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Amphiphilosophical

Registered: 05/16/11
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Where should I invest $6000 safely at 25 years old?
#23729122 - 10/11/16 06:44 PM (7 years, 3 months ago) |
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Currently 25 years old, working two jobs, and saving money all the time. My current savings are up to a little over 12,000 and I'd like to start using my savings for something that will make money overtime.
As a typical millennial I don't have much financial/investment knowledge but always willing to expand my awareness of better ways to skillfully invest in safe, effective, and reliable means.
Thanks for any advice that is given!
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Morel Guy
Stranger


Registered: 01/23/13
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Education.
A good education is the best investment. It looks good and it feels good. Only a diseased mind or death can take that from you.
If your looking for a quick and heavy return, aren't we all?
-------------------- "in sterquiliniis invenitur in stercore invenitur" In filth it will be found in dung it will be found
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Amphiphilosophical

Registered: 05/16/11
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Re: Where should I invest $6000 safely at 25 years old? [Re: Morel Guy]
#23729183 - 10/11/16 07:00 PM (7 years, 3 months ago) |
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What specific form of education would return the highest investment/job attainment for the money? Sometimes investing money in needless education or degrees can resolve to bad outcomes.
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Matt87

Registered: 01/03/15
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Re: Where should I invest $6000 safely at 25 years old? [Re: Morel Guy]
#23729190 - 10/11/16 07:02 PM (7 years, 3 months ago) |
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Depends on what you do for a living but if you have any building skills, I'd say hit a few absolute auctions and buy a house. Fix that bitch and rent it out so you can work less or save more!
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  Once you understand the way broadly, you see it in all things. -Musashi
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Morel Guy
Stranger


Registered: 01/23/13
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Quote:
Amphiphilosophical said: What specific form of education would return the highest investment/job attainment for the money? Sometimes investing money in needless education or degrees can resolve to bad outcomes.
What are you interested in? What are you good at? If you have unique insight you could write something and be somewhat valuable.
You are looking for a long shot for a quick return that is heavy. Those are hard but sales jobs do a very good job if in the right market. Maybe make yourself look good for a sales job. Software sells very well. I knew a guy from Iran that came to the states young and makes around 300k a year selling for microsoft. It's a very anxious job and that will show you what you are made of. There is a lot of pressure to meet or exceed the sales forecasts.
6k is not a lot. I could blow that on narcotic crimes on the web in like 8 hours ordering shit for illegal cultivation. High return and high risk and also involves sales. I just don't.
-------------------- "in sterquiliniis invenitur in stercore invenitur" In filth it will be found in dung it will be found
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sh4d0ws
LSx


Registered: 02/26/08
Posts: 12,086
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Re: Where should I invest $6000 safely at 25 years old? [Re: Matt87]
#23729334 - 10/11/16 07:59 PM (7 years, 3 months ago) |
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Quote:
Matt87 said: Depends on what you do for a living but if you have any building skills, I'd say hit a few absolute auctions and buy a house. Fix that bitch and rent it out so you can work less or save more!
How do you buy a house with $6000?
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Matt87

Registered: 01/03/15
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Loc: Tennessee
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Re: Where should I invest $6000 safely at 25 years old? [Re: sh4d0ws] 1
#23729374 - 10/11/16 08:17 PM (7 years, 3 months ago) |
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He said he has 12,000 total.
Even 6,000 is enough to buy like 6 houses. Downside is they would all have to be in Detroit lol.
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  Once you understand the way broadly, you see it in all things. -Musashi
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Morel Guy
Stranger


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Re: Where should I invest $6000 safely at 25 years old? [Re: Matt87]
#23729437 - 10/11/16 08:37 PM (7 years, 3 months ago) |
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Quote:
Matt87 said: He said he has 12,000 total.
Even 6,000 is enough to buy like 6 houses. Downside is they would all have to be in Detroit lol.
Asbestos city
-------------------- "in sterquiliniis invenitur in stercore invenitur" In filth it will be found in dung it will be found
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Ahab McBathsalts
OTD Windmill Administrator




