Saving for the future.
- Thread starter CXS
- Start date
I'm gonna upset you, but hunting humans it's a little bit illegal. At least in Germany
And talking about saving money for the future - I prefer to write papers and essays for those people, who need them. And it includes both options - either do I write my essay on my own, or ordering it from the third party and translate it to our German buddies.Oldmanb777
New member
They tax you when you take your qualified money out. If you take too much, Medicare charges you more. Based on a thing called MAGI. So medicare adjusts your AGI and then decides if you should pay more for Medicare. After you paid into it for years. BUT if you don't take enough out, then at 701/2yrs old they take your money through RMD's No way to win. They are going to steal the money you worked so hard to acquire and waste it, one way or another.
BrianSD_42
New member
What do you guys think about the Dave Ramsey show / podcast?
It was just recommended to me by a co-worker.
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It was just recommended to me by a co-worker.
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jordanrb81
New member
I find that Dave Ramsey puts quite a lot of his personal "baggage" and life experience in his advice. He is not a formally educated economist, he is not a CFP he is Someone who went Bankrupt do to poor financial choices and now is a bit of a zealot and takes things over the top. For example he takes extremely over generalized positions on debt. Debt is like combustion/fire you can use it to heat your home, without it an engine doesn't operate, however out of control and misused it is very dangerous. Like many things if it is used and abused carelessly it can be devastating... Like Alcohol, and some simply don't use it. I am a fan of moderation. Debt can be used as a tool in finance. He does this with many things Debt being only one of them. I agree with his savings strategies and "pay yourself first" Also I sort of disapprove of anyone who gives financial advice to strangers or the masses. it's the same reason why I wouldn't give you advice or comment on specific funds. Speaking about Macroeconomic fact (over pay mortgage vs. savings) isn't advice, its mathematics. So as a general rule I don't car for oversimplification of financial advice and I disagree with Dave Ramsey more often than I agree with him. If you want a laugh you should look at his estimated portfolio draw rates in retirement.
BrianSD_42
New member
Well I definitely don't disagree with anything you said. I've been listening to him only a few episodes now.
I think with the show like that where people call in and you give advice things are going to be overly generalized and the callers are not going to be someone who is it financial analyst level.
I will say this though economics is not a science it is not even an applied science. So there really is a big difference in which theories of economics to follow depending on which college you into which school of economics that they teach. And what I mean by that to be specific is even the experts don't agree on a lot of things. Heck I remember when they gave out a Nobel prize from micro loans in India well guess what that was a bust total disaster.
Is there a different podcast that you would recommend personally that covers the topic and is both interesting entertaining and accurate? Thanks!
personally I like planet money in particular when it first started back in 2008 and they were explaining all the financial mechanisms that got us into trouble back then.
I think with the show like that where people call in and you give advice things are going to be overly generalized and the callers are not going to be someone who is it financial analyst level.
I will say this though economics is not a science it is not even an applied science. So there really is a big difference in which theories of economics to follow depending on which college you into which school of economics that they teach. And what I mean by that to be specific is even the experts don't agree on a lot of things. Heck I remember when they gave out a Nobel prize from micro loans in India well guess what that was a bust total disaster.
Is there a different podcast that you would recommend personally that covers the topic and is both interesting entertaining and accurate? Thanks!
personally I like planet money in particular when it first started back in 2008 and they were explaining all the financial mechanisms that got us into trouble back then.
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Never listened to Dave Ramsey.
I've mentioned it before but I'm a huge believer in the Bogleheads investment philosophy (Boglehead meaning a follower of the late John Bogle, the founder of Vanguard). Tons of information on Bogleheads.org, especially the Wiki there.
BrianSD_42
New member
What do you guys think about this article / piece?
Seeking Alpha
Why A 60-65% Market Loss Would Be Run-Of-The-Mill.
Or this one?
The Economist - Tech’s new stars have it all—except a path to high profits
The Economist
.
Seeking Alpha
Why A 60-65% Market Loss Would Be Run-Of-The-Mill.
Or this one?
The Economist - Tech’s new stars have it all—except a path to high profits
The Economist
.
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kingofthehill
New member
I like his advise. Although it can sometimes be a little cookie cutter. His advise for getting out of debt works best for those that have no self control when it comes to credit cards and other debts. But he is right going into debt is almost never a good financial decision. With only a few exceptions like buying a house. His advice on mortgage debt IIRC is 10% down minimum with a payment less than 25% after tax take home on a 15 year mortgage.
I dont care much for his advise on not adding a minimum of what an employer is willing to match to 401K while getting out of debt. That if free money you can't get back. and I think the $1000 baby emergency fund is too small for most people.
Gunslinger-13
New member
I believe I've posted it here before, but a bank on yourself whole life insurance policy is a good mechanism to be independent of banks and borrow against the equity/cash value in your whole life insurance policy and pay lower rates versus other loan vehicles out there.
