Money Matters

[MTK]

Where can I open an IRA? Is there anywhere online to do it? I've been putting it off long enough.

I've got my 401k, I've got stocks, now it's time for the IRA.

[724Skinsfan]

Originally Posted by Mattyk72

Where can I open an IRA? Is there anywhere online to do it? I've been putting it off long enough.

I've got my 401k, I've got stocks, now it's time for the IRA.

Most banking institutions offer many types of IRA's. I have a roth IRA setup through Bank of America http://http://www.bankofamerica.com/...plate=ira_roth which seems fairly reasonable.

Schneed and ThatGuy are definitely on the money with everything they've said. One huge suggestion I have is to build a spread sheet that lists all of your mandatory expenditures (rent, insurance, bills, etc) and also your voluntary expenditures. Like Schneed said, get a tally of your bank receipts for a particular month to draw information from. Here's a good spreadsheet if you want to get some ideas: http://office.microsoft.com/en-us/te...062791033.aspx

Two quick ways to experience a little bit of savings are:

1) setting a specific number of times that you eat out (if any). My wife and I used to eat out anytime we didn't feel like cooking which came to be at least 2-3 times a week. Once we said "OK, we will eat out just once every two weeks" obviously we noticed a significant amount of savings.
2) Set aside a specific amount of gas and grocery money per week. We set aside $35 a week on gas for two cars (Civic & Malibu) and $50 a week on groceries which includes anything we buy at Wal-Mart. Once you can operate within those limits you'll notice that you don't nearly as many trips (gas) to the store or elsewhere.

We cut our expenditures down by about $700/month using a couple of these techniques.

[Schneed10]

Originally Posted by 724Skinsfan

Most banking institutions offer many types of IRA's. I have a roth IRA setup through Bank of America http://http://www.bankofamerica.com/...plate=ira_roth which seems fairly reasonable.

Schneed and ThatGuy are definitely on the money with everything they've said. One huge suggestion I have is to build a spread sheet that lists all of your mandatory expenditures (rent, insurance, bills, etc) and also your voluntary expenditures. Like Schneed said, get a tally of your bank receipts for a particular month to draw information from. Here's a good spreadsheet if you want to get some ideas: http://office.microsoft.com/en-us/te...062791033.aspx

Two quick ways to experience a little bit of savings are:

1) setting a specific number of times that you eat out (if any). My wife and I used to eat out anytime we didn't feel like cooking which came to be at least 2-3 times a week. Once we said "OK, we will eat out just once every two weeks" obviously we noticed a significant amount of savings.
2) Set aside a specific amount of gas and grocery money per week. We set aside $35 a week on gas for two cars (Civic & Malibu) and $50 a week on groceries which includes anything we buy at Wal-Mart. Once you can operate within those limits you'll notice that you don't nearly as many trips (gas) to the store or elsewhere.

We cut our expenditures down by about $700/month using a couple of these techniques.

Nice, it's amazing what you can cut out of your budget without even really missing a beat.

Some financial books talk about the "latte factor." So many people hit up Starbucks a couple times a day and buy a $4 cup of coffee each time. Let's say you are someone who buys 2 lattes every workday from Starbucks, and between the two of them you spend $10 each day. Well, each month has about 21 workdays in it. That's $210 a month on lattes.

Maybe you only buy one latte per workday. That's still $110. If you started buying Starbucks beans by the pound, grinding them up at home, making the coffee yourself, and bringing it with you in the morning in a thermal mug, you'd still have Starbucks quality coffee and you'd save boatloads of money.

That's why tracking your expenses is important. Sometimes you need to add up the numbers to realize how much you're spending on certain things. Some single types hit up bars all the time and drop tons of money on drinks. Instead, buy beer by the case (or booze by the bottle) and get a little pregame on before you head out. You'll save quite a bit in drink costs. Little things like that can go a long way.

[MTK]

Originally Posted by Schneed10

Nice, it's amazing what you can cut out of your budget without even really missing a beat.

