Little $...little time...where to start?

Question

My 20s were good to me...many memorable trips and fiascos :)

Now, I'm 32 with a lovely wife and 4 kids. College $ comes to mind; not to mention, the wife still loves her trips to the promised land (Vegas). I'm clueless to the market, mutual funds, and all the other CD mumbo-jumbo. I have a modest income of 40k/yr and a 401k at 15%/yr. Not enough to stay afloat and invest aggresively.

I need a cluebook that will give me info to 'safe bets' or directions to creating a balanced nest egg for all involved.

Answer 1

Rules: (if you are clueless)
-NEVER buy stocks
-NEVER buy a mutaul fund with ANY kind of LOAD (commission), I do not care what an advisor tells you.
-ONLY buy class A shares of a mutual fund. I do not care what an advisor tells you
-At the age of 32, no CDs. You want to keep some emergency cash in case you need it. Here is the perfect place.
https://www.emigrantdirect.com/EmigrantDirectWeb/index.jsp
Just like a savings account. FDIC insured up to $100,000. You cannot beat 5% for savings account or CD's. Easy access to your money.
-NEVER buy life insurance that is a 'cash value' policy or 'annuiity' --ONLY term -I do not care what your advisor tells you
-START investing the MAXIMUM in a ROTH IRA every year - NOW!!! NOW, I said!!! Really - NOW!!! Great investment tool.

I'll recommend a couple of articles for you.
http://www.freep.com/apps/pbcs.dll/article?AID=/20061112/BUSINESS07/611120672/1020/BUSINESS
http://www.fool.com/mutualfunds/indexfunds/indexfunds01.htm?source=InvAg
http://www.fool.com/mutualfunds/indexfunds/indexfunds02.htm?source=InvAg

I also think Suze Orman is pretty good. I've never read any of her books, only seen her on TV.

Note: Even though the articles I linked to talk about index funds, there are good mutual funds out there that that I would buy and do own. Index funds are the safest way to be in the stock market.

Good luck. Do not be scared. It is really not that difficult. Find a trusted wealth planner that manages your money and charges a small percentage of assets. Compare the gains he/she gives you to the S&P 500 index. If they are beating the S&P 500 after the fees they charge, then they are doing you justice.
.

Answer 2

You may be clueless to the markets and all that mumbo jumbo, but if you have money in a 401k account, YOU are IN the market and mutual funds. So first see how your money is growing... read the quarterly report that your "plan" sends you or better yet learn to bring your account up on-line... then go to;
http://moneycentral.msn.com/beginnerguide.asp?page=introduction
Once you've learned some of the terms, the types of funds, what's conservative, aggressive, and you figure out how to research a few things ( it's not hard...it's lke following the NFL or NASCAR or poker tournaments...you read ,you watch, you learn) Then you go back to your plan....can you move something? are you settling for 10% when you could be getting 16 or 19?
Now you know a little...but that's your "retirement" money...it sounds like you want something for the kids,too ...So you take your knowledge and put it to work in funds or stocks...a little one year, a little the next, or when you get a raise. Some companies ( Fidelity, Schwab) will let you add so much automatically every month from your checking....
You'll have something when the time comes....Just hope they don't get accepted at Harvard.
The markets or real estate....that's where all the money is made in this country.

Answer 3

my dad always said to take a certain amount of money and put it a side to get you started say like 100 bucks. every pay day take another 5 bucks and add to it. dont touch it. keep it in mind that you will need that some day and before you know it you have a nice little nest egg. my dad did it now he goes on vacation atleast 3 times a year. he also has a new car every year. so it must work.

Answer 4

a wife and 4 kids are really touched right. your wife works? how old of your kids? U have to open a shop or invest in something like mortgage. U have to stop going on the trips. good luck

Answer 5

Your local library will have books to explain the finance world to you. Might I suggest Suze Orman??? She's down to earth and has a number of decent books worth reading. Also, she has a tv show on Saturday nights on cable. Check your channel directory.

Answer 6

Zak's response above was d@mn good!

Kid's college is going to have to be their responsibility. You can help a little when the time comes but you need to take care of your future, they can take care of theirs.

Stocks aren't that scary if you take your time and learn but like Zak said if you are clueless follow his rules.

Answer 7

Hi,

I think forex or shares trading could resolve your problems.
Why you don’t start your own forex or shares trading. I could introduce you to one brokerage company in Austria that allows to trade from same account currency (forex), commodities, metals and cfd on shares. Total 500 instruments available, spread from 1 pip. I could provide you for free with trading techniques that I successfully use for several years if you open trading account under my referral.

Currency (forex) trading is very attractive because it is very profitable business and you could trade from any place in the world and at any time from Sunday night to Friday night. So you could create very high income.

Also I would recomend you to read following books:
Market Wizards by Jack D. Schwager;
Technical Analysis by Jack D. Schwager;

Comprehensive Course on The Wave Principle by A.J. Frost and Robert Prechter;

Candlestick Charting Explained- Timeless Techniques for Trading Stocks and Futures by Gregory L. Morris;

Trading Chaos – Applying Expert Techniques to Maximize Your Profit by Bill M. Williams;
New Trading Dimensions by Bill M. Williams
Trading Chaos II by Bill Williams – Maximize Profits with Proven Technical Techniques by Justin Gregory-Williams and Bill M. Williams


If you are interesting and/or have any question please do not hesitate and apply to me via pm or e-mail (press on my name)

Good luck!

Answer 8

Iv'e done this for 15 years now. Here are 3 good picks for 07. SILC TLGD AVCT

Answer 9

I can help you for FREE.

First, open a brokerage account at TD Ameritrade and keep at least half your paycheck there.

I asume you already are paying for a house.

Top 5 Answerer.

Answer 10

index funds