What would you do if you were 25 and just started a job?

what would you do if you could be 25 again in terms of investing and $$?

Probably the same thing I did when I was 25. I would invest every cent I could get my hands on. The sooner one begins investing the greater the long term rewards. Every $1.00 invested at age 25 has the potential of becoming $17.44 at age 55 at 10% return. But every $1.00 invested at age 35 has the potential of becoming only $6.73 at age 55.

Go Read the greatest book ever written, Missed Fortune 101 by Douglas Andrews. It would be difficult to explain the investment concepts in a short message, but here are the basics.

There are 3 stages in taxes for investments.
Stage 1 - Tax Free Contributions (the money you invest today you can deduct on your taxes)
Stage 2 - Tax Free Accumulation (grows tax free)
Stage 3 - Tax Free Distribution (when you withdraw the money you don't have to pay taxes on Any of the money you take)

You have the choice to either choose Stages 1 and 2, or Stages 2 and 3. You can't get all 3, that would be tax evasion. Which of these 2 would you choose?

If you where a farmer would you rather pay taxes on the purchase of the seed or the sale of the crop. Of course the seed.

Here is where it gets complex, but VERY IMPORTANT TO UNDERSTAND to become financially free.
Look at what would happen if we chose Stages 1 and 2.

Traditional 401K's, IRA's what happens is every dollar we put in today we can deduct it on our taxes (stage 1). And most of these accounts you can choose from a variety of greatly perfoming mutual funds. So we don't pay any taxes on the money we put in. But when we pull it out we have to pay taxes on it. (don't get stage 3) Follow me here. If you are 25 and want to retire at say 65, that's 40 years. So if you invested $5,000 a year for 40 years you would have invested a total of $200,000. So you could have deducted $200,000 off of your income. The average tax bracket is 32% in America. So because of the deductions you have saved 32% of $200,000 which is $64K. Now lets say that you are 65 and your money grew to 1,400,000. (if you invested $5K a year for 40 year at an 8% return you would have $1.4mil) Let's say you are going to try and pull out $100,000 a year to retire on, let's see what would happen. You would have to pull out about $150,000 just to net the $100,000 because you have to pay taxes on the money you pull out (you don't get stage 3). So you pay $50,000 in taxes in year 1. Year 2, same thing. So in 2 years you have paid $100K in TAXES. You only saved $64K because of the 401K. And when you pull the $150K out of the $1.4 mill in year 1, you now are only left with $1.25 mill., then you pull out another $150K in year 2 and you're down to $1.1 mill. So in 15 - 20 years you would run out of money. So in 401K's and IRA and regular mutual funds you have to pay taxes on the money you pull out and when you pull out the money it interrupts the compounding of the money. Your account balance is always going down, not going up.

Now let's look at the other investment tool. The Investment Grade Equity Indexed Universal Life. You Can not deduct the money you put in (can't get stage 1), but the money grows tax free and it's all tax free when you pull it out. So the same scenario, in the EIUL at age 65 you have $1.4 million. In this type of account you take Loans against your money. So if you have $1.4 million and every year you are going to pull $100K to live on. Year 1, you take a loan of $100K, not $150K like the 401K because here you don't have to pay taxes on the money. At an 8% return, your money will double every 9 years (rule of 72). So in 9 years you have borrowed $900K, but your $1.4 Million now has doubled to $2.8 Million. In year 18 you have borrowed $1.8 million but your money has grown to $5.6 Million. At year 27 you ahve borrowed $2.7 million but your money is now $11.2 million. So what happens is the loans NEVER catch up to the growth of the money. Then when you die, your family gets the difference between the money. So in this case if you died at age 92 your family would get about $8 million dollars. Where the mutual funds would have ran out of money at year 15. These accounts go up when the Market goes up, they Never Go down and the money comes out tax free. This is just the tip of the iceburg, but hopefully you get the point. I do Financial Seminars 4 nights a week for our company. I'm in the real estate, mortgage and financial services industry. It's exciting stuff to retire financially free.

If you really wanted to retire wealthy, you should start by reading that book and then started investing while you are young enough to get the benefits of the Magic of Compound Interest. I know if was a long winded answer, but well worth it I think! Good Luck!

