Investment suggestions

[slashvanyoung]

For short- and middle-term investments, with varying degrees of risk, you could also look into peer to peer lending: http://www.prosper.com/

 

[kev]

What's this IRA business? Over here we have Superannuation funds that you invest a portion of your income into, and are eligible to withdraw from when retiring. Is this more or less the same thing?

It stands for Irish Republican Army- they are responsible for bombing the crap out of our British empire

Tis the American version Ermz, you're right (Individual Retirement Account), altho Roth is a specific one of those. I heard about them when I was at business school. Here, we have pensions and ISA's (Individual savings account) the latter is also tax free.

Like anything, a roth isa has plenty of problems too.

 

[roy22341]

Roy's little story. http://thecoldequations.blogspot.com/ Just google "$1,365,227?".

If you can manage to invest and only get a 1% or below rate of return, you're doing it wrong. Granted the example I gave is optimistic, but its not over the top.

 

[Metaltastic]

Wow, thanks for all the input guys, great stuff in here!

 

[egan.]

If you can manage to invest and only get a 1% or below rate of return, you're doing it wrong. Granted the example I gave is optimistic, but its not over the top.

Seriously. I get 2% in a money market account at my bank even in this economy (with no risk). It was close to 6% in the same account a couple of years ago.

 

[egan.]

BTW the difference between a Roth and traditional IRA is that in a Roth you have paid tax on the $ already and in a traditional you defer taxes until you are actually withdrawing the money at retirement. There are other rules but I'm afraid a heavy metal forum isn't the best venue to learn them.

 

[PhilTheBeard]

I'm 21 and i am totally going to do this.

 

[JayB]

If you're 23 and haven't started saving for retirement yet start NOW. Like today now. Here's a little example about how much compounding returns can help you.


William and James are twin brothers who are 65 years old. 45 years ago (at the end of the year when he reached 20), William started an IRA and put $2K in the account at the end of each year. After 20 years of contributions, William stopped making new deposits but left the accumulated contributions in the IRA fund. The fund produced returns of 10% per year tax-free. James started his own IRA when he reached the age of 40 (just after William quit) and contributed $2K per year for 25 years, making his last contribution today. James invested 25% more money in total than William. James also earned 10% on his investments tax-free. What are the values of William’s and James’s IRA funds today?


William has $1,365,227. James has $218,364.

Isn't that from "I Will Teach You To be Rich" By Ramit Sethi?
I read that book a while back , some great advice in there.

 

[Metaltastic]

BTW the difference between a Roth and traditional IRA is that in a Roth you have paid tax on the $ already and in a traditional you defer taxes until you are actually withdrawing the money at retirement. There are other rules but I'm afraid a heavy metal forum isn't the best venue to learn them.

Thanks Egan - and I never said this was going to be my only source of information, just trying to get ideas from people I know and respect

 

[egan.]

Thanks Egan - and I never said this was going to be my only source of information, just trying to get ideas from people I know and respect

Totally. I just didn't want to pretend to be an authority when there are some great articles that tell the story more accurately than I (or most folks here) would or could.
http://money.cnn.com/retirement/guide/IRA_Basics.moneymag/index2.htm

 

[spioraid]

HD-DVDs. You can't miss.

 

[Metaltastic]

Totally. I just didn't want to pretend to be an authority when there are some great articles that tell the story more accurately than I (or most folks here) would or could.
http://money.cnn.com/retirement/guide/IRA_Basics.moneymag/index2.htm

Thanks man, looks like a lot of useful info there

 

[Aaron Smith]

Haha, yeah, I'm afraid after that thread you started, I'll pass on Gold Aaron

Do what you want, man. If you didn't read the page I linked though, I highly recommend you do, before ignoring the gold idea. It took me a good year of research and following of the financial markets daily before gold finally clicked in my mind. I am fully convinced that gold is a far safer place to be right now than the US dollar, especially over the coming years. I hope your IRA works out for you, though.

 

[colonel kurtz]

Real estate. Right now the markets in the shitter and prices are still low but they arent gona stay there for ever if you can afford to put to 10-20% down on a house get a mortgage and rent it out covering most of the cost of the mortgage youll be fukin rollin in cash in a few years, ive heard that some places in the states such as vegas there are properties that where goin for 800K are down to 100-200K.

yea the problem with this plan is that prices aren't going to be seeing any sort of dramatic climb in the near future

right now it's estimated that roughly 2 million more homes will go into foreclosure this year, which will push real estate prices even lower

remember that those $800k properties had massively(and falsely) inflated prices due to bullshit lending practices...and the $200k they're selling for now is what they would've sold for 10-12 years ago, which is about what they're "truly" worth