"SHOW ME THE MONEY" VIEWS on HOW to make MONEY GR

[Partial]

damn, if you did that right you could make a killing using that.

[Partial]

yes, I am going to make sure to keep this thread devoid of political spamming. Anything that ruins this thread will be moved, that is for sure, as I feel strongly about this and feel everyone here can benefit from this. I'll see to it this stays focused and somewhat organized.

Bretsky, I have to give you props for getting this started. I have learned more reading this than in my two years of higher education so far. This is a great thread. And to think it all started with a debate in Tank's blog

[Scott Campbell]

damn, if you did that right you could make a killing using that.

LOL

That's why I keep beating you over the head with the Roth. But don't just take my word for it. Do you due diligence, and confirm it for yourself.

[Scott Campbell]

And to think it all started with a debate in Tank's blog

I always knew Tank had a special purpose.

[Partial]

Yes, I was under the impression is was like a 5% interest rate bank account or something. Even that would make a ton over 40 years. I am going to have to talk to my dad more in person about this so I can get a better feel and understanding of how that works. I may plunk 2000 or so into one at the end of summer.

[Scott Campbell]

Yes, I was under the impression is was like a 5% interest rate bank account or something. Even that would make a ton over 40 years. I am going to have to talk to my dad more in person about this so I can get a better feel and understanding of how that works. I may plunk 2000 or so into one at the end of summer.

I've gone to the extreme of a short term (month or two) loan just to beat the April 15th deadline and max mine out.

[MJZiggy]

Wait a minute...isn't there a way for a stay-at-home spouse to open an IRA where the money is held separate from the rest of the family income? I can't remember how to do that and what happens when someday we win the lottery (tax on people who can't do math)?

[Partial]

How much interest does a good mutual fund normally net you in dividends and profit in this day and age? Is that 4000 going to gain like 1000 a year? or how much is reasonable to expect?

[Scott Campbell]

Yes, I was under the impression is was like a 5% interest rate bank account or something.

It could be, if that's how you choose to invest your money. But you could bet the whole account on INTC if you wanted to. And NO, I'm not suggesting that.

[Scott Campbell]

Wait a minute...isn't there a way for a stay-at-home spouse to open an IRA where the money is held separate from the rest of the family income? I can't remember how to do that and what happens when someday we win the lottery (tax on people who can't do math)?

Both spouses can open their own account. The $4000 yearly limit is for EACH spouse. Sometimes it really pays to be married. Somebody (hopefully not me) needs to post a couple of credible links, as I'm probably going to begin screwing up or omitting details.

[retailguy]

How much interest does a good mutual fund normally net you in dividends and profit in this day and age? Is that 4000 going to gain like 1000 a year? or how much is reasonable to expect?

25% is stretching it a bit. It used to be fairly easy to earn 15% a year. While that's probably difficult today with low interest rates, 8% is probably pretty doable if you keep yourself well informed and invest wisely.

[Partial]

Went to bed with a headache last night trying to understand this technology.

But Partial really has me thinking about Intel.

Cheers,
B

Bretsky, if you're thinking that, I would make sure you keep up with the news. I find it hard to believe AMD is going to sit idley by despite what they have out now being so far back in performance. There are rumors that they are going to introduce a firmware update that allows the dual-core processor to work as one processor that is twice as fast. As it stands of today, Intel looks to explode in the next couple years because their road map looks really, really good. AMD's looks less than impressive but who knows what they have up their sleeve.

Some good news on this matter can be read at www.tomshardware.com.

[Scott Campbell]

How much interest does a good mutual fund normally net you in dividends and profit in this day and age? Is that 4000 going to gain like 1000 a year? or how much is reasonable to expect?

$1000 on a $4000 investment is 25%. That's pretty unrealistic, and anyone promising such is probably committing some kind of fraud. Typically you'll do 7-10%/year. And that's all it will take. Honestly, it doesn't matter that much. Your truly critical success factor is getting it put away, and getting it put away early. That's all discipline, and there is no luck or "being right" about some stock involved. Avoid taxes. Legally. You have so much time working in your favor that investment return % is your least concern.

[Partial]

I just did the math behind it at 8% interest a year while putting away 4000 dollars a year starting at 22.

Assuming you withdraw this 43 years later at the age of 65, you will withdraw 1,415,689.95 dollars. Thats a ton of money. It's an even more ridiculous amount when you factor in only putting in 172000. That's an absolutely ridiculous amount of profit.

What is a common matching amount for a company on your 401k?

[Scott Campbell]

I just did the math behind it at 8% interest a year while putting away 4000 dollars a year starting at 22.

Assuming you withdraw this 43 years later at the age of 65, you will withdraw 1,415,689.95 dollars. Thats a ton of money.

It's a lot more money when you consider that it's not taxable income.