Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Where to go from here
Old 07-24-2007, 11:50 AM   #1
Confused about dryer sheets
 
Join Date: Jul 2007
Posts: 5
Where to go from here

Hello everyone, I just stumbled upon these forums and thought i may be able to get some advice. I am an 18 year old male trying to figure out how best to invest what money I have.

My father has a scottrade account that he controls under my name (been active 2 years) With holding in about 10 stocks
( ~ 71k atm)

I have just opened a Roth IRA with Vangaurd, and have put 3k in their TR 2050. I also opened a money market account with 3k.

My income is very low at the moment (part time) but I'm seeking a fulltime job. I'm living with my parents so my expenses are low and \I can invest most of any money I get.

Where do i go from here? Perhaps funnel some money into index funds? Thanks
__________________

__________________
Shadowblade 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 07-24-2007, 12:39 PM   #2
Recycles dryer sheets
 
Join Date: Apr 2005
Posts: 163
Like many here, I like index funds. The Vanguard TR series seem like a really solid place to park your money until (if ever) you want to learn more about asset allocation.

I'm a little leery about having most of your money in individual stocks. You might want to talk about that with your dad, or you might just decide to be grateful for what he's set you up with.

Finally, don't focus too much on savings. Retiring early is great (I imagine), but make sure you enjoy yourself on the way there. It really is wonderful that you are saving, and you should try to save some part of every paycheck you ever get. If you can do that you're way ahead of the game. But don't save too much. There is a lot in life to enjoy, and having a little money is really helpful in that regard.

Tim
__________________

__________________
nuisance is offline   Reply With Quote
Old 07-24-2007, 03:05 PM   #3
Confused about dryer sheets
 
Join Date: Jul 2007
Posts: 5
I am grateful for what he has done (making me $20,000 in 2 years) but I may pull some of that money out and into an index fund. I'm just not sure what would be the best option.
__________________
Shadowblade is offline   Reply With Quote
Old 07-24-2007, 06:19 PM   #4
Dryer sheet aficionado
 
Join Date: Jun 2007
Posts: 31
Shadow....I'm in a similar situation, only 13yrs older. I have an IRA that my parents pumped up with stock options. A couple years ago my "financial advisor" moved it all into an actively managed global allocation fund. I agreed (lack of knowledge). I have since learned that putting all my eggs in one basket which is not meeting the category index and paying management fees out the wazoo is not the most efficient investment strategy. I came to this board about a month ago and was advised to read a couple books. "The Bogleheads Guide to Investing" and The Four Pillars of Investing" have really opened my eyes to how simple DIY investing can be. For example.....an allocation mix using index-funds could look like:

Total Market Index = 60%
Total International Index = 20%
Total Bond Market Index = 20%

I recomend taking some time to read a few books and get some knowledge on building an efficient long-term strategy. Sounds like you have a great start.

p.s. This board has some seriously smart people that like to help us newer investors. Use the search function to find older topics on just about anything.
__________________
Keopele is offline   Reply With Quote
Old 07-24-2007, 06:23 PM   #5
Full time employment: Posting here.
Helena's Avatar
 
Join Date: Aug 2006
Posts: 597
In addition to investing for the future,
it's important to stay out of debt.
__________________
Helena is offline   Reply With Quote
Old 07-24-2007, 06:28 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,017
Congratulations on getting started so early in life ~ and on seeking out the information that you need to be financially independent one day. Enjoy!
__________________
Meadbh is offline   Reply With Quote
Old 07-24-2007, 06:52 PM   #7
Recycles dryer sheets
 
Join Date: Dec 2006
Location: Florida
Posts: 249
Some options: Traditional advice is the younger you are, the more should be in stocks (or stock funds). I am not familiar with the TR, but suspect it is an asset allocation fund. OK, perhaps, but do you really need bonds or cash at age 18? Probably not. Why not 100% stocks in big, medium, small, EAFE or whatever flavors you like?

Also needs saying: Lowest fees, please! "Vanguard" is an excellent choice in that area...there are others too.


