Message from @Zyzz
Discord ID: 532726211898507274
This channel is to discuss budgeting, saving, getting out of debt, credit, and retirement planning.
Awesome channel idea!
@Zyzz thanks š
@Zyzz since you're here, I want to ask your opinion on something. I heard a wonky idea on TastyTrade that might actually make sense. They were pointing out that since IRAs are for really long-term investing, especially when young (I'm like 30+ years out) that you should load them with high risk-reward. Sosniak (one of the main host) suggested buying straight /ES futures in there. Since IRAs are for very long term investing, this actually makes sense to me when your time horizon is 30 years out. What do you think?
I agree with the high risk/high reward. With that said I wouldnāt advise being 100% invested in high risk/high reward stocks/funds if you think a recession is on the near horizon. Iāve scaled back my IRA/401k investments into cash/more defensive focused funds
But when you think the economy is about to turn up I absolutely advise going all in
@Zyzz cool thanks! it makes a lot of sense, strange that my current employer's 401k options are so limited when you think of it all this way.
Yeah I have the same issue with my 401k although I think it's workable. I am given access to a whole host of Vanguard funds with "target retirement dates" between 2015 and 2065. Obviously the longer out the retirement date, the higher the risk. Recently I switched into 40% cash, 30% 2065 target retirement, and 30% 2015 target retirement. I don't want to exit the market entirely but I want to position myself to be more defensive. If this January rally continues then I think I may pull a little more out of the 2065 fund
This is the 2nd longest bull market cycle in our country's history
the dotcom bubble (120 months) is the longest on record
historical data and the law of average dictates that we are near the peak of the cycle
I'd rather keep my money on the sidelines and wait for a really good deal to spring up and then buy
The way to get rich is to keep $10 million in your checking account in case a good deal comes along. - Charlie Munger.
What is a "good" starting salary right out of college?
That depends on profession, geographic location, private / public section, etc...
Cost of living and familial plans may dictate your impression of a āgoodā salary.
What are you studying?
computer science
but by "good" I don't mean "good for what I'm studying", I mean, "enough to live a comfortable life"
though I imagine that depends on region
Thatās a worthwhile major. Itās useful across multiple industries. I work with a large technology company that does some CS / software engineering (in your general geographic area) that starts people around $60k -$70k
Iām sure thereās better and worse starting points, contingent on your internships, externships, experience, grades, focus, etc.
salary after 1 year for my school is $49,000
Seems āgoodā if you are a single guy with minimal commitments.
I am lol
I suggest reading The Millionaire Next Door. It gives wise guidance on frugality and living within ones means. Making a lot is irrelevant if a man canāt understand how to spend properly. There are men that make $250k per year but live paycheck to paycheck because they spend $245k per year. The key is making $50k (or $75k or $100k or $150k) but spending a fraction of it with the long game in mind.
ahaha ya I don't need to live like that
I'm more looking at this out of curiosity than anything
I don't need a super high standard of living
though it would be nice to have some extra money to fund IE