Registered: 11/25/02
Posts: 35,109
Loc: Wind Turbine, AB
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Re: Where should I invest $6000 safely at 25 years old? [Re: Amphiphilosophical] 1
#23730275 - 10/12/16 06:04 AM (7 years, 3 months ago) |
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The books I would buy would be:
Investing for dummies - I like the dummy guide books, they are concise and a good jumping off poing.
The economist guide to investment strategy, which is a little long and technical, but covers all asset classes and can give you some background knowlege.
The Intelligent Investor by Ben graham. I am very much predisposed to this style of investing that states your timeframe is very long, and don't lose money by taking unnecessary risks.
These 3 books will take you some time to work through, but after a couple of months, you will be much more confident to put your money to work for you. Good luck OP
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Ahab McBathsalts
OTD Windmill Administrator




Registered: 11/25/02
Posts: 35,109
Loc: Wind Turbine, AB
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Re: Where should I invest $6000 safely at 25 years old? [Re: Ahab McBathsalts]
#23730279 - 10/12/16 06:07 AM (7 years, 3 months ago) |
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After you have worked through a few books, you should talk to your local bank about tax advantaged accounts 401k, RothIRA, and stocks or ETFS that you can put in them. Keep in mind that the bank will try to sell you the shittiest product with the highest fees. It is important to have your knowledge before you go meet with bankers.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Lana
Head Banana



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Loc: www.MycoSupply.com
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Re: Where should I invest $6000 safely at 25 years old? [Re: Ahab McBathsalts]
#23730445 - 10/12/16 08:11 AM (7 years, 3 months ago) |
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Until you've made a concrete decision, park it somewhere that will prevent you from spending it. Consider a 3 month CD.
You'll have little to no gains but if you're tempted to buy or invest in something, you won't do it until your idea is solid.
The old adage, "A fool and his money are soon parted" is very true. Think before you spend. Once you get to a point where you feel as if you'll have no regrets, go for it.
Lana
-------------------- Myco Supply - Distributors of Mycological Products http://www.MycoSupply.com The Premiere Source for Mushroom Growing Supplies. Visit us online or call us toll free
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badchad
Mad Scientist

Registered: 03/02/05
Posts: 13,372
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Does your employer have a 401k or retirement program? Usually the matching on those beats the crap out of any investment.
For example, if I grossed 6k, I could take home roughly 4k (after taxes), or have my employer invest 12k into my retirement (by matching it dollar-for-dollar pre tax). Simple choice, really.
-------------------- ...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did. Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27. ...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely. Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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ballsalsa
Universally Loathed and Reviled



Registered: 03/11/15
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Re: Where should I invest $6000 safely at 25 years old? [Re: badchad]
#23731343 - 10/12/16 01:48 PM (7 years, 3 months ago) |
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it still gets taxed on the back end
--------------------
Like cannabis topics? Read my cannabis blog here
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Ahab McBathsalts
OTD Windmill Administrator




Registered: 11/25/02
Posts: 35,109
Loc: Wind Turbine, AB
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Re: Where should I invest $6000 safely at 25 years old? [Re: ballsalsa]
#23732044 - 10/12/16 06:05 PM (7 years, 3 months ago) |
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Quote:
ballsalsa said: it still gets taxed on the back end
Tax deferred accounts are still hugely advantaged, especially if there is an employer matching program.
Unless you are the type of person to spend $4 out of pocket to prevent the government from getting 50 cents in tax. In which case, good luck with that.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Amphiphilosophical

Registered: 05/16/11
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Last seen: 3 years, 4 days
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Re: Where should I invest $6000 safely at 25 years old? [Re: Ahab McBathsalts]
#23733571 - 10/13/16 09:36 AM (7 years, 3 months ago) |
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I hate to admit it but a lot of the tax code, 401k, and retirement plan talk is still a foreign language to me.
I never had any great financial advice upbringing - my dad works a dead end transportation job and my mother just owned a small private business ran through our house.
Hence, I continue to want to gain as much knowledge now in order to better prepare myself for financial obligations of the future.
I appreciate the recommendations for the "for dummies" books. Those always break things down into simpler terms and allow for better understanding of hard to grasp concepts.
Are there any websites I could browse with information in a concise manner that would allow me to better understand things such as 401ks, Roth IRAs, and investing? Websites that break things down into fundamental, elementary terms would be greatly appreciated!
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Th3Issu3
Stranger Danger


