Hello Everyone

[jmil07]

I have just recently learned of the FIRE movement and I am not sure about the "RE" part; however, I most definitely want to be financially independent. I know a little about investing, but would definitely like to know a lot more. I am 19 and have recently began to save money, if I am interested in becoming finanicially independent within the next 7-10 years, what are some resources that I should invest in, ie. books, courses. Also with the returns in recent years do you think that future returns are going to be slower, and therefore making it more difficult to achieve this?
Thanks, Jacob

[Midpack]

Welcome to ER.org. Starting at your age can get you to FI long before most people, congrats.

The answer to your investing questions would easily fill a book, there are many. It’s not hard but it’s not as simple as posting an answer here.

Maybe start with https://www.bogleheads.org/wiki/Getting_started and read all the wiki’s that follow there. That’ll answer your questions, and many others you may not have thought of yet...

[street]

Quote:

Originally Posted by Midpack Welcome to ER.org. Starting at your age can get you to FI long before most people, congrats. The answer to your investing questions would easily fill a book, there are many. It’s not hard but it’s not as simple as posting an answer here. Maybe start with https://www.bogleheads.org/wiki/Getting_started and read all the wiki’s that follow there. That’ll answer your questions, and many others you may not have thought of yet...

Welcome! And I second what Midpack has said.

[TDub]

Welcome!

Starting young is excellent because when it comes to achieving FI, time is your greatest asset.

I recommend “The Simple Path to Wealth” by JL Collins. Great place to start. I wish it was around when I was 19

[Gumby]

Welcome, Jacob. You have something in abundance that the rest of us don't - time to let the miracle of compound interest do its thing. If you start right now with living below your means, saving assiduously and investing wisely, your life will be great. Even if you never retire, having money put away gives you freedom and options throughout your life that others won't have.

The money I saved and invested through my 20's is what allowed me to quit work and go to law school when I was 30. And the money I've saved and invested since then is what will allow me to retire next month at 60.

You're on the right path. Good luck!

[LakeRat1]

Like yourself, I started asking questions early in life, by 21 I had a pretty good IT job at our local utility company, then 12 years later, went to work for the 3rd largest aircraft company in their IT group...... Fortunately by asking questions, saving through 401k plans maximum, living within my means, I was able to retire at 52...... Good Luck, you got this !!!

[kimcdougc]

Welcome to the forum. You are starting on the right track to be so young. I look forward to seeing where you financial journey leads you in the years to come. Good luck.

[jmil07]

Quote:

Originally Posted by Midpack Welcome to ER.org. Starting at your age can get you to FI long before most people, congrats. The answer to your investing questions would easily fill a book, there are many. It’s not hard but it’s not as simple as posting an answer here. Maybe start with https://www.bogleheads.org/wiki/Getting_started and read all the wiki’s that follow there. That’ll answer your questions, and many others you may not have thought of yet...

Ok, I will definitely check this out. Thank you!

[HI Bill]

Welecome, Jacob! You are certainly the youngest person I recall posting here to date. It's always good to have the end game in focus, as it can help shape your actions from here on out.

My simple advice (simple in giving, not in executing), is figure out in what way you plan to make your money (college degree, tech job, construction, business, real estate, etc.).

Save as much as possible, from the beginning (I would start with 6% to 10% at your age). Invest in broad-based mutual funds or ETFs. As your income goes up, save more, and more or less keep your standard of living the same. This means living below your means. By age 40, you could have a $1M++ nest egg, depending on your salary, savings, and rate of return. Unless you inherit a large sum of money or win the lottery, 7 to 10 years is just not realistic. Keep going until your retirement assets are equal to your desired budget for 25 years of expenses (roughly the 4% rule), and then enjoy your retirement.

A few caveats. Don't forget to enjoy life along the way. Saving, scrimping, and never travelling or buying toys or cars or experiences that bring you joy could make you unecessarily miserable (balance in everything).

My story: I saved nothing from graduation from college for 2 years. Then, at around age 27, I started saving 6%. Fast forward to age 53, and I'm saving 48% and planning to retire in January, on or around my 54th birthday. Since I've been living below my means for so long, this means my standard of living and spending wil double. Go get 'em!

[Oz investor]

Quote:

Originally Posted by Midpack Welcome to ER.org. Starting at your age can get you to FI long before most people, congrats. The answer to your investing questions would easily fill a book, there are many. It’s not hard but it’s not as simple as posting an answer here. Maybe start with https://www.bogleheads.org/wiki/Getting_started and read all the wiki’s that follow there. That’ll answer your questions, and many others you may not have thought of yet...

