Let's talk about money - The Finance Thread

terracottaterracotta Joined: Posts: 365
yeah.. it's a longshot but i figured why not. i'm starting a new job on Tuesday. it's sorta big for me, and i'll be making more than i did in previous jobs.

here's the problem.. after fixed expenses (rent, utilities) i'm not sure how to allocate this income. i managed to build up some savings in my previous jobs, but i'd always eat into them due to lack of discipline. i've posted the gist of my questions below. i'm a little inexperienced with finances so some of these might be pretty basic:

- i know there's a rule out there that 10% of income should go into a risk-free interest bearing investment, like a bank account. do most people put 10%? (note: the rule i know is to save 10% before any expenses, including tax)

- if you decide to save more than 10%, how do you (personally) divide your savings? for example, 10% can go into a bank account, 10% into a high risk/high interest fund, and 5% under the mattress in cash (25% savings total).

- do you try to keep your savings above a certain level? say maybe $1000 minimum in the cheque account, $5000 in savings, etc?

- for the previous question, i figured another strategy would be to build up some reserves in a bank account (a few thousand), then once i reach a certain $ value, stick everything i'd normally save into a high risk/high interest account. good idea? when should a guy feel "comfortable enough" to start thinking about riskier options than a savings account?

===

feel free to post any info or questions on organizing finances. being the internet (and SRK), you can't expect to receive (or be taken as seriously as) an unqualified opinion from a financial advisor... but maybe you'll get a little help.

i don't have a mortgage, wife and kids, or car to pay off.. obviously some of you guys will. that's a different ball game to me, but i'd be interested in hearing how you guys juggle things.
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Comments

  • AcEtUrNeDjOkErAcEtUrNeDjOkEr SRK Barbershop DJ Joined: Posts: 2,903 ✭✭✭✭✭ OG
    Emigrantdirect.com is a great place to have your savings, 5% interest a year. My wife and I saved up for our house with it; getting a couple hundred a month for no reason is never bad.

    My normal saving/spending is divided like this:

    Pay everything off; anything I have left, but 50% in the back and 50% in your pocket. Once you put it in the bank, divided it out *house savings, car, etc*

    The main thing is to live within your means, don't try to buy stuff that you can't afford and keep your credit inline and correct!
    Koop: omg fail fail fail... u cant drive a kia soul windows down pumpin.......
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  • catchafirecatchafire My Crew Joined: Posts: 2,496
    I'm trying to become more disciplined with my income. I've been working for about two years now and I have absolutely nothing to show for it. It's almost as if i'm living from check to check. Last month I decided that I can't continue on this path and not have anything to show for when I decide to invest in a house or some other venture.

    Right now, i'm trying to save a third of my monthly income each month. It's been very difficult because i'm naturally inclined to wanton spending. I've had to cut back on frivolous spending and eating out. It's a lifestyle change but i'm slowly getting use to it.

    It's also hard for me to have a gf and be tight with money. She understands what i'm trying to do and i'm thankful for that, because I can't deal with someone who's going to eat the floor from under me.

    Investment wise, i'm saving up to purchase a home. If I can save atleast 20% of the cost for the house, i'm sure that i'll be in good standing to get a loan for the bulk of the downpayment. I'd also like to start up a small business, but the risk is very high compared to real estate.

    The savings/business path is a constant work in progress my friends.
    The best thing you can give a person is your time.
  • terracottaterracotta Joined: Posts: 365
    here's a post i found on another forum. some good basic stuff.. i didn't read everything on mutual vs indexed funds, but i think this explains the gist of it (mutual funds sound like they rely on arbitrage, while index funds sound like that "market portfolio" finance majors learn about).
    Here, I'll add to this thread to head off some of the daily "what should I do with this $$?"

    =========================
    As the OP said, take a solid look at your financial position currently and also at your goals.

    You need an EMERGENCY FUND. Start off with $1000. Put it in a money market account or a high-yield savings account. Here are a few links. I am endorsing none of them because I have USAA and therefore no experience with these:
    https://www.emigrantdirect.com/EmigrantDirectWeb/index.jsp
    http://www.eloan.com/savings?context=deposits
    http://www.ingdirect.com/osa_work/
    http://www.bankrate.com/brm/rate/mmmf_mmaratehome99.asp?params=WA,1092&sort=2&product=33 <-- Bankrate.com lets you compare

    So again STEP ONE: Put $1000 in a high-yield account. This is your EMERGENCY FUND. You will not use this money for buying a stereo or for going to dinner. You WILL use this money to replace your alternator when your car takes a crap (for example.)


    Step TWO is to pay off your debts. There are a lot of ways to do this and I will not get into them in this post unless I get requests to edit this. The point here is that you will nearly always PAY higher rates than you EARN, so if you have debts that takes a serious bite out of your investment income.

    Step THREE is to contribute to your emergency fund until it is large enough to cover 3-6 months of your *necessary* living expenses. This still goes in that same high-yield savings-or-money-market account. You want the money there because it needs to be readily accessable if something comes up, and that rules out CDs & etc. If you are in a more volatile career, you might consider having 9-12 months in the emergency fund instead of 3-6; but I think 6 is a good number.

    Those are the BASICS. It will take most people a while to get through Step Three. You should not proceed to step four until you are done with step three.









    Are you done with step three yet?








    Okay.

    At this point you're going to begin investing. If you are reading this post then like a lot of us you are an investing n00b. This means you are not ready to pick stocks yet. Picking stocks is sexy and glamorous and requires a lot of time to do it right. (Some of you old-timers are going to say this is an over-simplification, and you're right, but this is for teh n00bs.)

    Mutual funds are "where it's at." At least for most people. When you contribute to a mutual fund, a "fund manager" takes your money and buys lots of stocks and/or bonds with it. This is is full-time job and he's had a lot of training. He can do it better than you, almost certainly.

    When thinking of mutual funds, there are a two basic types:
    * Managed funds
    * Index funds

    MANAGED funds attempt to "beat the market" through active trading. THEY can be broken down into a few more types:

    * Bond funds
    * Blended funds
    * Stock funds

    Bond funds invest in bonds. Generally they will have a lower rate of return in a bull (up) market, but a better one in a bear (down) market. Many bond funds are tax-exempt because they invest in municipal bonds. USTEX and USATX are two tax-exempt bond funds I am currently looking at.

    Blended funds look to take a middle ground: they will invest in stocks AND bonds.

