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> Most of the guys who frequent this forum don't know their collective asses from a hole in the ground. Instead, amass a little more wealth and find a planner in your market who really has an excellent track record for wealth management -- Not these glorified salesguys.
Hey, cpg, do you know where your hold in the ground is? What do you sell?
Hi all. I’m looking for a little advice on how to best save and increase my net worth.
I’m currently 23 and working full time. After all deductions and expenses , I am able to save about $1,600/month + am maxing out my Employer’s 401k matching (an additional ~$400/month in total). I have no debt.
Here is my current breakout of finances:
Cash: $28,000 (between checking / savings)
401k: $2,800 (only been employed for 7 months)
Stocks:
GOOG- 7 shares @ $4,629 (Up about $110/share from purchase price)
C: 25 shares @1,054
F: 100 shares @1,295
Not quite sure what to do. Eventually some of this will be used for a down payment on a house (of which I will either get a roommate or a duplex and rent out. I'm assuming I'm in a pretty decent position at the moment.
> Most of the guys who frequent this forum don't know their collective asses from a hole in the ground. Instead, amass a little more wealth and find a planner in your market who really has an excellent track record for wealth management -- Not these glorified salesguys.
Hey, cpg, do you know where your hold in the ground is? What do you sell?
Not investment products, that's for sure. And I gave him that advice because so much of it on here is half-baked, bordering on dangerous.
Personally, our money is spread out over equities, 401(k)s, and commercial real estate, chiefly warehouses.
it's a general board- advice should be expected to be amateurish relative to a industry-specific board.
The problem is that it's so contradictory, and based on little or no knowledge. Poor kid doesn't know what to do now. I mean, while we're at it, why don't we have a law or an accounting forum, where anybody with an opinion can weigh in.
To be sure, there are some things that are pretty much softballs. Budgeting. Credit card debt. But this isn't really one of them.
Personally, I would drop the individual stocks in favor of a good mutual fund investing in a 100+ stocks.
Are there any good resources that go over mutual funds? I'd assume that using Google to search for "Best Mutual Funds" won't be of much help
Quote:
Originally Posted by crescent22
Bigger question is why the conviction to put it all into being a landlord - have you done the math on what the returns are from buying and what the job outlook is in your region?
Currently located in Chicago suburbs. Don't really want to stay here forever. House purchase wouldn't be for 3-5 years out (when I'm 26-28) and have more of a handle on what I'm doing. Honestly, Real Estate has always been interesting to me. As much as I hated the my landlord while in college (he was a complete slumlord who never fixed anything in a timely manner), I did respect the fact that he lived almost completely off of rental income by owning 15 units or so. I believe he was also a fire fighter or something part-time to get benefits.
One of the things I've read elsewhere on these forums that the difference between the rich and the middle class is that the middle class work for their money whereas the rich have their money work for them. Not saying I want to be rich, but it seems like it's a good idea...
Quote:
Originally Posted by hnsq
Instead of investing in real estate by purchasing a house, you also might want to consider investing in some RIET's. You will have less risk than actually owning property and still get the upside.
That being said, absolutely talk to a financial planner. Any planner worth his fee will never charge you a dime to have a few conversations up front.
Any place to research RIETs? These seem like a decent safer investment from searching.
Hi all. I’m looking for a little advice on how to best save and increase my net worth.
I’m currently 23 and working full time. After all deductions and expenses , I am able to save about $1,600/month + am maxing out my Employer’s 401k matching (an additional ~$400/month in total). I have no debt.
Here is my current breakout of finances:
Cash: $28,000 (between checking / savings)
401k: $2,800 (only been employed for 7 months)
Stocks:
GOOG- 7 shares @ $4,629 (Up about $110/share from purchase price)
C: 25 shares @1,054
F: 100 shares @1,295
Not quite sure what to do. Eventually some of this will be used for a down payment on a house (of which I will either get a roommate or a duplex and rent out. I'm assuming I'm in a pretty decent position at the moment.
You're doing fine. Don't listen to some of the people on here. There is nothing wrong with having cash in the bank. It's Better than paying $10,000 in mortgage interest a year like some probably do here. Try a Roth IRA too. Remember your cash is FDIC insured. I personally would rather have the peace of mind.
Also, I find yahoo! finance to be pretty good as well.
I am a mutual fund junkie myself. I think for your core investing you should invest in one of the better balanced funds. The best balanced funds typically match the performance of the large company stock universe with less volatility over long periods of time. Some of my favorites are:
T. Rowe Price Capital Appreciation (PRWCX)
Vanguard Wellington (VWELX)
Dodge and Cox Balanced (DODBX)
Mairs and Power Balanced (MAPOX)
The funds listed below charge a sales load, but if you can get access to them in your retirement plan, you don't have to pay the load so they are also worth a look:
American Funds American Balanced ("A", R4, R5, or R6 share classes...other share classes are a rip off)
American Funds Income Fund of America (ditto the above for the share classes)
American Funds Capital Income Builder (ditto the above)
American Funds Global Balanced (ditto the above)
This is by no means an exhaustive list. There are certainly other good funds out there....but if you have access to any of these funds in your 401K, jump on one of them and hold onto it with the intention of holding onto it for life.
Personally, I think my #1 pick would be the American Funds Capital Income Builder, which is a global balanced or "world allocation" fund. (but only if I could get it in my 401k thus avoiding the sales charge) followed by American Funds Global Balanced. I think owning stocks and bonds on a global basis is the way to go. Unfortunately, the global balanced fund category is one with high expenses and sales charges/loads...but settling for a more U.S. centric balanced fund is still a good option. So the next best option, would be T. Rowe Price Capital Appreciation (PRWCX). Great returns, reasonable expense ratio (and no sales charge/load), reasonable volatility.
Last edited by mysticaltyger; 02-02-2013 at 12:33 PM..
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