Stock Market

Speaking of stocks. Does anyone else watch Mad Money w/ Jim Cramer on CNBC? I'm hooked on that show

Is that the guy who sounds like he's hopped up on too much java? He looks like he's going to have an aneurysm at any moment hehehe...

At your age, I'd say go with an IRA, if you look up the interest rates over the past 50 years, you'll notice that you won't lose money very much, but overall you will yeild 10-13%.

If you're addicted to gambling, enjoy the stock market. I would recommend you get the advice of a professional. Ever hear the saying "if you defend yourself, you have a fool for a client"? Well, by that some token, if you play stock market without a lot of knowledge, you're an idiot.
Is that good advice?

Speaking of stocks. Does anyone else watch Mad Money w/ Jim Cramer on CNBC? I'm hooked on that show

I was going to mention him. This guy is great, gives some solid advice, and doesn't sound like Ben Stein.

Personally, I agree with Jsarno. I don't have a lot of cash standing around, but when I have some I toss it in an IRA. I believe you can put about 3K a year in there, and the compound interest is ridiculous.

Personally I'd go regular IRA because I know I'd take a loan from my IRA for a home or a college education for children. So, I dont even want the option!

Well to clarify on an IRA, that's just an investment vehicle that allows you to put money into it on a pretax basis, or in the case of a Roth IRA, put money in on an after-tax basis but withdraw the earnings tax free once you reach retirement.

If you're 18, then you likely don't make enough money in a year for the federal government to tax anything, so a traditional IRA is pointless. Like if you're going to college, and then just have a summer job, your annual earnings likely don't exceed the taxable threshold. The whole point of using a traditional IRA is so that you can get a bigger tax refund. But if your earnings don't exceed the taxable threshold, you don't pay any federal taxes anyway, so the traditional IRA does you no good.

In general, unless you are in a high tax bracket (making close to six figures), you want the Roth IRA. You don't get a bigger tax refund, but when you're 60 you can withdraw the money tax free.

But see, an IRA is just an account that holds your money. Once you open an IRA, you can put the money in stocks, bonds, mutual funds, whatever. So as far as what to invest in once you have an IRA, my advice in posts #6 and #7 still stands.

Is that the guy who sounds like he's hopped up on too much java? He looks like he's going to have an aneurysm at any moment hehehe...

That show makes me laugh... literally. I'll switch by and I just have to stop and watch that circus for a few minutes.

My company contributes 10% (based on my salary) into a 401k, no matter what I put in. Next year, I will be 100% vested. Other than the growth numbers they provide, I don't really know much about the various funds they allow me to move my money between. At the moment, I'm just playing around with about 30% of the value in funds labeled something other than 'stable' :D. Can someone give me some opinions about my options here?

http://www.skinsfan.us/sf/files/ecap.png

Here is what the 401(k) advisor at my old company told me. Have a diversified portfolio and be sure to have monies distributed across different degrees of risk.

The younger you are, the easier it is to go with higher risk options (International/Foreign Funds, Small Cap Funds, some Mid Cap funds). The closer you get to retirement, the less risk you want (as to not lose your shirt) in your portfolio (some Mid Cap, Large Cap, Gov't Bonds, Money Market). Morningstar provides some in depth analysis of all the Munies out there.

If the option is available, and you're unsure of your financial prowless, see if your 401(k) has options for "Profile Series". These are pre-diversified options that let the fund managers choose what is in your profile. Most are split between Conservative, Moderate and Aggressive (to varying degrees).

Here's a good stock to start with:
BERKSHIRE HATHAWAY INC.

;)
HA. One share will take a lifetime to save up for! :D


The key to success...

DIVERSIFY!!!!!!!!!

A lot of the investing strategies depend on how far down you need the money. If you have a USAA account, their website has a lot of good info on investing. Of course, as great a company as they are, take everything with a grain of salt when it comes time to pay commissions.