Max out what you can put into tax-deferred plans. I think you're already doing this. I don't know what the current limits are, but if Mom & Dad are paying the bills, no law says you can't put all of your earned income into an IRA ($3000 per year?) Do you work for a Co. that matches part of what you contribute (usually to a 401K?) Investigate. Just don't put all your money into one stock (remember Enron? Worldcom? Etc.) Do you trust your parents? Hope so. Otherwise, you are of legal age: you have every right to allow (or prevent) others from accessing your money or funds. You have made a wonderful start. Just try to avoid the tempations of youth -- at least those that make it so very easy to piss away all the money you have. Cars, women, booze, drugs, you name it. Good luck.
__________________
I've got nothing against an honest day's work, provided that someone else does it.
pedorrero is offline   Reply With Quote
Old 07-24-2007, 07:02 PM   #8
Full time employment: Posting here.
 
Join Date: Sep 2006
Posts: 678
Quote:
Originally Posted by Keopele View Post
I came to this board about a month ago and was advised to read a couple books. "The Bogleheads Guide to Investing" and The Four Pillars of Investing" have really opened my eyes to how simple DIY investing can be.

p.s. This board has some seriously smart people that like to help us newer investors. Use the search function to find older topics on just about anything.
Keopele, I remember your posts about a month ago, and I remember recommending the Boglehead's book. I'm glad to hear that you read it, and it helped.
__________________
JustCurious is offline   Reply With Quote
Old 07-24-2007, 07:05 PM   #9
Full time employment: Posting here.
 
Join Date: Sep 2006
Posts: 678
Quote:
Originally Posted by pedorrero View Post
Just try to avoid the tempations of youth -- at least those that make it so very easy to piss away all the money you have. Cars, women, booze, drugs, you name it. Good luck.
This is good advice if you want to live a very boring life. Some of the best times in my younger days involved booze and fast cars and loose women. Or was it loose cars and fast women?
__________________
JustCurious is offline   Reply With Quote
Old 07-24-2007, 07:07 PM   #10
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Continue to contribute to the TR fund.
__________________
Spanky is offline   Reply With Quote
Old 07-24-2007, 07:14 PM   #11
Full time employment: Posting here.
 
Join Date: Jun 2007
Posts: 567
Quote:
Originally Posted by pedorrero View Post
Some options: Traditional advice is the younger you are, the more should be in stocks (or stock funds). I am not familiar with the TR, but suspect it is an asset allocation fund. OK, perhaps, but do you really need bonds or cash at age 18? Probably not. Why not 100% stocks in big, medium, small, EAFE or whatever flavors you like?
The Vanguard TR 2050 allocates very well for someone with retirement a long way off. It's roughly 90/10 with the 90 being further allocated Total Stock, Pacific, European, and Emerging. One of the Diehards did a pretty complete analysis of stock/bond allocation and pretty effectively showed that a 90/10 allocation didn't significantly affect growth opportunity at all but did smooth out volatility very nicely compared to a 100/0 allocation.

I've just made it through Boglehead's too... love love love that book. I'm going to use the additional reading section as a springboard to learn more.
__________________
Webzter is offline   Reply With Quote
Old 07-25-2007, 05:23 AM   #12
Confused about dryer sheets
 
Join Date: Jul 2007
Posts: 2
Well to say the least I am somewhat confused when it comes to investing for future savings at the right place. Again I realize all the investments can be kind of risky but I am eluded by the high yield investments and am considering the common/standard investments as stocks, MFunds, as options but then I want to know if there are any non common and new investment opportunities.
__________________
Arizona Employee Handbook can help you
atouchofwellness is offline   Reply With Quote
Old 07-25-2007, 02:13 PM   #13
Confused about dryer sheets
 
Join Date: Jul 2007
Posts: 5
My current allocation with scottrade is:

APPLE INC - 18%
CATERPILLAR INC - 9%
ISHARES DJ US HOME CONTRUCTION INDX - 8%
ISHARES TR RUSSELL MIDCAP - 8%
CRYSTALLEX INTL CORP (CANADA) - 5%
POWERSHARES INTERNATIONAL DEV - 9%
SCHERING-PLOUGH CORP - 14%
USG CORP COM NEW - 8%
VANGUARD GROWTH ETF - 11%
SECTOR SPDR TR SH BEN INT-ENRY*BEO - 10%

Approx. Percentages.