Some financial books talk about the "latte factor." So many people hit up Starbucks a couple times a day and buy a $4 cup of coffee each time. Let's say you are someone who buys 2 lattes every workday from Starbucks, and between the two of them you spend $10 each day. Well, each month has about 21 workdays in it. That's $210 a month on lattes.

Maybe you only buy one latte per workday. That's still $110. If you started buying Starbucks beans by the pound, grinding them up at home, making the coffee yourself, and bringing it with you in the morning in a thermal mug, you'd still have Starbucks quality coffee and you'd save boatloads of money.

That's why tracking your expenses is important. Sometimes you need to add up the numbers to realize how much you're spending on certain things. Some single types hit up bars all the time and drop tons of money on drinks. Instead, buy beer by the case (or booze by the bottle) and get a little pregame on before you head out. You'll save quite a bit in drink costs. Little things like that can go a long way.

Along the lines of the latte effect I've noticed the bring your lunch to work effect. When I bring my lunch rather than eat out I save so much money. Eating out even at just a sub shop can run a good $8 for lunch... so that's potentially at least $40 per week or $160 per month!

I typically bring my lunch 4 days per week and I only eat out on Fridays, it definitely helps ease the burden on the wallet.

[FRPLG]

Originally Posted by Mattyk72

Along the lines of the latte effect I've noticed the bring your lunch to work effect. When I bring my lunch rather than eat out I save so much money. Eating out even at just a sub shop can run a good $8 for lunch... so that's potentially at least $40 per week or $160 per month!

I typically bring my lunch 4 days per week and I only eat out on Fridays, it definitely helps ease the burden on the wallet.

I also notice it helps you stay in shape. Most of the food one buy's for lunch will be of the less than healthy variety.

[Schneed10]

Originally Posted by Mattyk72

Along the lines of the latte effect I've noticed the bring your lunch to work effect. When I bring my lunch rather than eat out I save so much money. Eating out even at just a sub shop can run a good $8 for lunch... so that's potentially at least $40 per week or $160 per month!

I typically bring my lunch 4 days per week and I only eat out on Fridays, it definitely helps ease the burden on the wallet.

Yeah that's another HUGE one. Bringing your lunch is the best solution. With food, I like to think there are four corners of the square, putting all four together is the holy grail:

- Tastes good
- Is Cheap
- Is Healthy
- Is Convenient

It's almost impossible to put all four together. If you're eating out, someone makes it for you, so it's convenient. It usually tastes good. But it's hard to find it healthy, and it rarely is cheap. If you want to eat out for cheap, you're usually talking McD's or Wendy's, rich is real unhealthy.

Then there's making your lunch. It's cheap. It's healthy if you do it right. And usually you can make it taste good. But it's inconvenient.

In the end, I'd rather not clog my arteries, and I'd rather have the extra $160 in my pocket each month.

[MTK]

Does anyone else have accounts through ING Direct? If you don't I highly suggest checking them out. Their rates are really great, right now the savings accounts are at 4.5% APY. I didn't notice before but I see they also offer investment products, I'll have to check that out.

[Schneed10]

Originally Posted by Mattyk72

Does anyone else have accounts through ING Direct? If you don't I highly suggest checking them out. Their rates are really great, right now the savings accounts are at 4.5% APY. I didn't notice before but I see they also offer investment products, I'll have to check that out.

Yeah ING Direct has rock solid savings accounts. That's a good choice for your core savings, your core nest egg that would be there for you if you got laid off or something.

I have mine in a Vanguard Money Market fund. Same type of deal, 4.5% or something like that.

[Schneed10]

IRAs can be opened at www.fidelity.com or www.vanguard.com.

Both places have the lowest expense ratios for their funds, so when you open the IRA, invest in their funds and you're good to go.

[12thMan]

I think there is a place for Index Funds as well as no-lund funds. No Load, however, doesn't always translate to lower expese ratios. Typically with Index Funds that's the rule, but all bets are off after that.

Loaded funds may charge a fee on the front end or the back end, depending on the agreement and the class of shares you purchase. But over time, key words, over time, load funds can be just as competitve, if not more so, in expenses and returns.

If I had to go with one fund family, and there are many, that I would have to put my name on the line for someone new or experienced, it would the American Funds.

