Traditional and Non-traditional investment options?

Question

I am a recent college graduate and have started a career. I want to learn more about my investment options. Everyone lists: 401K, Roth IRA and regular IRA and life insurance. But those are a given, what are my other options?

My main interest would be in investments requiring low or no taxes. If taxes will be deducted I would prefer the option of being taxed prior to any gains.

***I will do all of the above listed, currently I have only my student loan as debt which I should be paid off in 3-4 years.

Answer 1

Well no tax option is municipal bonds. The best way to buy them is through a mutual fund. But I would not advise that approah for someone just starting their journey through life.

Purchasing collectables is a way to increase your wealth without having to pay taxes until you sell. I do not recommend that either unless you are willing to do a whole lot of homework. But it can be fun. It can also be expensive.

Rental properties are very popular and can be very lucrative also. I know friends who have done very well with rental properties. But you have to be a little careful of your leverage. The tax advantages are a great advantage with these. You can actually shelter all of your income with rental properties.

Your IRA accounts are for retirement. The tax advantages should be taken advantage of, especially those of the Roth IRA.

Many times people who try to get fancy with their investments wind up holding an empty bag, so be careful. Frankly, sticking with decent mutal funds is a very good way to build ones assets and the advent of index funds reduces the tax bite significantly since they are unmanaged and thus have very little realized capital gains.

Answer 2

There is a reason everyone lists those primary investments...They are the best starting point. Unless you have your retirement account (401K or IRA) maxed and have all the insurance you need (life, health, auto, liability, disability, etc.) - there is no sense at looking at anything else.

If your employer offers a 401K, this is the best place for a non-self employed person to place your money. Most employers offer a matching contribution (even if it is only 1-2%, it's free money). Since you can contribute up to $15K annually - this is your best (being an employee) tax free savings.

Answer 3

The very best investment strategy for someone in your situation is to participate in your company retirement plan at work and then pay off ALL your debt before you even think about non-retirement investing. Think about it... why would you invest at 5%, 8% or even 12% (if you can find an investment like that) if you're in credit card or other debt at much higher rates!?

1. Company retirement plan
2. Pay off debt
3. Save for emergencies
4. Buy a house
5. Pay the house off
6. Invest all your extra money that you're no longer spending on debt into good, safe, long-term income and growth investments.

Or, buy lots and lots of lottery tickets.

Answer 4

Investing is just like gambling, you put your money on something and let it ride. You need to find a fresh idea; the electric toothbrush, the wheel. The key is the broker you let invest your money. They will try to put your money in high-risk stocks; if it pays, they win, and you win; if you lose, they lose nothing, they still get their commission. Invest in low risk stocks, it does'nt pay as well, but you are less likely to lose your money. So roll them dice.

Answer 5

one of my friends is currently feeling out lines of work in government while doing further studies to obtain her CPA. She wants to work for the government doing FBI or CIA stuff. Those sound very exciting but she is more adventurous than I am!

Answer 6

Under federal laws, life insurance is not an investment and it will never be.

Read this website to learn more. http://finance1o1.blogspot.com