Advice on finances?

Squirting_Nachos · 2017-06-18T16:09:36+00:00

The best thing you can do to save for retirement is to open up a ROTH IRA account, specifically an index fund, I would recommend an S&P 500 index fund. Start putting money into that ASAP, the sooner the better, $200 a month if you can.

If you put $2000 dollars a year into that fund every year for 45 years, you will be 67, the total money you will have invested will be $90,000 and the account will hold around 2 million dollars. This will make retirement much easier.

With a ROTH IRA you pay the taxes before you invest the money, but when you take the money out later it's 100% tax free. And most investment accounts will charge 2-4% to manage your money, but in index fund just randomly buys stocks from that index and only charges 0.05%. Instead of relying on specific stocks you are just investing in the entire stock market (which has gone up on average 11% every year since it started).

This should by no means be your only investment, but it requires almost no work/effort like many investments do (I'm looking at you real estate) and will help tremendously during retirement, especially once you consider the imminent collapse of social security.

For just $2000 dollars a year, less than $200 dollars a month, anyone can retire a millionaire...as long as they start early enough.

I'll leave you with the quote from Albert Einstein:

"Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.

Compound interest is the most powerful force in the universe.

Compound interest is the greatest mathematical discovery of all time."

lostapwbm · 2017-06-18T15:41:43+00:00

Get real estate and get people to live on it and pay you money for living on it.

Spartanginger · 2017-06-18T16:23:05+00:00

Start with the end in mind. You don't want to slave at a job forever, understandable, but how do you get there?

Maximize earning potential by gaining marketable skills. Learn a trade or get degree that is in high demand. Focus on ROI don't just randomly go to school.
Keep expenses low and do not get into debt. Without a LTR woman in your life this should be pretty simple.
Maximize savings rate.
Invest. Mutual funds and real estate are great.

If i were you i would go the real estate route since you can hustle and wont have to spend on formal training. FHA loans on a multi family property would be a good way to start. Can be tricky in a rural area though.

Lots of resources out there for you. Check out Mr. Money mustache.

throwaway99928376463 · 2017-06-18T15:28:04+00:00

Your most valuable resource is your potential human capital. Figure out what you don't mind doing and are good at, and then find ways to earn more and more money doing it until you have an income that will allow you to achieve the lifestyle that you want.

This can range from starting a plumbing company to becoming a neuroscientist. Without knowing more about you and your circumstances, it is impossible to say.

At your age it is all about maximizing your lifetime earning potential, and that requires investment (education, time off work, clothes, vehicles, tools, licenses and so on). Once you have begun earning serious money, then you want to start saving by investing in index trackers, though everyone should wait for the coming 10%+ downward correction before putting any more money into equities.

WanderlustYouth · 2017-06-18T15:52:43+00:00

21M here, okay so here's what you do just all your money and let the kind folks over at r/wsb/ help you out. But seriously since you have so little expenses I suggest you read up on investing in dividend paying stocks, or mutual funds for passive income, you wont start making a lot passively but with time and compounding you could easily have your passive income offset your expenses...

scotFree66 · 2017-06-18T17:55:27+00:00

*tracker funds - cheapest management fees and effective investment. Put in money regularly

*Property - buy and then rent it out (either whole or buy a place with 2+bedrooms and rent out the others)

*buy some gold coins & keep them in a safe place

For every 100 you invest in your twenties will be the equivalent of investing 400 or so in your forties - so get investing early

Coluphid · 2017-06-18T17:59:05+00:00

Land.

I'll let the financiers talk about imaginary dollars.

Property. Real estate. But most of all, land. If you live out in buttfuck nowhere in a halfway productive place, and can buy a lot of decent land cheap - do it.

Especially as a long term investment.

Eyes_Of_The_Dragon · 2017-06-18T18:14:00+00:00

Buy assets. Real estate or stocks that pay dividends. Invest in businesses. Owning assets that pay you is a great way to retire early.

ScatteredCastles · 2017-06-18T18:27:46+00:00

Consider some ideas here: http://a.co/gnhgBqs - it is candid, blunt, honest.

There's a free PDF floating around on the web somewhere.

German_MGTOW · 2017-06-18T18:34:04+00:00

The very first I would do is to open a liquid account and save in it until you have six months to one year of expenses. This is already a HUGE step towards financial freedom. You cannot live on that long-term, of course, but it gives you the freedom to say bye-bye to an unbearable job and just go elsewhere without having to worry how you get to eat next month. Such an account is sometimes called "F*** you money" for a reason.

After that buy assets. The easiest and cheapest way are ETFs.

This is a huge topic, so you might google like "Asset Allocation Techniques" or similiar. A good starting point would be the "Permanent Portfolio", but this is only the start into a whole universe of the question of what to buy, how much to buy, how long to hold it.

A very important advice: Don't get lured into short-term stock trading or even day-trading. You would be in direct competition with the best Wallstreet guys with best computer algorithms in the world. This is a game where you can only lose your money. Invest long-term.

To determine the point of financial freedom, the so-called '4%-rule' is often used. Long-term, one can expect to be able to withdraw 4% per year from a diversified portfolio. That means, should you have managed to save 25x your yearly expenses, you are financially free. For someone who saves 50% of his yearly income, this means he can retire after roughly 15-20 years of work (you must take into account that the saved money already grows during the saving phase)

OneLostMotherfucker · 2017-06-18T20:54:17+00:00

Organize and track your net worth. Open up a free Personal Capital account.

Next, organize and track your spending -- budget! Get a 34-day free trial for You Need a Budget (YNAB). Consider the $50/year some of the best money you'll ever spend. The optimization of your spending will feed back into your net worth status above.

Once you gamify your finances, there's no going back. That is, it's almost addictive. At your age, you'll be well ahead of the curve.

Rotten_Red · 2017-06-18T21:43:24+00:00

Never, ever go into debt for anything other than a mortgage and maybe not even then. You don't need credit cards as much as people want you to think that you do.

Being in debt is worse than being broke. There is great freedom in not owing anything to anyone.

Also, make a written budget and know exactly where your money goes.

0rsus · 2017-06-18T23:03:46+00:00

Do NOT invest in the united states; the dollar is going to devalue into nothing, and all of the domestic indices are overvalued to oblivion.

Invest in foreign stocks and currencies, and open a savings account in gold, like goldmoney.com.

Gold maintains its value, while the USD has lost the overwhelming majority of its purchasing power since the Fed was created in 1913.

Stocks like Amazon are trading at nearly 200x earnings with no dividend yield, and cryptos, especially bitcoin, are in the funniest bubble i have ever seen since the tech bubble of 1999.

Look at any price chart of bitcoin going back 5-10 years. If you don't laugh, somethings wrong with you.

If you want domestic stocks, go with ETFs like the GDXJ and GDX, and stocks like ABX and XUAMF.

cheesymold · 2017-06-19T06:55:26+00:00

Buy bitcoin. Register on wagerr site during ico. Use bitcoin to buy wagerr tokens ico through a dealer on localbitcoins.com. Hold for 2- 5 years get 5000% gains if all works out. Give me 10k for the advice because youre a millionaire.

Title	Advice on finances?
Author	Autozanzibar
Upvotes	8
Comments	18
Date	June 18, 2017 2:43 PM UTC (9 years ago)
Subreddit	Posted in /r/MGTOW
Original Link	https://old.reddit.com/r/MGTOW/comments/6hzzcg/advice_on_finances/
Archive Link	https://theredarchive.com/r/MGTOW/advice-on-finances.580307 https://theredarchive.com/post/580307

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