How does this look? What should I invest in?
__________________
Shadowblade is offline   Reply With Quote
Old 07-25-2007, 03:45 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Quote:
Originally Posted by Shadowblade View Post
How does this look? What should I invest in?
Take it from Warren Buffet - invest in low fee index funds. I know that is not very exciting advice, but it is good advice.

For excitement there are wine, women and fast cars.
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 07-25-2007, 03:47 PM   #15
Confused about dryer sheets
 
Join Date: Jul 2007
Posts: 5
Any specific funds? (perhaps vanguard) anyone could recommend?
__________________
Shadowblade is offline   Reply With Quote
Old 07-25-2007, 04:37 PM   #16
Dryer sheet aficionado
 
Join Date: Jul 2007
Posts: 47
1. thank your pop both for the fund and exposure
2. Yes, funds are easiest and overall good IMO for long term growth

This is what I did:
Get an account with a big fund manager (like fidelity, the 800lb gorilla)

Spread it out in small mix of funds:
domestic index fund (more in here than any other individual fund)
international index fund
canadian fund (blend or index?) This has done about 30% over 2 years, Oh Canada!
2-3 other domestic funds that aren't index, something that looks attractive to your taste.

- you can check morningstar ratings and read the little fund info to help too

Much easier to manage IMO than attempting to follow stocks while leading a busy life. If you focus more on:
1. Saving
1A. no more DAOC, WoW, or upcoming WAR...
2. Keep cost of living down (and expectations in control!)
3. Making it easy to get money to your investment account (bank transfer online, it's greatness, fidelity for instance set this up)
4. Invest in mutual funds with a little diversity in funds/low cost

...if there isn't some great calamity, it's almost a too easy once you get going. Especially starting at your age, that's a big leg-up.

Given your age, having a separate stock account, that you put some money into is probably a good idea as well (as you have now), especially if you keep up with them. Individual stocks are typically riskier, but you have a long time to even that risk out!

You may also consider keeping your savings sent to the company you buy your funds with, they usually have a holding account like a money market at some OK return, say, 4%. Wait a month or two and watch for a dip in the market (takes 30 seconds to check each day or every few days). When it dips, make the next block of purchases. Nothing high-maintenance, it just seems wrong to buy large chunks when they are high, even if you're in it for the long haul.

-Mach
__________________
Mach is offline   Reply With Quote
Old 07-26-2007, 01:38 PM   #17
Recycles dryer sheets
 
Join Date: May 2007
Posts: 107
Quote:
Originally Posted by Spanky View Post
Continue to contribute to the TR fund.
I agree ! Max out your Roth IRA deposits and for this account TR2050 is fine for now.

As for your other account, currently administered by your Dad, well this has some other issues. Dad may not want to give up the reins so quickly ! Be gentle with him. He has given you a great start !

Quote:
Originally Posted by Mach View Post
  1. thank your pop both for the fund and exposure
  2. Yes, funds are easiest and overall good IMO for long term growth

This is what I did:
Get an account with a big fund manager (like Fidelity, the 800lb gorilla)

Spread it out in small mix of funds:
  • domestic index fund (more in here than any other individual fund)
  • international index fund
WOW ! Sounds almost exactly what I did.

Personally I like Fidelity sector funds and Fidelity international funds (Latin America and Canada !)

Play with the mutual fund screener on Yahoo and Fidelity (use the Advanced option), both are free. You would be amazed at how many funds get 10%, 15% even 20% return for 5 and 10 years !
__________________

__________________
theoldwizard 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


 

 
All times are GMT -6. The time now is 06:35 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.