Investing to make my money work for me!

[Cobra_Tim]

Hi everyone,

As I have been reading through these forums and seeing people talking about how they don't mind taking loans our on cars and such, due to the fact their their investments make them money. Continuously I see, "taking a loan for my car is not hurting me because my investments are making me more money than having the title to the car". What kind of stuff do you invest in to make a good ROI? I just graduated college in 2012, so I am still learning how to be more financially responsible.

Thanks,
Tim

 

[RocketSurgeon]

For long term investments I usually do oil companies. I work with a lot of smaller ones so I know when they are changing completion methods, etc that will have a positive influence on their production. Continental (CLR) and Kodiak (KOG) were some of the better ones. Really anything based in commodities will work long term.

If you have company stock options and matched 401k definitely max out your contributions to both of those. My company's stock has been killing it to the point that every quarter I'm essentially getting an extra paycheck.

 

[jbs$]

Most such replies are just BS, few investment programs, without significant market risk, will pay more than the interest rate being paid on the car loan. There are exceptions, where money in being put into a matching 401-k or a similar type program.

 

[jbs$]

Rocket, even though your company stock is doing well, over a longer term, do not allow yourself to become too concentrated into one stock or one industry. To do so increases your risk curve more than you think.

 

[RocketSurgeon]

Certainly, I didn't mean to say that is the only place one should invest. Just pointing out that it works for me because energy is always needed and I work in the industry so I have a pretty good feel for what's going on. While my Roth and normal brokerage accounts are weighted towards O&G my 401k is diversified.

Investing in one's own area of expertise will pay off better than throwing darts at the board hoping for a bullseye.

 

[Cobra_Tim]

I actually work for WR Berkley Insurance, and my specific branch insures oil drilling rigs/boats all over the world.

Unfortunately, they do not match anything put into my 401k. I put 5% of my paycheck into my 401k, but they do participate in profit sharing. I am not sure how this affects me though...HR wasn't very helpful when I first started.

My gf's father always says since my company doesn't contribute to my 401k, that I should participate in a ROTH IRA. I'm not sure where to start with either though...sucks being 23 sometimes. People don't take you seriously when you ask about investing and making money...they just think every 23 year old lives off mommy and daddy and doesn't need explanation of how to properly invest money.

 

[RocketSurgeon]

I'm 23 as well and know the feeling

 

[MovingZen]

Market is stupid volatile right now. I don't like doing a lot of research on companies or hoping for the best so I have several Vanguard admiral funds instead of stocks. People who know a lot more about it choose the stocks to buy. At your age go slow, safe, and diversify in general but you should talk to someone who can look at your financials, set up a budget, and advise you on how to be safe long term. Thinking about this now is the right thing, slow and steady ftmfw.

 

[jbs$]

Cobra, first, congratulations on the very smart play of investing 5% of your income. By starting at age 23, you will be amazed as to how your meager start has grown by the time that you reach 40. At this point, you can afford to be in mildly aggressive growth funds, stay away from the high risk stuff, the downside is too great. Good luck.

 

[Cobra_Tim]

I will have to touch base with HR again and see how I can get in on stock options and profit sharing.

I've thought about the stock market route, but I don't have the time to keep up the research and watching fluctuations in the market to be worthwhile.

 

[04SVT_COBRA]

Take a look at the stock pick thread at the very top of this forum. Lots of guys making good money in there including myself. I am only 23 as well and in college.

 

[stroked mach]

I know if I could be involved in profit sharing I would b e all over it, I have a 401k at work and another like a 401k but its called a contractors plane, its just like a 401k but named diff, I max out my investment and love seeing my 1/4 investment printout, I know of a few older guys one I work with that had profit sharing at their old job and when that company sold out they got their checks and I know it was a lot one was around 3millon and the other never said but I know it was a lot and they both said they never thought it would grow that much

 

[Cobra_Tim]

Take a look at the stock pick thread at the very top of this forum. Lots of guys making good money in there including myself. I am only 23 as well and in college.

Haha! I thought that thread was to Pick your favorite Stock Car!

 

[Svtkidd23]

Take a look at the stock pick thread at the very top of this forum. Lots of guys making good money in there including myself. I am only 23 as well and in college.

This.. I'm 23 and make damn good money investing

 

[Svtkidd23]

But don't expect it to just happen there is ppl with actual money making it change dramatically. If i buy 10k shares it doesn't even make a dent lol.. Millions millions are exchanged

 

[JPD5801]

This.. I'm 23 and make damn good money investing

What you, and most in that thread, do is not investing. It is speculating. There is a huge difference.



OP - if you don't have the time or desire to research and or follow the market, your best bet would be a target date fund offered through a mutual fund company. It allows immediate diversification, low cost, and will automate a disciplined investment process. Those items, plus how much you contribute will be the primary drivers of how well you do. Contrary to what others may tell you, trying to pick the winners or time the market is incredibly difficult to do consistently over long periods of time.

You can open an account online, and set up a link with your checking account to transfer money. They are based on retirement at age 65. So, take your birth year, add 65, and pick the fund that most closely targets that number.

Also, as you start to save, start by using a high yield savings account and stock pile enough cash for 6 months of bills. That way, if you lose your job, you'll have time to look. Also, it will help if you have an emergency expense.

 

[Svtkidd23]

I buy on rumor sell on news

 

[JPD5801]

I buy on rumor sell on news

Which is NOT investing. That is speculating (read: gambling)

 

[Svtkidd23]

Which is NOT investing. That is speculating (read: gambling)

Meh. That's only on a quarter of my money. But i do invest in divi stocks. Just not fun nor worth talking about in here.

 

[Camaro_94]

Variety will be your friend. Don't invest your money into one thing. Play it safe and invest throughout the market. Nothing is safe.