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I recently transferred a portion of my savings into one of the Money Market savings account and now its accruing 1.45% per year... that isn't nearly enough for the goals and objectives I need to meet. I want to retire before 30 or I quite literally cannot continue to run in this hamster wheel. I've heard of the magic of turning a small amount and snowballing it into an early retirement. Is it still feasible?
What should I invest in to create a "portfolio"?
Which website would you personally recommend that are beginner friendly?
I want to retire before 30 or I quite literally cannot continue to run in this hamster wheel. I've heard of the magic of turning a small amount and snowballing it into an early retirement. Is it still feasible?
It's feasible, but not in the time frame you're looking at. Very few people can fully retire at age 30. 50 is a lot more doable. And you won't get there with a single initial investment of only $10k. You'll need to continue to invest regularly throughout the next 20-30 years to pull an early retirement off.
(That doesn't mean you won't be able to change careers, though, or cut back your work hours after you've built a decent nest egg. Those are both a lot more doable than retiring fully at age 30.)
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What should I invest in to create a "portfolio"?
Which website would you personally recommend that are beginner friendly?
Thank you.
Standard advice: Check out the Bogleheads wiki (https://www.bogleheads.org/wiki/Main_Page) first, to learn some of the basics of investing. Then look at opening an account with Vanguard, Fidelity, or Charles Schwab. All three firms are good; the latter two have brick-and-mortar offices, too, so you might want to check if either of them have one in your location. Being able to go in and actually talk to someone in person might be reason enough to favor one over the others.
As for what specifically to put your money in: without knowing how you'll react in a down market, it's hard to give specific advice. A balanced fund that holds about 60% stock and 40% bonds might be a good choice, as that's a ratio you can hold safely pretty much forever. But a lot depends on your goals for the money and (especially) your nerves. Don't over-estimate your tolerance for risk! That tends to cost new investors a lot of money.
I recently transferred a portion of my savings into one of the Money Market savings account and now its accruing 1.45% per year... that isn't nearly enough for the goals and objectives I need to meet. I want to retire before 30 or I quite literally cannot continue to run in this hamster wheel. I've heard of the magic of turning a small amount and snowballing it into an early retirement. Is it still feasible?
What should I invest in to create a "portfolio"?
Which website would you personally recommend that are beginner friendly?
Thank you.
Wait for the next bubble to pop.
If you want to retire at 30 starting with 10k, you need to device your own methods . The free suggestions given are only 5-6% returns .
Once you reach your first million, you can start to think about retirement. Meanwhile your $10K will not even buy you a decent car. Also give up the notion of some magic which is going to grow that money into a fortune. Instead be happy if you can achieve an average return of 7-9%.
Once you reach your first million, you can start to think about retirement. Meanwhile your $10K will not even buy you a decent car. Also give up the notion of some magic which is going to grow that money into a fortune. Instead be happy if you can achieve an average return of 7-9%.
Depending on the age you want to retire, 1 mill. Is likely to not be nearly enough. In regard to Bogleheads, very good info., but their investing style/ recommendations are way too conservative for someone your age. My advice: set a realistic retirement goal, like 60, and find an aggressive mutual fund to invest in. At your age,a 60-40 portfolio is too conservative.
Sadly,very few of us are fortunate to get rich quick and retire at 30. Fortunately you have time on your side and 10k is more than what I started with. Do research and put your money to work, over time you'll accumulate wealth and retiring before 50 can become a possibility.
Patience is a requirement for an investor, trust me it's easier said than done.
Depending on the age you want to retire, 1 mill. Is likely to not be nearly enough.
I think a lot of people overestimate how much you can safely withdraw from a million-dollar portfolio. OP, at most you'll be able to withdraw $40k/year from your million; any more than that, and you risk running out of money before you die. And that withdrawal rate has only been tested and shown to hold up over 30-year periods; it's not known how safe it would be for a longer retirement. Th earlier you retire, the more money you need to have saved up to be safe, and the less time you have to accumulate it.
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In regard to Bogleheads, very good info., but their investing style/ recommendations are way too conservative for someone your age. My advice: set a realistic retirement goal, like 60, and find an aggressive mutual fund to invest in. At your age,a 60-40 portfolio is too conservative.
It's not too conservative if he'll stick with it. One of the biggest mistakes new investors make is to over-estimate their stomach for stock market volatility. They like to think they're "aggressive" and "risk-takers," but when they experience their first bear market and they see their $$$$ become $$, they panic and sell. A more conservative portfolio an investor will actually stick with long-term beats a more aggressive one that frightens the investor into selling low.
I agree with some of the others unless you find a stock that is going to explode in the next couple years and increase 1000% in price you're expectations are a little unrealistic. The fastest way to grow your money would be stocks, but being that you're a beginner I would suggest picking a S&P index fund and putting your money there also you're going to want to continuously add to the 10k. It's possible to retire well before 60 but you'll need far more than a 10k investment. many funds are returning 20%+ annually the last few years. Then spend some time learning about stocks. finding a stock before it soars is going to be your best bet for drastically increasing your money. Keep in mind that stocks are pretty risky if you don't know what you're doing and your can lose a lot of your money. But if you happen to pick the right stocks it can be pretty lucrative very quickly.
I recently transferred a portion of my savings into one of the Money Market savings account and now its accruing 1.45% per year... that isn't nearly enough for the goals and objectives I need to meet. I want to retire before 30 or I quite literally cannot continue to run in this hamster wheel. I've heard of the magic of turning a small amount and snowballing it into an early retirement. Is it still feasible?
Sounds like you need a different job/career, or you need to hire a hamster
Learning to invest at a young age is a great idea, but you're not likely to turn $10k into something you could retire on, even in 30 years' time. I've liked all of Peter Lynch's books. One Up On Wall Street is a nice place to start in my opinion. Also, Morningstar has a website with lots of free articles and discussion on mutual funds and stocks. Value Line is mostly a subscription service and a bit expensive, but you can get free reports on their website for all 30 of the Dow Jones Industrial companies.
I think a lot of people overestimate how much you can safely withdraw from a million-dollar portfolio. OP, at most you'll be able to withdraw $40k/year from your million; any more than that, and you risk running out of money before you die. And that withdrawal rate has only been tested and shown to hold up over 30-year periods; it's not known how safe it would be for a longer retirement. Th earlier you retire, the more money you need to have saved up to be safe, and the less time you have to accumulate it.
It's not too conservative if he'll stick with it. One of the biggest mistakes new investors make is to over-estimate their stomach for stock market volatility. They like to think they're "aggressive" and "risk-takers," but when they experience their first bear market and they see their $$$$ become $$, they panic and sell. A more conservative portfolio an investor will actually stick with long-term beats a more aggressive one that frightens the investor into selling low.
If he/she will invest the $ and forget about market ups/downs, a 60-40 portfolio is far too conservative for someone in his/her 20s. If I had known what I know now, I would have invested in emerging markets and small cap value funds in my 20s and let them ride.
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