What would you do?
 

I am approaching this subject in a teachable
posture. I know many people use this website..
I enjoy everyone I come accross, and everything
I learn, and completely respect those who are
Beyond my years of knowledge.
So my question to you;
If you were in my shoes, 21 of age,
young man, what would you focus investing in?
In a broad perspective?
This being anything from business owner to stock
market minded to anything I have never even heard of
doing.

First thing I would do is to put at least 10% of my salary into a 401K or something that would be tax deferred and earns a fairly decent return of your investment.

That adds up to a significant amount after ten years and you would be way ahead of most people, who think they have time to save for their retirement. Some people will have to work until they die. that's a real tragedy.

VERY GOOD ADVICE JOE.


As a kid everyone always told us to Save Your Money. Best financial advice you can give or get.

Best advice? No debt. None, nada, zilch. It's the ONLY was you'll get ahead. Buy with cash and think hard before you buy something. Live below your means. Investments go in cycles...hard to predict what will "win" in a given year.

Are you looking for ideas on how to start a business? Or for investment ideas?

I was a public speaker before I retired. My subject was money. The advise given by donb9006 is the best advise on money. Save for what you want, buy used when you can and pay cash! Before you buy anything.... THINK! Do I NEED this or do I WANT it??? Often times you will decide you don't really need it.

We buy most items with a thought in our head as to what we are doing to be doing with it after we buy it. I give the example of the outdoor furniture I purchased when I lived up north. I saw myself eating breakfast out there most mornings... In two years we probably used it twice. We didn't have time in our busy schedules to eat breakfast outside,

You see it with many of the pools being built in The Villages. Not many people in them.

Put your money on memories... not things. Things wear out... memories are with you forever.

We have too much stuff! Back in the 50's we had small homes and no stuff and people were happier. Now... we have large homes and lots of stuff and we aren't happy! That stuff..... Isn't what happiness is about.

Absolutely SAVE!!!! But not so much that you aren't enjoying life. We had a tax business for 30 years and saw too many people with money, and no life. I found it very sad.

I would never tell anyone what stocks to buy... I've had good luck... I've had bad luck. *shrug* Even the experts don't get it right.

What I wish I had done is what you're doing. Asking the advice of people our age and then listening to it.

You have many options and they are all pretty good. Who knows today which is the best. But, as long as you save something either in a 401K or an IRA or some other low risk investment you'll be much happier when you reach age sixty. Which, by the way, you will reach a lot faster than you expect.

This advice is good for someone who wants a predictable, stable, financially uneventful life.

However, it is not the ONLY way to get ahead. I venture to say, if I'm in a room with 100 random people, I would be in the top 5% as related to net worth and I have always had and continue to have debt.

Most famous success stories I've heard of or read about involved a bit to a lot of risk taking, some making and losing fortunes more than once. Most wealthy people and at least 90% of all successful companies use debt as a tool. Like any tool, it can hurt you if you don't know what you're doing. But for those who can manage it, debt, as a tool in your financial tool box, will help you get to where you want to be.

For every cent that leaves your grip, ask yourself, "Is it a need or is it a want"? If you NEED it, why? Do you NEED it right now? Can you wait until you have more money in your grip? If you simply WANT it, why? Can you do without it? Can you substitute it?

Since you are asking that sort of question here... you probably have no real direction yet.

My generic comment...

IMO; Invest in yourself, your knowledge and earning ability! College first! If you think you have a flair for being an entrepreneur, consider it after your education. Be very careful and thoughtful about your selection of Major. Make sure the field pays well and it will yield employment opportunities. If you are not sure about being an entrepreneur and think you will work for someone else. It is hard to beat certain Engineering fields in terms of earning power for a BS degree (bang for the buck). Same goes for certain jobs in Information Technology. After a few years of work and maturity, consider getting an MBA and figuring out next steps for a Management job (if you are inclined in that direction). If you are lucky, your company might pay the tuition for the MBA.


When you begin working , Consider contributing generously to your retirement fund and investing using low cost mutual funds (invest appropriately for retirement and your risk profile).

Slow and steady wins the race!

Will you loan me two dollars 'til Tuesday? ;)




And for Joshua who is too young to know this old line; http://www.urbandictionary.com/defin...amburger+today

Haha, for you, sure.

Kitty to Josh
 

To have zero debt ever would likely mean:

1. You'll never have a reliable vehicle
2. You'll never buy a house.
3. If you own a business, it is unlikely you can do more than scrape by.

That said, the reason to avoid debt is not that you are avoiding debt itself, it is that paying interest should be avoided whenever possible. My advice is a bit opposite of some here, which is to say, build your credit history. Go to the FICO website, study strategies to build credit. I would go as far as to suggest using credit you don't need, AS LONG AS YOU PAY IT OFF EVERY MONTH BEFORE YOU OWE INTEREST. I can say that because I know you are a temperate and frugal young man.

Be aware of the seasons of the economy. We are in a season of extremely low interest. It's likely that at some point interest rates and home prices will go far higher.

An example of using the seasons of the economy to your advantage:
If you are renting instead of paying a mortgage, this is an excellent time to buy a house because renting is the opposite of investing, as you are paying for something you will never own.
Even though you would be paying interest on the home, you are also paying for the house itself.

Regarding investing in a IRA or 401K, the funds can be invested in many different things, and most of the choices are risky for losing money.

If I were you, the first thing I would do is build a nest egg. Ask the bank how much is required to put money a CD, which is safe, and gives you a smidgin of interest paid to you. I give this advice knowing you and your situation. Everyone needs an emergency cushion of cash in case of a vehicle loss or breakdown, being temporarily unable to work, and so on.

When these funds have built up, then you are in a position to leave an emergency fund and use the extra to start paying off the truck early to save that interest.

Still reading? Finally, make sure you don't scrimp on "investing" in insurance. Make sure your vehicle is covered for collision, and that you have medical insurance. This is a gigantic risk that many young people take without ever thinking about what would happen if....

:bigbow:

Excellent advice! people of all ages could benefit from your suggestions.

I unintentionally walked on your post and it holds so much good stuff I felt it needed to be seen again.