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There are some really good ideals here,and I favor education. That's assuming you don't have one already from the previous posts. I don't know what your interests are but I'm going to assume you are more of a blue collar guy.
Look online for your local unions. Most of the time you can find a free apprenticeship program and work while you train. In my local there is a electrical union, the IBEW who offers training where you start at 15 a hour and move up to 40 after 5 years. Several unions offer the same sort of deal. You can also pick up side jobs in the mean time.
And if this doesn't sound good. Look at the 2 and 4 year degree programs at your local Suny school. The one in my area offers allot of really good programs.
But dont spend that money, now a days you can always go to school for close to free. Thats the trick about having money, not using it and using some one elses. *remember that *
Now you would have some decent income, assuming you kept the 6k in a interest bearing account and threw more money at it you would have a few more bucks.
Now after all that hard work, its time to invest. I personally would set up a LLC and buy some local apartment building and throw a few bucks into it and rent it out. Use the money you have saved for the down payment and burrow some more to fix it up. wait 5 years, use your equality then was generated from the property and borrow more funds and do it to a second apartment building and so on until you are ready to retire. Sell the property's and boom.
That's just one of the many things you could do.
I know personally know some one who had 10k and built it to number with a couple more zeros after 15 years.
good luck and always research
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Ahab McBathsalts
OTD Windmill Administrator




Registered: 11/25/02
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http://www.marketwatch.com/story/how-to-invest-for-retirement-2012-11-13
Marketwatch has some really good articles, but they take a page out of the Fox News / 24 hour News programming and have a tendency to over exaggerate what is happening on a day to day basis for clicks and ad revenue etc. Their how to guides, as well as some of their bigger picture articles are usually pretty good.
PBS's Nightly Business report has some good information, but again they really focus on the daily swings and activities rather than a long term big picture how to on investing.
Jimmy Cramer from CNBC is a sheister and a con-man that usually you can do better betting against his recommendations, but he puts the excitement into financial markets for beginners. He does break down some terminology and explains some concepts regularly. Watching his program isn't bad, but please remember that he has a terrible track record, and don't act on any of his recommendations.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Amphiphilosophical

Registered: 05/16/11
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Re: Where should I invest $6000 safely at 25 years old? [Re: Ahab McBathsalts]
#23741637 - 10/16/16 07:53 AM (7 years, 3 months ago) |
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I appreciate all the advice guys! Looking into the book I recently purchased "Investing for Dummies" and also doing Google searches around the internet.
Looking also into short-term investment such as CDs over my just general savings account. Do any of you know much about certificates of deposits and know if they are worth it? I know inflation is something to consider the longer you are going to hold your money in a CD.
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Morel Guy
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Wait til after the election. I hear the economy always goes to shit after a new elected President. Housing could go to shit again. Hate to see you invest then take a tumble after the after shocks of a new Government.
-------------------- "in sterquiliniis invenitur in stercore invenitur" In filth it will be found in dung it will be found
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beastcoast
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Re: Where should I invest $6000 safely at 25 years old? [Re: Morel Guy]
#23743889 - 10/16/16 08:51 PM (7 years, 3 months ago) |
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Why not a place/setup to grow edible mushrooms at a large scale? Sell to farmers markets and restaurant. That's what I hope to do next year. Many folks on the forum are already doing that quite successfully.
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viktor
psychotechnician



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Quote:
Amphiphilosophical said: Sometimes investing money in needless education or degrees can resolve to bad outcomes.
If you believe there's such a thing as needless education then you are doomed to fail at life. Any advice we could give you would therefore be wasted.
-------------------- "They consider me insane but I know that I am a hero living under the eyes of the gods."
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Brian Jones
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There are no safe investments that make money. There used to be safe investments that could make 5-6% but those days are long gone. You're in good shape for your age. I would recommend the Vanguard index fund that is 60/40 stocks to bonds (personally I would do 100% stocks, but that's just me).
-------------------- "The Rolling Stones will break up over Brian Jones' dead body" John Lennon I don't want no commies in my car. No Christians either. The worst thing about corruption is that it works so well,
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shaggyp
California Hottboi



