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Old 12-12-2007, 06:41 PM
 
53 posts, read 196,362 times
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to invest. You are 32 and want to retire at 55. How would you do it? Money Markets, Cd's. Any ideas would be great. I never had anyone to teach me about money and preserving it and now I am trying to make up for lost time.
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Old 12-12-2007, 06:44 PM
 
Location: Lovelock, NV - Anchorage, AK
1,195 posts, read 4,992,946 times
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I would talk with a financial broker, I myself prefer Edward Jones only cuz they treat me right but you need to find somebody to take it off your hands honestly
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Old 12-13-2007, 01:18 PM
 
Location: Looking over your shoulder
30,324 posts, read 27,784,053 times
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With the way that gold has risen and at an all time high, I donít know if it can stay or go higher. I worry about any other vehicles for trying to protect my money. Keeping it the money buried coffee can isnít an answer, and putting it in the bank will not keep up with inflation of the devaluing American dollar.

My guess is a foreign market of some type. The Canadian dollar is worth ((more)) then the American nowadays. A friend of mine who lives near the Canadian border thinks heíll take the money over there and open a bank account.
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Old 12-14-2007, 03:06 PM
 
Location: Jollyville, TX
3,850 posts, read 9,438,969 times
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It's not impossible, but you'll have to contribute more than that $10K to get you there. I started saving in my company's 401K plan when I was 31. I also still had a lot of debt. At age 50, I am now debt free (except my mortgage) and I have about $250K of retirement savings plus $100K equity in my house. If you invest that $10,000 in mutual funds, you should have around $90,000 in 23 years. However, if you add $3,000 a year to that, you would have about $350,000. Both of those assume an average rate of return of about 10%, which is what the stock market averages overall.

I would be very skeptical of investing my $10,000 in any investment that pays a higher rate of return (higher risk). I used the calculators on moneychimp.com to simulate these results. If I had to do it all over again, I would have saved more.
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Old 12-14-2007, 04:19 PM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,575,490 times
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A fun little calculator can be found on Dinkytown Financial's web site. You can see different savings and investment rates.
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Old 12-27-2007, 03:15 PM
 
Location: Marietta, GA
857 posts, read 4,471,918 times
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Assuming that you are working, the first thing you should do is put 4,000 in a Roth IRA because it will not only grow tax free, but when you start spending it in retirement there won't be any taxes on the gains either. Open one for 2007 and another for 2008. That takes care of $8,000. The other $2000 I would put into a growth oriented mutual fund.
T. Rowe Price, Vanguard , and Fidelity all have what they call "Target date funds". You pick the one that is closest to your proposed retirement date, like Retirement 2030, and it is heavily invested in stocks now (for growth) but it will become more conservative as it nears your retirement date. I used to pick my own stocks, but now I use these because they are easier and these guys do this for a living.
Another thing I would do if I were you... take a class on retirement planning at the Adult Ed at the local HS. Most towns have something like this available. It will probably be taught by a "financial planner" who is trying to gain some new clients. You don't have to use them, but they will, no doubt, be giving you some good information so as to gain your trust. By all means use the information, and if you are comfortable with them you can use their services as well.
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Old 12-27-2007, 03:20 PM
 
Location: Papillion
2,585 posts, read 9,542,017 times
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CD and money markets are too conservative for you.

As previous poster mentioned, Target Dated Funds are good for someone that is not experienced.

Also, a mix between S&P 500 fund and a diverse international fund. A reputable fund would have several options here.

Once you learn more and educate yourself and have professional help understanding risk/reward then you can get a little more agressive, until then use the above recommendations.
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Old 12-27-2007, 09:33 PM
 
Location: Tucson AZ & Leipzig, Germany
2,369 posts, read 7,760,109 times
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Quote:
Originally Posted by Tressa View Post
I would talk with a financial broker, I myself prefer Edward Jones only cuz they treat me right but you need to find somebody to take it off your hands honestly
Sorry, but I'll have to say the opposite of Tressa and encourage you not to "find somebody to take it off your hands". There might be some honest financial brokers out there, but I have heard a hundred tales of deception and rip off for every one that might be a good one. Brokers are in business to make money from YOUR money, that is their main interest. With just a little effort and very little expense on your part, you can put yourself in charge of your financial future and not shell out big commissions to these so called financial planners and full service brokers.
I would encourage you to start by opening an account at a reputable discount online broker like ScottTrade or TDAmeritrade. For no cost, they allow you to set up an account that is accessible securely 24x7 over the web. You can buy or sell shares of most any stock, exchange traded fund or no-load mutual fund for a very small transaction fee, typically about $10 or less. This key for investing a relatively small amount like $10K. If your transaction fees are high just to buy into a mutual fund or exchange traded fund, it will eat into your principal very quick. Do not buy any mutual fund that charges an upfront "load" or commission, that is really throwing you money away before it starts earning you anything. Start off by parking your money into a money market fund after opening your discount online brokerage account. Then do some homework and pick two or three growth mutual or exchange traded funds that are fairly diverse.
If you have a job, get enrolled in a 401K tomorrow, and put as much of your income as you can into it, that is what will make it possible for you to have a reasonable chance to retire earlier than most others. Your 10K for investment today is just the first step, good luck.
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Old 12-28-2007, 05:44 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,546 posts, read 39,924,861 times
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Quote:
Originally Posted by recycled View Post
Sorry, but I'll have to say the opposite of Tressa and encourage you not to "find somebody to take it off your hands". ...Brokers are in business to make money from YOUR money, that is their main interest. ...I would encourage you to start by opening an account at a reputable discount online broker like ScottTrade or TDAmeritrade. ...do some homework and pick two or three growth mutual or exchange traded funds that are fairly diverse.
..., get enrolled in a 401K tomorrow, and put as much of your income as you can into it, that is what will make it possible for you to have a reasonable chance to retire earlier than most others. Your 10K for investment today is just the first step, good luck.
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.
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Old 12-28-2007, 08:42 PM
 
Location: Forests of Maine
30,678 posts, read 49,430,310 times
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Lots of good advise there, from the working stiffs.

I once bought a three-family residential property and moved my family into one unit. I bought it with no money down. Zero in my pocket. I had to borrow the closing costs. Rented out the other two units to cover the mortgage and expenses. We lived there for free [well plus repairs]. Then I got to putting extra cash onto the principle, and we saw how that effected the Net Worth.

I got transferred to the UK, so we got a manager to handle the first property, and I bought a five-family building there. A few years later I was transferred back stateside, so I sold that building, for a tidy sum, took the misses on a nice vacation. and we moved back stateside.

Where I bought a third building. Again with no money down. Rental income covered all expenses and I put any extra cash on hand into buying down the principle. Then a few years later, I got transferred across the nation to the other coast.

Where I bought our forth building. Again with no money down. ..... Then I was transferred overseas once again, .....

Then we came back stateside and I qualified for my pension.

So we have sold all but one of the apartment buildings, used the cash to buy our retirement home.

So now in my retirement, I have my pension and income from one apartment building.

What is the best investment for $10k?

I do not know. I have never before had $10k in my hand cash to put into an investment.

I bought my retirement home with cash though. I have been on pension for six years now, I am 48.

If I had to do it all over again tomorrow, I would do the same thing again.
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