It's really a great product and more people should be utilizing them.
Another thing to think about is stuff that most people take for granted because our society/life is so luxurious and easy right now.
I have a year food and water long term supply for my household. I cycle it in and out, it's easy to take advantage of sales here and there, eat the older food and keep it up to date so to speak.
Likely I will never need it, but if the food supply chain was messed up for even a few weeks, the cost of food would be stupid high and a lot of peoples savings would be wiped out just putting 3 squares on the table.
there are other manmade and natural disasters that a food and water supply is good preparation for as well.
I like to be nimble in my future preparations and investments/planning.
Have some tangible's that can be carried with you easily. Some gold and some silver.
Put some money into the stock market and buy the dip whenever you can for long term gains.
Invest in some property. Wether it be a rental property, or a piece of land out of the way somewhere.
Bank on yourself whole life insurance plans for everyone in the family. A layered approach to whole and term life insurance for every family member.
529(C) for every child.
Keep 6 months of wages in the bank for emergencies.
Always do the match for employee 401K's/IRA's, fund it to the limit on your end if you can work that.
Put as much of your income away now and put it to work for you for the future. Starting early makes it easier over time.
Save money and budget for everything the best you can and only pay cash except for your mortgage.
Guns/ammunition are a good investment in the future, not necessarily fiscally- but in other ways; although it can be fiscally rewarding if you offload stuff during panics when politicians go full-retard.
Diversity is good, but make sure you have a mix of conservative investments and risky investments, especially the younger you are- start sooner than later and take some risks, you've got time on your side.
It's really a great product and more people should be utilizing them.
Another thing to think about is stuff that most people take for granted because our society/life is so luxurious and easy right now.
I have a year food and water long term supply for my household. I cycle it in and out, it's easy to take advantage of sales here and there, eat the older food and keep it up to date so to speak.
Likely I will never need it, but if the food supply chain was messed up for even a few weeks, the cost of food would be stupid high and a lot of peoples savings would be wiped out just putting 3 squares on the table.
there are other manmade and natural disasters that a food and water supply is good preparation for as well.
I like to be nimble in my future preparations and investments/planning.
Have some tangible's that can be carried with you easily. Some gold and some silver.
Put some money into the stock market and buy the dip whenever you can for long term gains.
Invest in some property. Wether it be a rental property, or a piece of land out of the way somewhere.
Bank on yourself whole life insurance plans for everyone in the family. A layered approach to whole and term life insurance for every family member.
529(C) for every child.
Keep 6 months of wages in the bank for emergencies.
Always do the match for employee 401K's/IRA's, fund it to the limit on your end if you can work that.
Put as much of your income away now and put it to work for you for the future. Starting early makes it easier over time.
Save money and budget for everything the best you can and only pay cash except for your mortgage.
Guns/ammunition are a good investment in the future, not necessarily fiscally- but in other ways; although it can be fiscally rewarding if you offload stuff during panics when politicians go full-retard.
Diversity is good, but make sure you have a mix of conservative investments and risky investments, especially the younger you are- start sooner than later and take some risks, you've got time on your side.
My parents grew up during the depression and always emphasized saving money. It must have rubbed off, since I've been retired now for almost 5 years - I'm 58 now.
I've read that many people who work for companies that offer 401K matching, don't take advantage of the benefit. It is by far the highest return-on-investment you can get, and you get it immediately. If your company offers it, contribute at least the maximum the company will match - consistently every year. I don't think that the 401K should be the only investment that people hold, but it's a very important safety net that helps you to save consistently and can greatly improve your quality of life in retirement.
My wife and I both worked for those types of companies and took full advantage of the 401K match, and more. One strategy that we used was to put most of our 401K savings beyond the matching amount into my wife's 401 because she is several years older than me and would be able to access the funds penalty-free - at 59 1/2 years old - much sooner than I could.
(We took advantage of this in '09 to buy rental properties when the market was crashed. We had to pay taxes on the 401K withdrawal to help with the down-payment, but not a penalty; and it worked out great!)
I've read that many people who work for companies that offer 401K matching, don't take advantage of the benefit. It is by far the highest return-on-investment you can get, and you get it immediately. If your company offers it, contribute at least the maximum the company will match - consistently every year. I don't think that the 401K should be the only investment that people hold, but it's a very important safety net that helps you to save consistently and can greatly improve your quality of life in retirement.
My wife and I both worked for those types of companies and took full advantage of the 401K match, and more. One strategy that we used was to put most of our 401K savings beyond the matching amount into my wife's 401 because she is several years older than me and would be able to access the funds penalty-free - at 59 1/2 years old - much sooner than I could.
