Over what period of time have you consistently beaten the market without fail?
Do you save money?
- Thread starter Elbridge
- Start date
Over what period of time have you consistently beaten the market without fail?
True dat! What you are doing with stocks is called Dollar Cost Averaging but diversification is your true friend.
We haven't had many down periods in this market for 8 years and quite the bull market it's been but just because something hasn't happened doesn't mean it won't.
Paying someone to help is a great idea if you don't have the time yourself and he's not taking you to the cleaners.
I pay an annual fee. Not a per transaction commission.
Best advice I ever received from
My grandfather who was a small time warren Buffett style investor was to always be investing (as long as you can spare the $$$) don't trade... invest in the way down and on the way up and you'll always be ahead.
I always understand someone trying to put money in savings for a rainy day, but if the same person has Credit Card debt and is paying interest every month its very hard for me to recommend not putting all that extra money to paying the CC debt off first. You will NEVER get ahead financially paying CC interest every month. Its mathematically impossible.
FYI, those limits on contributing to a 401k and an IRA's at the same time kick in at $62,000 for single filers.
Sounds like you are doing a good job with the saving. The only thing I would do differently is knock out that credit card debt as fast as possible. You can always borrow back up in a pinch or get a cash advance against the card in an emergency. Paying 10%-18% in credit card interest is not good. I would cut back on the saving (other than 401k up to the employer match) until that is done.
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Elminating debt is such a huge, underrated part of savings/investment/retirement.
You can discuss hypotheticals all you want, but if you're completely debt free before retirement, your financial picture is almost certain to be rock solid.
You can discuss hypotheticals all you want, but if you're completely debt free before retirement, your financial picture is almost certain to be rock solid.
Yeah this is probably where I was being hung up.
As for the 401k contributions, This says as long as the total contributions don't go past 54k, I'm good. It doesn't mention a wage limit.
https://www.theentrustgroup.com/self-directed-ira-plans/ira-contribution-limits
You must be self-employed. You are right about the $54,000 total between your SEP retirement plans.
For non-self employed, you lose the tax deduction for Traditional IRA contributions starting at $62,000 filing single if your employer offers a 401k plan (or other similar plan). That is listed in the third group of numbers (Traditional IRA Income Limits) in your link.
You can convert any Traditional IRA into a Roth without income limit. It is often called a "backdoor Roth IRA". It was created in 2010 with a law change to IRAs.
https://www.cnbc.com/2017/04/04/high-earners-should-consider-a-back-door-roth-ira.html
Taxes still severely tricks me up. It's the one area of finance I just never get down well. I understand them, but I just don't understand how to maximize deductions and such. For example, with my 401k, and my Roth IRA.. what should I be doing with my taxes every year? Sounds like I've falsely been thinking I can "set it and forget it".
Anyone ever check out the MrMoneyMustache blog?
It is pretty hilarious and has a lot of overlap for the discussions here. His biggest focus is on outrageous saving and investing as early as possible in order to allow the opportunity for extremely early retirement should one so choose.
It is pretty hilarious and has a lot of overlap for the discussions here. His biggest focus is on outrageous saving and investing as early as possible in order to allow the opportunity for extremely early retirement should one so choose.
If your taxes are semi-complicated (business owner or self employed), I would make use of a reputable accountant. It can be a little costly but they can save you quite a lot if you are not doing your return correctly (especially if audited). You can always use them one year and if you find that you were doing everything correctly, drop them the next year.
I like the last part as long as you pick good companies, 2009 was a great year for that.
I rarely trade but once ended up long when I really should have just sold the position outright. Basically I turned a great trade of Fitbit into a lousy investment. On the opposite end, I hung on to KLA Tencor after a special dividend and see it as a long term bet on semiconductors.
Not having an accountant is for the poors. Worth every penny. Same as with a realtor.
You'll hardly ever see a rich person try DIY law, accounting, or real estate. And for good reason.
Realistically, how much cash do you need to start investing outside of a 401K? Right now I contribute 8% plus a 5% company match, but I don't really do anything outside of that.
The answer is that it depends on a lot of factors (such as your age, your income, how much you plan to spend in retirement, what age you want to retire, etc.). 12%-15% of income (your contribution + match) is a "rule of thumb" with 15% being much safer. You are at 13% so you might up it a percent or two with your next raise. You won't miss it.
https://www.bloomberg.com/news/articles/2017-06-14/how-much-should-you-save-for-retirement
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I think it depends on what your goals are for that money. Maybe make a list of savings categories and prioritize them. That should help you figure out how much savings and where to put it.
Day to day expenses
Debt paid
401k (enough to get max company match)
emergency fund
Roth IRA
Savings to spend in 3-5 years (car, furniture, etc)
savings to spend in 5-10 years
Savings to spend 10+ years from now
More 401k
Feel free to argue about the order of this list.
So here's my question to that. With Savings interest rates almost at a loss (with inflation), what should you do with the areas above? I want to save for a house, for nice furniture, maybe a boat. But there has to be a better way to go about it than just leaving it in Savings where it has no benefit aside from being super liquid.. right?
Before you do all of that, get rid of the cc debt even if its small. You are definitely losing money by not paying it off compared to making nothing on savings accounts.
A boat is definitely a luxury purchase. Concentrate on buying your first place first and then other investment properties before buying a boat. Have a friend by a boat.
AGreed. That was more of a question for down the road. Seems like a savings account is just for quick access to funds. Not sure what else you need it for if something else can get you a 5%+ interest gain.
Good to learn more, and thanks for the share.. but it seems the author is pretty hesitant on almost all the alternatives to keeping money in a bank. Seems the writer is very afraid of Trump's Presidency.. but this was back in February, and so far, it's been great from a financial standpoint.
Try to find a high interest checking account. I get 2.25% on the first $20k. Emergency money is in a savings account, sure it doesn't make any money, but that is not the point of that money.
Longer term money, some mutual funds (balanced funds). When interest rates were better, I usually kept a little in CDs.
But like everyone else has mentioned, pay off debt first. Once you have money to invest, talk to a professional. Figure out your goals ($ & timelines) and your risk tolerance.
Longer term money, some mutual funds (balanced funds). When interest rates were better, I usually kept a little in CDs.
But like everyone else has mentioned, pay off debt first. Once you have money to invest, talk to a professional. Figure out your goals ($ & timelines) and your risk tolerance.
For the Professional part, I've had a few guys reach out to me, either friends of friends or some sort of referral.. but they all seem to sales-y. Not only do I not trust they have MY best interests, but how much of a cut are they making off my investments..
I'm assuming go with a Financial Advisor? Is there something better to look for? Local or national?
I'm assuming go with a Financial Advisor? Is there something better to look for? Local or national?
I would see if you can hire Goukcatsgo. He consistently beats the market which would make him one one of the top stock pickers in the world depending on how long he has done it.
