Hey guys, I've recently just started my career. While I'm not making much money yet, I'm trying to plan and save for the future. Does anyone know much about investments? I was thinking about doing on of those low/moderate risk-high yield investments, or maybe what I think is called a "Roth", I've heard people mention it, no real idea what it is, lol. If anyone has any kind of financial advice they can give, no matter what it regards, I'd like to hear it. Thanks.
Kevin, If I may make a suggestion that I wish I had when just starting out.. Check out the Money Map program found at www.crown.org NOTE: This is a Christian ministry which may or may not fall in line with your personal beliefs BUT the financial advice in the Map can be adapted and it will help set you off right. They discuss such things as getting a spending plan in place, making sure you have a certain number of month's expenses saved before you start making those longer term investments, paying off debt, etc. It is an excellent guide to financial health.
Kevin, Try finding Edelman's book "The Truth About Money". (Get it from the library. It has clear explanations of financial items. A Roth IRA is great if you qualify. You put in after tax dollars but you are not taxed on the earnings when you take them out at retirement. Jim
Kevin, cut down on shaving stuff and you'll be a millionaire at the end of the year :rofl sorry, couldn't resist :ashamed001
Best advice I can give. SAVE! Save now, 401k - High Yeild - Low Yeild - Trift Savings - Bonds -Stock, etc.
Hey, thanks for the advice guys. Do you know the requirements as far as qualifying for a Roth IRA goes? And what is a Thrift Saving? What are good bonds(them government bonds any good)?
Couldn't have said it any better than this. Requirements for Roth - none, except if you are contributing max to your 401 (k) then it does nothing from tax benefit standpoint to then contribute to IRA....though of course you are still "saving" for retirement
Invest as soon as you can in your 401(k) plan at work. Companies will usually match up to a certain percent of your contributions. In a few weeks time members of an organization I am a member of NAPFA ( Fee only Financial Planners) will be providing free retirement planning advise over the phone. They can help you with risk tolerance and asset allocation. You can get more info at Napfa.org or Kiplinger's Magazine.
I would suggest (in addition to the other great advice) that you get your hands on a book titled "Financial Peace", By Dave Ramsey. He has a website (i think). He focuses more on getting out of debt, but his plan is sound: DO NOT GET CREDIT (basically). He touches on investments like the Roth and other IRAs as well. See if your bank has an investment "department". Talk to the folks there, or check them out on the web. Do a search for IRA, Mutual Fund, Stock Trading, etc. Get all the information you can before giving a stranger your money. If you are just starting out and not married, the conventional wisdom is to go for higher risk "aggressive" stocks and funds. The reason is that you have more time to make up if you lose money.
