re: flagpole--mostly good, general banalities, but eliminate the shilling for home ownership. ive yet to see convincing evidence that that's the best choice as overwhelmingly often as these other recommendations.
re: flagpole--mostly good, general banalities, but eliminate the shilling for home ownership. ive yet to see convincing evidence that that's the best choice as overwhelmingly often as these other recommendations.
Across wrote:
85k a year is a good salary, especially given you don't have a family. You have way less to complain about than many of our generation.
I am 33 and make 40k a year. I'm not going to fully complain because a lot of that was due to the field I decided to go into, but I graduated 2009 into the teeth of the recession and jobs in my field (natural resources) that would have been plentiful just a couple years before were all gone. For years.
So I agree with you about people our age being unduly affected by the recession, and it IS frustrating...but have some perspective. Most people would kill for an 85k a year job.
I suspect this might be a troll thread though.
Lol. We're like the same person. Except I make $50k. Environment and natural resources is a tough place to make a buck.
How is one supposed to invest 35K earning 85K pre-tax? After tax they would be living on like 15-25 a year. That won't even be feasible in many states and where it is possible it would be a very frugal living. I'm not opposed to frugality but what's the point of living all your life poor to save couple millions for retirement? To be able to blow it all off on medical bills when you're old?
In order to buy at the "right" time for you to time the market like that, you need to have as much cash on hand as possible at that time. In order to have more cash on hand then, you need to be making ROI now. In order to have your cash on hand then, you need to time the market and sell everything at the right time because in order to buy at the "right" time for you to time the market like that, you need to have as much cash on hand as possible at that time ...
This doesn't work for most people, but maybe you're different. Do you think that you are different? Good luck dude!
I If I do the math, I probably live on $20k or less a year and I have plenty of fun. Don't go out to eat or drink a lot, keep my vacations cheap, try to limit frivolous purchases, don't spend a lot entertainment, and sell things I have laying around to fund new purchases. I also don't live in NYC or Bay Area, that helps. But it's nice to be able to live and work without having to worry about exorbitant housing costs.
seattle prattle wrote:
If you feel that you're only chance to get ahead is through making a killing in the markets, I think you need to look at your life, not your next investment.
Great advice. This is the typical “my life is perfect let me help you with yours in a condescending way” seattlite response.
Op you do sound like a Whiney Pooh bear.
Keep in mind. Your government just borrowed 6 trillion. Things will get much worse. Whether or not you come out on top, we’ll see.
It seems like with all the math whiz’s on this board someone might be able to explain what interest payment on 6 trillion dollars looks like, how does exponential growth factor in?
This, on top of 20 trillion national debt. Interest on that. GDP is about 20 trillion a year. So soon our interest payment will be more than our annual GDP?
nonary ant wrote:
How is one supposed to invest 35K earning 85K pre-tax? After tax they would be living on like 15-25 a year. That won't even be feasible in many states and where it is possible it would be a very frugal living. I'm not opposed to frugality but what's the point of living all your life poor to save couple millions for retirement? To be able to blow it all off on medical bills when you're old?
Well, I invest ~23k pre-tax and ~5k post-tax with a salary of 55k in a low tax/low cost of living state (given the extraordinary benefits at my employer, it is == to 60k at a place with typical benefits). Some government employers offer two retirement accounts that you can max at with 18k+.
Granted, it’d be tough in a place with city & state income tax and a high cost of living.
your mentality is wrong. take pride in your job and look for ways to invest in yourself. couple of points:
1. the housing mkt is the way it is because of demand, no changing that. either get in and enjoy or don't complain.
2. use housing as leverage. people are getting instant equity just months into owning. you can tap into this cash using cash out refinancing down the road. use this money to shovel right back into the market, education, etc. the interest is low on this cash and moreover, its a tax write off
3. get all of your 401k match dollars
4. dont try to time the market. time in the market is more important than trying to time the market. get in low expense ratio index funds and let it ride.
ohia wrote:
your mentality is wrong. take pride in your job and look for ways to invest in yourself. couple of points:
1. the housing mkt is the way it is because of demand, no changing that. either get in and enjoy or don't complain.
2. use housing as leverage. people are getting instant equity just months into owning. you can tap into this cash using cash out refinancing down the road. use this money to shovel right back into the market, education, etc. the interest is low on this cash and moreover, its a tax write off
3. get all of your 401k match dollars
4. dont try to time the market. time in the market is more important than trying to time the market. get in low expense ratio index funds and let it ride.
Op said there's no money in housing in his area?
Where I live a house might be worth 30k more after a generation of owning it and paying some of the highest property taxes in the country.
Real estate. Buy low, sell high. Always a single-family home, live in it for 2 of 5 years to avoid capital gains tax. If you use it strictly as an income property, never sell unless you do a 1032 exchange to avoid taxes.
I've bought and sold three houses since 2000. Total gain 560K, current total equity 600K, current loan 175K. Total taxes paid 12K, as one of the sales was indeed for a rental unit and I did have to pay some capital gain.
Once we bottom out of the current downturn, buy as much real estate as you can and be patient. Choose your market carefully.
The stock market? It's OK for IRA/retirement stuff, but it is rigged for fat cats.
This is just one person's experience and opinion.
ModsRBadActors wrote:
85K salary?
Pardon me if I don't cry for you. There are many, many professionals in the US peaking at quite a bit less than that. If you don't find a way to prep for retirement with that salary, well, tough $hit because that is certainly enough to live a very good quality of life and prep for retirement.
Must be a troll. 85K....
There are many professionals peaking in negative territory right now, so, OP, take the coack out of your mouth and get resourceful.
Here is a list of books to read from Michael Burry of the Big Short fame:
Intelligent Investor by Graham
Common Stocks and Uncommon Profits by Fisher
Why Stocks Go Up and Down by Pike
Buffettology by Buffett and Clark
If you read these books thoroughly and in that order and never touch another book, you’ll have all you need to know.”
michaeljburry
For big picture, Liar's Poker, Buffett: The Making of An American Capitalist, When Genius Failed, All the Devils are Here.
At a point, stop with books and just start reading 10Ks and Qs and proxies. In the same industry, compare 10Ks - it's an easy way to get the nuances quick
older millennial wrote:
35
Dead end job 85k/year
No inheritances to speak of
No kids to take care of me
Dead housing market (flatlined for decades)
I feel like the market is my only opportunity to creep ahead and make some aggressive earnings.
Congratulations, you make over $53,000 more than the median income in America.
And you're single.
You have it easy buddy.
Also, if you think "getting ahead" in life means making more money, then you need to re-evaluate what brings joy in life.
bubbadeeboos wrote:
Granted, it’d be tough in a place with city & state income tax and a high cost of living.
A good point here. People that want to "have it all" aren't willing to leave high-tax, densely populated counties to make it happen, then cry about how much of their income is being flushed by taxes, food, and gas. If you really want it that bad, reduce your cost of living.
There are a lot of great cities with reasonable cost of living.
Nashville, Austin, Tampa all have no state tax and plenty of jobs.
$85K per year is pretty decent for a single male. Not so much for a family of 4.
Invest wisely and work your ass off to get promoted.
You sound like the perfect candidate to retire out of country.