Financial Advice needed

Common_Fanfare · 2018-07-31T00:50:59+00:00

You’re young. You should go as high risk as possible right now hard core for as long as you think this economy will hold out couple few years at least. You have a big opportunity to get a big head start and if you lose you’re young.

DemonVice · 2018-07-31T00:58:48+00:00

Resist the urge to go all in on an investment that is working. Eventually it will be the thing that's not working. Diversity of investment means you stay alive when things turn around.

Focus on generating a quality percentage return over time. Looking at the actual dollar value can be a bit discouraging at first since you're not working with a big portfolio. But if you can maintain a steady good percentage return, money compounds and you'll be pulling in big bucks in time.

Lastly, understand fully what you're getting into and what the risks are as well as the rewards. We often focus too much on the reward that we're blind to the down side. Keep your risk in check and the rewards should start piling up. It's all a game of time, he who survives longest wins all the chips, regardless of how many hands played.

Short_Fly · 2018-07-31T01:26:57+00:00

invest in low-cost ETFs that cover the market as a whole such as the SPY (SP500 aka big companies) or ITOT (SP1500, which is SP500 plus a bunch of smaller companies). Throw some into international equities as well such as VEU (stocks everywhere else in the world). Do a 50/50 split b/w US/international or 60/40 or 40/60, really won't matter much in the long run. You won't need any bond/fixed income or any "safe" assets since you are only 21. Be prepared to see losses within the next 6mo-1yr horizon, but if you simply buy and forget and add to your portfolio whenever you have extra cash, it's virtually a guarantee that 5-10 years from now you will come out ahead (as in your % return will be far above the typical savings account). DO NOT BUY MUTUAL FUNDS because they charge too much in terms of fees, a "1% fee" may not see like alot but compared to say SPY above (0.09% fee) it's 10x difference.

lilweezy99 · 2018-07-31T00:52:14+00:00

well, you save what you can and spend what you need to.

Raise your 401k contribution, change the investment options toward equity over bonds (at your age the risk of being in stocks doesnt matter). Outside of my 401k I take the rest and invest it myself as trading is one of my hobbies. Keep an emergency amount in your brokerage or bank (many brokers will pay interest on the cash you store).

flee_market · 2018-07-31T01:10:11+00:00

The strategy is make compound interest work for you, not against you. That means avoiding debt and pouring a lot of cash into investment vehicles at as early an age as humanly possible.

The traditional advice is to have a more "aggressive" (risk taking) investment portfolio while young, because the assumption is that if you lose everything, well, you do have the rest of your career to make more money so it's all good. And maybe you'll get really lucky and hit it big on the next Google or whatever.

Then as you age your "ideal" investment portfolio shifts to a "safer" spread of low-risk vehicles (that are also low-return).

The idea being you make most of your actual growth somewhere between now and age 35 or so. Then you conserve it as you approach retirement age.

Of course all of this is predicated upon several assumptions, such as 1) you living to retirement age in the first place, 2) the American Dollar being worth anything by then, 3) stocks following the same patterns they have followed for the last many decades, 4) humanity not being wiped out by global warming, etc

vladm007 · 2018-07-31T01:11:39+00:00

Maybe buy some ETFs. They like mutual funds but with lower fees.

comercialseverywhere · 2018-07-31T02:06:35+00:00

401k and IRA are good. I would start putting at least 10% into the 401k. You want to find a median between saving for retirement and enjoying life. Also, always be on the lookout for better job opportunities. Dont be afraid to make less money if there is room to grow.

padraigmarcus · 2018-07-31T03:08:36+00:00

There are tons of free information out there about investing. I recommend checking into building up a portfolio of dividend paying stocks to hold forever. You are young enough to build up 20 to 30,000 shares of dividend paying stocks by the time you are 40...just think if each share paid an annual dividend of 2 or 3 bucks. Be very careful if you pay for training on investing. There are goods ones out there and useless ones too. Especially stay away from options trading gurus who promise 1000% returns...they are cons. If you decide to trade options, you'll lose money for at least three years before you get it right...if you ever get it right. Check out "Tasty Trade" on youtube to learn options.

The most important advice I can really give you about building wealth is to TAKE CARE OF YOUR HEALTH! Don't start drinking booze. Don't make the same mistake I did. I drank for too long and too heavily and I'm paying the price for it now. Your health is your most important asset.

honda_vfr · 2018-07-31T04:58:34+00:00

Real estate rental property has been a good investment for over 100years. Its a little more difficult now, but for a young guy you can see areas the older more conservative guys miss.

Read rich dad, poor dad to get a new idea about what are assets.

Unidentifiedkid · 2018-07-31T02:14:38+00:00

I'm 23. I also am in a similar position. If you want to try the greatest reward to risk investing option, I would suggest Options Trading. Study the market and you shall reap the rewards. Options are a bit more complex than stocks. Start small, slowly build up capital. It is not for the faint of heart. Only proceed with the risks understood. Good Luck.

Older_Miggy · 2018-07-31T03:33:17+00:00

If I was young again and in your shoes, I'd pay off the debt first.

Then, if I wanted to get going on investing but was starting from Square One, I'd put my money into an index fund like was mentioned above.

Once you learn, then branch out into buying some individual stocks, especially ones that pay dividends.

One dividend stock I recommend right now is Annaly Capital Management (NLY). Their dividend yield is typically around 11-12% annually. I think it's worth the much higher yield without having too much risk. This one you buy for the dividend, not price gains.

Good luck.

iseehot · 2018-07-31T12:08:28+00:00

Don't waste your money on things. Your ability to determine value is not developed yet. You will not likely buy anything (e.g. an automobile) that will appreciate. Time is your friend right now, so put that money aside for your 35 year old self.

Dive into investing. Use Wealthfront or WiseBanyan to choose your investments, then follow what happens with each. Weekly. If you really want to invest in individual stocks, try Robin Hood. It will teach you the cost of research and timing.

2018-07-31T14:23:08+00:00

Hold cash.

Spend two years researching before you invest anything.

Title	Financial Advice needed
Author	Bmeaston
Upvotes	7
Comments	24
Date	July 31, 2018 12:47 AM UTC (8 years ago)
Subreddit	Posted in /r/MGTOW
Original Link	https://old.reddit.com/r/MGTOW/comments/939t4p/financial_advice_needed/
Archive Link	https://theredarchive.com/r/MGTOW/financial-advice-needed.648377 https://theredarchive.com/post/648377

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