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Frugal Investing



 
 
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  #1  
Old July 6th 17, 06:39 PM posted to misc.consumers.frugal-living
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Default Frugal Investing

I am making way too much money right now. I don't even want to spend it if I can help it but I should be earning interest on it. I am so unprepared but I never thought this day would come. What do I do?
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  #2  
Old July 6th 17, 07:49 PM posted to misc.consumers.frugal-living
John Weiss[_4_]
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Default Frugal Investing

On 7/6/2017 10:39, wrote:
I am making way too much money right now. I don't even want to spend it if I can help it but I should be earning interest on it. I am so unprepared but I never thought this day would come. What do I do?


First pay off all your credit card debt.

Then pay off any other loans that have an APR of 3% or more.

Then stash away in a SAFE account (e.g., Money market savings account,
CDs, or combination) AT LEAST 3 months gross wages. After continuing
per below, increase that to 6 months over time. If you can get CDs for
higher interest than Money market, split them up so they mature every 2
months or so, and automatically renew.

Are you contributing to an IRA (Roth preferred, if eligible) AND 401k
(if employer sponsors one)?

FIRST set up contributions for the max 401 contribution that your
employer matches (even a partial match) - a 50% match = an IMMEDIATE 50%
gain!

Go to Vanguard.com and set up an IRA. Vanguard is noted for having
just about the lowest management fees in the industry, as well as a wide
range of GREAT investment options. They will help you set up a
reasonable financial plan. Their reps are very helpful, and will give
you good advice for a startup IRA. They are salaried, so they won't
steer you into bad investments to reap commissions.

If you still have money to invest after those, set up a regular
brokerage account at Vanguard. Start by buying an S&P500 or NASDAQ
Index fund, and diversify as you become more familiar.
  #3  
Old July 6th 17, 08:22 PM posted to misc.consumers.frugal-living
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Posts: 92
Default Frugal Investing

On Thursday, July 6, 2017 at 11:50:12 AM UTC-7, John Weiss wrote:
On 7/6/2017 10:39, wrote:
I am making way too much money right now. I don't even want to spend it if I can help it but I should be earning interest on it. I am so unprepared but I never thought this day would come. What do I do?


First pay off all your credit card debt.



No credit card debt.


Then pay off any other loans that have an APR of 3% or more.



No loans.


Then stash away in a SAFE account (e.g., Money market savings account,
CDs, or combination) AT LEAST 3 months gross wages. After continuing
per below, increase that to 6 months over time. If you can get CDs for
higher interest than Money market, split them up so they mature every 2
months or so, and automatically renew.


Right now it's about 40 months wages just sitting in a brokerage account. We're talking about the minimum wage job I no longer have.

But then it was to keep living expenses safe in case my other venture derailed until I could figure out what to do with it. But now it's time to do something with it.


Are you contributing to an IRA (Roth preferred, if eligible) AND 401k
(if employer sponsors one)?



No


FIRST set up contributions for the max 401 contribution that your
employer matches (even a partial match) - a 50% match = an IMMEDIATE 50%
gain!


I don't have a job. Kinda not into an IRA because I don't think I am going to make it that long.


Go to Vanguard.com and set up an IRA. Vanguard is noted for having
just about the lowest management fees in the industry, as well as a wide
range of GREAT investment options. They will help you set up a
reasonable financial plan. Their reps are very helpful, and will give
you good advice for a startup IRA. They are salaried, so they won't
steer you into bad investments to reap commissions.


Awesome!

If you still have money to invest after those, set up a regular
brokerage account at Vanguard. Start by buying an S&P500 or NASDAQ
Index fund, and diversify as you become more familiar.


Yeah I am so busy and sleep deprived and suffering from information overload so I just kept it on the back burner while I earned only like $20 interest on way too much money.


As of now I am ready to just peel off living expenses and some working capital and just keep investing the rest. My overall goal is really just to see how much money I can die with.
  #5  
Old July 7th 17, 02:47 AM posted to misc.consumers.frugal-living
catalpa
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Posts: 110
Default Frugal Investing


wrote in message
...
I am making way too much money right now. I don't even want to spend it if
I can help it but I should be earning interest on it. I am so unprepared
but I never thought this day would come. What do I do?


Open an account with Vanguard and invest in index funds.

Or buy low expense index ETFs in your brokerage account.

Keep in mind you should have a balance of equity and fixed income
investments. The ratio is decided by your risk tolerance.


  #7  
Old July 7th 17, 06:17 AM posted to misc.consumers.frugal-living
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Posts: 42
Default Frugal Investing

in case you don't know,
you can get 1.x% with an online savings [with checking] account

Ally bank is just one of several

marc
  #9  
Old July 7th 17, 05:50 PM posted to misc.consumers.frugal-living
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Posts: 92
Default Frugal Investing

On Thursday, July 6, 2017 at 6:47:46 PM UTC-7, catalpa wrote:
wrote in message
...
I am making way too much money right now. I don't even want to spend it if
I can help it but I should be earning interest on it. I am so unprepared
but I never thought this day would come. What do I do?


Open an account with Vanguard and invest in index funds.

Or buy low expense index ETFs in your brokerage account.

Keep in mind you should have a balance of equity and fixed income
investments. The ratio is decided by your risk tolerance.


Thanks for the info.

I do have some high risk tolerance. Basically in 3 years I turned about $1000 into $150,000 all high risk but I hit the peak of my capabilities and it's time to start protecting and managing what I have made.
 




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