Investing $1000 a month

[iqqi]

Well I am leaning mostly towards an index fund. I'd like to get more than a 4% return when I am aggressively putting money into it every month.

Can we lay off the "pay off your debt" crap, I am pretty sure I mentioned I don't have any debt that is racking up interest, thanks. My expenses are super low right now, my rent is something I make in one day, I make instant cash constantly, so I also don't want to hear about having a cash pad for when I lose my job and have to come up with rent for 3 months, blah blah blah. My MAIN goal right now is to just stack cash and rather than it just sit there, GROW. You know?

I am ONLY interested in where to invest that has a nice return. Something more than 4 or 5%. That is somewhat safe (so probably not penny stocks, lol)!

Thanks for the advice, it's definitely appreciated. Can anyone provide some numbers, based on investing $500- $1000 a month?

 

[5string]

I would suggest a ROTH. Sounds like you could max it out every year with the money you are talking about. Go to your bank and ask them about it. They can set it up for you as well. Very Simple.

 

[iqqi]

I would suggest a ROTH. Sounds like you could max it out every year with the money you are talking about. Go to your bank and ask them about it. They can set it up for you as well. Very Simple.

What are the benefits with a Roth, and what will my money return?

Added later: I looked into Roths, and I definitely see why they are something to go through. Plus if I act quickly I can get $1000 or so into 2009's year bracket.

I don't like not being able to touch the yields until I am 60, though. But I guess that really isn't too bad of a thing, as long as I make it to 60! Typical young and dumb thinking, I know.

 

[5string]

What are the benefits with a Roth, and what will my money return?

http://en.wikipedia.org/wiki/Roth_ira Here you are. Please review and if you think this is for you, head over to your bank. Good luck.

 

[iqqi]

So what do you all think about investing in gold? I've read (and not too deeply yet lol) that gold has consistently outperformed the market.

Man I am missing NLG's financial forum right now.

 

[5string]

So what do you all think about investing in gold? I've read (and not too deeply yet lol) that gold has consistently outperformed the market.

Man I am missing NLG's financial forum right now.

If gold is what you want, get into a gold fund through a financial advisor. DO NOT physically buy it. Because, when you go to sell it, YOU have to find the buyer and negotiate the sale. Plus, you have to incur the expense of storing it such as a lockbox or a safe. You are not "young and dumb". You are smart in that you have made the decision to save, and are looking into your options. Very smart.

 

[Create Reality]

If you had about 4 million dollars in principal, you could deposit it into a CD or Bond and net like 100,000 a year on %5. Off of that amount you could easily make high-risk investments and still have breakfast lunch and dinner. $1000 a month is a good chunk of change but nowhere near developing a self-sustaining portfolio. If you can stomach the thought of losing a large portion, you have what it takes to engage in high-risk high-yield investments.

In other words, b1tching about a %5 return is doing you no good. If you are 30 now, in 30 years rolling $1000 a month into bonds will return much more than you started with. Assuming you have $1000 a month to invest for 30 years. Just $250,000 deposited at %5 will gross $1000 a month.

As they say, it takes money to make money.

 

[Julius_Seizeher]

Definitely not a good time to put your money into bonds, especially long-term bonds. Bonds are for investors who are already wealthy and are more concerned with tax issues than appreciation.

And don't talk about big gains if you aren't willing to take the risk. cordoncordon has inspired me to get into penny stocks, and maybe eventually trade full-time. Dealing with the public is a two-sided coin; I take great satisfaction in solving problems and providing guidance to clients. But I also have to deal with financial fvcktards who think they are going to tell ME how it works. Yes I am young, but FINRA licenses do not grow on trees and I have forgotten more about money than 90% of the public will ever know.

It's very simple honey: Since you have no debt, your no. 1 investment priority is funding your retirement. As I have already said, take the first 5 grand every year and put it in a Roth IRA. If you already have a 401 at work, great; do it anyway. The saddest thing I see in my business are people who go broke in retirement and lose everything they worked their entire lives for.

Once your IRA is funded, sit down with your local advisor and come up with a strategy for the remaining funds. I STRONGLY advise you to seek counsel with an independent RIA firm, the big wirehouses are product-pushing dinosaurs and don't get me started on the Jed Bones cult. Frankly, use an RIA/CFP for everything; bank advisors flip boogers and shoot layups all day saying "Jeez, you guys think this is hard?" They have no idea what it's like to be a real advisor.

Lastly, forget this gold nonsense. If gold was the way to go, financial advisors would have a desk at the pawn shop.

 

[iqqi]

What do you think about this article? : Dump your stocks

 

[Alle_Gory]

What do you think about this article? : Dump your stocks

If you're taking advice from so called "investors" in the media and pundits you've already lost your money.

 

[iqqi]

For what it's worth I think that the article is on the retarded side however, I was wondering if any "experts" saw truth in it.

My plan for now is to open a Roth Ira, max it, invest that into an index fund. And with the remaining that I save after the $5000 in roth, will go directly into an index fund. Meanwhile I will also be side investing in my net store. In time, if I learn more about stocks, I may play individual ones but that is if I feel like investing the time.

My next immediate goal is to figure out how to pick a good index fund. Where is joekerr? I'd like to pick his brain...

 

[5string]

For what it's worth I think that the article is on the retarded side however, I was wondering if any "experts" saw truth in it.

My plan for now is to open a Roth Ira, max it, invest that into an index fund. And with the remaining that I save after the $5000 in roth, will go directly into an index fund. Meanwhile I will also be side investing in my net store. In time, if I learn more about stocks, I may play individual ones but that is if I feel like investing the time.

