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Old 01-10-2008, 10:36 PM
Location: DFW, TX
2,935 posts, read 6,130,027 times
Reputation: 571


I second the Roth IRA if you qualify for one... and put it in an total market index fund through a company like vanguard. You'll get the benefits of tax-free income later on, and index funds have low maintenance fees, so you won't be killed with fees.

Take a hundred of the 10k and buy some basic investing books to familiarize yourself with the basics... you spend so much of your time earning your money, why not spend a few hours and learn how to put it to the best use?

Good Luck!
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Old 01-11-2008, 12:34 AM
2,141 posts, read 7,178,184 times
Reputation: 1251
I would take investment classes. Investment brokers are salespeople. Educate yourself on stocks, options and bonds. Open up a trading account, invest, don't be greedy and make your money grow. Read the books, "Rich Dad Poor Dad" and "Think and Grow Rich". By the way, Warren Buffett started out with exactly $10,000 too.
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Old 01-11-2008, 06:49 AM
Location: Forests of Maine
30,714 posts, read 49,511,045 times
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Investigators have proven that each story within 'Rich dad poor dad', are made up.

He had one 'dad'.

He fabricated two stories about two dads, from reading popular books on investment schemes.

As for the OP; if you are paying a third of your income to taxes. You better start is to take courses to learn to gain control of your taxes, and to learn tax-planning to stop paying so much. An instant raise in your take-home paycheck, will have a far greater effect on your Net Worth.
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Old 01-11-2008, 07:29 AM
Location: lumberton, texas
652 posts, read 2,460,036 times
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Originally Posted by janb View Post
I second these ideas.

You will need serious growth and serious savings to make this all work... don't entertain 'get-rich-quick' schemes, but instead pay attention and get yourself educated, via free help (Motley Fool, website (tho this is advanced) might start with "Dave Ramsey" and "Bob Brinker" radio talk shows)

Probably want to concentrate on diverse foreign EFT indexes; not too individual country or equity specific. Maybe 30% emerging markets and 40% global growth and 30% US (S&P) Latin America has shown signs of strength, and I feel the global economy is worth examining, as US may start focusing closer to home when it realizes that it is socially inept to deal with most cultures.

Typically the US is the best market for secure long term growth, but, not sure that is the case going forward. I'm quite a bit older, and have 40% foreign exposure, which is considerable for one nearing retirement.

Use Scottrade research for ETF's and also ETF Connect and Yahoo ETF. I try to pick finds with low expense ratio, and huge trading volumes. No more than 5% of your investment in speculation or any one stock or speculative sector.

I usually buy when ETF (or desired stock) is below 200 day moving average AND is on the way back up (usually after a 'double bottom') There is currently some decent shopping.

I am getting rid of most my individual stocks and got rid of any 'load' mutual funds many years ago. There is abundance of investment choice for low cost holdings. Remember that indexes are much more tax and management efficient, especially in DEC.... reported / distributed gains.
I totally agree with all this. Also you could try one of Suze ormans books. I have not read any but have been told they are excellent for people who dont know a lot about money. Also noone has asked this but do you have a back up saving if something bad were to happen? because if you dont you may want to consider putting at least some of it into a higher yeild savings account or money market. emigrantdirect.com pays I think 4 1/2 percent and hsbc pays similar. they are both internet banks. I have been with emigrant for about 2 yrs and my hubby has been with hsbc for about a yr. also there was something I saw on the suze orman website with one financial company that if you start a money market account and put in $50 per month they give you a $100 at the end of the year. check into it. I dont know the interest rate. Roths are great if you qaulify. Please dont hesitate to check into those!
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