The official lounge stock market & investment advice thread

[siablo14]

Anyone familiar with real estate investing? Do you need a sh#t ton of money, or can you get started with little cash?

I heard that you can get involved in real estate crowd funding. Anyone have any experience or knowledge in this?

I’m sitting on some extra cash and want to put it to good use.

Nope. it had touched $400 a few weeks after i typed that. Would have cashed out then. i watched it everyday.

[b Murphington]

Nope. it had touched $400 a few weeks after i typed that. Would have cashed out then. i watched it everyday.

So you wouldn’t recommend that then?

All I have is a bs savings account that doesn’t grow money, a checking account that my biweekly check goes to, and a Roth IRA. I opened up the Roth about 4 years ago and it’s worth about $11,000.

I’m pushin 30 now. I feel like I need to make some major moves.

[siablo14]

So you wouldn’t recommend that then?

All I have is a bs savings account that doesn’t grow money, a checking account that my biweekly check goes to, and a Roth IRA. I opened up the Roth about 4 years ago and it’s worth about $11,000.

I’m pushin 30 now. I feel like I need to make some major moves.

Yeah. Let the professionals handle trading for you until you get the hang of it.

[Don Pichardo]

So you wouldn’t recommend that then?

All I have is a bs savings account that doesn’t grow money, a checking account that my biweekly check goes to, and a Roth IRA. I opened up the Roth about 4 years ago and it’s worth about $11,000.

I’m pushin 30 now. I feel like I need to make some major moves.

MAX that damn thing out man. 4 years and only 11 grand. You can put in 6k a year. you should be near 30K by now. Crank her up

[BostonGuy]

So you wouldn’t recommend that then?

All I have is a bs savings account that doesn’t grow money, a checking account that my biweekly check goes to, and a Roth IRA. I opened up the Roth about 4 years ago and it’s worth about $11,000.

I’m pushin 30 now. I feel like I need to make some major moves.

Why are you doing a Roth IRA instead a Traditional IRA?

[Don Pichardo]

Why are you doing a Roth IRA instead a Traditional IRA?

because he's very smart.

roths always win out. You pay taxes up front but you don't pay any on all the growth. Over 30 years whats in the account is mostly growth, roughly 90 %.

Said differently, if you had 1 million in a traditional and 1 million in the roth guess which is the better deal. If you withdraw from the traditional its taxed at your rate. If you take it all that's almost 40% taxes so you end up with 600k roughly.

If you take the million out of the roth your taxes 0. so you get 1 million. absolutely no brainer. I been maxing mine out for a decade. I also opened a Idividaul 401k with ROth option. Ill be maxing that out by next year.

I care less about paying taxes on the contributions. Id rather do that than pay taxes on 1 or 10 million....

[b Murphington]

Why are you doing a Roth IRA instead a Traditional IRA?

I guess paying taxes as I go sounded better than paying taxes when I take it out.

[b Murphington]

MAX that damn thing out man. 4 years and only 11 grand. You can put in 6k a year. you should be near 30K by now. Crank her up

What’s the max I can do in a year?

I only make $16 hr that’s the problem I think.

What do most experts say? Put about 10% of earnings towards savings and investments?

[BostonGuy]

because he's very smart.

roths always win out. You pay taxes up front but you don't pay any on all the growth. Over 30 years whats in the account is mostly growth, roughly 90 %.

Said differently, if you had 1 million in a traditional and 1 million in the roth guess which is the better deal. If you withdraw from the traditional its taxed at your rate. If you take it all that's almost 40% taxes so you end up with 600k roughly.

If you take the million out of the roth your taxes 0. so you get 1 million. absolutely no brainer. I been maxing mine out for a decade. I also opened a Idividaul 401k with ROth option. Ill be maxing that out by next year.

I care less about paying taxes on the contributions. Id rather do that than pay taxes on 1 or 10 million....

Your illustration does not take into account several components

You are forgoing a tax deduction each year you contribute to the Roth. Those are real dollars. Example: in year 1 if your effective tax rate 30% and the deduction is $6,000; then you are out of pocket $1,800.

The fundamental finance principal is: a dollar today is worth more than a dollar tomorrow.

Secondly, both traditional and roth IRAs grow tax deferred.

Third, when you take distributions from your IRAs you don't take a lump sum as you suggested ($1,000,000); that would make no sense.

Typically, people use Roths when they think their effective tax rate will be significantly higher than their current effective tax rate. This is not always the case and future tax rates are hard to predict.

Also, people use a combination of 401ks, tradional and Roth IRAs to optimize their tax results.

[Don Pichardo]

What’s the max I can do in a year?

I only make $16 hr that’s the problem I think.

What do most experts say? Put about 10% of earnings towards savings and investments?

6000 a year/ 500 a month. Do as much as you possibly can. The sooner the better. Make sure it’s invested in good mutual funds. NO single stocks. No matter what.