I am 35 and have been in my new job for a little over a year from graduating college. What I am doing now is having 12% of my income going into my 401K while I am paying off my student loan debts. Once I have more money freed up, I will invest most of it into mutual funds since I am lazy. One of my co-workers invests directly in stocks.

The hardest lesson that I had to learn is that you do not need the most fancy and expensive items. My t.v. is from the 70's, my couch was giving to me and I am slowly buying some wants such as a recliner on credit to help me. I paid off my car this summer and putting that money to some of my short term debt before paying off my smaller student loans. I have $350 a month going into my savings for emergencies, non-monthly bills, and travel. I live 1100 miles from my girlfriend and trying to get back home.

The best solution that I can give you is to live below your means and invest in items that will allow you to sleep at night. If small cap companies are too volatile for you than go to large cap, if the stock market causes you to worry than invest in bonds.

I retired at the age of 28 years old and have been touring round the world in luxury for the past 2 years. When I was 20, I started to invest heavily in books and seminars on the strategies that one can use to retire young and rich. I think most of the books that I have read along with income from my job then and an undying spirit, have led me to an extraordinary life. I think if you are 25 and still just earning a salary, it is time you start reading and start saving some money to experiment with what works for you.

For some of the books that I have personally read and recommends, please see http://www.bestoptiontradingbooks.com

read tips on investing and stocks to better help you on this site

i would do just as i did..
take a lil amount of your income every month,and save it.
and it does not have to be a big amount,just what you can spare and dont need to life your life.just keep doing it..
after doing so for years,you end up with a big amount,so you can quit working for your money,and let your money work for you.
:-)

Invest in technology stocks, then and now.

The 3 Best (and Smart) Investment Methods in the whole world, undeniably, are...

1. Work - working is one of the best investments because the rate of return per annum is extremely high. There're 2 calculations here: the 1st is investment on yourself. Let's say this month you spend $1000 to support yourself so that you can continue to live and work, and your salary end of this month is $2500, that makes your rate of return as much as 250% in a month. That will be 3000% a year! Just by working (for others). The 2nd calculation can be based on your savings. Let's say you have $250,000 in your bank account debt-free, and your salary this month is still $2500, that makes the rate of return as much as 1% a month and 12% a year. That's still a decent return based on this 2nd calculation although I much rather prefer the 1st. And your salary will also increase in the future based on your experience and knowledge you gain from self-investment through books and training courses. That means your rate of return from work will also increase.

2. Save - saving is another wise investment methods. There's this Rule of 72 used to calculate how long you need to wait for your investment to double up. If the annual rate of return is 10%, then you'll need to wait as long as 7.2 years to double your investment. Let's say if you save a decent $200 today, you'll need 7.2 years to double to $400. However, if you save only $100 today (a mere $100 difference), you'll have to wait for 14.4 years to reach $400. That's double the time just because of that small difference. Unfortunately, not many investment can generate 10% annual rate of return (or more), consistently every year. Regardless, to save is still a great investment method. The more you save, the more you have (by cutting down on wasteful spending). Put your savings in your bank account to give it some boost in fighting off inflation.

3. Do Business - operate your own business is another best investment. Basically, that's when you can earn high return through great products and services. However, there's a rule and that you must generate annual rate of return higher than the return when you work for others. Or else, it's better to sell off your business and return back to working for others.

That's it.

Some advice...
NEVER invest in mutual fund (and unit trust) unless you see yourself as a lazy and stupid person. Neither should you invest in stock market (directly). I don't mean mutual fund is bad. It's just not as good as stock market. I also don't mean stock market is bad either. It's just that if you want to invest in the stock market, you must...
1. Have a looot of time.
2. You're so smart your ROI (return on investment) on stocks is higher than working and running your own business - possibly because you're just too familiar with the stock market.

One more thing, mutual fund doesn't guarantee that your investment will not dry because of recession. So unless you're lazy and stupid, I advice you take control of your own money by Working, Saving, and Running Your Own Business.

Well Im only 22 and I dont work.. my hubby works for us both, but I have a degree in Physical Therapy (I use to be a work out fanatic) so when I have my baby I hope to go back when he's like 4 or 5..lol Im soo attached to him already and Im only 41/2 months pregnant..lol

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