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Re: Where should I invest $6000 safely at 25 years old? [Re: Brian Jones] 1
#23914428 - 12/10/16 08:10 PM (7 years, 1 month ago) |
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If you want stocks wait until the next market crash. Markets are insanely high right now and there's a good chance you can get in cheaper with some patience. But if you're saving for retirement, buying index funds (representative of large groups of stocks, less risky than buying just one stock) and holding them for 20 years will make you money. Research products like SPY and QQQ.
Also most financial advisors suggest some precious metals as well, and I personally recommend holding a bitcoin.
If it were my 6k I'd buy around $1000 in bitcoin, an ounce of gold, $1000 worth of SPY, $1000 worth of QQQ, and use your last $1000 to find stocks that interest you. Even if you pick shitty stocks, the act of picking them IMO will force you to learn more about how this works and pay attention.
-------------------- Burt Cocaine
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shaggyp
California Hottboi



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Re: Where should I invest $6000 safely at 25 years old? [Re: shaggyp]
#23914447 - 12/10/16 08:19 PM (7 years, 1 month ago) |
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IMO the best approach is to just not invest in 1 thing, invest in 5-6 different places. Dont put all your eggs in one basket and don't freak out if something dips a little (Unless you're day trading, but that's different).
-------------------- Burt Cocaine
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Origyn
Neato


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Re: Where should I invest $6000 safely at 25 years old? [Re: shaggyp]
#23914537 - 12/10/16 09:00 PM (7 years, 1 month ago) |
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Good to see a youngin thinking about investing. I started with the dummy book Mutual Funds For Dummies then branched out to more robust readings. I started young too like you are.
I recommend a Roth IRA. It is post tax money so you get the returns later without being taxed. One of the advantages is that the initial capital invested is not locked up. You may withdraw any of the initial investment without penalty but none of the returns you made until 50 or 60 plus years old.
If you may need or want the money and returns in the near future, get a simple brokerage account and invest in mutual funds. Make sure you have the tax bill covered on your earnings.
Some may disagree, but unless you plan on doing your homework on an individual stock daily, mutual funds are the way to go.....instant diversification.
Finally, with mutual funds expense ratios (purchase fee, sales fee and operating costs) are the number one detriment to rate of returns. So look for high quality funds with low expense rations. Vanguard is known for having the lowest ERs in the business with excellent funds.
Read about expense ratios(ER), price to earning ratios(PE) and diversification!
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Patlal
You ask too many questions



Registered: 10/09/10
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Quote:
Amphiphilosophical said: Currently 25 years old, working two jobs, and saving money all the time. My current savings are up to a little over 12,000 and I'd like to start using my savings for something that will make money overtime.
As a typical millennial I don't have much financial/investment knowledge but always willing to expand my awareness of better ways to skillfully invest in safe, effective, and reliable means.
Thanks for any advice that is given!
Right now the market is hot as fuck, and you're to young to be safe. Go agressive stock portfolio.
--------------------
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shaggyp
California Hottboi



Registered: 12/27/12
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Re: Where should I invest $6000 safely at 25 years old? [Re: Patlal]
#23916529 - 12/11/16 02:35 PM (7 years, 1 month ago) |
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Mutual funds are dead. Exchange traded funds are the way to go because they're less costly for financial institutions to manage, and those costs of actively managing the funds get passed on to you. Mutual funds are for old people. This isn't the 80s.
Also the market is hot, but you buy dips, not peaks. If the S&P never dips below 2020 again I'll eat my own shit. Buy when the market isn't hot so you can pay less for the same shit.
Just my opinion, but worth researching the points I'm making. Pay less for the same shit.
-------------------- Burt Cocaine
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Crystal G



