investment ideas and planning

[BluryNSX]

Now on any other website I would blast on anyone getting online and starting a thread like this but like many have stated before there alot of well informed individuals on here.

What I am looking for is a plan or idea to get myself into long term investing starting out small 200 or so a pay check and as I get used to living on less and less I will be increasing the amounts taken out before they go to my normal acct's with the way the market is going I figured some of you would have some great ideas on safe plans with moderate risk.

I have goals in retiring early so my wife and I can still enjoy life and travel. I have 2 businesses in the process of getting going but will be continuing with my "day job" with Honda to decrease my need to tap any profits from either of the startups and as they roll into themselves I think this will allow them to grow well and by the time I am 35-40 I will be relaxing on a beach!


SO with so many investment guru's on here help a guy out! I am only 28 and feel if done properly with this and my other endeavors I should be on a good track to the good life.:biggrin:

 

[SilverStone05]

I know nothing about your situation save for the fact you are wanting to invest, and that you have at least $200/m disposable income to invest.

Open an Individual ROTH IRA at Fidelity.

Direct deposit 200/m into the account. Buy shares in one of their long standing mutual funds. I believe they've reopened Magellan to the public. That's a good one.

35 years, you're a millionaire almost twice over...and every cent you take out of that account is tax free. :wink:

 

[flaminio]

I agree with SilverStone05's advice. $200/mo in a Roth IRA invested moderately agressively will give you a happy retirement. But not at age 35-40, as the OP hopes...

 

[fullracehonda]

$200/month for 7-12 years till you are relaxing on a beach i think your best chance is playing the lottery:wink:

thats not alot of time for investing to be able to support yourself for another 40~ years of life, that would be a boring 40 years!

 

[lovelynsx]

I know nothing about your situation save for the fact you are wanting to invest, and that you have at least $200/m disposable income to invest.

Open an Individual ROTH IRA at Fidelity.

Direct deposit 200/m into the account. Buy shares in one of their long standing mutual funds. I believe they've reopened Magellan to the public. That's a good one.

35 years, you're a millionaire almost twice over...and every cent you take out of that account is tax free. :wink:

Is this a low risk investment? Besides Magellan is their any others open to the public that pay off well in the long run?

 

[BluryNSX]

I agree with SilverStone05's advice. $200/mo in a Roth IRA invested moderately agressively will give you a happy retirement. But not at age 35-40, as the OP hopes...

LOL I did not mean solely on this... I will be doing 200 bi monthly to start and ramp up. I do not want to do more due to other savings acct's as well as I need a considerable amount of cash for my other bussiness ventures. This whole investment question is just because I have no understanding of something along these lines, I have put money into a few bussinesses and normal savings acct's. this is just new and alot of smart guys that are better off than I would seem like the right people to ask or atleast be able to refer me to something note worthy to read and research on.

ONCE AGAIN THIS IS NOT ALL I AM COUNTING ON!!! just another something to have waiting is all.

 

[flaminio]

Is this a low risk investment? Besides Magellan is their any others open to the public that pay off well in the long run?

"Low risk" and "pay off well in the long run" are for the most parts mutually exclusive.

I'm a big fan of index funds; Vanguard's S&P500 fund being one of the best of 'em. Long term (>10 years) they're hard to beat.

 

[Dtrigg]

Personally I have problems with mutual funds. The load may kill you. For example, if you invest in a front loaded mutual fund that charges 5%, you'll have to obtain a five percent increase in your investment until you even break even. Be very careful about mutual funds and check their loads, front or back loaded.

I was a broker with Morgan Stanley and had a Series 7, Series 63, et all... license between undergraduate and graduate school. I really traded my own account to get enough money to pay for my graduate education. I also learned most broker don't know crap about the market.

Investing in the stock market is really a game you don't play in short pants. I've been retired for a number of years, and my source of income is my interest and dividends. As a former broker I also understand that I had to turn my investment assets over to professional money managers.

As a new investor, I would suggest you approach your investments like a second job. Do your research. Suscribe to a service like VestorVest. Invest your money with an online broker that has a low cost commission, dollar cost average and be deversivied.

Good luck.

