bank advice

[john2st]

Shew I know nothing about how to invest/save money the legit way for the future. but I know how to make money. I need a guide for dummies to set myself up for the future

 

[shake]

Shew I know nothing about how to invest/save money the legit way for the future. but I know how to make money. I need a guide for dummies to set myself up for the future

.

The easiest way for dummies to make money is to bet on Money Mayweather

 

[john2st]

.

The easiest way for dummies to make money is to bet on Money Mayweather

I ain't no dummy. I mean in the whole iras and what not. I know the gambling world too well to even think about being on the placing the bet side

 

[teamjordan79]

buy bitcoin

 

[jewelknows]

Another question is, would it be pointless to open a Roth and traditional? Also is that even possible? My company does not have retirement benefits so I would like to maximize my retirement on my own earnings and savings.

 

[zapatohead408]

I cosign what kidkid said. I work for wells as well and yeah.

Have you thought about investing?

Didn't know so many Nters worked with Wells Fargo. I got tired of "Wow"ing customers but Kind of miss it now.

If OP want's to not touch the money I suppose a CD, but that's really not that great at all.

 

[pdino]

Another question is, would it be pointless to open a Roth and traditional? Also is that even possible? My company does not have retirement benefits so I would like to maximize my retirement on my own earnings and savings.

You can have both. You can only contribute 5,500$ total to IRA accounts. example: 2000$ Roth, 2500$ traditional. 

- You have to be eligible within the income requirements <70k traditional, <104k Roth to participate in both and reap benefits

 

[mdub32]

Invest in apple stock only 92 now by sept will be at 200

 

[jewelknows]

You can have both. You can only contribute 5,500$ total to IRA accounts. example: 2000$ Roth, 2500$ traditional. 

- You have to be eligible within the income requirements

 

[luckyluchiano]

What do you guys mean when you say "max out" Ira and 401k? Like out the maximum amt you can out or max amount allowed?

 

[luckyluchiano]

*put

 

[pdino]

What do you guys mean when you say "max out" Ira and 401k? Like out the maximum amt you can out or max amount allowed?

Yeah, max amount allowed. IRA should be 5,500 per year. 401k should be able to raise the percentage through HR, standard is $17,550 for most jobs

 

[luckyluchiano]

Yeah, max amount allowed. IRA should be 5,500 per year. 401k should be able to raise the percentage through HR, standard is $17,550 for most jobs

oh ok, lol don't think I`m ready to put in max 401k yet, I just do 4% which is the max my company matches.

 

[slicknick951]

Yeah, max amount allowed. IRA should be 5,500 per year. 401k should be able to raise the percentage through HR, standard is $17,550 for most jobs

oh ok, lol don't think I`m ready to put in max 401k yet, I just do 4% which is the max my company matches.

lol this

i need to read up on IRAs

How do you guys feel about being somewhat liquid for investment opportunities or do you take that into account before "maxing out"?

 

[pdino]

oh ok, lol don't think I`m ready to put in max 401k yet, I just do 4% which is the max my company matches.

lol this

i need to read up on IRAs

How do you guys feel about being somewhat liquid for investment opportunities or do you take that into account before "maxing out"?

401ks aren't very liquid unfortunately. You CAN take out of them, however (it's not that good a deal, and a big hassle). IRAs are much more liquids, but you have to fit the parameters.

- You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. However, your earnings will be taxed and penalized if you take it out "early" (before 59 1/2). You invest 100k, your 100k makes 10k. You're at 110k. You can take out your 100k, but the 10k that was "earned" will be taxed and penalized for being taken out early (Not worth it).

Withdrawals from a Roth IRA you've had more than five years.
If you’re under age 59½ and your Roth IRA has been open five years or more, your EARNINGS will not be subject to taxes if you meet one of the following conditions:
You use the withdrawal (up to a $10,000 lifetime maximum) to pay for a first-time home purchase.
You use the withdrawal to pay for qualified education expenses.
You're at least age 59½.
You become disabled or pass away.
You use the withdrawal to pay for unreimbursed medical expenses or health insurance if you’re unemployed.
The distribution is made in substantially equal periodic payments.

Note: Roth IRA is included as an "asset", when buying a house they see you have 100k in a ROTH, but they don't see you have 100k in your 401k. Making you more eligible for better loans/deals.

Note: when withdrawing from a ROTH your income will "spike" that year that you withdraw. Ex. you make 50k. You withdraw 30k from your ROTH for whatever, Gov't sees you made 80k that year --> you're taxed more.

Apologies for the essay

 

[sundoobie]

is there a minimum contribution to IRAs? and also, i am in my early twenties, so planning for my retirement isn't something ive put much thought into, so is an IRA strictly for those preparing to retire or is it also used by those who just want to put their money in a higher return savings account

Bro are you even eligible to contribute to an IRA account? Dudes in here telling him to invest in this yet didn't even ask the most obvious question... do you have earned income?

You must have "earned income"
To qualify for a Roth, you must have "earned income" in the year you want to make a contribution.

