What s to money? ontop of salary Shares, Property, Investments?

This year I 39 m to money of my day job What 39 s

Responses:

No amount of salary can equal wealth creation from stocks or real estate. If you look at the two riches man in America: Bill Gates and Warren Buffett - they both made their money from the stock market. However, if you want to be rich, then you must learn the discipline of wealth creation and this applies to everyone from someone who makes minimum wage to a millionaire. The three basic rules / secrets to wealth creation are: 1 Spend less than you make or pay yourself first 2 Invest regularly - invest early if you can 3 Avoid bad investments Then let the power of compounding work in your favor over time. Good luck
heritage
Standard investment advice is that you should invest in a diversified mix of stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks as individual stocks are too risky. Most folks have a dificult time buying a properly balanced portfolio of stocks on their own. They will misbalance their portfolio by buying all small stocks or all growth stocks, or some other misbalanced ortment of stocks. Unless you know what you are doing, it is best to buy mutual funds. I like Vanguard.com, other people like Fidelity, TIAA - CREF, and DFA. Buy no - load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard has an on - line questionnaire which will give you an idea of how to do " et Allocation, " determining how much to put in each type of fund. If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free. I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70 - 80% of your money in the Vanguard Total Stock Market Index Fund. and ~20 - 30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion. Buying a house instead of renting will save you a lot of money in the long run. You do not have to pay rent and you build equity in your house instead. Buying rental property can also be a good investment. However, being a landlord can be hard work, and many people are not good at it. If you do not know how to handle deadbeat renters, you can have trouble. If you have high - interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3 - 6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments. Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however. Sources: vanguard.com / VGApp / hnw / planningeducation fool.com / school.htm sec. gov / investor / pubs / etallocation.htm diehards.org / readsites.htm finance. yahoo.com / education / begin_investing finance. yahoo.com / funds / basics et Allocation Calculators Determining how much to put in stocks and how much into bonds and money markets is a personal decision depending on your financial status. These et Allocation questionaires give you a rough idea how to do this. I like Vanguard best, but try some of the other sites as well. personal. vanguard.com / VGApp / hnw / FundsInvQuestionnaire?cbdInitTransUrl=flagship. vanguard.com / VGApp / hnw / planningeducation / education ais2. tiaa - cref.org / cgi - bin / WebObjects. exe / DT etAlcEval ifa.com / SurveyNET / index. aspx Web forum: diehards.org / Many investment web forums are overrun by scam artists. This one seems the most legitimate site. 529 plans: savingforcollege.com
Charitable donations can create quit the dividend on the tax return at the end of the year. Property and c. d. investments. C. d. 's are like 401k plans. Pending how much you put in and mature them
in my personel oppinion i do not care if its a 6. oo dollar a hour job or a 50. oo an hour job as long as you know how to work with money is all that matters. Like if youmake lets say 1, 000 dollars cash 500 of it into the bank and keep the other 5oo to yourself as spending money. So like if somethin wher to come up or you wher planning for a fat vacation you can just have it your mentality oh i have a fat bank acount

Tags: vgapp, allocation, answers, grows, ira

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