    Stock funds purchase stock in different companies and return the most in a good market. Stock and Blended funds can be further subcategorized:
    * Small-cap
    * Mid-cap
    * Large-cap

    These can also be of two types:
    * Value
    * Growth

    The "cap" type just has to do with how big the companies the fund invests in are. A large cap fund will invest in companies like General Motors or IBM or Anheiser Busch or CitiBank. A small-cap fund will invest in startups or other smaller companies. Mid-cap funds obviously invest in medium-sized companies.

    VALUE funds are those where the fund manager looks for companies where their shares are trading below what they should be. Let's say company X has a fantastic product and very little debt and few competitors, but maybe there was a little scandal in the news about one of its executives sleeping around, so the stock price is down. Well a value fund will buy that stock, expecting it to go back up to it's normal level.

    A GROWTH fund will look for companies that are growing, building market share, increasing their value on the economic stage, etc etc, and invest in THOSE companies.

    If you look at this example:
    http://quicktake.morningstar.com/FundNet/Snapshot.aspx?Country=USA&pgid=hetopquote&Symbol=cvgrx
    The Calamos Growth Fund (CVGRX) is a large-cap growth fund. (Frequently these funds will have "Growth" or "Value" in their name.) Scroll down to the bottom of that page and you can see the grid that shows the category.

    There are several things to consider when picking a mutual fund:
    * Historical return
    * Management
    * Fees

    First of all, you never want to buy a mutual fund because it turned in 37% last year. That is AWESOME for the people who owned it, but the fund manager could have just gotten lucky, too. Look for a fund with a 5-10 year (or more) track record of returns you like. Sticking with the above example, CVGRX has a 10-year average of 18.75% before taxes and fees. That's pretty darn good.
    (http://quicktake.morningstar.com/FundNet/TotalReturns.aspx?Country=USA&Symbol=CVGRX&fdtab=returns)

    Next, look at the fund management.
    http://quicktake.morningstar.com/FundNet/NutsAndBolts.aspx?Country=USA&Symbol=CVGRX&fdtab=mgt
    Nick P. Calamos has been the fund manager since 1990. Clearly he knows what he is doing. But if you go to invest in this fund, and you see that last week he turned over the reins to someone else... well then it's a whole new ballgame and all of the history with Calamos is out the window.

    Next, you want to look at the fees a fund charges, because the return of a fund is reduced by fees. If a fund (for example) returned 10% last year, but they charged 2% in fees, then the real return was 8%. After taxes it might only have been 5%, which is silly. Low fees are important.
    (Fees, BTW, generally go to cover things like trading expenses, the salary of the manager, utilities for the fund company, rent, etc etc. The fees are teh fund corporation's income.)
    http://quicktake.morningstar.com/FundNet/Fees.aspx?Country=USA&Symbol=CVGRX&fdtab=fees
    In the case of CVGRX, fees are 1.19%. If we subtract that from the 18.75% 10-year average, we get 17.56%. Then take out taxes and you're still above 12%, which again, is not too shabby.

    "BUT! BUT! BUT!" some people will shout. "BUT 80% OF MUTUAL FUNDS DO NOT BEAT THE MARKET!!! YOU SHOULD BUY INDEX FUNDS!!!"

    Index funds? What are index funds?

    Index funds are a fabulous invention. It's true that beating the market is difficult to do on a regular basis. Index funds are built on the premise of "if you can't beat 'em, join 'em." They simply buy all of (or a statistically representative sample of) all the companies in a certain index. So an S&P 500 Index fund (like FSMKX: Fidelity Spartan 500) doesn't have to spend a lot of money on managment salaries because the amount of management required is very small. As such, the expenses for FSMKX are only 0.1%; subtracted from the 10-year average of 8.07%, that gives a 7.97% average return before taxes.

    A final "category" of mutual funds are "international funds." These invest in companies around the world. Some are worldwide funds whereas others invest in just one area, like Asia or Western Europe, etc.

    "Dang," I hear you say. "These taxes sure are getting up in my chili."

    NOT TO WORRY. If you have "earned income" (a Job) then you can contribute 100% of your after-tax income (up to $4000/year) into a "Roth IRA." This Roth can be any kind of investment, but most people pick a mutual fund. The growth of the fund is then TAX FREE, although you can't take the money out (with rare exception) until you turn 60. BUT THEN your withdrawls are TAX FREE, you can pass it on to your spouse when you die TAX FREE, and on to your youngest child when your spouse dies TAX FREE. The Roth is such a wonderful product it's amazing that it came out of our government.

    Some companies offer a 401(k) plan. Depending on what funds they make available for your investment purposes, this can also be excellent. 401(k) contributions are subtracted from your AGI, reducing your tax burden; but they do not grow tax free. Therefore, for retirement purposes, here is the best way to handle your accounts:

    FIRST: IF (and only if) your company has MATCHING 401(k) contributions, contribute to max out the match. This is because the match is an instant 100% return on your money. Do not contribute a penny more than the maximum match, however.
    SECOND: Contribute to your Roth IRA which you wisely opened in a good mutual fund.
    THIRD: If you have maxed out your matching 401(k) contribution and your $4000/year Roth contribution and you still have money to save for retirement then put that into your 401(k) plan again.

    Overall, in your mutual fund portfolio, you're going to want to have a good mix between the fund types. You'll want small-, mid-, and large- cap funds, as well as international funds; approximately 25% in each category.

    Researching funds is easy and fun for a lot of people, but if you don't want to put forth the effort, then index funds are definately the way to go.

    If you have kids or are still in school yourself, you can contribute to a 529 college savings plan; I'm not super familiar with this, but my understanding is that it's kind of like an IRA but you use it for educational purposes. Significant tax advantages over just keeping it in a fully taxable account.

    Also, in many cases people are eligable for a medical savings account. I am not so I don't know a lot about this either, but it seems like you would use another high-yield savings account or MMA for this, and it has tax advantages as well.

    IN CONCLUSION... "I have $$$ to invest, what should I do with it?" I hope you've found the answer in the above. Start with step 1 and work your way down.
  • axeman61axeman61 My Baby Blue. Joined: Posts: 4,636
    The only two pieces of advice I have (I'm a novice):
    1.) Seriously try to look at things in an "accumulative" sense. My mom tithes to the church, which runs 4 grand a year for her. But she also buys lottery tickets with at least 10 bucks a day, which is more than 4 grand annually when it all comes out.
    Looking at things in a "whole sense" like that will make you think differently. That different road for your brain may lead to a budget, or it may not. Still, try it.

    2.) When out shopping, you may venture across what looks like a cool deal. But before your brain gets wet and you run to the front counter, just think of these things:

    How much space will this take up?

    That's something simple, but it's something most people don't consider when hypnotized by a lower price tag. If it's not small, like a packet of kool-aid or chili mix, then an item will take up some space in your house. You must consider that space as if it were part of the price, because it will be. No use to getting even an ironing board if you have NO place to put it.

