Lux Investing
Investing my Money?
I graduated from college about 2 years ago, I currently have a descent paying job, I am living home with my parents for free, I just pay small utility bills and my own car payment., as well as my student loan. I want to begin investing my money wisely. I am not good with saving. What would be a good way to invest whilei am still at home, should I buy a small one family house and rent it out, while I still live with my parent. ( I am not in mutual funds or other type of stocks)
Public Comments
- http://www.thehomeworker.org/data_entry_home.php check out this website, i am also in a situation like you and i am really looking forward to join this site with some more positive research about this site!! Hope it help!!
- Short answer: If you are against mutual funds or stocks then find the highest yielding savings account and have a certain amount deducted directly from your paycheck into the account. When the yields on your savings decline, you may consider investing in US treasuries or bonds. Also note: some mutual funds may invest in bonds or treasuries - not all of them invest in stocks. As for purchasing real estate - depending on the market in which you buy a house, you may not break even by renting it out - real estate is overvalued in some markets and landlords are are incurring loses after paying property taxes, maintenance costs, insurance and servicing loan or mortgage payments. A lot of smart people (including the last real estate agent I hired) advise against purchasing residential housing purely for investment purposes - you purchase a house if you want to live in it some day (and pray that tenants treat your property well). However, if owning real estate gives you added emotional satisfaction and makes you feel more confident, proud, secure etc. - then go for it.
- You mentioned that you are not in mutual funds or other stocks, that is normal... most people have no idea how to invest in the market, but they are missing out on huge money. Here is the trick: There is no trick. The market has averaged 12% over the past 85 years. Here is what 12% does to your money: $2,000 invested at 12% for 42 years: $256,000 And that is just a single $2,000 investment, no additional money. Imagine if you invest $2,000 every year: $2,000/year invested at 12% for 42 years: $2,000,000 So you don't have to beat the market, you just have to join the market. There are many funds out there designed to do just that, join the market. They are index funds. They track a large segment of the market and are content to perform with the market (12% is normal) in the long run. There are also funds that track the market but get safer as you get older. These are called Target Retirement or Lifecycle funds. They are great if you don't know much about the market... you can invest in these and never worry or even look at your money again until you need it in retirement. If you put the above investments into a ROTH IRA, all the money will grow tax free and will be completely tax free when you withdraw it in retirement. Any other investment you make you'll owe taxes on. Vanguard is my favorite investing group, they have the lowest fees and a tremendous track record. Here is their ROTH IRA site: https://flagship.vanguard.com/VGApp/hnw/accounttypes/retirement/ATSRothIRAOverviewContent.jsp You should read that page, it's very informative. And there is an "Invest Now" link in the upper right corner if you're ready to start. I recommend you start a ROTH IRA and put the money into the Target Retirement 2050 fund. Best of luck in your investing future!