(We took advantage of this in '09 to buy rental properties when the market was crashed. We had to pay taxes on the 401K withdrawal to help with the down-payment, but not a penalty; and it worked out great!)
59 1/2 years old is the age you can start to withdraw from your IRA without paying any penalties. (You still have to pay the taxes on your withdrawals)
BrianSD_42
New member
You guys really should listen to this 10 min episode of Planet Money from last week.
Episode 920 | What Should We Be Worried About?
Episode 920: What Should We Be Worried About? : Planet Money : NPR
https://play.podtrac.com/npr-510289...r/pmoney/2019/06/20190619_pmoney_pmpod920.mp3
:hatsoff:
Episode 920 | What Should We Be Worried About?
Episode 920: What Should We Be Worried About? : Planet Money : NPR
https://play.podtrac.com/npr-510289...r/pmoney/2019/06/20190619_pmoney_pmpod920.mp3
:hatsoff:
To quote Jack Bogle (Vanguard founder), "Nobody Knows Nothin'."
As always, adjust your investment mix to suite your risk profile and stay the course.
leftyguns21
New member
Anyone else read the book: One Up On Wall Street: How To Use What You Already Know To Make Money In The Market: Lynch, Peter, Rothchild, John: 8601404230394: Amazon.com: Books
I have never learned or bothered to learn anything about stocks and the book has been recommended by a few people. I hope I learn more, so far I am 100 pages in and all I have learned is he was a caddy and real estate is a wiser investment. I have been saving for awhile collecting in a high interest savings account, but I am ready to either invest or jump in to the real estate rental market (especially with such low interest rates). I need a bigger return on my savings than what I am getting and ready to take a risk to help get me to retirement.
I have never learned or bothered to learn anything about stocks and the book has been recommended by a few people. I hope I learn more, so far I am 100 pages in and all I have learned is he was a caddy and real estate is a wiser investment. I have been saving for awhile collecting in a high interest savings account, but I am ready to either invest or jump in to the real estate rental market (especially with such low interest rates). I need a bigger return on my savings than what I am getting and ready to take a risk to help get me to retirement.
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BrianSD_42
New member
I haven't read that book. I did read The Big Short and I would recommend that book to anyone.
There is a lot to unpack in your comment but high interest savings accounts do not make a lot of sense to me. If it is long term why not just put it in an IRA? Have you maxed your 401K at $19K per year?
What about CDs? The interest is definitely better than a high yield savings account. Especially if you are using a credit union.
What about just putting the money in a very low fee index funds? This is what I do. Split it between index fund types for NASDAQ, S&P 500 and others.
I assume you are talking about money you will access more than 5 years from now.
Have you paid off your house yet? Personally I completely question the logic of investing in a rental property right now. For one thing ... Rents are going down! For a second thing this is a seller's housing market not a buyer's market. This is the opposite of the right time to pour money into rental properties.
I mentioned this earlier in the thread but I really like the basic advice on Dave Ramsey's show. Don't follow it religiously but wow there is a lot of good common sense advice.
I wish you the best of luck!
There is a lot to unpack in your comment but high interest savings accounts do not make a lot of sense to me. If it is long term why not just put it in an IRA? Have you maxed your 401K at $19K per year?
What about CDs? The interest is definitely better than a high yield savings account. Especially if you are using a credit union.
What about just putting the money in a very low fee index funds? This is what I do. Split it between index fund types for NASDAQ, S&P 500 and others.
I assume you are talking about money you will access more than 5 years from now.
Have you paid off your house yet? Personally I completely question the logic of investing in a rental property right now. For one thing ... Rents are going down! For a second thing this is a seller's housing market not a buyer's market. This is the opposite of the right time to pour money into rental properties.
I mentioned this earlier in the thread but I really like the basic advice on Dave Ramsey's show. Don't follow it religiously but wow there is a lot of good common sense advice.
I wish you the best of luck!
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leftyguns21
New member
I do a high interest savings account...in addition to other items. sorry guess I forgot to add that part. I contribute 18% to my 401k(12% is to ROTH IRA for post tax dollars), another 10% to the savings. The savings account is to have cash ready on hand for emergencies. Now that I have built up more than a years worth I want to start contributing to another account that's going to get me more than 1.8%. The S&P 500 or Rentals are what I keep flipping back and forth on. Long term S&P has historically averaged 10% while homes average 4%. So say you take $50,000 and drop in S&P to earn 10%. Or take that as down payment on $300,000 rental and earn 4%. Now you are earning on $300k instead of $50k. of course the added issues of owning rentals is much more than stocks. Rentals can create (very small) cash flow, stocks can only with dividends. Long term I really thing real estate is the way to go but it has many challenges and requires lots of knowledge. Stocks require lots of patience and understandings for every gain there is a loss.