    Will I take full advantage of this deal?

    Getting more for your money is the whole reason a deal puts you in heat, so are you getting more? I drink soda/pop/whatever all the time. If I see a deal that says "Seven 6-packs of Pepsi for $5," the only natural reaction is to jump for joy. I will drink all of those. But what if I see 10 boxes of Hamburger Helper for 2 bucks (I know these deals don't exist; bear with me here)? I don't make HH often, but it's always good when I do. Still, its needs meat that will most likely rot/be used for hamburgers by the time I remember I can cook HH with it. The boxes also take up space. Where will they go?
    I know HH wasn't the best example, but people constantly take riskier gambles with things that take up more space or take less time to depreciate in value somehow.

    Do I already have this?

    Sometimes, things you already have are just as good or better than what you're looking at. That's... about it.

    Where are the strings?

    Besides the stuff about space and frequency of usage up above, does this deal come with any other strings? Think of components that don't come with a device such as an MP3 player, or things that would make said item much easier to use. If you still have to get that other item after the deal, it's not much of a deal.

    If there are no deals around, you could always apply this stuff to regular items. I can't fully express just how much money I've saved by just crossing shit off my list.
    "I want to find an honest [president]. Some guy who's just going to get on TV and be like 'Look, in order for this whole thing to work, at least two-thirds of you need to just go to the beach and walk into the ocean.'"
    -Bill Burr.
  • PlutoburnPlutoburn Alpha Booze Head Joined: Posts: 247
    Only dead fishes go with the flow
  • BobbypigoBobbypigo Joined: Posts: 2,466
    I work in Finance and so does my girlfriend but we are always looking for better ways to make our money work.
    My advice is simple,
    First: Set up a retirement account, I dont care how old or young you are, start it now! ( 401K, or IRA) 22 year old male with an IRA putting away 100 a month will have close to 200k when he is 47. Not too bad, especially if you have that come out automatically you wont even notice it after a while.

    Second: Open several high yield online savings accounts like HSBC or Orange, they pay around 5 % and can do automatic withdrawels weekly. After your retirement contribution put in another 15% of your weekly income and scatter it into these two or three savings account.

    Third: IF YOU WANT TO BE RICHER THAN MOST AMERICANS PAY DOWN YOUR DEBT.
    If youve got savings use it to pay down your debt. It doesnt make sense to earn 5% on money that is sitting in a savings account when your credit cards have a balance and are charging you 9-25% interest. (Your losing money) I know it feels good to have money saved but if youve got debt, its better to use your savings to pay it down.

    Fourth: The most important. Buy a HOUSE! Improve your home slightly for 3 years, wait till capital gains are no longer a problem and when the market looks like its up SELL! Dont sit around, normal people can flip houses too. Just dont get too attached and always be on the look out for a good property.

    I wont get into Financial planning items like Mutual Funds, stocks, Insurances because its too risky to give advice on these topics to people without intimatley knowing your financial situation.
  • daydrinkerdaydrinker Joined: Posts: 318
    I dont got anythign to contribute, just wanted to say that this is a great thread!!!
    beirut
  • mastermindmastermind BACON STRIPS Joined: Posts: 2,846 ✭✭✭✭✭ OG
    Co-signing on the 401(k) thing. If you're lucky enough to get a job with some awesome retirement benefits, grab as much knowledge on it as you possibly can. The sooner the start, the better. I figure -- it's money I won't see, then it will be money I won't immediately spend. I made a mistake of contributing the bare minimum when I started and my amounts weren't maturing fast enough. So the next quarter, I went ahead and maxed out how much I could contribute (15%), and my company contributes 3% of what I contribute. I picked a pretty conservative setup for my plan. I didn't pick an aggressive plan, when I know I should've. I wanted something safer, I guess.

    Can someone explain the whole IRA thing? I have this giant shopping bag full of rolled coins in the corner of my room and I just want to be able to bring that to the bank and drop it into an IRA. Is that possible?
    -mastermind. NEXT TIME, WE EAT FIGHT STICKS.

    SF2 code: t+ c(+) T-@+ r f(++) g@+ m? s->++ v+ M- n--:-- o+
  • BobbypigoBobbypigo Joined: Posts: 2,466
    Sort of. . . The most you can put into an IRA any given year is 4500. So that means the most you can start an IRA with is 4500 and you wont be able to contribute any more that year. So yes, you can definatly take your coins to the bank and start one, as long as its not more than $4500.

    Mastermind, I dont know how old you are but if you are younger than 35 you might want to consider putting your risk level as high as it can go. When your young is the time to do it because when you get older you wont be able to afford the risk. When your young you can still make it up. Going high risk can make your yield rise from 4-6% to 10-15%. . .Not bad.

    Contribute as much as you can unless you have a lot of credit card debt. If your debt is high see my above post.
  • Nagata Lock IINagata Lock II Godfather Of The GTASF Joined: Posts: 5,967
    I was curious to know how US residents are responding to a rapidly dropping Greenback? As of this morning, the Canadian dollar was 94.3 to the dollar and with the impending hurricane season coupled with the Canadian dollar being very commidity based, there are projections of actual parity. Any thoughts on the subject?

    T8 IS COMING!
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  • TheIlluminatiTheIlluminati downing some coffee Joined: Posts: 72
    The thing about .personal. finance, like your situation, is that what you "should" do is basically contigent on your .personal. situation. You sound like you're young. That implies that you have a higher tolerance for risk. I don't know about any liabilities you may have, how much money you're making, the stability of your job, etc. But the main concept of personal finance is weighing your own tolerance for risk versus the return you're seeking.

    Any finance major will tell you that's the basic thing.

    Risk, versus return.

    There are millions of investors out there. The market is close to efficient, at least if we're talking something like stocks on the Dow Jones. Essentially, what that'll effectively mean for you is that all investments (well, all investments you should be making) have the same RATIO of risk to return. That's because should any investment be returning at a better ratio, other investors will jump on it. That's the essential idea, and it isn't perfectly, perfectly efficient.

    I haven't progressed enough in my education, probably, so don't listen to me over say a real investment manager. But here's another principle: it isn't necessarily better to pay off your debt. If the return on your investments is higher than the interest on your debt, then you are _winning_. The thing is, most debt has very high interest, like some of the other posters have mentioned, and as such odds are your rate of return on your investment will be less, and that's when you need to pay off that debt.

    An example of when paying off debt isn't necessarily a good idea-- up here in Canada at least, student loans. It isn't always a good idea to pay them off; the rate of interest on them is low. So if you can take that money you would have used to pay them off and use it to invest in something with a higher rate of return than the interest, you're making money.

