Quote:
Originally Posted by Coursey
I am 27 and am trying to figure out how to invest my money, since it is not making anything setting in a savings account. I got in on this thread late (page 68) so i am trying to catch up. I have in the range of 10-15,000 that i would be willing to "tie up" in investments. The rest i need to keep access to for impending life events (i.e. baby due the end of the month, and new house in the next 1-2 yrs.)
There is alot of good advice here and i look up to those that have been successful. 
These is a great thread. Hope I can catch up one day. |
Coursey -- YOU are exactly the guy we're trying to reach out to. You have that magic thing called "TIME" on your side and you have a nice amount to start with.
You could start out by buying $1000 worth of each company you choose to invest in - and this would give you diversity... or you could - depending on your savings rate - take a narrower focus to start and buy $2000 worth - and then save up and add a new name with the new savings. Either way -- you're a winner.
If you buy dividend paying stocks -- with $10,000 -- you should be able to collect 500 to 700 a year in dividends. Reinvested - in about 3 years you should be collecting $1000 a year... which buys more shares and starts to really snowball. If you're adding to your account $1000 or $2000 a year in addition - you're going to be really rich by the time you retire.
If you don't already have them -- you'll want to ask the brokerage you choose -- about
ROTH IRA -- which you can fund before April 15th for 2011 AND you can fund it at the same time for 2012... Hopefully the rules will allow you to fund $8000 into the ROTH -- then put the balance into
a 401... or just a regular taxable (not tax deferred) account. The ROTH comes out at retirement totally tax free. So imagine having a million plus dollars in an account that is spinning off $50 grand a year tax free and is still growing - so by 75 or 80 years old - it's kicking out even more.