To all +100k guys out there: Share your success path (San Jose: law school, income)
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I agree with you, but I'm an exception as an Engineer. I do however work with and have worked with many Ted Kaczynski types, brilliant but bordering on the fringes of insanity. I would say the majority are Software Engineers, too much C++ and writing code I suppose?
This is common sense to EVERY new graduate, the problem is... this guy has a huge head and thinks his masters at 23 or starting salary have him on such a good track...ooh big deal, who cares. Or going to an "ivy" makes his case any better.
Your jellyness precedes you. He's young and has questions. He went to a top school and worked his arse off. He is going out into the real world and has questions. He's confident.. As if young men of similar background aren't. Answer his questions and give help. Otherwise, keep your 'huge head' comments to yourself. He's young. What's your excuse?
I was hoping such answers when first created the thread. Definitely there are things to learn but your finances are definitely not the usual type thing. Are you sure you don't own your own business?
Glad I could help and no I don't own my own business. I work, trade, and do small contract work for start-ups. I work a large number of hours during the weekday and on the weekend but it's under my own beat.
Last edited by yeahthatguy; 06-15-2012 at 02:14 PM..
This doesn't add up. If you're really making mid-100K range, and able to regularly pull in double-digit returns on your money, you're already living the Silicon Valley dream. A $100K investment at 20% return over 20 years is $3.8M without investing a single dime more during that time. Chip in just a few bucks a month more, and you're probably well over $20M by the time you're 45. With that kind of money, cost of living doesn't even come into play. Either you haven't done the math, or you don't believe your own figures you've quoted here.
You don't know how to read :
Originally Posted by yeahthatguy
> When I didn't have enough capital to invest initially, i engaged in app-o-rama (0% balance transfers on credit cards .. got it up to about 60-80k) <- this path is dead and was only around during boom times.
Take away : leverage up intelligently .. Debt is good sometimes as long as you are making more than the
Mid 20's ..
Started out under $100k Some years ago and worked into mid $100k range after some years (involved company change - this is where the big jump in salary came from).
MS degree Electrical/Computer Engineering from top U.S school.
Got started on trading/investing ~1 year out of college.
Max 401k (company lets employees manage via brokerage account.. avg. 20%+ returns annually) Manage private portfolio which I have doubled throughout the years and continue to turn double digit returns annually.
Maybe you haven't done the math here.
Maybe you don't understand what taxes are.
Maybe you don't understand that I am in my mid 20's.
Maybe with that $$$, i retire at 40 and travel the world. Maybe I am tired of paying 9.25% income tax on top of federal tax. Maybe I don't want to blow $700k on a good home in California now that I am starting a family. Maybe I want $140k (the 20% down payment) in the market to compound. Maybe making such returns requires a great deal of work (beyond my main job) and I don't want to do that until I am 45.
Maybe I have $$ to invest because I care about things like taxes/COL. Maybe I'll actually have $$ in the future because I will continue to care about expenses...
Maybe I don't like the idea of working hard for what I have and just pissing it away just because everyone else is does it that way.
Maybe lots of things that seem to escape you... As you were.
Last edited by yeahthatguy; 06-15-2012 at 02:16 PM..
Wow, someone is taking this personally. Not saying that you don't have interpersonal skills, but engineers carry a certain reputation for a reason. I'm just saying that more often than not, engineers have inferior interpersonal skills and superior analytical skills to business folks.
Might be true generally, but there are exceptions, especially in an entrepeneurial area like Silicon Valley.
A Perfect Example is celbrities....Every week there is an article about a celebrity who made hundreds of millions...and still went broke.
It's not how much you can make..it's how you handle what you have. You can blow 100 million...just as fast as a 100k. You can't let others give you advice...you have to take controll...no financial planner...you need to learn how to read stockcharts. check Stock charts.com and look at youtube videos for basic indicators like MACD, RSI, STOCKASTICS, MOVING AVERAGES. Then big nasdaq 100 stocks, that make big percentage moves consistantly. APPLE, GOOGLE, BIDU...all would fit that bill. Now you know what to invest...now just time it with the market. The news is B.S...Once you learn how charts work...you will see the finanical news on tv is hillarious. Once they start talking doom and gloom thats when you buy. When they started talking about the next great depression...you knew the market hit a bottom. All you have to do is buy stock like APPL, GOOG, BIDU, and now FB...when we are at the bottom of a recession....and Sell after a few hundered % or few years, right before the next Recession. Look at the charts for BIDU...Its sick...its not what you buy...its when you buy. Don't be a day trader...be a swing/posistion trader....to mid term trader.....Set up an acct with an online trader...and have 10% of your income go into the acct from your pay check....and just buy stocks in nasdaq 100 that make the biggest moves. Intel and Microsoft...great companies but stocks don't move. You want Appl, goog, bidu, and now probably fb...you need to learn when to buy and sell
Get a subscription at stockcharts.com so you can see monthly charts also.....Here is a link for free videos....
Minus particular stock suggestions, great advice. I have found many Money Managers and financial planners to be about the dumbest pack of rocks in a box I have ever seen.. Graduates of partying through their business degree, following template investment strategies prepared by back office, and generally do no better than the index. The ones that take risk? When the market goes opposite they give you the famed line : Just hang in there. It'll work itself out .. Active portfolio management is where its at.. Money managers/financial planners are all about the buy/hold and sit through getting facerolled. As an engineer, markets/etc seemed pretty straight forward. Anyone who invests the time can learn them and become just as good as your typical money Manager/financial planner. They key is to get better. Many engineers at my company trade and converse regularly.
Risk/Reward are real. If you stand to make 40%.. You stand to lose an equal amount. Emotional Control is the #1 and hardest skill to master. Trading/Investing is very satisfying and gives me an outlet to exercise my views about the world and get instant feedback. Govt. bailing out banks ... Lightly slapping BP on the hand .. Think its unfair ? Unjust ? Get you upset .? Channel that energy/understanding into the market and buy em. +1 rep point (NJerseyBorn). What a great trading day, Monday will be filled w/ fireworks.
Last edited by yeahthatguy; 06-15-2012 at 02:19 PM..
Also, I would add that many people that come out of school with engineering degrees have very high starting salaries (for undergrad), but quickly reach the career plateau. I can't tell you how many engineers I had in my MBA program, as they saw the need to go back to school to move up the management chain.
Lots !! I can already see it myself and see the diminishing returns. Personally, I am growing more technical everyday. However, my company isn't fully utilizing my skills and doesn't pay me enough for the ones I contribute. Solution : I consult/engage in contract work. Later, I hope to start my own venture and continue to trade/invest.. Next salaried gig will be in management. I think many engineers understand the 'plateau'.. Too many in fact. Everyone is focused on 'stepping up and out' now-a-days that it makes for very poor and short sighted engineering. It's not a good thing when everyone understands the 'game' .
Last edited by yeahthatguy; 06-15-2012 at 02:19 PM..
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