    Oh, here's a tip: currency arbitrage, like where you try to take advantage of short term pricing errors in foreign exchange rates, doesn't actually work. It gets a lot of hype, I think there's infomercials on it. The REASON it doesn't work is that banks, investment houses, etc. have computers that pick up on foreign exchange pricing inefficiencies right away, faster than you can, and trade all that gain away for themselves (the inefficiency corrects as a result).

    You could invest in longer term foreign currency speculation. Here's another (Canadian) example. Canadian investors who invested in the American stock market in American dollars, in, say, 2002, would have theoretically realized a big gain: look at, say, this: http://finance.google.com/finance?q=ETSPX. Those annual / annualized returns are essentially what you'd get each year as rate of return; when you compound that for a couple of years... that's a big return. But the thing is, if you're investing from Canada, intend to spend your money in Canada, but your investments have all been in American dollars the last 5 or so years, your investments would've been ROCKED by the exchange rate changes in the market; the Canadian dollar has gone from about 62 cents US to about 94 cents, and it's probably going to keep going up.

    Let's say it's the other way around, you're in America, using American dollars for your consumption. If you had purchased CAD at ~62 cents USD, and held it until now, at about ~94 cents USD, less the time value of money and inflation, you'd be up that percentage difference.
  • mastermindmastermind BACON STRIPS Joined: Posts: 2,846 ✭✭✭✭✭ OG
    Sort of. . . The most you can put into an IRA any given year is 4500. So that means the most you can start an IRA with is 4500 and you wont be able to contribute any more that year. So yes, you can definatly take your coins to the bank and start one, as long as its not more than $4500.

    Mastermind, I dont know how old you are but if you are younger than 35 you might want to consider putting your risk level as high as it can go. When your young is the time to do it because when you get older you wont be able to afford the risk. When your young you can still make it up. Going high risk can make your yield rise from 4-6% to 10-15%. . .Not bad.

    Contribute as much as you can unless you have a lot of credit card debt. If your debt is high see my above post.

    I'm 25. I'll definitely look into changing my risk level because this is the turn of the quarter.

    I also definitely want to look into those online savings accounts. I want to move out of the folks' house and into an apartment before the end of the year. Saving up for a house with one of those accounts seems really ideal.
    -mastermind. NEXT TIME, WE EAT FIGHT STICKS.

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  • AcEtUrNeDjOkErAcEtUrNeDjOkEr SRK Barbershop DJ Joined: Posts: 2,903 ✭✭✭✭✭ OG
    I'm 25. I'll definitely look into changing my risk level because this is the turn of the quarter.

    I also definitely want to look into those online savings accounts. I want to move out of the folks' house and into an apartment before the end of the year. Saving up for a house with one of those accounts seems really ideal.

    Trust me, it works, my future wife and I put 1500 a month into an ED account and it worked out nicely. Got everything we wanted towards our house minus the finished attic.

    After my 3 months probation, I am going to contribute 2-4% into my 401(k). My wifey is doing it also, thats my savings towards my Ferrari when we kick the kids out the house in 25 years:rofl:
    Koop: omg fail fail fail... u cant drive a kia soul windows down pumpin.......
    mc hammer pumps an a bump
    Aceturnedjoker: WTF! LMAO
    Normal Tuesday conversation with Koop on GTalk...LOL
  • BobbypigoBobbypigo Joined: Posts: 2,466
    I was curious to know how US residents are responding to a rapidly dropping Greenback? As of this morning, the Canadian dollar was 94.3 to the dollar and with the impending hurricane season coupled with the Canadian dollar being very commidity based, there are projections of actual parity. Any thoughts on the subject?

    T8 IS COMING!

    Nagata, I would write forever on this topic but I have got to get some work done today.

    The U.S dollar will begin to fail more and more over the next 20-50 years unless the U.S. changes their financial policies in a major way. Like I said, I could type all day about this but to put it simply check this: Remember 2 months ago when all the major Chinese corporations sold off. Remember what happened to the Dow and the S and P and NAsdaq? They fell apart and people thought it was the end of the US economy. This can happen again and at anytime. We are dependent on foreign everything. We import many times more than we export and China just surpassed us as the Number 1 exporter in the world.
    Bottom line, China will determine the world market for the next 50-100 years and Canada will overtake the US dollar.
    China WILL BE the world Super power in finance, exporting, and military.


    Terracaota's article is great, I love it all except for the 529 plan thing. Seriousley research these products, They can only be used for college! So if your kid doesnt go for some reason youve wasted all that time because the money is no longer tax deffered.
  • BobbypigoBobbypigo Joined: Posts: 2,466
    Trust me, it works, my future wife and I put 1500 a month into an ED account and it worked out nicely. Got everything we wanted towards our house minus the finished attic.

    After my 3 months probation, I am going to contribute 2-4% into my 401(k). My wifey is doing it also, thats my savings towards my Ferrari when we kick the kids out the house in 25 years:rofl:

    This is another important idea people forget about. You want to have money? Kick those kids out no later than age 20. Other wise have them contribute in a major way to the houshold.
  • Natureboy 1Natureboy 1 Stylin' and Profilin' Joined: Posts: 1,364
    here's a post i found on another forum. some good basic stuff.. i didn't read everything on mutual vs indexed funds, but i think this explains the gist of it (mutual funds sound like they rely on arbitrage, while index funds sound like that "market portfolio" finance majors learn about).

    great post... someone with premium rep him for me :tup:
    WHOOOOOOOOOOOOOOOOOO!!!!

    Lee, what a guy
  • terracottaterracotta Joined: Posts: 365
    lol don't rep me, i didn't write it. but i'll pass the message on.

    glad the thread's being helpful to some people.
  • JackTenrac!JackTenrac! Dollar Yen - Level 304 Joined: Posts: 2,808
    Repp you cuz I wanna!

    ...I use percentages for that.

    ...that went well.
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  • fishjiefishjie no Joined: Posts: 4,813 ✭✭✭✭✭ OG
    right now i got all my monies in savings

    im thinking about buying a condo soon so thats why. if i dont, i will make my portfolio something like this:

    10% CDs (ing offers 5% or so which is way better than bonds or money market or brickmortar banks)

    50% vanguard s&p 500 (i forget the name)

    20% REIT (vanguard has one)

    20% foreign index fund (vanguard has one)

    basically, i want fees as low as possible. vanguard has the lowest fees. i also want indexes, because nobody beats the market in the long run. low fees + indexes = win. high fees + mutual funds = LOSE.
    Nicky's methods of betting weren't scientific, but they worked. When he won, he collected. When he lost, he told the bookies to go fuck themselves. I mean, what were they going to do, muscle Nicky? Nicky was the muscle
  • akumatruniggaakumatrunigga Joined: Posts: 3,312
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    My favorite topic!!!

