious.