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Stock Market

I have a 401k I think? If my numbers are right, I'm contributing something like 2 grand to it annually. That makes me feel like I'm going to retire penniless. Well, no, if it does nothing but sit there it will be $80k by the time I'm 70, given no increase in contribution, but consistent for the next 40-some years.

I'm an engineer and I'm under 30. While the numbers fascinate me, I just can't get excited about investing. It feels like an old people concern (not to sound demeaning if that's your profession, that's different). My dad likes to sit and play with investments now that he's retired.

I know it's something I need to get serious about, and it doesn't make sense not to. I'm smart. I'm good with maths n stuff. I've put it off a few years already. My money is happy hanging out in a pitiful savings account accumulating all of .05% or some wretchedly horrid amount. But it's not all that much, it's all I've got, and it's available tomorrow should I crash my car or lose a leg or something requiring money NOW.

Anything is better than nothing. regarding your saving rate of return shop online banks they tend to have a bit higher rate and while it not as accessable as your banks savings it only takes a day or two to get the $$$ i know ge capital bank has a .90% rate while not great any increase is better than nothing.
 
When I talk with people at work and they are not contrubiting into the 401k I am in shock. Because with the work match they are just wakling away from 3% more more money with out having to do ANYTHING!!!
 
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When i talk with people at work and they are not contrubiting into the 401k i am in shock because with the work match they are just wakling away from 3% more more money with out having to do ANYTHING!!!
Bingo. It's like giving yourself a 3% raise. I bet you won't feel the difference in take home $ after a few paychecks...
 
I'm blessed to have a job that contributes 4% as long as I contribute at least 2%. I contribute 4% to match my employer contribution but I'm shocked at how many people I work with that contribute nothing and therefore get nothing.

Now, I don't know the first thing about investing, but when someone says they'll give you 4% for 2%, only a fool would turn them down.
 
Ok, so does someone want to take $10,000 and give me like a million bucks in 40 years?

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I've been dabbling in stocks and investments for many years now. I started with a Roth IRA back in 2001 which I still continue to contribute to. You have to love time value of money! An IRA is a great investment, as @Supero100 has detailed. I've invested in ladder CDs as well. What's nice about those is if you take $5,000 and do a 5 year ladder CD. You buy 5 CDs for $1,000 a piece and all of the CDs get the 5 year interest rate, and they mature at 1 year, 2 years, 3 years, 4 years, and 5 years. Once each one matures, you just roll it into another CD or you can cash it out to invest further. For stocks, I have invested in GE, which pays a dividend that I roll back into the stock. I bought into BP right after the oil spill when the stock tanked. It has come back up so that was a wise investment so far. I'm also invested in Clean Diesel Technology. I've invested in several others, with minimal returns. I've dabbled in penny stocks as well, but have never come out on top with those so I stopped doing it.
My dad is heavily invested in stocks. He bought 400 shares of Apple back when it was $10 a share. His $4,000 investment is worth $257,824 at the moment. That was a GREAT investment decision! He has most of his money tied up in various stocks. He's got quite the portfolio.
 
I defer to the more knowledgeable contributors to this thread, but here's my random novice opinions:

- Investments are a form of gambling, the various options balancing risk vs. return (lower risk = lower return, higher risk = higher return). Like with Vegas-style gambling, for high risk investments (stock market) you need to come to the table with a large enough initial stake to take some losses and still be able to stay in the game long enough to hit enough wins and come out ahead.

- I prefer mutual funds as the best balance between risk and return. Ideally you should diversify your risks / returns but my IRAs and 401K are loaded in mutual funds. I don't have much stock, just some Intel right now. I had some Dell but when they recently went private again I netted a loss. At least I was able to claim that on my tax return...

- +1 on the employer matching of 401K...

- Definitely go Roth IRA over traditional. With Roth, you're paying the taxes when you contribute and have the income to afford it. With traditional, you'll be paying the taxes when you withdraw, in a future with an unpredictable tax rate and when you're more likely on a fixed income. If you have a traditional IRA, you can convert it to Roth.

- With stocks, go long unless you're willing to spend a lot of time constantly studying the market and managing your investments. Just dabbling in the short game is a great way to lose money.

- An ideal financial situation is when you can live comfortably off the interest of your investments. When you can live comfortably off the interest of the interest, that's known as being "F. You Rich"...
 
I work for the state government; there is a pension there... But I have a 457 plan set up as well. That reminds me, I need to check to see how's it going. Have been putting small amounts into it over time. One thing I like is that the 457 money can be received after I leave the government job. And taxes are deferred until I withdraw the money.
 
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I always at least one active stock. I like to choose the low price flea ridden ones people are giving away for pennies on the dollars. Case in point gold mining stock I bought last year:spiteful:
 
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