    Anyway here is one suggestion is that whatever you make take about 1 hour worth of work for each day and add it into your savings weekly. For example, if you make about $34,000 a year that is the equivalent about $16.35/hr. So you should be saving about $81.73/wk. With interest bearing accounts such as INGDirect (i have) and others, that money will increase in a heartbeat.
    right now i got all my monies in savings
    im thinking about buying a condo soon so thats why. if i dont, i will make my portfolio something like this:
    Im trying to do the same thing myself as fast as I could. It may come to the point of saying no in taking ladies out cuz it can hurt a brotha especially since the Real Estate money isnt coming in right away. I just started literally last month and it is going to be a while before the money come through. So, I just may wind up working for an organization that has all the great perks while doing real estate part-time. (my broker is a cool dude and understands) Im having a crap load of interviews and it just a matter of choosing.

    In regards to the debt thing, I agree a whole lot. If you have credit card debt, just place an emphasis and pay them off as quickly as possible. If it comes to the point of saving everything after you take of important expenses DO IT! I would rather have all of my debt taken care of in less than a year than do that bullshit debt consoldation thing that alot of companies provide. In actuality if you settle your debts on your own your credit score will increase faster. I still remember my score was at about 550 and after taken care of my debts in less than a year that shit jump to 630. Now 630 is alright status and companies will risk you cuz they know that you are taking care of you shit.

    If you are single put all that pimp money in paying off your debt. You'll thank yourself in the long run.
    Xanatos: You know the answer to that Owen. Pay a man enough, and he'll walk barefoot into hell.
  • DigitalbootyDigitalbooty Cool but Rude Joined: Posts: 981
    I'm outi

    -Digitalbootyith
  • terracottaterracotta Joined: Posts: 365
    you know i'm not even in the US and i'm using ING Direct. i guess that's good news..
    nobody beats the market in the long run.
    except other markets..
  • fishjiefishjie no Joined: Posts: 4,813 ✭✭✭✭✭ OG
    you know i'm not even in the US and i'm using ING Direct. i guess that's good news..


    except other markets..

    ?

    are you talking about foreign markets? if so thats why you should invest in a global index fund. because nobody beats the market in the long term. not even warren buffet. so the best strategy is to index the whole thing.
    Nicky's methods of betting weren't scientific, but they worked. When he won, he collected. When he lost, he told the bookies to go fuck themselves. I mean, what were they going to do, muscle Nicky? Nicky was the muscle
  • NightNight pure hot girl cum... Joined: Posts: 505
    I personally only shelf like, $1,000 in the checking account to take care of monthly bills, ATM withdrawls (rare), etc. Each pay period, I balance the checking to $1,000 and putting the excess into other accounts.

    I keep about say, $10,000+ in a high-yield account at the bank, and I keep like a few hundred bucks tucked away in a cupboard somewhere just in case. That's the "emergency" stuff.

    I contribute a good deal into the 401k, even more than double the company matching since I want to be at or near the $15,000 limit allowed per year, and then diversify the funds in there, a large cap, small cap, international, etc. That money won't be seen in a long time until way into retirement, but that doesn't matter since I never spend money anyway. The company matching is free money, and I'm more than happy if the returns on those investments are beating current CD and MMA rates.

    I also contribute the maximum allowed to the company's ESP plan since it's guaranteed by the company that each stock purchase will be AT LEAST a 15% discount, so that's essentially a gain right there.

    The rest of my money is committed to investments. Each pay period, the excess money from the checking account is put into the account where it can be accumulated as cash and used for investing, where more of the activity takes place.

    Like the quoted earlier in the thread, I diversify my mutual funds, not putting everyone into just one. I'm a little heavier towards International funds (I can even give specifics if anyone is interested) these days, and I do a little research in looking at the expense ratios, their morningstar ratings, what other people say, and of course, their historical performance. As long as my funds are returning more than CD and MMA rates, I'm more than happy.

    I also keep a decent amount of cash around to see if I have an opportunity to get into a stock that I feel is at a good price, get a gain I'm comfortable with and get out. Sure there's the tax, but a gain's a gain, and it at least increases my cash position to put into another investment. I did this a few times with Intel this year, where it was hovering at $19~20... got in, when it gained a point or two, get out. Stocks are a lot more riskier though, so a bit more homework is needed.

    At a young age, you can afford to take risks, and if you've got money to throw around that you plan on using to get some returns, just having all the money lumped into a high interest CD, MMA or savings account isn't exactly maximzing things for you in an upward market, so it's good to do a little homework and see what you can put your money into and watch it grow.
    Chun, Sakura, Cammy, Karin, Morrigan, Lilith, Rose, Mika, Elena, Ibuki, Mai, Yuri, Ruby Heart, Rouge, Son Son, Juli, Juni, Nakoruru, Makoto, etc. - The Ryu intercourse list. He's done em all.
  • SystemSystem Joined: Posts: 508,676 admin
    I have my job allocate 20% of my gross pay to my retirement account (which is nothing but an S&P500 Index Fund). At the moment I don't have time to try to 'beat' the market so I use an index fund (which basically means if the S&P 500 goes up 12% this year so will my retirement account.

    Unfortunately, though I'm always broke or well not able to buy cool things (like a XBOX 360 or HDTV).

    Also if your job offers retirement matching funds GO FOR IT!!!!! Can't stress this enough, my job matches upto 5% of my gross pay so basically my savings rate is about 25%.

    And if you find yourself in a tough pinch you can always borrow against it (and the interest you pay you're paying yourself).

    I would recommend saving into these retirement accounts because not only do most jobs match your contributions (in some scheme) but you also reduce your taxable income by how much you contribute.

    -Dali
  • MrBlankMrBlank Pimp God Inc. Joined: Posts: 568
    I got 5 credit cards i want to consolidate.

