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Do you have any questions about money, personal finance, investing that you have been afraid to ask? Ask it here.
I've been on here for a couple months now and feel like I've learned from many of you! So I'm creating this post to open it up a bit. Has there been a question about personal finance or investing you've been afraid to ask? Maybe you thought it was a stupid question, didn't feel it was worthy enough to post or something else? Trust me, this is a supportive forum, so please do ask away!
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Yes! I'm in my mid-20s, saving away, working really hard, and trying to set myself up for success. If I think my earning potential is much higher later in my career and making now about 40k, should I open an IRA or a Roth IRA?
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@Beth890 Roth. You're in the 12% tax bracket and assuming you're single. If you think you'll be making more than $40,125 in the future (assuming tax brackets more or less stay the same), congrats you'll be in the 22% tax bracket. It's better to set up a Roth since you qualify now and could save more money by the time you need it.
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@Vinny869 I say Roth. If you make a few simple assumptions (like your tax rate when you withdraw to compare your tax savings of a Roth vs Traditional), likely you will save more with a Roth. Your gains are also tax free, which is a huge plus. You may know this but your Roth eligibility phases out as your income increases. Take advantage now while you can :)
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I budget into a journal that I bought on Amazon because I prefer to write things out. So far it's working out fine and I figure it's better than nothing. People seem to be using apps and programs online... Does anyone else budget on paper nowadays? Is it a bad idea?
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@Ivana725 Stick with what you prefer and what keeps you motivated! It's not a bad idea if it works for you. When it stops working for you is when you should look at other options. That my opinion!
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How often should I check in on my investments? Some people have advised to set it and basically forget it. Am I the only one that's checking it like everyday? Should I not?
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@Albert751 Your investments is your hard earned money being put to work. Why shouldn't you look at it everyday? 100% fine and in fact you should check your investments as often as you would like... as long as you're not buying and selling on your emotions because of it. Everyones tolerance for volatility is different. If you think you're prone to making an investment buy or sell decision because of fear or greed, check less often.
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@Guy751 I like that viewpoint. Comes down to whether I can trust myself or not!
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I'm young, no debt, some savings, but don't earn much. Should I invest that money now?
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@Lucy346 I'd try to get to at least 3 months of emergency savings before investing! If you've got it already and don't have other savings goals, invest the rest.
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@Jess225 awesome thanks for the feedback!
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Need some advice on how to pay off debt. Which should I pay off first? Should I try to pay them all little by little or pay off 1? 11k loan (12.75% interest) 13k credit card (10.5% interest) 10k car loan (4.65% interest)
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@Antony897 $11K loan because the interest rate is highest. Wipe that one out first, but keep paying minimum payments for the other two. I would think it's harder to pay all of them off at the same time. That might take a while. Might also be more motivating to get the most expensive one of the way.
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How does expense ratio work exactly? Is it a one time transaction fee when I buy an ETF? How does the fee then get charged or taken out of my account (from a linked checking or cash account)? Thanks!
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@Dan561 It's a recurring fee charge annually. For simplicity say an etf has an expense ratio of 1% and you invested $100. You'd pay a fee of $1. If your 100 grew to 200 the following year, you'd pay $2. You get the point. The fee is then taken out of your return. If the fund earned 10%, they will pay you 9% and keep the 1% as their fee.
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@Jan274 OK, got it now!
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