Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Just a confused child.
Old 01-19-2012, 04:09 PM   #1
Confused about dryer sheets
 
Join Date: Jan 2012
Location: atlanta
Posts: 1
Just a confused child.

Life story- Im 23, purchased my home cash dec 2011. (savings from working for the 3 prior years)
unemployed, have associates degree in accounting, working on associates in bus management (then bachelors, then i plan to stop edu.) instant equity on home, i put 15k in repairs and now even in this market fair price i would earn 30k profit.

I have always been good with saving money. I have no debt, my SO pays the utilities as her contribution to rent since i purchased it outright.
I will only buy cars with cash, ect. i only have a credit card to build credit, but i always pay off balance to never pay interest.

I plan for the next 5 years (as i start my hopeful career in management and finish education) to only devote 5k a year to savings, after that, 10k + (just from extra cash) a year is easy if not much more (i like to think conservatively so i surprise myself later lol)

I do alot of reading but it is still all confusing. I am looking for LOW risk long term investments, basically a place to dump my money every few months and not want to look at it for 20 years, basically when i have extra money, ill put it there and forget about it.

looking for something simple, but even with my readings i dont understand
*the taxes ect
* bonds? stocks? ira? blah blah blah? portfolio? cds?

I dont mind doing the research if someone could throw some links my way (ive read alot on this siet already) or some phrases i could search.

I know the longer the money sits the better, so id like to get on it, hopefully to retire at 50 (ish)

best regards, casey james
__________________

__________________
halfwit is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-19-2012, 04:19 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,963
Welcome aboard, you're off to a very early start, so you can reach FI long before your peers if you choose to. * Acronyms and Slang Frequently Used on the Forum *

If you want to learn, this is the best book list I know of Investment Books. Not a bad one on the list, just pick your area of interest. Most if not all of them are at most good libraries if you're so inclined.

Best of luck...
__________________

__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 01-19-2012, 04:43 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,356
When I was your age, one of the best ways I learned about those topics was to invest small amounts in each of various investment types, and then prepare my own tax return. Seeing each investment's impact on taxes was an eye opening experience I'd never have had if I'd instead paid a tax preparer.
__________________
GrayHare is offline   Reply With Quote
Old 01-20-2012, 06:45 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,871
Quote:
Originally Posted by halfwit View Post
..........
I dont mind doing the research if someone could throw some links my way (ive read a lot on this site already) or some phrases i could search..........

best regards, casey james
This is an excellent reading list:

Investment Books Edit: (oops, I see Midpack beat me to it)

My favorite is the Boglehead's Guide to Investing, but you can't go wrong with the others. Many are available at your library or very cheap on line, used.

Also, if you have not frequented the Boglehead's forum and wiki, you should find it very informative.

Bogleheads Investing Advice and Info

PS, you are doing much better with your finances than 99% of your peers.
__________________
Yes, I have achieved work / life balance.
travelover is online now   Reply With Quote
Old 01-20-2012, 07:32 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jun 2010
Location: France
Posts: 1,195
Quote:
Originally Posted by halfwit View Post
I am looking for LOW risk long term investments, basically a place to dump my money every few months and not want to look at it for 20 years, basically when i have extra money, ill put it there and forget about it.
First, make sure you have your emergency fund fully loaded.

Then, if you have a 20-year horizon, I'd suggest the lowest cost S&P tracker fund you can find, at least for the first N-5 years. Long-term, especially if you are contributing every month, this is not a high-risk strategy. Maybe put 20% into a low-cost emerging markets fund for a bit of variety. If you will likely know 5 years in advance when you want to retire, plan to convert 10% of the stocks to bonds each of the last 5 years.
__________________
Age 56, retired July 1, 2012; DW is 60 and working for 2 more years. Current portfolio is 2000K split 50 stocks/20 bonds/30 cash. Renting house, no debts.
BigNick is offline   Reply With Quote
Old 01-20-2012, 03:21 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Aug 2006
Posts: 1,356
What do you mean by LOW risk?

The risk-free rate of return right now is generally less than 1%. If you invest that way for 20 years, I suspect that you will lose money when factoring in inflation.

If you are looking to invest for 20 years, you will probably not want to go that way, but the alternatives will all bounce around a lot. Over 20 years, its a good bet (but not a guarrenteed one) that you will do well with a diversified portfolio of stocks and bonds, but in any given year it can get pretty ugly.

Your choices nowadays are lose money slowly with inflation or take some risk, IMO.

Quote:
Originally Posted by halfwit View Post
I do alot of reading but it is still all confusing. I am looking for LOW risk long term investments, basically a place to dump my money every few months and not want to look at it for 20 years, basically when i have extra money, ill put it there and forget about it.
__________________

__________________
Hamlet is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
It's only Physics...But I'm Confused mickeyd Other topics 27 07-30-2011 12:32 PM

 

 
All times are GMT -6. The time now is 05:06 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.