My Offical Blogg

[GrnBay007]

Yes, I know. I didn't mean buy in Cali. He said he travels. If he knows he will be in (blank) State 4x per year, buy rental property.....maybe where a relative/friend lives and pay them to manage it. He can stop in and check things out 4x per year..........another write off.



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Can't believe I didn't catch that meaning....

Would you like me to do your taxes hun?

LOL J/K!!

BTW, My Tax Man about strangles me every year...........good thing I charm him and we end up talking for hours after his initial outrage at me.




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[Bretsky]

Yes, I know. I didn't mean buy in Cali. He said he travels. If he knows he will be in (blank) State 4x per year, buy rental property.....maybe where a relative/friend lives and pay them to manage it. He can stop in and check things out 4x per year..........another write off.



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Can't believe I didn't catch that meaning....

Would you like me to do your taxes hun?

LOL J/K!!



BTW, My Tax Man about strangles me every year...........good thing I charm him and we end up talking for hours after his initial outrage at me.




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Recently financed a home loan for a gentleman in California who made some serious cash and needed writeoffs so he bought a home in Wisconsin and rented it out.

He indicated real estate was insane in CAL; he was pre-approved for 600G and couldn't find anything he liked for that amount so he was looking for ways to pay less to Uncle Sam.

[MadtownPacker]

Welcome to PR Jayo. Feel free to whupp on Tank aka APB anytime, he can take.

good thing I charm him and we end up talking for hours after his initial outrage at me.

SO how does he take this "outrage" out on you?

[GrnBay007]

Welcome to PR Jayo. Feel free to whupp on Tank aka APB anytime, he can take.

good thing I charm him and we end up talking for hours after his initial outrage at me.

SO how does he take this "outrage" out on you?

He's pretty old. He just loves when I talk to him about anything. He's an investor too....he always laughs how I innocently get info out of him.



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[Bretsky]

Welcome to PR Jayo. Feel free to whupp on Tank aka APB anytime, he can take.

good thing I charm him and we end up talking for hours after his initial outrage at me.

SO how does he take this "outrage" out on you?

He's pretty old. He just loves when I talk to him about anything. He's an investor too....he always laughs how I innocently get info out of him.



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SO YOU TALK DIRTY TO THE OLD GEEZ !! You a nasty girl

[Partial]

Got my paycheck today. Man, the DC taxation is high. About 24% of this check went to the government. But what am I to complain? I am a liberal. Even though I am only 1 person, I feel good knowing that my money is helping improve society.

Ha! I too am relatively liberal but lets face the facts; that money will be pissed away. For example, why pay a bunch of county employees to take 6 months to construct a new road when they can pay a company looking to turn profit 2 months.

Privatization my friend. I am all for paying the money and helping people out, but the way the system is set-up now is a bunch of lazy asses get FAT unionized checks and get very little done, thus helping very few.

Agreed?

[Partial]

So, you guys are all good with money it seems.

What is the best way to make money in terms of investment? buying property? flipping houses in addition to your job? stock market? ira? mutual funds?

How can I pay the least taxes upon graduation? Say you make 50,000 out of college, what is a good percentage of that to save immediately?

[RashanGary]

Ha! I too am relatively liberal but lets face the facts; that money will be pissed away. For example, why pay a bunch of county employees to take 6 months to construct a new road when they can pay a company looking to turn profit 2 months.

Privatization my friend. I am all for paying the money and helping people out, but the way the system is set-up now is a bunch of lazy asses get FAT unionized checks and get very little done, thus helping very few.

Agreed?

Good point. I'll second that.

[Fosco33]

So, you guys are all good with money it seems.

What is the best way to make money in terms of investment? buying property? flipping houses in addition to your job? stock market? ira? mutual funds?

How can I pay the least taxes upon graduation? Say you make 50,000 out of college, what is a good percentage of that to save immediately?

