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budpln
Member
Cash: $ 3.45
Posts: 17
Joined: 18 Jan 2012
Location: mass
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| new to the forum............. |
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 im excited to b a part of this forum and i am looking to learn as much as possible from you guys with experiance. with that said im looking for advice. i am 23 i have no retirement plan besides the fact that i want to start one prob an ira. i am slowly paying off my credit cards i only owe about 1000 on 2 of them and automaticly pay 25 per week to both. i have a car loan at 6.69 percent and owe 9900, monthly bill is $200.
i am about to start paying for student loans wich will be about $160 a month. my finacial goal is to save about 40 thousand for a nice down payment on a modest home. i am a single father so im looking forward to getting my taxes back and paying off my credit cards and putting some to my car loan. any advice on a direction or savings plan or anything at all is GREATLY appreciated thnx for reading my post.
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Wed Jan 18, 2012 10:59 pm |
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budpln
Member
Cash: $ 3.45
Posts: 17
Joined: 18 Jan 2012
Location: mass
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thnx coaster that was kinda how i was leaning but wanted to get some advice.. im not sure the interest on my student loan i havent paid anything on it yet but ill update it..
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Sun Jan 22, 2012 3:42 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
i am a single father so im looking forward to getting my taxes back and paying off my credit cards and putting some to my car loan.
You should fix your W4 at work so that you don't get a tax refund next year. You may as well be getting that money a year earlier and using it to prepay the high interest loans. Eg, your car loan - you are paying 6.69% to borrow that money and you loaned it to the IRS all year for free, you can't get rich that way.
And if theh SL turns out to be <5%, keep that loan for the full term - and use your own money to invest in high interest items.
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Sun Jan 22, 2012 6:35 pm |
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budpln
Member
Cash: $ 3.45
Posts: 17
Joined: 18 Jan 2012
Location: mass
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Thnx for the welcome lottomagic...im here cuz I belive knoledge is power and I'm sick of just making a little extra and want to make my money work for me... Ok oldguy I had to read it a few times lol but I got ya thats genius I never thought of it that way (loaned the money to the irs for free) haha I love it although I don't exactly know what u mean by fix it so that I don't get a refund next year. Do you mean claim as many exemptions as possible and use the extra money I'm not giving them to invest? And if that is the case could you explain how to invest and how to invest and how to find high interest items? Thnx so much for the info that you have already shared I feel like you opens my eyes already looking forward to picking your brain some more 
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Mon Jan 23, 2012 6:28 pm |
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budpln
Member
Cash: $ 3.45
Posts: 17
Joined: 18 Jan 2012
Location: mass
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Don't mind spelling and gramer lol I sent the my phone..
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Mon Jan 23, 2012 6:29 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
Do you mean claim as many exemptions as possible and use the extra money I'm not giving them to invest? And if that is the case could you explain how to invest and how to invest and how to find high interest items?
The W4 Form has a simple 1/2 -page worksheet to tell you how to adjust your withholdings rate - just pick up a form at work. The 2009 average US IRS Refund check was about $3000 - isn't that amazing? Yet, if your electric company told you to send an extra $200 every month so that they could refund $2400 back to you at year end you would call them crazy.
You can invest in a 401k account, an Inidvidual Retirement Account, or a taxable account. Each has a tax advantage. And since tax code continually changes you cannot predict what code will be best when you are 65 or 70, it is best to use all 3 account-types. The key is to invest in longterm (30 yrs)stocks that grow at about 11%/yr - that is the historic SP500 Index return. The simplest way is to use a no-load company, Vanguard or Fidelity, and buy shares in their SP500 Index Fund.
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Tue Jan 24, 2012 2:53 pm |
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budpln
Member
Cash: $ 3.45
Posts: 17
Joined: 18 Jan 2012
Location: mass
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Ok so invest in all three..i already have a fidelity account I was reading and trying to learn as much as possible last night and I was also wondering if I should play around with buying stocks at all or is that pretty much what thos three accounts are for..sorry I am very new to this
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Tue Jan 24, 2012 3:20 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
Ok so invest in all three..i already have a fidelity account I was reading and trying to learn as much as possible last night and I was also wondering if I should play around with buying stocks
Don't buy individual stocks, they have "uncompensated risk". You want some risk - the Law of Investing is "risk and return are directly proportional" But you don't want uncompensated risk. The Market Index carries the risk of the US Market, ie, all US businesses and the US economy, fully diversified. If you narrow your scope to a business sector (cars, finance, agriculture, etc) you take on the additional risk of that sector having an economic failure. Yet the sector has the same average return (11%) as the Market - so, added risk, no added return. And if you further narrow your scope down to a single company you take on the additional risk of a company failure. So, even more uncompensated risk.
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Tue Jan 24, 2012 4:21 pm |
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Offshore-Wealth.com
Senior Member
Cash: $ 14.80
Posts: 601
Joined: 20 Jul 2005
Location: FREEDOMLAND
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| NEVER LET IRS HOLD YOUR MONEY Is MY ADVICE |
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Agreed,
Change your deductions, never let the IRS hold your money awaiting a refund when you could be applying the extra money to pay down your high interest debts. If the IRS can get away with charging us high interest rates, then they should be paying us the same percentage for money they are holding of ours. Of course we all know that is a dream, so never let IRS hold your money, it is at risk more than you know.
Success to all,
FREE PAY IT FORWARD OPPORTUNITIES
http://ENVIROPURELIGHT.com
http://FREE100KSECRET.com
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Tue Jan 24, 2012 8:05 pm |
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budpln
Member
Cash: $ 3.45
Posts: 17
Joined: 18 Jan 2012
Location: mass
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so i just got off the phone with a fidelity guy and learned the difference beetween mutual funds and stocks.. i think i kinda get it im gunna buy a couple stocks to get my cherry poped also reasearch companys and just watch over a few months.. any suggestions are appreciated like stocks that u think will increase lol iono if thats like somthing you dont share with people or whatever so dont laugh to hard at me if that sounds dumb haha..
YOU GUYS ARE AWSOME
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Tue Jan 24, 2012 9:59 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
im gunna buy a couple stocks to get my cherry poped also reasearch companys and just watch over a few months.. any suggestions are appreciated like stocks that u think will increase lol iono if thats like somthing you dont share with people
<sigh> Well, I guess you have to try - but I became wealthy only after I QUIT trading and started longterm investing.
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Wed Jan 25, 2012 1:42 pm |
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budpln
Member
Cash: $ 3.45
Posts: 17
Joined: 18 Jan 2012
Location: mass
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ok so i was just kind of reading a bunch i was thinking of buying bonds im not sure i get the total idea of it.. the way i think of bonds is i buy the bond they pay me interest and however long its for to it to mature is what it pays in interest. correct? can i lose money with bonds? and is the interest a garuntee?
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Wed Jan 25, 2012 9:17 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
ok so i was just kind of reading a bunch i was thinking of buying bonds im not sure i get the total idea of it..
You are only 23, you should avoid bonds. To build wealth, you need appreciating assets, things that apprecaite much faster than inflation. Eg, if inflation is 3% and you buy a 3% bond, you would build zero wealth. You need 11%/yr assets to build wealth. The two appreciating assets are equities and real estate. Later, when you are about age 55, start moving your wealth into wealth preservation stuff - bonds, CDs.
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Wed Jan 25, 2012 11:46 pm |
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