Need some help from the buisness people!

[effektz]

Im looking to start saving up for Retirement. (haha laugh all you want but I want to have money when Im retired ) But Im having a hard time trying to figure out teh answers to my questions. What is the correct way to do this? I mean I know there is a 401k thing but isn't that only for people whose company offers it?

Every website I go to ask about my home investments, stocks, bonds, portfolios and what not. But I have none of that. I just want something that will deduct money out of my paycheck and put it in a account that I cannot touch.

Any help on this would be appreciated!

 

[jastermerrel]

In all honesty, go see a professional financial advisor/planner. It will probably cost some money just to talk to them, but will probably be the best investment you'll ever make. I dont know the going rate, but you could probably get free initial counseling. Just call around. Any bank should have a financial advisor on hand, and that will probably be free, atleast I'd assume especially if its your bank. Whatever you do as far as investments go the key word is DIVERSIFICATION. Never put all your money in one market or one type of investment. Go to the local bookstore and buy a book or two, heck, read up as much as you can.

my two pence

 

[Catbox_95]

As mentioned, definitely go talk to an advisor. That's what I did 6 years ago when I was 25, and it's been the smartest choice I've ever made in my life.

I have my own company, so a 401K is out. My investments are up to me. I set it up where every month, Edward Jones automatically withdraws money from my checking account, which is placed in several diversified locations that I only have to think about when I feel like it. The rest of the time it's in the hands of people who know thousands more about investments than I do.

Diversify. And if you're young, be more risky. Don't panic when times are bad. As my investment rep puts it, when things are on sale, you buy them, not sell them. Being young, we can afford to do this because we don't need the money for a long time. As you get older, you spread your portfolio out to where it's more conservative. More info than you really need right now. You really should go see someone. Like I said, smartest thing I ever did.

 

[project15]

Roth IRA. invest some now until you retire and watch the interest build. there's very few instances that you can take the money out of it, so it'll "help" you keep it maturing.

 

[Crazy E]

My roomate at college is a finance major and works at Ameriprise, Ill talk to him and see what he says. Hes already studying for his series 7 (the test that authorizes you to be a broker). I would def. talk to a broker, like Ameriprise (they just seperated from american express and their stock as done well after IPO)

Im a finance major too, but im kinda dumb,

 

[BoostInsideTSi]

I've heard this in a few of my business classes.... but if you were to put 150 from each paycheck (bi-weekly) into an interest bearing account (around 6% rate) like an IRA, after 30 years you will have over 1 million dollars saved up. Not bad eh?

 

[sherwinz28]

When I think of diversification I not only think in stock market terms but also in real estate. I have a bit of my money in 401k, will start IRA soon, and also invest in my spare time in the stock market, more like swing trading. I also have real estate. My thinking is that after 30 years or so one of my properties should be paid off and it won't be paid off by me for the most part. I can then reap the benefits of either the renters or selling it. I'm hoping to have a few properties in the next couple of years. Of course all this is easier to talk about then actually implementing but good luck.

 

[D_Eclipse9916]

Roth IRA is good until you start earning huge incomes. Roth IRA should be started young, I started when I was 16, which means I will have HUGE bucks from that as it is also non-taxable income. If you dont know what your doing, I would suggest putting most of your funds in mutual funds. They have diversification and are easy to invest. Short term consider putting money in CDs. No not those flexible things you use to play songs, but basically like savings accounts, except with larger interest.

Few other investment techniques is to pay off FULLY your credit card every month. If you do not, you pay interest. I pay every month on time fully, therefore, I Dont pay a SINGLE cent to have a credit card, plus I get the credit card's benefits.

Also mortgages are not exaclty a bad thing even if you have the money to fully pay for a house. If you take into account tax exemptions and loopholes alonmg with interest...is it better to put your own money away and have it earn interest in an account while you pay mortgage that is less than the interest you earn with tax exemptions?

Look over everything, see where you can take money out and dont go out to eat as much and don't lease cars...buy them and keep them for 10 years. Cars lose 3-20,000 dollars driving right off the lot (depending on original price of the car, for example hondas may lose 3grand and a heavily optioned Jaguar may lose 15 grand)

Also create a balance sheet at the end of every month with ypour credit card bill (pay everything with credit card so you can see what you buy, I even use it at 711 and was surprised I spent like 100 bucks a month which I thought was worth it, but some may not) That way you get your credit card benefits and also dont have to carry around cash. Plus you get to see how much you spend on your dsm every month and you want to kill yourself, but you still pay anyway and do it next month oh well..

 

[AW4G63]

401K's rock. My company is matching us 75 cents to the dollar.

This comes out of my check before tax, allowing me to be taxed less. Plus it then get's invested. Not shabby. I'm 24, by 50 I'll be set. And just because your work doesn't offer a 401K doesn't mean you can't start one. You just wouldn't have any profit sharing (matching) but your money would still be invested and it should be before tax.

 

[Catbox_95]

I've heard this in a few of my business classes.... but if you were to put 150 from each paycheck (bi-weekly) into an interest bearing account (around 6% rate) like an IRA, after 30 years you will have over 1 million dollars saved up. Not bad eh?

$1,437,741.00 to be exact.

So - no more Starbucks everyday, quit smoking, and in 30 years you've got $1.4 million to show for it.