An investment question

pookie · 05-28-2005, 09:38 AM

Ok I know it may sound bad, but after the recent retirement thread I am looking for some advice. I am what I consider to be young 27 and have been in the workforce for a whopping 4 years, but I am anal retentive about my spending. And right now my wife and I are DINK's (Dual Income No Kids). Anyways when I get done with the sale of an old Jeep I will have about $4500 just sitting in the bank. I know its not a lot, but its pretty much disposable, I can spend it or save it. I have been toying with the idea of spending some on my car, but there is not really a whole lot that it needs, buying a Ducati, or just investing the money so I will have it down the road. Now obviously buying the Ducati is winning at the moment, but the more and more I think about it I want to invest the money.

My question is it wiser for me to invest the money now and have it down the road? And if so what is the best way for me to get the best return on my money? Or is it better to live life and buy something I want now, before I have kids and they drain me of my financial well being? Ha.

Thanks in advance
Ryan

gassy · 05-28-2005, 09:43 AM

Invest half and spend half. That's what I'd do.

Moses · 05-28-2005, 01:17 PM

Have a sit-down with a professional. (Not an insurance salesman!*)

They will calculate how much you will need to retire based on your projected earnings and retirement goals. It may mean that 20% or more of your salary needs to go directly into retirement savings. After you have developed a savings strategy and plan for retirement, you are likely to be more relaxed about "disposable" income. If your savings obligations are met, you can play with the rest.

SEE A PROFESSIONAL!

* Never get investment advice from someone who gets a variable commission on your savings.

Milu · 05-28-2005, 01:24 PM

Very good advice from Moses.

However, before talking to the investment professional it would be best to buy the Ducati

tabs · 05-28-2005, 02:11 PM

I will follow Moses to the land of milk and honey....I think U should do the same....

At 27 put the money into a Growth Fund and let it ride for the next 35 years....you will be amazed at what it will grow to....a Ducatti will only depreciate....

But if U want a toy save for it....and when U reach the goal U will know whether you really want it or not...

I'll tell U all in my tortured soul the only way that I can spend money...besides the obvious utilitarian household objects ....in other words spend money on TOYS....is to buy something that RETAINS VALUE....for the MOST part will increas in value...and that asset class is called Collectables... I am paticularily drawn to Antique Guns, Art, CA Handmade Sterlling and somewhat to cars...mostly Porsches at this point...

Other than that going to a Buffet is a cheap way to fill up......

Steve Carlton · 05-28-2005, 03:48 PM

If don't own your home yet, consider saving towards that. You can get much better terms with 5% down rather than no down. And you should have some cash reserves, anyway.

A $4,500 Duc won't stop costing you once you buy it...

pwd72s · 04:02 PM

Here's a good posting board to lurk in...ROTH IRA, young man, think ROTH IRA, in a as diversified and low cost index fund as you can find. IMHO that would be Vanguard's total stock market fund.

http://socialize.morningstar.com/NewSocialize/asp/AllConv.asp?forumId=F100000015&csection=VanguardDiehards

(edit) ROTH IRA is for retirement...if you have a specific financial goal in mind, such as buying a house, then go as a straight investment. I'd suggest both...hard to believe at your current age, but age 60 will be here quicker than you think.

Fishcop · Fishcop's Garage

$4500 should upgrade your Porsche engine nicely!

jyl · jyl's Garage

People should have enough cash set aside to last 6 months or more, in case bad things happen. DINKs are safer, I guess, but bad things happen to them too. I wouldn't buy a Ducati, or invest in anything but a money market fund, savings account, or other extremely safe and liquid asset, until you have 6 months' safety net.

pookie · 05:14 PM

I should have added that we have already purchased our first home. Well, we are paying on our purchase, ha. I think we're fortunate that real estate in SC is much cheaper than in Cali. Also I was thinking Roth IRA. This is money that I have that I can spend any way I want, i.e. I have the permission of my financial advisor/wife to spend it or save it, it's my money. The thing is I think I would rather save it now to spend later, but just don't know the best way to do it. I know the Duc will deprciate, and won't be worth a lot, but man do I lust after one right now. I guess I was looking for some wise advice from those individuals who have been in my shoes, and have wonderful stories about how they were so happy they saved young so they could spend old. Guess I'll get to be one of the ones that tells that tale.
Thanks guys.

pwd72s · 06:27 PM

Quote:

Originally posted by pookie
I should have added that we have already purchased our first home. Well, we are paying on our purchase, ha. I think we're fortunate that real estate in SC is much cheaper than in Cali. Also I was thinking Roth IRA. This is money that I have that I can spend any way I want, i.e. I have the permission of my financial advisor/wife to spend it or save it, it's my money. The thing is I think I would rather save it now to spend later, but just don't know the best way to do it. I know the Duc will deprciate, and won't be worth a lot, but man do I lust after one right now. I guess I was looking for some wise advice from those individuals who have been in my shoes, and have wonderful stories about how they were so happy they saved young so they could spend old. Guess I'll get to be one of the ones that tells that tale.
Thanks guys.

Whatta piece of crap. I was sincere. Now? Your money, your choice. Rots a ruk, kid... Buy the Duc ! Just have lots of term life insurance so your widow does okay...(edit) Hey, anybody here have an opinion about how Danica Patrick will do tomorrow?

M.D. Holloway · 05-28-2005, 08:21 PM

a Christmas tree farm...

pwd72s · 05-28-2005, 08:37 PM

Quote:

Originally posted by LubeMaster77
a Christmas tree farm...

Definitely! Sure thing!

M.D. Holloway · 05-28-2005, 08:48 PM

Quote:

Originally posted by pwd72s
...Hey, anybody here have an opinion about how Danica Patrick will do tomorrow?

8th place or she won't finish at all...but I really hope she wins.

pwd72s · 05-28-2005, 09:02 PM

Me too. Seems to me Rahal doesn't give rides to people he thinks can't win... She may be drop dead gorgeous, but I'm thinking she can drive!

Steve Carlton · 09:42 PM

Ouch!

M.D. Holloway · 05-28-2005, 09:56 PM

Shes pretty guttsy but I'm thinking that she is gonna be too ballsy and get herself into a world of hurt, then again, it could go the other way and she may hold back trying to be too conservative and let certain opportunities slip. How did she run on Carb day? I didn't see her times.

M.D. Holloway · 05-28-2005, 09:59 PM

I'm glad she isn't blonde or she would garner zero respect, case in point, poor Anna K. Oh ya, she actually sucks, scratch that comparison.

gavinlit · 05-29-2005, 12:41 AM

On the original question - buy the ducati, see an advisor & take him for a rip on the back of it. Then see what he says

M.D. Holloway · 05-29-2005, 08:52 PM

Quote:

Originally posted by LubeMaster77
8th place or she won't finish at all...but I really hope she wins.

I swear to God I was gonna post that she was gonna come in 4th but I thought, 'no way, to high, go for 8th' Dang! I could have been the indy seer of OT.

She almost lost it 4 times though...