I opened a ROTH IRA today. I am becoming more growed up.

It's not much, but it's a start. $1500 at 3.26 apy

It's not much, but it's a start. $1500 at 3.26 apy

How does this work? I am wondering if I should start some type of retirement fund at my age soon.

Well... the one i started was basically a fucking CD...

but a variable rate roth IRA can be deposited into and .... other stuff. Im pretty dumb but im worried about saving money, and i hate risk.

So Roth IRA here i come

But.. .yeah. Start saving now hara beara.

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

How does this work? I am wondering if I should start some type of retirement fund at my age soon.

Time is probably your biggest asset.  The sooner you start, the more time you have to grow your fund.

It's not much, but it's a start. $1500 at 3.26 apy

hooray fro inflation. By the time you get your money, it will be less worthed than when you started saving.

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

hooray fro inflation. By the time you get your money, it will be less worthed than when you started saving.

FAIL.

It's not much, but it's a start. $1500 at 3.26 apy

Dann, you need to get that into mutual funds...around 8-12%.  I can recommend an invesment guy if you would like.

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

How does this work? I am wondering if I should start some type of retirement fund at my age soon.

YES YES YES YES YES.  START NAO!!! For every year you wait is another year you can never catch up.

True story.

Person A saves 3000 a year from the time he is 18 till the time he is 24(250 a month) and then stops saving.  A grand total of 18,000 dollar investment. At 12% interest Person A has $2,265,562.22 in the bank at age 60.  

Person B saves 3000 every year from the time he is 24 till the time he is 64.  The same 250 a month but because he started 6 years later now makes a $120,000 investment(over 10X Person A's investment), wait 4 years longer and has $2,301,367.31 to show for it in the bank when he hits 64.  

The power of compounding intrest cannot be ignored.  Start now.  If you wait another day its too long.

Run the numbers yourself.  I wish they would have taught me this in math class when I was in high school.

Quote from: parsec on May 01, 2010, 05:40:07 PM

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

hooray fro inflation. By the time you get your money, it will be less worthed than when you started saving.

FAIL.

Look up nominal and real economic variables. Specifically interest rates. Also, look for the long term average inflation rate in the United States. It is 3.42%. True story.

Quote from: WardoggKC130FE on May 01, 2010, 08:31:19 PM

Quote from: parsec on May 01, 2010, 05:40:07 PM

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

hooray fro inflation. By the time you get your money, it will be less worthed than when you started saving.

FAIL.

Look up nominal and real economic variables. Specifically interest rates. Also, look for the long term average inflation rate in the United States. It is 3.42%. True story.

Agreed at his current rate he's at the inflation mark.

Quote from: parsec on May 01, 2010, 05:40:07 PM

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

hooray fro inflation. By the time you get your money, it will be less worthed than when you started saving.

FAIL.

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

Dann, you need to get that into mutual funds...around 8-12%.  I can recommend an invesment guy if you would like.

Quote from: cmdshft on May 01, 2010, 02:24:32 PM

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

How does this work? I am wondering if I should start some type of retirement fund at my age soon.

YES YES YES YES YES.  START NAO!!! For every year you wait is another year you can never catch up.

True story.

Person A saves 3000 a year from the time he is 18 till the time he is 24(250 a month) and then stops saving.  A grand total of 18,000 dollar investment. At 12% interest Person A has $2,265,562.22 in the bank at age 60.  

Person B saves 3000 every year from the time he is 24 till the time he is 64.  The same 250 a month but because he started 6 years later now makes a $120,000 investment(over 10X Person A's investment), wait 4 years longer and has $2,301,367.31 to show for it in the bank when he hits 64.  

The power of compounding intrest cannot be ignored.  Start now.  If you wait another day its too long.

Run the numbers yourself.  I wish they would have taught me this in math class when I was in high school.

I lost a lot of money in mutal funds... but when i have more to invest... i think imma check out what i can and try to get back into the mutal fund game.

I lost a lot of money in mutal funds... but when i have more to invest... i think imma check out what i can and try to get back into the mutal fund game.

The only reason you "lost" is because sold.  Bad Dann. 

Quote from: theonlydann on May 02, 2010, 01:29:32 PM

I lost a lot of money in mutal funds... but when i have more to invest... i think imma check out what i can and try to get back into the mutal fund game.

The only reason you "lost" is because sold.  Bad Dann. 

I know i know. But i was much much younger and needed the money at that point. I blame the assholes that put a plane into the WTC.

Quote from: parsec on May 01, 2010, 05:40:07 PM

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

hooray fro inflation. By the time you get your money, it will be less worthed than when you started saving.

FAIL.

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

Dann, you need to get that into mutual funds...around 8-12%.  I can recommend an invesment guy if you would like.

Quote from: cmdshft on May 01, 2010, 02:24:32 PM

Quote from: theonlydann on May 01, 2010, 10:58:38 AM

It's not much, but it's a start. $1500 at 3.26 apy

How does this work? I am wondering if I should start some type of retirement fund at my age soon.

YES YES YES YES YES.  START NAO!!! For every year you wait is another year you can never catch up.

True story.

Person A saves 3000 a year from the time he is 18 till the time he is 24(250 a month) and then stops saving.  A grand total of 18,000 dollar investment. At 12% interest Person A has $2,265,562.22 in the bank at age 60.  