For S&P am I calculating this correctly. At current its $3,097. If you take $50,000 and invest that means you have roughly 16.1446 shares right? Then if it goes up say $100 to $3,197 I take that 16 shares x the $100 and that is my profit? Or of course if it goes the other way my loss.
I have not paid off my current house no, but my mortgage is next to nothing. Less than $700. Paying it off wont earn me any money other than saving my mortgage each month. The life of the loan I will pay less than $60,000 in interest over 30 years. Yes saving $700/month would be great but if even if I doubled up on house and paid it off in 15 years I didn't earn any money during that time. Instead of doubling up on mortgage the extra can be invested earning me more than the 3% I would be saving.
I looked up the top 15 tips for Dave Ramsey and have been living by most of these for quite some time.
15 Money Tips Dave Ramsey Wish Everyone Knew Sooner
From a lot of advice (taken with a grain of salt) I have been reading, the basic order is:
Get a house
Get a savings nest egg
Contribute to 401k
If you have extra, then invest
For S&P am I calculating this correctly. At current its $3,097. If you take $50,000 and invest that means you have roughly 16.1446 shares right? Then if it goes up say $100 to $3,197 I take that 16 shares x the $100 and that is my profit? Or of course if it goes the other way my loss.
I have not paid off my current house no, but my mortgage is next to nothing. Less than $700. Paying it off wont earn me any money other than saving my mortgage each month. The life of the loan I will pay less than $60,000 in interest over 30 years. Yes saving $700/month would be great but if even if I doubled up on house and paid it off in 15 years I didn't earn any money during that time. Instead of doubling up on mortgage the extra can be invested earning me more than the 3% I would be saving.
I looked up the top 15 tips for Dave Ramsey and have been living by most of these for quite some time.
15 Money Tips Dave Ramsey Wish Everyone Knew Sooner
From a lot of advice (taken with a grain of salt) I have been reading, the basic order is:
Get a house
Get a savings nest egg
Contribute to 401k
If you have extra, then invest
GavinHemmings
New member
Well, I can't save money for the future, I spend every penny. I should probably earn more..So, I'm looking for ways to make good money online. If you know anything about this, please share your ideas with me. At first, I wanted to bet on sports, but then I realized that this is a random profit that can turn into losses if I don't win anything. I recently found an article on Facebook about retail arbitrage yourmoneygeek.com and I think this is a good way to earn extra money. But I haven't tried myself in sales yet if you have a couple of recommendations I will appreciate it.
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leftyguns21
New member
I finally took the jump in to stocks/investments. I took around $10k of 'extra' funds I have. This is after all the bills are paid, 401k is being maxed, emergency fund. I do not have my house paid off but I am borrowing at a very low rate and my mortgage is very very low. I had this money sitting in a high interest savings not doing much, I am hoping to get a better return in stocks and long term growth.
The stocks I chose are growth and a few ETF's/Indexes. I picked up a few EV growth like Tesla, SHLL, WKHS and the ETF's I have picked up were ARKK and ARKF both have done very well YTD, out performed the S&P. They have a higher fee than the Fidelity total market Index funds (got a few shares here too) but the performance is much better so I think its worth it. It is addicting, I watch the market all day checking trends and what is working or not working so I can re-allocate at the end of August. First day I was up $355 and super stoked, few days later I am only up $56 total in the portfolio. Which really isn't that bad for only 10 days.
My plan going forward is to wait until one month of investing then move things around, hopefully without a huge loss. Then I will take approx $200-400/month and invest in to the ones that are working....how does everyone else choose where to continue adding to their portfolio when you have 10+ investments. Do you continue with higher risk ETFs/Index's or do you do dividend stocks for passive income? I picked up a few shares of AT&T for their 7% dividend. Not sure if I should continue to pick these up and amass a stock pile for the dividends or continue with the riskier ETFs.
The stocks I chose are growth and a few ETF's/Indexes. I picked up a few EV growth like Tesla, SHLL, WKHS and the ETF's I have picked up were ARKK and ARKF both have done very well YTD, out performed the S&P. They have a higher fee than the Fidelity total market Index funds (got a few shares here too) but the performance is much better so I think its worth it. It is addicting, I watch the market all day checking trends and what is working or not working so I can re-allocate at the end of August. First day I was up $355 and super stoked, few days later I am only up $56 total in the portfolio. Which really isn't that bad for only 10 days.
My plan going forward is to wait until one month of investing then move things around, hopefully without a huge loss. Then I will take approx $200-400/month and invest in to the ones that are working....how does everyone else choose where to continue adding to their portfolio when you have 10+ investments. Do you continue with higher risk ETFs/Index's or do you do dividend stocks for passive income? I picked up a few shares of AT&T for their 7% dividend. Not sure if I should continue to pick these up and amass a stock pile for the dividends or continue with the riskier ETFs.
