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Old 10-18-2014, 04:15 AM
 
Location: Central Massachusetts
4,800 posts, read 4,843,254 times
Reputation: 6377

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Quote:
Originally Posted by Garfunkle524 View Post
I'm in your age demographic too. I'm squirreling away what I can and constantly thinking about the future. A big problem I see, though, is the amount of uncertainty to our future. These are not boom times. The danger of massive inflation in the near future is prevalent. It's hard to trust the stock market after the crashes that have happened in our lifetimes. I don't think we can count on social security existing when we are of age. And even if it still does exist, the age is going to be what? 80?

And so we save and try to invest thoughtfully. But there are large forces out there that may end up being more responsible for our waning years than we give them credit for.

Personally I don't invest on my own. I contribute to a 401k as much as I can, about 5% right now (enough to max a 1%/4% match). I purchase company stock for a discount through my employer. And that's it. The rest goes to student loans that are too large and the rest of my living expenses.

I graduated college in 2009. That's a tough time to graduate. Based on how the economic world has performed since I honed my awareness of it in high school, the future is not looking bright.

With student loans and all you seem to be doing very well so my first words are keep up the good work. You have a lifetime ahead of you so time is certainly on your side.

I want to point out the line in your quote above though that concerns me. It is okay to own shares in your own company but do not over invest there. Please read the link here The Pros And Cons Of Company Stock | Bankrate.com about the pros and cons. There are more out there but this covered the basics. As is the real key here investing is about balance. Every so often it is a good thing to balance out your whole portfolio if you can. 401k investments can only be moved around within the family of funds available. Company stock can only be bought or sold and gains realized are subject to taxes unless they are held in an "retirement" account then they are subject to penalties as well for the early withdrawals.

As I said above you are doing great. Learn as much as you can and save as much as you can while remembering "Life Happens" and needs change. You have a great start and a wonderful future.
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Old 10-18-2014, 07:53 AM
mlb
 
Location: North Monterey County
3,178 posts, read 2,852,979 times
Reputation: 4876
Compounding is a beautiful thing:

http://www.thecalculatorsite.com/fin...calculator.php

We didn't bail during the recession - and we won't bail now - despite the last couple of weeks.
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Old 10-20-2014, 10:37 AM
 
Location: Tennessee
23,557 posts, read 17,535,380 times
Reputation: 27607
Quote:
Originally Posted by Garfunkle524 View Post
I'm in your age demographic too. I'm squirreling away what I can and constantly thinking about the future. A big problem I see, though, is the amount of uncertainty to our future. These are not boom times. The danger of massive inflation in the near future is prevalent. It's hard to trust the stock market after the crashes that have happened in our lifetimes. I don't think we can count on social security existing when we are of age. And even if it still does exist, the age is going to be what? 80?

And so we save and try to invest thoughtfully. But there are large forces out there that may end up being more responsible for our waning years than we give them credit for.

Personally I don't invest on my own. I contribute to a 401k as much as I can, about 5% right now (enough to max a 1%/4% match). I purchase company stock for a discount through my employer. And that's it. The rest goes to student loans that are too large and the rest of my living expenses.

I graduated college in 2009. That's a tough time to graduate. Based on how the economic world has performed since I honed my awareness of it in high school, the future is not looking bright.
Inflation, though, should also boost the markets, increasing your returns down the road. I disagree with the massive inflation coming comment. We've had pumping for years now and still core inflation has remained low. This money has been mostly tied up in the markets, or sitting idle in bank vaults. Obviously headline inflation has run higher, but we are by no means overheating. If anything, I think a Japan-like decline is in the works.

The markets have crashed, but there have also been numerous opportunities to make money. If you bought an ETF that simply tracked the Dow 30 in March of 2009, you'd have more than doubled your money. In order to achieve such percentage gains again, the market would need to go north of 35,000. That's not happening any time soon, nor do I think another financial crisis that wipes out the markets is imminent.
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Old 10-20-2014, 09:31 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,538 posts, read 39,914,033 times
Reputation: 23653
Stay invested in "what you know" and are interested in, not speculation / advice.

