Investments

[EG6]

So I was talking to someone this morning that brought something to my attention. I figured I was still sorta young so there is still a little time left. I don't really have any investments as far as CD's or anything of that nature but I wanted to see what a few people on here have invested in whether it was through a bank, stocks or a business and see if they have had positive/negative results and what were the ups/downs of it if there were any. I'm 22 now and i'd at least like a nice pillow to land on when i'm around 40.

[Mangrum]

read up on a ROTH account.. i have just recently opened one and from what i have read and people i know that have them they are very good way to let your money grow over time.go to clarkhoward.com and read about them he does a good job explaining them..

[tony]

401k if your employer offers one.

[One_Bad_SHO]

401k if your employer offers one.

Yeah dude. Get into this ASAP. If you can afford to put 15% per paycheck into it, DO IT. If not, 10% is still good. I suggest picking the "maximum agressive" plan for the first 5 years while you're still pretty young.

[Mangrum]

you can do a 401k but what i said abotu the roth is alot better idea.. its almost the same concept as a 401k but you will not get penelized for taking your money out before age 55 or whatever it is if you ever wanted to..

[BanginJimmy]

you can do a 401k but what i said abotu the roth is alot better idea.. its almost the same concept as a 401k but you will not get penelized for taking your money out before age 55 or whatever it is if you ever wanted to..

a 401k is taken out pre-tax though. A roth is taken out post tax. That is why there are no penalties for withdrawing money from it as long as you dont touch any intrest.

[civicturbo10]

pm sent

[UpSideDownDesi]

i like keeping my investments liquid most of the time so when in need of money...i can desolve them when i want.

[Julio]

401k > Roth Anyday.

Both are good.. But 401k Is much much better!!

[soobaroo227]

401k has the nice advantage of free money by your employer matching a certain percentage of your investment into the 401k. Roth is a good thing to have also being that your money will be able to grow and grow towards retirement and it won't be taxed when you take it out. Therefore, you won't lose out on gobs of money when you're ready to retire. If only we could get rid of Social Security. All that money going to that could be put towards way better investments.

[JennB]

^^ I couldn't agree more. If I had my 7.2% plus the 7.2% that my employer contributes to SS on my behalf... wow... I could turn that into a fortune.

401K vs. Roth depends on a lot of factors. Employer match, your current tax situation vs. where you want to be when you retire, how and when you want to use the money.

I believe you should always use your 401K to the full extent of employer match. It's free money and you don't just get that free money, it earns returns until the day you retire. As for a Roth, they are great for a lot of young investors. If you are in a lower tax bracket now than you think you will be in when you retire, then it's beneficial because in the long run, you will pay less tax on that money. Also, the age of the investor plays another part in a Roth advantage.. length of investment. If you put money in a Roth when you are 25 and get it out at 65, you get 40 years of gains, tax free.

There are a lot of online calculators that let you input your current tax stats and what you want to invest and it will compare a roth vs. 401K. Neither is better for everyone. It all depends on your personal financial situation.

Do you have a large sum of money you want to invest or do you want to save gradually? The ways to options to invest a large sum are different from investing and saving slowly over time.