Dow 15000 S&P 1600 highs

[KuJoe]

+1 to what mitgib said. I know people at my work who don't invest anything in their 401k, which is FREE MONEY. Compared to other companies, it's not much ($1750/year) but in the 6 years I've worked there my 401k is more than 4 times what I put into it and is almost as much as I owe on my house (low projection for my current investment is $1.2million when I turn 65, all because I have so many years for that money to grow).

The younger you start putting into a 401k or IRA, the more beneficial it is for you. Heck, I was able to take a loan against my 401k for a down payment on my new car and it's cheaper than getting a loan anywhere else because I pay the interest to myself.

Everybody talks about how risky the stock market is, but I don't think I've ever seen a negative ROI in any of my annual statements and you always have the option to put your money into low risk investments (low risk low reward, but still better than the pennies you make off a savings account or the lint accrued under your mattress).

As mitgib also pointed out, you don't want all your eggs in one basket so be sure to diversify!

For my daughter, I've been buying her savings bonds each year as apposed to a savings account because it's a guaranteed return and will make a nice gift when she turns 18.

 

[mitgib]

For my daughter, I've been buying her savings bonds each year as apposed to a savings account because it's a guaranteed return and will make a nice gift when she turns 18.

Sharebuilder.com and the S&P 500 Index (SPY) every month, sure it can go down sometimes, but in 2 decades, it will probably go a long way towards college, but SPY is instant diversification to go along with the (I hope) I bonds.

 

[jcaleb]

warren says US economy will continue to rise. Specially this year.

 

[drmike]

Mortgages are definitely more difficult to obtain right now, but it's not impossible.  In the US, they want at least 2 full years of business history if you're self-employed.

One other thing to consider if you don't have extra money to save is to get a good rewards credit card and charge everything on it, but pay the balance in full each month.  For instance, you can get 2% cash back with no annual fee through a Fidelity American Express or 1.5% on a Fidelity Visa.  The cash back is automatically deposited into a Fidelity account each month, and you can save/invest that money.

I am clueless why anyone is truly considering mortgages.  Just look up the definition of that word for an eye opener.  Plus as you may or may not know, property titles due to MERS(sp?) fiasco has resulted in countless millions of property that cannot have a proper clean title and outright ownership.

My model is to buy distressed/uncared for/inherited properties from private owners on land contracts.    I'd rather deal with humans under ancient contract law and enrich them than a bank.  Every property I've bought has its quirks.  But mortgage free and did so in < 5 years of payments on three properties.  I hold property for my use and refuse to get into rentals or anything like that.  Too many issues.

 

[KuJoe]

Mortgage payments are cheaper than rent checks (my 2 bedroom/2 bath apartment is over $500 more a month than my mortgage on my 4 bedroom/1.5 bath house) and doesn't require any cash up front which fits the criteria for most US citizens. I know a lot of people buy houses/property as an investment or so they can upgrade later, I bought my house so my daughter could have some stability and not have to worry about moving every few years. I also bought my home so I wouldn't need to work when I turned 65.

Unfortunately I did not foresee that I would be moving 2000 miles away 2 years after I bought it so now I rent it out for more than the mortgage payment and I can hopefully pay it down faster. Additionally if things don't work our here in Colorado I have a place to come back to and have even included provisions in the rental agreement for that.