: financial wisdom request



OffThaHorseCEO
03-23-06, 11:51 AM
ok, so lets say one day i find a fairly large (to me) chunk of change, or maybe not find but come across it in a completely legitimate way, but it just happens to be excess, meaning, my car is paid up, rent is paid, all bills paid, lawyers paid etc etc.

we'll assume its 4000 dollars

what would be the best way to get a good return out of this for the future, meaning, like 20 years from now when im 42. im willing to put in work if it yields a greater return, but the work cant involve an initial investment of more than the 4 to 5 g's i would theoretically have at the moment.

ive heard of roth ira's but dont really know how they work, and i have a "retirement plan" where i work but dont understand it, im sure someone here can explain how these things work or offer a better alternative

EcSTSatic
03-23-06, 12:12 PM
Let's start by reviewing your situation; you are 22 so you have a long time to retirement. The first question any financial advisor asks (besides how much money do you have) is how adverse to risk are you? Then, are you wanting an investment that you can cash in on soon or are you looking down the road, college fund for kids, house, trophy wife etc?
At your age you can afford some risk if you are game and have plenty of time to recover if something goes wrong. As you get older, riskier options with higher yields are not necessarily a good idea.
Company investment plans are good because they usually reduce your taxable income and the company typically matches your investment to some percentage. IRAs are good tax reducers too.

Think about this and add some comments. I'm not a financial advisor but I did get a fair grasp of it in my MBA program and the school of hard knocks.

Adam
03-23-06, 12:16 PM
open an IRA, invest in some stock, something. pay bills with it cause face it, you will always have bills. put away for you kids college! or you can but stuff for your car, or wife.

Spyder
03-23-06, 12:21 PM
Buy collectible guns. They are going up in price, RIDICULOUSLY up in price. My original M1 Carbine has tripled in value in just over a year...three hundred bucks, now nearly a grand. And you get to have fun with them too! They're easy to offload if you need a quick buck and they will ALWAYS go up in value. Seriously, its better than real estate...no one will ever believe me, but if I get time and remember, I'll explain the rest at another time...off to work for me, so I can buy more GUNS!

DILLIGAF
03-23-06, 12:41 PM
2 words boob-job.You will save thousands on dating expenses.Got your own boobs,no need to date.Save that 200 bucks a week.you'll be rich in no time at all.

OffThaHorseCEO
03-23-06, 01:08 PM
2 words boob-job.You will save thousands on dating expenses.Got your own boobs,no need to date.Save that 200 bucks a week.you'll be rich in no time at all.
get off the freon man....haha


Buy collectible guns. They are going up in price, RIDICULOUSLY up in price. My original M1 Carbine has tripled in value in just over a year...three hundred bucks, now nearly a grand. And you get to have fun with them too! They're easy to offload if you need a quick buck and they will ALWAYS go up in value. Seriously, its better than real estate...no one will ever believe me, but if I get time and remember, I'll explain the rest at another time...off to work for me, so I can buy more GUNS!
very interesting, please, tell me more

this is all theoretical or rhetorical or watever you wanna call it, i dont have the money nor am i expecting it. i just want to get some ideas so if it ever does happen, i dont do something stupid with it, i know 5 grand isnt a huge amount of money to some but 5 thousand excess dollars would be more than i've ever had

by adverse to risk do you mean how bad of a risk i am, or how badly i would be affected by a risk gone wrong. assuming this was all excess money, i would not be affected at all.

im thinkin down the road college fund etc

youre right, im relatively young and can accept some risk if the rewards are great enough, obviously i wouldnt be puttin all my eggs in one basket

ive looked at bank cd's etc and they seem pretty guaranteed, but, damn it takes forever to make money

DILLIGAF
03-23-06, 05:26 PM
22yrs old,best advice is save weekly.I bought my first house at 22,a child at 23.5g can be alot of money when joined with a investment plan.All investment plans need fed every week,that way when shit is down you're buying more shares.You would be amazed at how quick 5g can be saved when you work at it every day.My down payment on my 1st house was 2,700 dollars,lived there 13yrs walked away with 40,000 when I sold it.I do not make alot of money,at 40ish i'm comfortable where i'm at.