 

[Vega$ NSX]

Regarding the Roth IRA, keep in mind, that you cannot withdraw from your Roth IRA fund until you are 59.5 years old without a tax penalty. So if you plan on retiring at 40, you still won't be able to touch your money for another 20 years.

 

[flaminio]

Regarding the Roth IRA, keep in mind, that you cannot withdraw from your Roth IRA fund until you are 59.5 years old without a tax penalty. So if you plan on retiring at 40, you still won't be able to touch your money for another 20 years.

Not exactly true. Since the money going in is post-tax, you can withdraw it without penalty before 59.5 (with a few minor restrictions). So if you put $5,000 in and it grows to $10,000, you can take out the initial $5,000 without paying taxes or penalties.

 

[BluryNSX]

Regarding the Roth IRA, keep in mind, that you cannot withdraw from your Roth IRA fund until you are 59.5 years old without a tax penalty. So if you plan on retiring at 40, you still won't be able to touch your money for another 20 years.

thats a good note worthy peice of info, I donot believe I will be using these funds in the near future its more like a 2nd net I am very hopefuly and driven to make the 2 businesses I am starting with as successful and profitable as possible and don't plan on seeing a dime from them until they have reached a certain point so I can let them develop with one less person to pay in turn allowing them to hopefully *crosses fingers* build into each other and when the time comes I just have a large amount of influx of cash to agressively trade with but still have quite a bit going into "safer" styles of investing if this goes as planned as most things don't I want to still have something else that has been pulling money from my acct's that I never counted on growing into its own "nestegg" .

I have no idea if how I see it in my head will make sense to anyone else or if I am even good at verbalizing it so its understandable but once again I think there is a fair amount of smart people on here who should understand the *jist* of what I am saying and have some constructive ideas to help me do this better than I may be able to on my own.

Regarding the Roth IRA, keep in mind, that you cannot withdraw from your Roth IRA fund until you are 59.5 years old without a tax penalty. So if you plan on retiring at 40, you still won't be able to touch your money for another 20 years

also very note worthy, so if I am at minimum putting 400 a month into this acct. I will be able to access my "investment" but not any of its gains?? forgive my inexperienced perspective.

 

[Vega$ NSX]

Not exactly true. Since the money going in is post-tax, you can withdraw it without penalty before 59.5 (with a few minor restrictions). So if you put $5,000 in and it grows to $10,000, you can take out the initial $5,000 without paying taxes or penalties.

Yes, true you can take out your inital investment, but you can't touch any of the gains. And it's the gains you are counting on for retirement. In other words, you hope to put in $100,000 and make $800,000 from your initial investment (especially since it is tax free growth). If the plans are to retire before 59.5 years old, then you can't touch any of those gains without being penalized, which would then defeat the purpose of the investment to begin with.

 

[lovelynsx]

I think the OP wants to know if they are there more options than whats we allready discussed?

 

[sahtt]

Personally I have problems with mutual funds. The load may kill you. For example, if you invest in a front loaded mutual fund that charges 5%, you'll have to obtain a five percent increase in your investment until you even break even. Be very careful about mutual funds and check their loads, front or back loaded.

I was a broker with Morgan Stanley and had a Series 7, Series 63, et all... license between undergraduate and graduate school. I really traded my own account to get enough money to pay for my graduate education. I also learned most broker don't know crap about the market.

Investing in the stock market is really a game you don't play in short pants. I've been retired for a number of years, and my source of income is my interest and dividends. As a former broker I also understand that I had to turn my investment assets over to professional money managers.

As a new investor, I would suggest you approach your investments like a second job. Do your research. Suscribe to a service like VestorVest. Invest your money with an online broker that has a low cost commission, dollar cost average and be deversivied.

Good luck.

I agree. Mutual funds are inefficient by nature, not that you can't get rich off them. Spend a few hours a week over the next 6 months and look at securities like the SPY and then decide what you want to do. Silverstone knows his stuff, take advantage of his advice.

For instance, if at any time over the last year you realized financials were not good investments, you probably could have beat the average mutual fund if you didn't over trade. And if you managed to realize oil was getting a little out of whack when it was over 120-130 and took a little off, you might have ended up down 5-8% this year instead of down 25%+ like most diversified funds were. Not saying it's easy, but it's certainly possible.