    What is the best possible place to make this happen? i want a low interest rates and online payments.
    --Pimp God Inc.-- "The Backhand stays warm when stupid bitches run they mouths"
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  • defcondefcon the ronin Joined: Posts: 831 ✭✭✭✭✭ OG
    i invested all the leftover money i had from my civilian financial endeavors into an aggressive growth mutual fund just about 3 years ago. i rarely ever check it because i don't want to turn into one of those compulsive day trader types. but i checked it today and that shit has netted a 41% growth. my face is still like this :wow: right now. being that i'm invested into an aggressive growth mutual fund (this is my primary savings right now), when should i cash out? i'm tempted to right now, because i remember a few times i've checked and all the market shit was in red and negative numbers and the outstanding 40% over these 3 years is not a sustainable rate of return i can expect in the future... thoughts + advice?
    to my elite peeps with the murderous mystique
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    they be like, how that kid rah reach the peak?
    pull out the heat and use my technique to speak
  • terracottaterracotta Joined: Posts: 365
    i heard this advice once.
    collect assets. an asset is anything that generates income. a liability is anything that takes it away.

    simple concept, but i think not enough people have this mindset. say i had $2000. i could use it as down payment on a new car, or do some professional course that will help me land a much better job. most people would see both as "assets" equally.

    fish: i guess you're right.. but then again, isn't the market a zero sum game? one market's loss is another's gain. and it's probably easier to speculate on an economy than on a stock. (well.. maybe. if that were true everyone would be throwing money at the chinese economy)

    ===

    any business people here?
  • NightNight pure hot girl cum... Joined: Posts: 505
    i invested all the leftover money i had from my civilian financial endeavors into an aggressive growth mutual fund just about 3 years ago. i rarely ever check it because i don't want to turn into one of those compulsive day trader types. but i checked it today and that shit has netted a 41% growth. my face is still like this :wow: right now. being that i'm invested into an aggressive growth mutual fund (this is my primary savings right now), when should i cash out? i'm tempted to right now, because i remember a few times i've checked and all the market shit was in red and negative numbers and the outstanding 40% over these 3 years is not a sustainable rate of return i can expect in the future... thoughts + advice?

    41% in 3 years is about 13.7% return each year, so that's not too bad. Very recently if you've paid attention to last month, the market was pretty much on an upswing, so you'll probably notice that the fund has grown a lot even in the past month, so maybe the peak hasn't even been reached yet. Even today (June 5) the market is in the red, and don't let seeing the market in the red on certain days make you want to pull out. You're already beating current CD and MMA rates so that's great. Only pull out if you need the cash or if you notice that the growth is starting to flatten.
    i heard this advice once.
    collect assets. an asset is anything that generates income. a liability is anything that takes it away.

    Basically if they tell you "collect assets" where they generate income, that pretty much means owning property where if you own property, you can rent it out or sell it, generating additional income for yourself.
    Chun, Sakura, Cammy, Karin, Morrigan, Lilith, Rose, Mika, Elena, Ibuki, Mai, Yuri, Ruby Heart, Rouge, Son Son, Juli, Juni, Nakoruru, Makoto, etc. - The Ryu intercourse list. He's done em all.
  • specsspecs Excuse me, princess! Joined: Posts: 6,380 ✭✭✭✭✭ OG
    This thread is good eatin'. Kudos to all who gave the advice!
    Carlos and Dave Anime Rave is the BEST damn anime review show on the internet! AnimeRave.xyz
  • SystemSystem Joined: Posts: 508,676 admin
    Well...

    These are all great things if you seriously want to get married, have kids, and have something to leave behind.

    If you're just thinking about the day-to-day, though, it's as easy as just setting some money aside in a savings account for emergency situations. Anyone living on their own should have a "Fuck-I-Can't-Believe-My-Car-Broke-Down" fund. ^_^
  • Disciple of RyuDisciple of Ryu The King of Iron Fist Joined: Posts: 731 ✭✭✭✭✭ OG
    Okay, I have a few question. I've read all the posts in this thread but I'm pretty retarded so most of this stuff has gone over my head. I'm only making a little over 30,000 a year so I don't have tons to invest. I've gathered from reading this thread that I need to up the amount I'm paying into my 401k, that's a given. I do have some questions about that though.

    1. I have a 401k from the first real job I had but I never bothered to update my address or do anything with the account when I quit my job and moved. This was about 3 years ago, so is the money still there and mine? If so, is it possible to transfer the money directly into my current 401k? How much should I expect to pay in fees?

    2. I plan on opening a savings account. Currently I only plan to put about $100 a month into it and never draw from it. Yeah, it's not much but I have car payments to make and I know that's a safe guess as too how much I make myself put away. I'm 25 now and looking for a somewhat long time investment. I want to attempt to buy a house in my late 30's-early 40's. If I went to the bank this weekend, what type of account(s) would I tell the banker I wanted to have a decent amount of money to use as a down payment?

    3. If I invest in an overseas company, i'll have to go through a broker (?) to find out what company is best to invest in and to get everything set up. Realisticly how much money should I have before I attempt this, and are the fees associated with this method one time, or would I have to keep paying the broker to be updated on how my investment is going?

    Thanks for the time and knowledge.
  • klearshadowklearshadow Joined: Posts: 32
    Buy the book: "The millionaire next door" great read about how the "real" rich people eat,live,spend etc.
    ..................
  • NightNight pure hot girl cum... Joined: Posts: 505
    1. I have a 401k from the first real job I had but I never bothered to update my address or do anything with the account when I quit my job and moved. This was about 3 years ago, so is the money still there and mine? If so, is it possible to transfer the money directly into my current 401k? How much should I expect to pay in fees?

    Your 401k stays with you as well as all the money you contributed into the funds during your time at that company. And yes, you can transfer the money from the funds from your former job into the funds of your current job, but before you think about doing that, have a look at how well your former funds are performing. If they're already performing pretty good, no need to transfer! Depending on your 401k broker (e.g. Fidelity) there may be fees associated with it if you exceed the number of times you can do it per year, so you need to get that info from your 401k broker.
    2. I plan on opening a savings account. Currently I only plan to put about $100 a month into it and never draw from it. Yeah, it's not much but I have car payments to make and I know that's a safe guess as too how much I make myself put away. I'm 25 now and looking for a somewhat long time investment. I want to attempt to buy a house in my late 30's-early 40's. If I went to the bank this weekend, what type of account(s) would I tell the banker I wanted to have a decent amount of money to use as a down payment?

    The highest interest account they'll likely push on you is a high yield savings or money market account (MMA). If you have a big chunk you want to deposit and never touch it for a while (can't withdraw or deposit) they'll push a promitional CD on you probably. If you actually do plan on lots of activity, then a savings account or MMA is what they'll likely offer you. I honestly don't know what the local bank would offer when you ask, so they'll know better than me.

    You can open up a Roth IRA, you can put away up to $4,000 per year (as of 2007), and withdraw $10,000 (and only $10,000) towards the purchase of your first home, but this will be tax-free and will not suffer an early withdrawl penalty (I believe if the holding period is over 5 years), so this $10,000 can really help you out. In the IRA, you can have it in a mutual fund that can grow better than current CD and MMA rates, so when you retire, the money withdrawn will also be tax-free.