USA is still one of the most stable investments and the world knows that.

I wish the USA would create and execute an energy policy TODAY, that would stabilize USA even more, but destabilize the middle east.

I would expect that USA currency will continue to lose some WW merit, and eventually not be used for oil. WE would be smart to consider that scenario.
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Old 10-21-2014, 09:45 AM
 
Location: Tennessee
23,557 posts, read 17,535,380 times
Reputation: 27607
Quote:
Originally Posted by StealthRabbit View Post
Stay invested in "what you know" and are interested in, not speculation / advice.

USA is still one of the most stable investments and the world knows that.

I wish the USA would create and execute an energy policy TODAY, that would stabilize USA even more, but destabilize the middle east.

I would expect that USA currency will continue to lose some WW merit, and eventually not be used for oil. WE would be smart to consider that scenario.
Honestly younger people need to start voting for pro-energy, pro-business candidates. The status quo of the last six years certainly isn't helping younger people.
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Old 10-21-2014, 08:01 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,538 posts, read 39,914,033 times
Reputation: 23653
The status quo of the last six -ty (or 40) years certainly isn't helping younger people.

The energy warning shot was fired in October 1973, the USA has not responded. http://en.wikipedia.org/wiki/1970s_energy_crisis

Youth advocate leadership in USA has waned since the depression era (CCC / WPA).
Few realize how valuable that few yrs were in building a nation and skills that would endure and triumph over a soon to come decisive World War. It was liquidated on June 30, 1943, as a result of low unemployment due to the worker shortage of World War II. The WPA had provided millions of Americans with jobs (and education in the trades)for 8 years.
http://en.wikipedia.org/wiki/Works_P...Administration

USA is very forgetful and forgiving.

(more) Advice for under age 30? get a skill, it will serve you well.
I was able to do an apprenticeship that led to very well paying and useful skilled trade employment option (in addition to my professional degrees). The pendulum will swing back to labor / skill needs in USA and will find US wanting.
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Old 10-22-2014, 07:33 AM
 
Location: Tampa, FL
27,798 posts, read 26,196,040 times
Reputation: 14611
Quote:
Originally Posted by mlb View Post
Compounding is a beautiful thing:

http://www.thecalculatorsite.com/fin...calculator.php

We didn't bail during the recession - and we won't bail now - despite the last couple of weeks.

Interesting to note.....mass media is talking about some sort of stock market crash going on lately, but if you look at the Dow Jan 2014 (this year) and now, Dow is up about 100 points......
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Old 10-22-2014, 07:55 AM
 
Location: Central Massachusetts
4,800 posts, read 4,843,254 times
Reputation: 6377
Quote:
Originally Posted by BucFan View Post
Interesting to note.....mass media is talking about some sort of stock market crash going on lately, but if you look at the Dow Jan 2014 (this year) and now, Dow is up about 100 points......

The Dow is a terrible bench mark to use. Still if you had been watching the Dow or just stocks in general you would have noticed that the last three weeks have seen a loss of all the gains recorded since the begining of the year.
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Old 10-22-2014, 08:02 AM
 
Location: Tennessee
23,557 posts, read 17,535,380 times
Reputation: 27607
Quote:
Originally Posted by golfingduo View Post
The Dow is a terrible bench mark to use. Still if you had been watching the Dow or just stocks in general you would have noticed that the last three weeks have seen a loss of all the gains recorded since the begining of the year.
No one should be looking at retirement gains/losses in terms of weeks, or even a single year.
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Old 10-22-2014, 10:22 AM
 
Location: Woodinville
3,185 posts, read 4,045,562 times
Reputation: 6267
Quote:
Originally Posted by Emigrations View Post
No one should be looking at retirement gains/losses in terms of weeks, or even a single year.
Agreed. Things do seem to be accelerating though. I'm no economist, but the crazy swings the past few weeks have been concerning.
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