[jlo mein]

wow...is it bad that I'm a third year Economics major and most of this thread is going way over my head?

 

[will75]

Quote:

Originally Posted by jlo mein /img/forum/go_quote.gif wow...is it bad that I'm a third year Economics major and most of this thread is going way over my head?

Nah. Most of the stuff we are discussing is very simple but it's more of a "life lessons" and experience type of thing. If someone talked to you about it for ten minutes in person you would get it.

If you really want to understand some of it shoot me a pm and I'll talk to you about it.

 

[yage]

Lots of good posts. I have to second that article by the "Dilbert' author. It's a lot of good, common sense advice.

And for some good financial reading I suggest "A Random Walk Down Wall Street" and "The Boglehead's Guide to Investing".

As for just starting out, most people would advise that you have an emergency fund before you start investing - so you can take care of sudden expenses like an expensive car repair or a lost pair of headphones (hey, that can be an emergency) without having to sell your investments.

I think another good tip is to map out your financial goals (how much you'll need in how many years) as well as your risk tolerance (how you stomach the ups and downs of the market) and start tailoring your asset allocation and budget to that. For example, a house downpayment needed in three years is probably best kept in a high-yield savings account, a money market fund, or a CD since they currently pay out decent interest rates and protect your principal.

If you're investing for retirement, I'd definitely look into your company's 401k plan. If they offer a percentage of matching funds on your contributions, there's no sense in passing up free money! And start up a Roth IRA too, after you've contributed to your 401k to get the company match.

In any case, I also advocate the lazy man's approach to investing - you can pick three funds that will diversify you across the stock and bond markets - a total stock index, international stock index, and total bond index funds should do it or you can pick a target date retirement fund to cut down on investment costs and initial investment minimums. Contribute regularly, don't chase performance, and don't tinker with your allocations unless your risk tolerance changes, you're rebalancing your portfolio, or you're nearing retirement and you should do just fine...

Just my two cents...

 

[Konig]

my parents are contemplating buying a residence property in the states but unsure of which state they want.

Does any1 know how much a ~3600sq feet house in san francisco well off area (no im not talking abt living with superstars or billionaires but just well off professionals) will cost?

 

[Shizelbs]

Quote:

Originally Posted by Konig /img/forum/go_quote.gif my parents are contemplating buying a residence property in the states but unsure of which state they want. Does any1 know how much a ~3600sq feet house in san francisco well off area (no im not talking abt living with superstars or billionaires but just well off professionals) will cost?

It will cost a ton. SF is one of the most expensive markets in the US.

 

[will75]

Quote:

Originally Posted by Shizelbs /img/forum/go_quote.gif It will cost a ton. SF is one of the most expensive markets in the US.

Guess: Several million. Someone from the area can chime in. In a well off section of St. Louis a newer home that size would cost around 600-900K.

 

[Konig]

Quote:

Originally Posted by will75 /img/forum/go_quote.gif Guess: Several million. Someone from the area can chime in. In a well off section of St. Louis a newer home that size would cost around 600-900K.

gosh, several million??????? i can even imagine the property tax latter on

 

[Shizelbs]

Your guess is probably very accurate. Huge difference between the markets in St. Louis and San Fran.

 

[jefemeister]

a 40 yr, $7k CD? That wasn't the smartest move.

 

[iGig]

Quote:

Originally Posted by jefemeister /img/forum/go_quote.gif a 40 yr, $7k CD? That wasn't the smartest move.

Quote:

Originally Posted by Shizelbs /img/forum/go_quote.gif COD is cash on delivery.

He said COD, so in 40 years he'll get a knock on the door with $7k worth of very devaluated pesos...er, I mean dollars.