+1 ( also )

becoming financially independent well before you need to retire will be good for your mental health over the years .. it should give some choices ( not just load up the credit card ) in those big emergencies and unexpected bills .

learn more , for sure , but don't forget to think about what will suit you best

one size does NOT fit all

cheers

[Aerides]

Welcome!

Aside from the excellent advice from the replies above, 2 things:

1 - By starting to even think about this stuff at 19 you have a head start.. on most 29 year olds, and many 39 year olds.

2 -

Quote:

Originally Posted by jmil07 Also with the returns in recent years do you think that future returns are going to be slower, and therefore making it more difficult to achieve this?

Run the other way anyone ever pretends to answer this question with certainty. No one knows, and no one can know - but there are plenty of people who will sound like they do, usually twits on TV.

[Oz investor]

i only started to consider being FI in ( very late ) 2010 and my life has had several big ( unexpected ) twists , since

so far i have been incredibly lucky .. the choices i made ( so far ) turned out to be correct BECAUSE of those unexpected twists .. a normal person would have held back a large amount of cash WAITING for that market downturn ( which i thought would happen in 2013 )

several 'safe-havens turned into 'multi-baggers ' in a bull market ( not what you would expect at all )

i rushed my agenda and in my case it was the right strategy for the wrong reasons ( i was way too early for that crash , but that allowed me to take substantial profits ( and reinvest the profits , something unlikely in a bank account )

yes i look like a twit , but the portfolio looks weird , but nicely in profit ( and throwing out some dividends , to boot )

good luck

[cnocmmz]

Quote:

Originally Posted by jmil07 I have just recently learned of the FIRE movement and I am not sure about the "RE" part; however, I most definitely want to be financially independent. I know a little about investing, but would definitely like to know a lot more. I am 19 and have recently began to save money, if I am interested in becoming finanicially independent within the next 7-10 years, what are some resources that I should invest in, ie. books, courses. Also with the returns in recent years do you think that future returns are going to be slower, and therefore making it more difficult to achieve this? Thanks, Jacob

Congrats for taking the 1st step :-)

[Montecfo]

Quote:

Originally Posted by jmil07 I have just recently learned of the FIRE movement and I am not sure about the "RE" part; however, I most definitely want to be financially independent. I know a little about investing, but would definitely like to know a lot more. I am 19 and have recently began to save money, if I am interested in becoming finanicially independent within the next 7-10 years, what are some resources that I should invest in, ie. books, courses. Also with the returns in recent years do you think that future returns are going to be slower, and therefore making it more difficult to achieve this? Thanks, Jacob

Welcome Jacob! Fantastic you are starting early. No time like the present.

I think learning about investing is a destination, not a journey. all of us here are still learning. In addition to reading some of the great investing books some of us will note here, I think joining personal finance websites/publications such as Kiplinger is a great way to begin learning about investing.

I think the single best piece if investing advice anyone can receive is: "stay fully invested". I see so many people put their money is IRAs or 401(k)s and then freeze and leave it in cash for whatever reason. In many cases the cash earns nothing or very little. Don't be that guy!

Otherwise there is a wealth of resources and knowledgeable folks you will find here.

Welcome!

[Mdlerth]

Quote:

Originally Posted by jmil07 Also with the returns in recent years do you think that future returns are going to be slower, and therefore making it more difficult to achieve this?

I can guarantee you with 100% certainty that this will be true...

...some of the time... sort of... depending on one's definitions of "recent", "future", "slower", "difficult", "achieve" and "true". At some other time it may not be true.

Beyond that, I'm not making any promises.

Meanwhile, welcome to the forum.

[UnrealizedPotential]

Welcome to the forum Jacob! At your young age of 19, you have all roads open to you. Good luck!

[jmil07]

Thanks to everyone for all the advice and kind words. I have recently been looking at opening up an investment portfolio with Vanguard. There are a lot of options and I am slightly confused. Should I choose a mutual fund or ETF or something else.
There are a lot of options and I do not want to end up in the wrong kind of fund!
Thanks

[Go-NoGo]

Quote:

Originally Posted by jmil07 Thanks to everyone for all the advice and kind words. I have recently been looking at opening up an investment portfolio with Vanguard. There are a lot of options and I am slightly confused. Should I choose a mutual fund or ETF or something else. There are a lot of options and I do not want to end up in the wrong kind of fund! Thanks

Let me be the first to say it, at your age go with VTSAX. Go all in!