Person B saves 3000 every year from the time he is 24 till the time he is 64.  The same 250 a month but because he started 6 years later now makes a $120,000 investment(over 10X Person A's investment), wait 4 years longer and has $2,301,367.31 to show for it in the bank when he hits 64.  

The power of compounding intrest cannot be ignored.  Start now.  If you wait another day its too long.

Run the numbers yourself.  I wish they would have taught me this in math class when I was in high school.

I'm sold. You should be an IRA broker.

I blame the assholes that put a plane into the WTC.

You mean the Bush administration??  Yuk Yuk Yuk.  

I'm sold. You should be an IRA broker.

Its just math,  I wish I was Person A, not only did I not start at 18, or 24 for that matter, im starting at 34 so i have serious catch up to do.  I can recommend an investment guy if you like, in your local area.

One thing I forgot, and this is super important.  DO NOT INVEST, until you are debt free except for your house.  No cars, no credit cards, no personal loans, nothing.  And stay out of debt from now till you die.  I started working this program about a year ago, cut up all my credit cards(and cancelled them) paid off all my loans last Feb, and have been debt free ever since.  You must be debt free (and stay that way) before you begin to plan for your retirement.  Once you are debt free your target savings for retirement should be 15% of your income.



*fine print below*

If you feel you cant live (or be) debt free its ok, planning for your retirement without it is ok but not recommended.

One thing I forgot, and this is super important.  DO NOT INVEST, until you are debt free except for your house.  No cars, no credit cards, no personal loans, nothing.  And stay out of debt from now till you die.  I started working this program about a year ago, cut up all my credit cards(and cancelled them) paid off all my loans last Feb, and have been debt free ever since.  You must be debt free (and stay that way) before you begin to plan for your retirement.  Once you are debt free your target savings for retirement should be 15% of your income.



*fine print below*

If you feel you cant live (or be) debt free its ok, planning for your retirement without it is ok but not recommended.

Im not debt free but im still planning my retirement.

But i may be debt free in another 6 grand or so.

I'm sold. You should be an IRA broker.

Reported for funding terrorism.

I'm 19 and I'm going to start investing in stocks. I know a few people who make pretty decent money this way.

I even know someone who'll give some money to start with (around $1,000 at least) and will advise me along the way.

Of course, I'm not going to ask him for loaned money (he wouldn't ask for more than the initial $1,000 back) until I know what I'm doing with mutual funds and stocks and such.

One thing I forgot, and this is super important.  DO NOT INVEST, until you are debt free except for your house.  No cars, no credit cards, no personal loans, nothing.  And stay out of debt from now till you die.  I started working this program about a year ago, cut up all my credit cards(and cancelled them) paid off all my loans last Feb, and have been debt free ever since.  You must be debt free (and stay that way) before you begin to plan for your retirement.  Once you are debt free your target savings for retirement should be 15% of your income.



*fine print below*

If you feel you cant live (or be) debt free its ok, planning for your retirement without it is ok but not recommended.

Eh, that depends on what your epmployer matches.  I get matched up to 6%, so its like free money.  Also have a car loan at 0% which is like more free money(or time).

Additionally an IRA makes sense from the standpoint that, at retirement, you can use it to throttle your taxable income and draw on the IRA instead of the traditional 401(k).

I wish that:
a) I could afford to stock away 15%
b) I could get a 12% return over the next 30 or so years.  I could retire early on that.

a) I could afford to stock away 15%

Without any debt and a budget, you can.

b) I could get a 12% return over the next 30 or so years.  I could retire early on that.

Over the next thirty years you can get an average of 12% on numerous mutual funds.

Quote from: Its a Sphere on May 03, 2010, 01:25:54 PM

a) I could afford to stock away 15%

Without any debt and a budget, you can.

Quote from: Its a Sphere on May 03, 2010, 01:25:54 PM

b) I could get a 12% return over the next 30 or so years.  I could retire early on that.

Over the next thirty years you can get an average of 12% on numerous mutual funds.

LINKS PLEASE. 

ALso, maybe if i ever get that damn gun... i wont have to worry so much about saving.


I like being honest.

http://screen.morningstar.com/FundSelector.html

Go towards the bottom and have it screen all funds with a 10 year return of 12% or greater.  I just got 200 different funds with that return.

Bah, all you need to invest is one dollar.  http://www.powerball.com/

http://screen.morningstar.com/FundSelector.html

Go towards the bottom and have it screen all funds with a 10 year return of 12% or greater.  I just got 200 different funds with that return.

Bah, all you need to invest is one dollar.  http://www.powerball.com/

Crap. Markjo wins.

Quote from: Its a Sphere on May 03, 2010, 01:25:54 PM

a) I could afford to stock away 15%

Without any debt and a budget, you can.

Quote from: Its a Sphere on May 03, 2010, 01:25:54 PM

b) I could get a 12% return over the next 30 or so years.  I could retire early on that.

Over the next thirty years you can get an average of 12% on numerous mutual funds.

Right now I have a spreadsheet forecasting retirement goals that I have a 5% planned growth and 2% year over year pay increases.  I currently put in 8% and get a 5% match and have 1.5% post tax going to pension with a 10% company kick on that.

I'd like to get to at least 12% on my own with the 401, but want to get a bit into a Roth before I up my 401.  I'll still haven't done the conversion from future to present value on the end term value of the money yet though.