Depends on a few things - expected retirement age and your risk aversion. I'll assume you'll be 22 when you finish up and expect to work until your 60 (if you make $50K coming out of school, you probably won't want to work 'til 65). So you've got about 40 years of work to save for retirement. Use this to determine your expected net earnings and then pull out your finance book to reverse estimate the growth over time.

Regarding where to invest - depends on the amount of time you have available. Buying property will be the largest investment of your life and you'll need some cash and earnings potential to pull it off. Buying/selling (flipping) houses can be a strategy but has time and risk associated.

We had a guy from Charles Schwab come talk to our company @ a conference a month ago - he just kept preaching diversification. Max out whatever the company matches to your 401k and put away the max in a Roth IRA (pre-tax baby). If your comfortable investing, you can pick your own stocks but there are tons of great mutual funds (no load, no spiff for the firm) that you can set your diversification (large cap, mid cap, growth, international, etc.). Here's a pretty standard way to keep your investments health for the long term:

Conservative
You seek current income and stability, and are less concerned about growth.
Fixed-income investments: 50%. Cash: 30%. Stocks: 20%.


Moderately Conservative
You seek current income and stability with modest potential for increased investment value.
Fixed-income investments: 50%. Cash: 10%. Stocks: 40%.


Moderate
You’re a long-term investor seeking steady growth potential without the need for current income.
Stocks: 60%. Bond funds: 35%. Cash: 5%.


Moderately Aggressive
You’re a long-term investor seeking good growth potential.
Stocks: 80%. Bond funds: 15%. Cash: 5%.
This portfolio could be volatile.

Aggressive
You’re a long-term investor seeking high growth potential.
Stocks: 95%. Cash: 5%.
This portfolio may have substantial year-to-year value fluctuation.

Regarding 'how much to save' - as much as you can. A dollar today is worth more than a dollar tomorrow. Lock in your student loans if you just graduated (by 7/1) as interest rates are risking. And pay off any credit card debt before you begin investing. Cheers-

[Bretsky]

So, you guys are all good with money it seems.

What is the best way to make money in terms of investment? buying property? flipping houses in addition to your job? stock market? ira? mutual funds?

How can I pay the least taxes upon graduation? Say you make 50,000 out of college, what is a good percentage of that to save immediately?

WHAT A GREAT QUESTION from somebody getting ready to get out of college.

Most individuals your age are pissing money away rather than thinking how to save it. And it's not that I'm a geezer at 37, but I think it's great that you are thinking about this as early as you are.

First off, I'll preface my views by saying that I work for a large bank and do nothing but Home Loans. As my 5 year old daughter says when she introduces me to her pre-school friends, "My dad helps people buy houses". And with all the programs our bank has, and the fact that I'm fair with people I'd say I'm one of the best at what I do.

So I'd have more inside information regarding real estate investing as opposed to the stock market....but I have personal experience and interest in both.

That being said, I started investing money in mutual funds at age 22 and in the stock market at age 25 (and I saw the best and worst since I'm VERY risk averse and look mostly at tech stocks). I've also been in a 401K from the day a company allowed me to be in one.

I'll offer some general thoughts and a step by step process as general views and anybody can comment as they see fit.

Coming out of college, I'd pound the table for you doing two things, and they go hand in hand. These two things IMO serves as your foundation for the "future". Once that foundation is set, then you branch off in riskier things such as Real Estate, Stocks, Flippings...etc...as you see fit.

401K
ROTH IRA

1. Get in a 401K plan ASAP and contribute at least what a company will match money to. For instance, a past company I worked for would put up to 5% into my 401K account if I contributed 10% of earnings. So I contributed 10% so for every$100 I earned $15 was put into my 401K account. My current bank contributes up to 3% of earnings if I put 6% in. So I contribute 6%. So for every $100 I make, I put $6 in my 401K account, but since that $6 is not taxed since it's put in a 401K I'd estimate I only lose $4 off that $100 on my actual paycheck if I dindn't have a 401K. And I set aside $6 and the company give me $3 for $9 in future savings plus the interest it will appreciate over the years.