Earned income is money paid for work you performed (or in the case of a small business, profit distributions from the business). This income includes wages, salaries, tips, bonuses, commissions, and self-employment income. Other income that counts include taxable alimony and military differential pay. Earned income does not include things like interest and dividends from investments, income from rental property, and pension payments.

If your earned income for the year is less than the contribution limit (in 2014, $5,500 for those under 50), you can only contribute up to your earned income. In other words, if your earned income is $3,000, you can only contribute up to $3,000.

 

[luckyluchiano]

401ks aren't very liquid unfortunately. You CAN take out of them, however (it's not that good a deal, and a big hassle). IRAs are much more liquids, but you have to fit the parameters.

- You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. However, your earnings will be taxed and penalized if you take it out "early" (before 59 1/2). You invest 100k, your 100k makes 10k. You're at 110k. You can take out your 100k, but the 10k that was "earned" will be taxed and penalized for being taken out early (Not worth it).

Withdrawals from a Roth IRA you've had more than five years.

If you’re under age 59½ and your Roth IRA has been open five years or more, your EARNINGS will not be subject to taxes if you meet one of the following conditions:

You use the withdrawal (up to a $10,000 lifetime maximum) to pay for a first-time home purchase.

You use the withdrawal to pay for qualified education expenses.

You're at least age 59½.

You become disabled or pass away.

You use the withdrawal to pay for unreimbursed medical expenses or health insurance if you’re unemployed.

The distribution is made in substantially equal periodic payments.

Note: Roth IRA is included as an "asset", when buying a house they see you have 100k in a ROTH, but they don't see you have 100k in your 401k. Making you more eligible for better loans/deals.

Note: when withdrawing from a ROTH your income will "spike" that year that you withdraw. Ex. you make 50k. You withdraw 30k from your ROTH for whatever, Gov't sees you made 80k that year --> you're taxed more.


Apologies for the essay

So technically sit it possible to freak this where the money saved on taxes would offset the money put in a traditional Roth? Like since I will be taxed less I could end up bringing home the same amount of money or a little less/more than if I weren't saving at all?

Sorry if that was confusing.

 

[black2dafuture]

My advice try to find a nice credit union for saving money...rates tend to be a little bit better and you not gonna get slapped with crazy fees..best thing is put the money in a savings account and direct deposit small sums from you paycheck don't ever look at the balance cuz it's tempting...try out a CD it'll build interest over a couple of years then when it expires it moves to a savings account..at that time you should be able to take it out and make moves with it...if you never ever want that money to get liquid (in your hands)...do the IRA...you'll thank yourself when your 65..hope this helps.

 

[pdino]

So technically sit it possible to freak this where the money saved on taxes would offset the money put in a traditional Roth? Like since I will be taxed less I could end up bringing home the same amount of money or a little less/more than if I weren't saving at all?

Sorry if that was confusing.

Let's say you put 5000$ into a traditional IRA (ROTH will not lower your taxes, only traditional. Traditional IRA saves you on taxes now, while ROTH saves on taxes later)

5000$ in traditional IRA equates to roughly $1250 lower on your tax Bill to zero (4:1 ratio). You need tax credits to go above zero and get a refund. Tax credits are 1:1 with U.S. Dollars. Tax deductions take you to zero, tax credits give you the refund. Examples of tax credits were given in my previous examples (there are many others). Examples of tax deductions are the traditional IRA and contributing to your 401k (There are many others).

 

[GreenNGold89]

I know it is different for everyone but how much do you guys think you need to keep in your savings/checking account? 1 year year of emergency funds? 2 years?

I have a 401k retirement plan but no IRAs at this time. I feel I have way too much money in my savings/checking account and really need to invest it elsewhere and let it grow.

 

[luckyluchiano]

Let's say you put 5000$ into a traditional IRA (ROTH will not lower your taxes, only traditional. Traditional IRA saves you on taxes now, while ROTH saves on taxes later)
5000$ in traditional IRA equates to roughly $1250 lower on your tax Bill to zero (4:1 ratio). You need tax credits to go above zero and get a refund. Tax credits are 1:1 with U.S. Dollars. Tax deductions take you to zero, tax credits give you the refund. Examples of tax credits were given in my previous examples (there are many others). Examples of tax deductions are the traditional IRA and contributing to your 401k (There are many others).

Well right now I'm 25 and in the process of getting a house (God willing I should be closing soon), I currently do 401k, and have a AMEX high yield savings account for stashing my rainy day/emergency fund. I'm pretty much trying to have a diverse portfolio of saving accounts making me money and as my pay increase I'm looking to get into forgien investments (buying land overseas and stuff). I'm not wealthy by any means just a single male that would be considered middle class. For me best way to save is having my money out of sight and out of mind. When this home stuff is out the way I plan on setting a cash allowance for myself each month that I can use if I want to go out withy girl and stuff because I find myself looking at my AMEX every month (I use it like cash and pay in full each Month) and I'm like LOL hell did I spend money on.

