401k and investments

http://www.mideasttime.com/yahoo-ceo-marissa-a-mayer-sells-36000-shares-yhoo/218633/

 

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Trading can be comparable to gambling if you are trying to speculate on market swings and are holding in the very short term. However, utilizing bottom-up fundamental research and investing in good companies with solid financials over the long run is not at all like gambling.

Great advice. The power of compounding interest is a beautiful thing and the earlier you start, the better. I do exactly this too, max out my Roth IRA (capped at $5,500/yr) and invest at least enough to get a full match from my employer (free money!). I've been going a lot more into my 401k and am closer to 20% of my gross income between the Roth and 401k, but I got a bit of a late start.

 

Not sure of his situation but, it's not bad advice for those who qualify. I'm in the (somewhat) good spot of not qualifying though it's really a penalty to a certain group.

 

Anybody with an income or has a spouse with an income qualifies. Only people who would not really benefit from a Roth would be those retiring in less than 5 years, give or take. No tax on the compounded interest is a beautiful thing

 

I'm single & under 50. I don't benefit from the tax advantage of a Roth though I can invest (in something else). For both 401(k) and Roth, there are program tests and restrictions which not everyone meets...I'm one of them.

 

That is unfortunate. Sounds like you have a plan. Good luck

 

It is unfortunate. Most of the folks I work with and myself are essentially penalized by the government in order to allegedly make the plans "fair for all". The fact is, we can and do invest (not in a Roth) but, we are taxed where other groups who pass the test are not taxed. This is a recent problem for me. I like the reason I'm there just not the fact that I'm there...

 

I am a 19 y/o college student. I work in the summers for engineering companies, but I don't get full-time benefits since they are internships. Do I qualify for these things?

 

You should qualify to put upto $5500/yr into a Roth IRA. A Roth is a Individual Retirement Arrangement invested in your choice of investment vehicles after tax and will not be taxed again even after it has grown. A excellent choice given your age!

 

I should read up on how Roth IRAs work. If they are like what I imagine, they are low-interest earning over a long period of time. A hard decision to put your money into when there are stocks at hand to buy. I understand that a Roth IRA is still the best option, however. Why the limit of $5500/year?

 

You can invest in whatever you wish, single stocks, mutual funds (my fav), bonds, whatever. Just get a good advisor. Someone who is willing to teach you, then let you make the decision where your money goes.
The limit is set by the IRS. Probably to limit their tax loss.
BTW my mutual funds made 20% last year. Not so good this year, but not losing money either.

 

My mutual funds have made a little bit but only enough to cover the fee I was charged by my advisor. My second investment with that same fund has not made it's fee back yet. As soon as it does I'm withdrawing my funds because that fee is way too much, especially for someone like me who likes to do their own research. I'm now with Scottrade. May I ask which fund that is?

 

Rob is giving you the right advice. Invest as much as you can as soon as you can in a tax deferred plan.

To ensure you qualify for 401(k) plans you can Google plan limitations...HCE 401k is the test that eliminates or reduces most people.

This link (similar numbers are used for the 401 test limits) is for Roth... http://www.irs.gov/Retirement-Plans...-IRA-Contributions-That-You-Can-Make-for-2014

 

I talked to someone I know who has a really nice 401k and pension retirement planned out with their company. Have a little more knowledge now. Next I will look into what I can do right now before working full time

 

The market is taking a huge hit right now. Now with this ebola bullsit, I am taking a solid hit from American airlines

 

Mine went down but just a little. Buy more.

 

Dont invest in Energy yet... I'm the lead equity analyst for my schools investment portfolio and we are getting raped by energy right now. Although today its up a little

 

I've got a good bit in energy