They've been in the business for over 75 yrs, well respected within the industry, they have the longest tenured portfolio managers, they tend to lead the pack year after year in keeping expenses low for investors, and more importantly their funds post solid returns - many of them for decades!

Whether you're looking to start a non-retirement account, Roth IRA, Traditional IRA, or College Savings Plan, this company is as rock solid as they come - I promise you that.

Again, the argument of no load vs load has been around as long as Warpath itself has, so it's not anything new to hear it here. People will always be on both sides of that fence, and justifiably so. But I would just tell anyone to check out everything. And yes, having a Financial Advisor is good thing.

Gereally speaking, it's probably a good idea to find a seasoned professional by way of referal rather than trying to just walk through the door and handing over your money to 'some guy'. You want to ensure your long term goals and objectives mesh well with your advisor's temperment, professionalism, and experience. In a nutshell, does he or she make you feel comfortable?

[That Guy]

as for insurance, if you've got 20years until retirement, you can buy decreasing term insurance that'll cover the balance of your mortgage immediately and decrease its coverage over time (meanwhile, you're paying off the mortgage, so the decrease is okay). that's the cheapest way to cover expenses should something happen, and by the time it's up (if you've not neglected saving and investing) you can be self insured.

or you can just buy general term insurance. you get more coverage and it's cheaper than whole life (you don't toast bread in your freezer, so why mix your life insurance with a high-fee investment you can't control?).

also, no new cars saves a lot of money (IF you know enough to avoid total clunker or have a friend/family member that can help you).

the most important though is to get a FIXED mortgage (not adjustable rate), try to put money down when you buy a house, and try to accelerate payments if you can afford it. Some companies offer mortgages LONGER than 30 years... AVOID THOSE. while it might let you move into a slightly bigger house, the interest you end up paying compared to the house's value is insane.

[firstdown]

Originally Posted by That Guy

as for insurance, if you've got 20years until retirement, you can buy decreasing term insurance that'll cover the balance of your mortgage immediately and decrease its coverage over time (meanwhile, you're paying off the mortgage, so the decrease is okay). that's the cheapest way to cover expenses should something happen, and by the time it's up (if you've not neglected saving and investing) you can be self insured.

or you can just buy general term insurance. you get more coverage and it's cheaper than whole life (you don't toast bread in your freezer, so why mix your life insurance with a high-fee investment you can't control?).

also, no new cars saves a lot of money (IF you know enough to avoid total clunker or have a friend/family member that can help you).

the most important though is to get a FIXED mortgage (not adjustable rate), try to put money down when you buy a house, and try to accelerate payments if you can afford it. Some companies offer mortgages LONGER than 30 years... AVOID THOSE. while it might let you move into a slightly bigger house, the interest you end up paying compared to the house's value is insane.

Your better off instead of a decreasing term policy just go with a level term policy which is not very expensive unless you have health issues. They tend not to cost much more than the decreasing term and give you level death benifit.

[TheMalcolmConnection]

It's all about planning before you begin the week. On Sunday, plan your menu, go out and stock up on what you need. Make double batches so you have leftovers. Both my fiancee and I can eat five days including snacks for sixty bucks. This is including a healthy version of macaroni and cheese, turkey chili, apple cinnamon muffins, turkey meatballs, shredded chicken sandwiches.

Possibly my favorite cheap meal that has leftovers for days is the shredded chicken. Buy a shit pile of chicken, load it all up in the crockpot, pour a bottle of BBQ sauce over it, let it go all day and you're done. Put it open-faced on a half of a whole wheat bun, and it's tasty and you've got pounds of it for leftovers.

[TheMalcolmConnection]

But what about the free f-ing t-shirt?! WHAT ABOUT THAT?!?!?!?!

[BDBohnzie]

One of my fraternity brothers was the guy who ran all the Credit Card promotions on campus. While many people wanted to shoot him by the end of the semester, the fraternity made money off the number of applications that could be processed. The best prizes we gave away were shot glasses.

I didn't get my first credit card until after college. Well at least one that I used. I did sign up for a bunch in college, but cancelled accounts as soon as I got the card.