My next immediate goal is to figure out how to pick a good index fund. Where is joekerr? I'd like to pick his brain...

Good job!

 

[Alle_Gory]

I was wondering if any "experts" saw truth in it.

Even a broken clock is right twice a day. So what if there is a little bit of truth to this article? Most of them are crap anyways.

The best investors go out and make money, they don't write.

 

[mpimpin]

What do you think about this article? : Dump your stocks

I like the last point the article makes about not picking individual stocks. Most of us like watching and analyzing individual stocks but at the end of the day I don't think it's the place to invest especially not with small amounts and/or can't afford to toss it away.

 

[Mr.Positive]

Lastly, forget this gold nonsense. If gold was the way to go, financial advisors would have a desk at the pawn shop.

Go talk to a coin shop, those guys ARE financial advisors. Spend a half hour chatting and your eyes will get very big...

Everyone loves to trash gold, but it is very easy to buy and sell. Just take money into a coin shop, and 5 minutes later you are a gold owner/holder. LIkewise, just as easy to sell.

If you do buy gold, buy physical. If you don't hold, you don't own it. Gold is not an investment, it's insurance.

Right now, damn expensive insurance.

 

[5string]

Go talk to a coin shop, those guys ARE financial advisors. Spend a half hour chatting and your eyes will get very big...

Everyone loves to trash gold, but it is very easy to buy and sell. Just take money into a coin shop, and 5 minutes later you are a gold owner/holder. LIkewise, just as easy to sell.

If you do buy gold, buy physical. If you don't hold, you don't own it. Gold is not an investment, it's insurance.

Right now, damn expensive insurance.

With all respect. Gotta disagree. These guys at pawns and coin shops won't buy from you at the going rate, rather a large discount. But they will sell it to you at the going rate. That's how they make their bucks. Far from being financial advisors. At least I think so. And if ya go buy all that gold, make sure to go rent a lockbox or buy a safe to store it. Let's see, maybe buy some insurance as well in the event of a theft. Anyway, respect your opinion. Mine is just different is all. Regards.

 

[Mr.Positive]

With all respect. Gotta disagree. These guys at pawns and coin shops won't buy from you at the going rate, rather a large discount. But they will sell it to you at the going rate. That's how they make their bucks. Far from being financial advisors. At least I think so. And if ya go buy all that gold, make sure to go rent a lockbox or buy a safe to store it. Let's see, maybe buy some insurance as well in the event of a theft. Anyway, respect your opinion. Mine is just different is all. Regards.

Regards respect to you as well..You lose about $20 on the transaction. If they are selling a coin for $1100, they will buy it back for $1080. You are right, that is how they make money. Don't go to pawn shops, go to gold coin dealers.

There's paper gold, and physical gold. Physical can't be corrupted...but paper gold, could be another ponzi scheme we've seen implode before. Just saying..

If you get to know the coin dealer, they really are a wealth full of knowledge. I'm glad I listen to them, I was buying between $750 and $850 an ounce. Last I checked gold was over $1100. So not bad, wish I would have bought more. I am definitely...not buying now. I would wait personally, for it to go back down.

You do have to think of a safe place to store it. Fortunately, that's very easy to do. Think 'shovel', not lockbox or safe.

 

[5string]

Regards respect to you as well..You lose about $20 on the transaction. If they are selling a coin for $1100, they will buy it back for $1080. You are right, that is how they make money. Don't go to pawn shops, go to gold coin dealers.

There's paper gold, and physical gold. Physical can't be corrupted...but paper gold, could be another ponzi scheme we've seen implode before. Just saying..

If you get to know the coin dealer, they really are a wealth full of knowledge. I'm glad I listen to them, I was buying between $750 and $850 an ounce. Last I checked gold was over $1100. So not bad, wish I would have bought more. I am definitely...not buying now. I would wait personally, for it to go back down.

You do have to think of a safe place to store it. Fortunately, that's very easy to do. Think 'shovel', not lockbox or safe.

Shovel? That's funny! Ahh, my German Shepherds would dig it all up and be wearing gold necklaces and earrings when I come home from work! Of note, I do have a nice gun safe out in my garage. Ran me about 900.00. It's where I hide all the dead bodies. All black. Fire resistant. The expensive ones are painted all fancy and cost much more just because they look purdy. Nice thing to have. Put passport, important papers and my belt fed weapons in it. hehe

 

[spider_007]

100%/year

 

[iqqi]

You are funny, 5string. Anyways, what is that a reference to, violin? I love the violin. Sigh. Probably you mean the more popular guitar though.

Mr P, I actually read too much negative about gold before I stopped exploring that avenue. Mostly in that it was too hard to sell. Not as liquid as stocks. Or something along those lines!

Plus there seems to be a lot of different kinds of gold to buy, and I believe gold bars seemed to be the best option? It was all kind of intimidating to such a novice invester like myself.

I am still figuring out if I should open a Roth IRA with my bank, or online through vanguard. I have such basic questions, it is ridiculous!

Here's one I am currently googling: How will investing affect my taxes?

As a poor person, I am used to always getting a refund. And doing my own taxes because they are so simple. Now, it may get complicated.

100%/year

That's amazing. Hope some of you got in on that gold mine.

Edit: According to this nifty little investment calculator, with annual compounded interest and an interest rate of 10%, if I maintain saving $1000 a month until I am 60, I will have amassed over 2 mil. Also, if I slack, and the yearly investment amounts to $7000 instead of 12,000, then I will still reach over 1 mil. In just 5 years, if I keep up the 1,000 a month, I will have amassed nearly $100,000. Maybe then I will buy Allen's website, and start making money off of you fools! (I kid, I kid!) These calculators are fun!