Investing; which way would you go?
#11
RE: Investing; which way would you go?
ORIGINAL: ckandes1
an IRA is that non-taxed fund you can set and get back when you're 65 right? I'm not looking quite that long term, I'd like to see effects by the time i'm 30. I do plan, however, to put aside money from my paycheck for an IRA fund.
my initial idea was to purchase a condo. It has some risks though. This may be good because first off i wouldn't need to put all $10k down to get my hands on a condo. Secondly, since my dormitory is paid for 2 years, That leaves me room to rent the condo out since i have 2 years of free living. So i'll be sitting on an investment that can only gain value for 2 years, and if i keep a tenant in there at all times, it wont cost me much at all, other than time to fill out papers.
Of course theres always the chance that
1) i have a hard time finding a tenant or
2) the tenant damages something and i have to fix it with my own money
Does this seem like a stupid idea?
an IRA is that non-taxed fund you can set and get back when you're 65 right? I'm not looking quite that long term, I'd like to see effects by the time i'm 30. I do plan, however, to put aside money from my paycheck for an IRA fund.
my initial idea was to purchase a condo. It has some risks though. This may be good because first off i wouldn't need to put all $10k down to get my hands on a condo. Secondly, since my dormitory is paid for 2 years, That leaves me room to rent the condo out since i have 2 years of free living. So i'll be sitting on an investment that can only gain value for 2 years, and if i keep a tenant in there at all times, it wont cost me much at all, other than time to fill out papers.
Of course theres always the chance that
1) i have a hard time finding a tenant or
2) the tenant damages something and i have to fix it with my own money
Does this seem like a stupid idea?
An IRA is a fund you add money to for retirement, and a regular IRA is taxed when you take the money out, and a roth IRA is taxed initially. Roth is better cause you worry about the taxes now when you have time to compensate for them. Not when your 65 and loose sveral thousands of dollars to take money out.
#12
RE: Investing; which way would you go?
You may also consider just putting some of it in a high interest savings account. Nothing fancy, I'm just saying a certain percentage of it that will be flexible if you need to use it. Places like ING offer 4.25% interest on their savings accounts with no minimums, that is a nice way to earn respectable interest with no risk. Of course that isn't like investing in a mutual fund or something along that lines, but its not the worst thing you could do.
#13
RE: Investing; which way would you go?
I have heard bad things about ING when I was looking to open an account. I also talked to someone I know and they are only getting 1% wiht a 10k account. At this point in your life you need liquid assests incase of EMREgency, not beer run, and your paycheck wont cover it. Like I said look into a money market savings for the amount you have.
#14
RE: Investing; which way would you go?
ORIGINAL: liquidxit2
You are living in a dorm and most have a meal plan.
You are living in a dorm and most have a meal plan.
#15
RE: Investing; which way would you go?
See here in Canada I would recommend putting the money into what we call an RRSP - Registered Retirement Savings Plan. Like your IRA in that it's tax deferred until your take it out... ideally retirement. But the RRSP has one hugh advantage... assuming Mr. or Mrs. average Canadian... you drop $10,000 into an RRSP, you get approx. $3700 back on your taxes.
This way you take care of your retirement, you don't have to initially put money away from your paycheque and the tax refund, you use as a downpayment on the condo or drop that into a money market account for an emergency.
This way you take care of your retirement, you don't have to initially put money away from your paycheque and the tax refund, you use as a downpayment on the condo or drop that into a money market account for an emergency.
#16
RE: Investing; which way would you go?
Military members have the benifit of being able to contribute to the "Thrift Savings Plan". I myself have put away $4,000 in the past 2 years, and each year, I earned a solid 18% from the Internationl Stock Exchange program they offer. I couldn't complain, most people are lucky to get 5% on their investment.
To non military members, a good Roth IRA is your best bet, IMO...
To non military members, a good Roth IRA is your best bet, IMO...
#18
RE: Investing; which way would you go?
I guess i'll be looking into ING.
I really dont want to put my college spending money in an IRA, though i will definitely be investing in that after college
I really dont want to put my college spending money in an IRA, though i will definitely be investing in that after college
#19
RE: Investing; which way would you go?
Here's a different thought: look into buying some land...and that will take some research and depend where you are. If had bought any of the land that I thought about when I was your age... I'd be rollin' in dough by now!
Just my $.02!
Just my $.02!
#20
RE: Investing; which way would you go?
yea, i was gonna say land too
that way you dont have to worry about rates and all that stuff
however i would wait to do anything until your a year and a half into your pre-paid dorm time, then decide what you need to do, a year and half of intrest wont yeild much profit, so it wont cost you much to wait...
that way you dont have to worry about rates and all that stuff
however i would wait to do anything until your a year and a half into your pre-paid dorm time, then decide what you need to do, a year and half of intrest wont yeild much profit, so it wont cost you much to wait...