urbanski
03-23-06, 06:00 PM
2 words



beanie babies

Jonas McFeely
03-23-06, 06:08 PM
22yrs old,best advice is save weekly.I bought my first house at 22,a child at 23.5g can be alot of money when joined with a investment plan.All investment plans need fed every week,that way when shit is down you're buying more shares.You would be amazed at how quick 5g can be saved when you work at it every day.My down payment on my 1st house was 2,700 dollars,lived there 13yrs walked away with 40,000 when I sold it.I do not make alot of money,at 40ish i'm comfortable where i'm at.

Dude you bought baby? How much?

danbuc
03-23-06, 06:09 PM
BY how adverse to risk you are, he means how willing are you to invest in somethign that will most likely fail, but may succeed.

In other words, if you went to the track would you be more likely to bet 100 dollars on a horse that has a 10/1 chance of winning, or a horse that has a 1000/1 chance of winning?

If your the type of person who is "adverse to risk" then you would more likely bet on the horse with the 10/1 chance of winning. Th risk of loosing would be relatively low, but the payoff wouldn't be that great.

On the other hand, if your NOT "adverse to risk" that you would more likely bet on the horse with the 1000/1 chance of winning. The risk of loosing would be very high, but the payoff would be much greater, if you did win.

Basically what it comes down to, is how long are you willing to wait to see returns, and how much are you willing to loose. Another example of this would be the difference between say, a High Yeild Saving's Account, and Day trading. The Saving's Account, while taking longer to accumulate funds, pretty much has a 0% chance of loosing money. Day trading on the other hand can make you large amount of money in a very short time, but has an 80-90% chance of loosing all your money.

I kinda went off on a tangent there for a bit so I'm gonna stop talking now.

SpeedyArizona
03-23-06, 06:12 PM
I put excess money in stocks and bonds. Bonds are steady and reliable, but don't yield a high percentage of interest and have no risk to them (good for retirement). I also put money is stocks. Take your money and buy as much stock as you can of a bio-diesel company. This will be big in the future and will be profitable in the long run. Otherwise, buy 2 shares of Berkshire-Hathaway (BRK.B) this company has consistently yielded profits. I have a very slim stock porfolio, it consists of Chevron and Berkshire Hathaway A and B. I have traded a few stocks and this is what I'm left with.

DILLIGAF
03-23-06, 07:50 PM
Dude you bought baby? How much?Worst investment I ever made.6 months and he's off the payroll,lol

Elvis
03-23-06, 09:37 PM
Send it to me. I'll take care of it for you.

Jesda
03-23-06, 10:45 PM
2 words boob-job.You will save thousands on dating expenses.Got your own boobs,no need to date.Save that 200 bucks a week.you'll be rich in no time at all.

And you can use them to attract a rich guy. Just hope he doesnt make you put out.


Personally, I'd buy a book called "Dianetics" and join me in this awesome club I found out about.
http://q45.spilky.com/gallery/d/2035-1/southparkxenu7pa.jpg

Odin8
03-23-06, 10:52 PM
I was sincerely contemplating this kind of thought process the other day. Was thinking about getting into some stocks, cause that's what my dad has done a whole lot of.

Then I went out to eat, bought a lot of beer, then bought a lot of fireworks.

End of story.

Spyder
03-24-06, 10:52 AM
FIREWORKS!! A-HOLE! I hate California... ... ...

Spyder
03-24-06, 10:53 AM
HAHAHA. A_H_O dsfkjdf L_E comes out as anal cavity! I didn't even type the whole word. Just the letter A and the word _Hole, with a hyphen between them. Funny.

OffThaHorseCEO
03-24-06, 11:36 AM
a-hole

haha youre right it does

Jesda
03-24-06, 12:03 PM
You at least want your money to keep up with inflation, whatever you do.