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Re: Where should I invest $6000 safely at 25 years old? [Re: shaggyp]
#23929437 - 12/15/16 01:40 PM (7 years, 1 month ago) |
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I would put it in a universal life insurance policy. The kind of policy where you put money into it for 20 to 30 years, and then you can start taking out $1,000 or so every month for the rest of your life.
You're young too, so your premiums would also be really low.
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shaggyp
California Hottboi



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Re: Where should I invest $6000 safely at 25 years old? [Re: Crystal G]
#23939540 - 12/19/16 12:18 AM (7 years, 1 month ago) |
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The way things are looking with inflation over 30 years, your $1000 per month will be able to buy you a meal per day at mcdonalds for the whole first 2 weeks of every month.
-------------------- Burt Cocaine
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tripo3
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Re: Where should I invest $6000 safely at 25 years old? [Re: shaggyp]
#23941436 - 12/19/16 07:33 PM (7 years, 1 month ago) |
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savings, or cd is best choices or a bond, or if have time and can make more side money put it in a fixed income
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Takethatdarwin
Stranger

Registered: 12/19/16
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Loc: Shill, U.K.
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Re: Where should I invest $6000 safely at 25 years old? [Re: shaggyp]
#23942669 - 12/20/16 08:23 AM (7 years, 1 month ago) |
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Quote:
shaggyp said: The way things are looking with inflation over 30 years, your $1000 per month will be able to buy you a meal per day at mcdonalds for the whole first 2 weeks of every month.
lol I was jus thinking the same thing
-------------------- Making sure these bored retired hobbyists stay busy during the holidays. Looking through some of them it looks like they Waste so much time and effort on these mediums they should be compensated salaries. Everyone could use some holiday double time ;p
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Kush_Zombie
smug piece of shit



Registered: 10/22/14
Posts: 4,793
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Re: Where should I invest $6000 safely at 25 years old? [Re: Morel Guy]
#23943553 - 12/20/16 01:55 PM (7 years, 1 month ago) |
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Quote:
Morel Guy said: Wait til after the election. I hear the economy always goes to shit after a new elected President. Housing could go to shit again. Hate to see you invest then take a tumble after the after shocks of a new Government.
I'm sure the economy will get better towards the end of his election
-------------------- How to get started in bulk: Presto 23-Quart Pressure Cooker BOD's Simple as FUCK Still Air Box PastyWhyte's Easy Agar Tek Munchauzen's Cultivation Video Series How EvilMushroom666 Prepares His Grains (I use jars with Synthetic Filter Discs) What is G2G? (Grain-to-Grain) Damion5050's Coir Tek (I use 5.5 - 6 quarts of water instead of 4. Also ignore step 13 and ignore the monotub completely. The only purpose of this tek is to show you how to make a simple substrate. I also add gypsum to it but not necessary) Spitball's Monotub Tek (A liner isn't necessary but is useful) Use 6500k lights throughout the whole process. When you wake up, turn the light on. When you go to sleep turn the light off. It's as simple as that.
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Brian Jones
Club 27



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Re: Where should I invest $6000 safely at 25 years old? [Re: Kush_Zombie]
#23950825 - 12/23/16 03:56 AM (7 years, 1 month ago) |
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Inflation has been low since the 70's, and very early 80.'s so I have no idea what you people are talking about.
-------------------- "The Rolling Stones will break up over Brian Jones' dead body" John Lennon I don't want no commies in my car. No Christians either. The worst thing about corruption is that it works so well,
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Brian Jones
Club 27



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Re: Where should I invest $6000 safely at 25 years old? [Re: tripo3]
#23950860 - 12/23/16 05:04 AM (7 years, 1 month ago) |
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Quote:
tripo3 said: savings, or cd is best choices or a bond, or if have time and can make more side money put it in a fixed income
Fixed income is dead. The percentages are so low they are embarrassing. Like for every dollar you put in you get 2 cents I would still take a chance on an index fund or a 60/40 stock/bond fund. I guess it depends on weather Trump has something encouraging happen or a catastrophe. But fixed income is now so useless you might as well hide the money in your basement.
-------------------- "The Rolling Stones will break up over Brian Jones' dead body" John Lennon I don't want no commies in my car. No Christians either. The worst thing about corruption is that it works so well,
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