 

[pdino]

I know it is different for everyone but how much do you guys think you need to keep in your savings/checking account? 1 year year of emergency funds? 2 years?

I have a 401k retirement plan but no IRAs at this time. I feel I have way too much money in my savings/checking account and really need to invest it elsewhere and let it grow.

1 year is usually the standard. You should definitely consider investing somewhere. Stocks, bonds, mutual funds, blue chip stocks. Let your money make money, invest.

Well right now I'm 25 and in the process of getting a house (God willing I should be closing soon), I currently do 401k, and have a AMEX high yield savings account for stashing my rainy day/emergency fund. I'm pretty much trying to have a diverse portfolio of saving accounts making me money and as my pay increase I'm looking to get into forgien investments (buying land overseas and stuff). I'm not wealthy by any means just a single male that would be considered middle class. For me best way to save is having my money out of sight and out of mind. When this home stuff is out the way I plan on setting a cash allowance for myself each month that I can use if I want to go out withy girl and stuff because I find myself looking at my AMEX every month (I use it like cash and pay in full each Month) and I'm like LOL hell did I spend money on.

I'm in a similar situation, class, and age to you. I use direct deposit out of my checking account to put into investment accounts. Lots of safe options out there. By using your Amex CC and paying in full every month you're raising your credit score, which is something I'm working on right now so I can get a better deal on a house. Silly the way things are set up, but got to play the game

 

[sneaks89]

 

I know it is different for everyone but how much do you guys think you need to keep in your savings/checking account? 1 year year of emergency funds? 2 years?

I have a 401k retirement plan but no IRAs at this time. I feel I have way too much money in my savings/checking account and really need to invest it elsewhere and let it grow.

1 year is usually the standard. You should definitely consider investing somewhere. Stocks, bonds, mutual funds, blue chip stocks. Let your money make money, invest.

Well right now I'm 25 and in the process of getting a house (God willing I should be closing soon), I currently do 401k, and have a AMEX high yield savings account for stashing my rainy day/emergency fund. I'm pretty much trying to have a diverse portfolio of saving accounts making me money and as my pay increase I'm looking to get into forgien investments (buying land overseas and stuff). I'm not wealthy by any means just a single male that would be considered middle class. For me best way to save is having my money out of sight and out of mind. When this home stuff is out the way I plan on setting a cash allowance for myself each month that I can use if I want to go out withy girl and stuff because I find myself looking at my AMEX every month (I use it like cash and pay in full each Month) and I'm like LOL hell did I spend money on.

I'm in a similar situation, class, and age to you. I use direct deposit out of my checking account to put into investment accounts. Lots of safe options out there. By using your Amex CC and paying in full every month you're raising your credit score, which is something I'm working on right now so I can get a better deal on a house. Silly the way things are set up, but got to play the game

Trying to raise my credit as well. Credit score was a 724 when I checked it last month, hoping to get it over 800.   My problem was I didn't use it enough, so I began using a cash back card to purchase my necessities (gas, food) and pay it off in full every month.  Helps me track my spending as well.

I'm also in the same boat as you all as far as age and working on saving for a house.  

How do you all feel about investing in natural gas?  If it drops around $8 or $9 a share again I think I might go all in...

 

[luckyluchiano]

1 year is usually the standard. You should definitely consider investing somewhere. Stocks, bonds, mutual funds, blue chip stocks. Let your money make money, invest.



I'm in a similar situation, class, and age to you. I use direct deposit out of my checking account to put into investment accounts. Lots of safe options out there. By using your Amex CC and paying in full every month you're raising your credit score, which is something I'm working on right now so I can get a better deal on a house. Silly the way things are set up, but got to play the game

Yea my credit score is how I was able to get a solid rate, credit is king. I mainly use AMEX for safety reasons, if fraud ever occurred my actual cash wouldn't be screwed up. The AMEX hurt me a little though because since it's a charge card the mortgage people tried to count it against my Debt to income ratio so I had to provide to them I had enough in my bank account to pay the balance in full and pay anything related to closing in full. With the investment stuff I'm not really into the stock market stuff like that but once Again I want to diversify my portfolio.

 

[luckyluchiano]

Trying to raise my credit as well. Credit score was a 724 when I checked it last month, hoping to get it over 800.   My problem was I didn't use it enough, so I began using a cash back card to purchase my necessities (gas, food) and pay it off in full every month.  Helps me track my spending as well.

I'm also in the same boat as you all as far as age and working on saving for a house.  

How do you all feel about investing in natural gas?  If it drops around $8 or $9 a share again I think I might go all in...

With raising your credit contrary to the popular belief paying in full doesn't do as much as to paying in general. A little Juug I did was had my credit limits raised on ally cards and that lowered my credit utilization a ton on the one card I have a balance on that's not my AMEX and that raised my score a ton. Credit is a weird animal, i hear of when people pay off loans and such like a auto loan their credit actually drops initially.