2. Personally, my second biggest mistake in investing was not starting up a ROTH IRA when I was 22. I bought a Hot Red Ford Probe and had it paid off within 12 months. I spent a lot of money on booze and fun. But I was not setting aside enough money cause I was just living the good life.

Even if you only can afford to contribute $1000 a year, get that ROTH IRA started early. This is different from a Traditional IRA or 401K in that you put money in the ROTH after it's been taxes. BUT, and a very important BUT for youngyans, the accrued interest that money makes over time in that ROTH IRA is NOT taxed when you take it out at Retirement. So if you invest 100G over the next 40 Years and the value of that ROTH IRA is 250G and you wait til retirement age to cash it in, you get the 250G. That's a powerful investment.

Retailguy, or any, if I'm slightly off on anything in here, please correct me. But I think most will agree that to set up your future base you invest in your 401K if the company contributes and a ROTH IRA for to set your foundation for your future.

The second part of your question deserves another post so I'll give that a wing as well

[Bretsky]

So, you guys are all good with money it seems.

How can I pay the least taxes upon graduation? Say you make 50,000 out of college, what is a good percentage of that to save immediately?

The answer to this question is short and simple IMO. Be sure you have good credit, and buy a house.

Many years ago people had to have a lot of money down to buy houses. Rules have loosened if you have good credit. Honestly rules have changed for everyone, but I hate seeing young buyers with challenged credit get rakes over the coals by high risk brokers with outrageous interest rates and fees.

If you don't have good credit then spend a year renting and build your credit score up to where you do have good credit and can get approved with a reputable bank that will treat you fairly.

If you are not self employed or a business owner, home ownership is one of the most effective ways to keep the money you pay into Uncle Sam low while watching the equity of something you own go up.

[Bretsky]

So, you guys are all good with money it seems.

What is the best way to make money in terms of investment? buying property? flipping houses in addition to your job? stock market? ira? mutual funds?

How can I pay the least taxes upon graduation? Say you make 50,000 out of college, what is a good percentage of that to save immediately?

I THINK THERE ARE A LOT OF GREAT POSTERS WHO COULD OFFER A LOT OF GREAT IDEAS ON PARTIAL"S INQUIRY.

I started a thread called "SHOW ME THE MONEY" for the postings so we don't throw Tanks' blog way OT. Hope to see some great commentary there.

[Bretsky]

It's 11:00 PM Saturday on Tank's Blog; Wondering if he's drunk, stoned getting some booty, or all of the above.


Cheers,
B

[Anti-Polar Bear]

I THINK THERE ARE A LOT OF GREAT POSTERS WHO COULD OFFER A LOT OF GREAT IDEAS ON PARTIAL"S INQUIRY.

Well, I am not one of them for I am not a finance major. Although both deals with money somewhat, there is a big difference between economics and finance. Where I am at, they fall into different division under the Business Department. Economics is about supply and demand, scarcity, inflation, the interest rate, human resource, jobs, the production, distribution and consumption of goods and services, macro and micro social theories, etc. Whereas finance deals with money, money and more money (with respect to the interest rate).

I chose economics because, as a liberal, I want to improve the world's welfare. Obviously, because of the scarcity of resources, it is difficult to archive an utopia, but that is one of the motive behind me majoring in econ, nonetheless.

As for the tax question, i took an advanced income tax accounting course last semester (it is a mandatory core course). But I didnt pay much attention to it or study much. Ended up with a C. I subsribe to the notion that i can always hired someone, such as retail guy, to do my taxes. I will take another tax class before i graduate and pay attention. It would help me if i decides to take the CPA (i am minoring in accounting; may double major; the internship this summer deals more with accounting).

[Anti-Polar Bear]

It's 11:00 PM Saturday on Tank's Blog; Wondering if he's drunk, stoned getting some booty, or all of the above.


Cheers,
B

Me and the roommates and some other friends went to a strip club tonight. it was too crowed so we didnt stay long. I am chatting with some friends on AIM right now. that is why i am also in here. We just ordered pizza and some are watching a movie. Yes, there is pot and beer. No, no minors are present.