    The accounts at the bank aren't necessarily the greatest in terms of getting growth and stuff since CD and MMA rates, while safe, aren't ideal for maximizing your returns in an upswing market. If you open up an investment account, and do a little homework, and put your money into a decent mutual fund, that's where you money can really grow.
    3. If I invest in an overseas company, i'll have to go through a broker (?) to find out what company is best to invest in and to get everything set up. Realisticly how much money should I have before I attempt this, and are the fees associated with this method one time, or would I have to keep paying the broker to be updated on how my investment is going?

    It depends on what exactly we're talking about investing in an overseas company. If the company has stock in the public market, they easily be purchased via any online brokerage and the main fees are the transaction fees for the trading.

    What I would personally recommend is to use the same brokerage and do research to look at international mutual funds. You probably have an international fund in your 401k plan, so if that is growing nicely, you can also invest more of your money from a brokerage account in the same way by putting it into a similar fund (or maybe even the same fund if it's available through your broker). An international mutual fund is essentially a basket of stocks that are managed by a financial expert, and he does all the research, trading and everything dealing with companies overseas, although not necessarily ALL overseas as there may be a mix of domestic companies in there too. A deeper look into researching the fund will reveal what it's invested in.

    The main fees associated with mutual funds (not just international, but all) are:

    - Transaction fees from the broker for the initial investment and cashing out. Some brokers have relations with certain funds and will actually not have one!
    - Early termination fees where if you decide cash out too early
    - Load fees, either front end or back end, where the FUND charges a certain amount for entering or exiting the fund respectively. Many funds out there are "no load" which make them more desirable over other ones with loads.

    - Management fees as shown by the "Net expense ratio". Each year, the manager of the fund will charge its investors a certain fee, and the approximate estimation of that amount will be shown on the "Net expense ratio" when looking at the fund's info. If say, the fund has a 1.00% expense ratio, then each year, you'll probably see approximately a charge of 1% of your total investment. These fees are how the managers make their money for their time, research, maintanence, etc. of the fund. If the fund's returns are good enough though, then you'll easily accept that charge every time though. This is among the key things you look for when researching your mutual funds and do your comparisons.

    The great thing about international funds is that in the recent market, it looks like many international funds are doing better than domestic funds. It does require a little bit of research and reviewing the market trends in the event this can change, but for the moment, international seems to be doing quite well.
    Chun, Sakura, Cammy, Karin, Morrigan, Lilith, Rose, Mika, Elena, Ibuki, Mai, Yuri, Ruby Heart, Rouge, Son Son, Juli, Juni, Nakoruru, Makoto, etc. - The Ryu intercourse list. He's done em all.
  • BBQBBQ ピンクゾーン Joined: Posts: 3,662
    For me I adjust my income on my current situation. I was in the military for 4 yrs so when I wasn't in iraq, I'd make sure my bills were paid off and the rest I couldn't care less if it was saved or used for what ever. When I got deployed I tried to save as much as I could, the motivation was the pay increase and tax free so it helped me with spending on the bare minimum( maybe buying fast food every now and then or a haji dvd). I was able to buy a car in cash and still had some to spend. Mistake was with that, I should of saved the remainder.

    Now that I'm out of the military, unemployed, and starting school in august, I have a new plan. I get almost the same amount from unemployment like I did when I was in service so I estimate on how much I'll be able to collect until I start school. Then I estimate on how much I have to spend for my bills. Then I guess on what I spend on gas/stuff/going out. So roughly I will know how much I have left and that's when I try to save most of that because it's all just on guessing.

    When I'm in college I'm going to have to work because even though the G.I. bill pays for my school, it only gives me a certain amount. And because I'm going out of state, the first year is going to suck as for tuition and other things. But after that year I'll become a resident and it won't end up being as rough. So I'll continue to save and hopefully by the time I graduate, I'll have a good chunk of money in my account so it can help me get by on what ever I'll be doing.

    Basicly I'm as of now I'm saving to where it will help me climb the ladder to success.
  • fishjiefishjie no Joined: Posts: 4,813 ✭✭✭✭✭ OG
    i heard this advice once.
    collect assets. an asset is anything that generates income. a liability is anything that takes it away.

    simple concept, but i think not enough people have this mindset. say i had $2000. i could use it as down payment on a new car, or do some professional course that will help me land a much better job. most people would see both as "assets" equally.

    fish: i guess you're right.. but then again, isn't the market a zero sum game? one market's loss is another's gain. and it's probably easier to speculate on an economy than on a stock. (well.. maybe. if that were true everyone would be throwing money at the chinese economy)

    ===

    any business people here?

    i think that quote is from rich dad poor dad. he was talking about cashflow. thats important. the guy has good ideas and got me thinking about finances, but a lot of his financial advice is not so good. he gets more hate on his yahoo finance articles than svc chaos does here.

    i dunno about zero sum game. isnt the theory that the market is a random walk or efficient? if it was zero sum, an indexing strat would never work, yet the S&P and other indexes have always consistently increased in the long term, even after bubbles.
    Nicky's methods of betting weren't scientific, but they worked. When he won, he collected. When he lost, he told the bookies to go fuck themselves. I mean, what were they going to do, muscle Nicky? Nicky was the muscle
  • Disciple of RyuDisciple of Ryu The King of Iron Fist Joined: Posts: 731 ✭✭✭✭✭ OG
    A ton of good info.

    Thanks for the well thought out response.
  • Omski2k4Omski2k4 Joined: Posts: 141 ✭✭✭✭✭ OG
    I was curious to know how US residents are responding to a rapidly dropping Greenback? As of this morning, the Canadian dollar was 94.3 to the dollar and with the impending hurricane season coupled with the Canadian dollar being very commidity based, there are projections of actual parity. Any thoughts on the subject?

    T8 IS COMING!

    Well, I dunno, since the CAD is a floating point currency that compares its value against the dollar. This means that the Canada doesn't have to do anything if the USD is going down, so if this trend continues, then yeah there will be a 1:1 ratio, but that's not because the CAD is actually worth more, but because the USD is worth less. In the case of China, it does the bread basket system as well where it says, "well we're worth THIS much in comparison to the USD, CAD, GBP, etc. and the way they do this ( like any other currency that goes float point) is by taking their market capital and looking at purchasing power, and economy and trade and volume of currency out in the world. Increases or decreases in any of these is what moves currency values which is why the Tresury secretary has so much power. He can set interest rates and such and effect the way ppl use the dollar. If interest is high, who's gonna want to use the dollar ? If you do this, then this helps off set increases in dollar flow in the world which helps prevent inflation from getting too high. Of course this is sortof oversimplifying it, but I think you get the idea. With this new (relatively) era of float point currency as opposed to gold standard, countries bank their currency on tresuries, amt of dollars in circulation, economic well being of said contry, and sentiment. I hope that answers your question.
    Snake: Yeah, so when's mine up?
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  • f_manf_man Joined: Posts: 647
    hey does anyone have any good financial planning lit books they can recommend?

    none of this personal finance for dummies crap. looking for stuff with solid theory/investment advice for recent college grads.

    hey night, mind me asking where you work? i remember on a thread long ago or maybe it was a PM you mentioned getting connected with a job through a school club. ive found a job, albeit not one i really want that pays pretty well imo for entry level (55k). but its in a crappy ass location. im trying to get a job in the bay area, and the financial district in sf would be nice. any advice on finding jobs in that respect?
    dantron:
    Fuck, guilty gear has made you all pussies.
  • NightNight pure hot girl cum... Joined: Posts: 505
    I work for Applied Materials (Santa Clara), which is where I first interned while in college, and secured a full time position upon graduating. I initially did get the internship because I got lucky and met a girl in a school club (one of those finance/accounting clubs) who was interning there and was leaving, so I could take her position. I did not go through a post-graduation job hunting phase (and seriously didn't want to) so I don't exactly know what those folks did to get their jobs.

    The finance offices in SF are likely to be the kinds of consulting, investment banking, CPA firms, government related etc. There was a lot of recruiting going on for the Big 4 firms at most bay area campuses, and anyone who had decent grades usually got a job there (oh and being a hot looking girl was a lock, notice how the recruiting girl is always insanely hot for some surprising reason). What sucks is that CPA firms do their recruiting for full time positions during winter time I believe, and I really have no idea of the recruiting of the other offices.
    Chun, Sakura, Cammy, Karin, Morrigan, Lilith, Rose, Mika, Elena, Ibuki, Mai, Yuri, Ruby Heart, Rouge, Son Son, Juli, Juni, Nakoruru, Makoto, etc. - The Ryu intercourse list. He's done em all.
  • f_manf_man Joined: Posts: 647
    yes. the recruiting girl IS always insanely hot lol. thats marketing for ya.
    dantron:
    Fuck, guilty gear has made you all pussies.
  • SystemSystem Joined: Posts: 508,676 admin
    hey does anyone have any good financial planning lit books they can recommend?

    none of this personal finance for dummies crap. looking for stuff with solid theory/investment advice for recent college grads.

    Getting advanced finance books may not help. Depending on the book they may be glorified accounting textbooks. Going for the 'Dummies' books are a great way to start then you should move into the more advanced areas such as Investing, real-estate, Business, etc etc.
  • mr. newbiemr. newbie 2 frame reversals :D Joined: Posts: 671
    just wanted to subscribe

    gonna have to adjust it to fit my $150 a week situation.
    Its not a videogames videogame. Its certainly not a gamers videogame. Its candy for gamers, about videogames, expressed as a videogame.
  • SystemSystem Joined: Posts: 508,676 admin
    thanks to everyone who contributed to this thread. My economics class was not really specific on how these things work and now i understand it much better.
  • forgenjuroforgenjuro Joined: Posts: 1,403
    I work for Applied Materials (Santa Clara), which is where I first interned while in college, and secured a full time position upon graduating. I initially did get the internship because I got lucky and met a girl in a school club (one of those finance/accounting clubs) who was interning there and was leaving, so I could take her position. I did not go through a post-graduation job hunting phase (and seriously didn't want to) so I don't exactly know what those folks did to get their jobs.

    The finance offices in SF are likely to be the kinds of consulting, investment banking, CPA firms, government related etc. There was a lot of recruiting going on for the Big 4 firms at most bay area campuses, and anyone who had decent grades usually got a job there (oh and being a hot looking girl was a lock, notice how the recruiting girl is always insanely hot for some surprising reason). What sucks is that CPA firms do their recruiting for full time positions during winter time I believe, and I really have no idea of the recruiting of the other offices.

    Holy shit! You work for AM! My dad used to work there.... Until he got pink slipped....

    But I remember that company has very good benefits. We were living pretty well.

    When i have some time ill contribute to this topic later.
  • mastermindmastermind BACON STRIPS Joined: Posts: 2,846 ✭✭✭✭✭ OG
    Trust me, it works, my future wife and I put 1500 a month into an ED account and it worked out nicely. Got everything we wanted towards our house minus the finished attic.
    Anyway here is one suggestion is that whatever you make take about 1 hour worth of work for each day and add it into your savings weekly. For example, if you make about $34,000 a year that is the equivalent about $16.35/hr. So you should be saving about $81.73/wk. With interest bearing accounts such as INGDirect (i have) and others, that money will increase in a heartbeat.

    So after this was posted, I went ahead and opened an Emigrant Direct account. I took akumatrunigga's advice and put the equivalent of five hours a week into the account. I make $17.90/hr, so that turned out to be $89.50/week added into the account with 4.93% interest. As of right now, my account's just under $900. Surely it's nothing to applause at, but that's money that I don't see at payday, pushed off to a rainy day/stashed away fund. And it's money that I know is going to a good place: away from being spent. =P
    -mastermind. NEXT TIME, WE EAT FIGHT STICKS.

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  • duhaas21duhaas21 Fucki'n Chuck Norris..... Joined: Posts: 86
    very good thread indeed...prolly the best I've ever seen on SRK short of the "Women" posted quite some time back.

    EDIT: ^^mastermind...i would say that $900 is something to applasue at, casue you invested wisely and now have about a weeks pay for not doing any formal work in about 3 weeks.....Its a good step, and you keep it up weekly with the interest compounding, who knows how large it could acrue in a year, 5 years or 10 years +. Keep it going.
    "Take what you love, hold on to it, and never let it go"
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  • UnreallysticUnreallystic Painyatta Joined: Posts: 13,171
    Good reads. I'm currently trying to clean up my credit. Its phucking horrible, despite my best efforts. Frustating because I want to buy a house and can financially afford it, but my credit rating will KILL me. Back with more later.
    - :bluu:
  • terracottaterracotta Joined: Posts: 365
    there was another posted titled along the lines of "what's the quickest way to get rich" or something. that had more pages too :tup:
  • BananaWeedBananaWeed Virtual Hobo Joined: Posts: 1,833
    Great thread.

    Did any of you start investing while still in school?

    I'm going into my final year of university, and only have about $5,000 saved up. I don't think I can invest that, since I'll probably be dipping into it throughout the year. My current bank (BMO) has an interest rate of 2.6% on savings accounts I think. I was just gonna let it sit in there, since I get free banking (student plan).
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