/biz/ - Business & Finance

[Anonymous No.22840970]

How can I lean some basic financial literacy? I make good money as an engineer, but I'm unsure of what to do with it. I'm aware enough to know that having six liquid figures just sitting in a couple shitty savings accounts is not good. My goal is early retirement, 45-50. I am 24 now. Most advice that I read seems very counter-intuitive to early retirement. Why would I max 401k or IRA contributions when I can't touch that money (modulo tax gouging) until 59.5?
Plz help. No memecoins either.

[Anonymous No.22841220]

answer, coincucks

[Anonymous No.22841303]

>>22840970
Contribute 3% or 5% of your salary to your Roth IRA, depending on what your employer will match. Invest the rest into stocks, crypto, or index funds, etc. A good mix of investments is great. If you live somewhere inexpensive (I'm 23, buying a home this spring, also an engineer), consider turning your first home into a rental once you move out of it. Your first home shouldn't be anything special, but should be located in an area where its value will appreciate. Depending on the value of your home, which is intrinsically tied to its location, you can net $300-600 a month in passive income by renting it. You should also consider if you're single to invest at least 20% of your paycheck early on, especially since you're young. Avoid gambling and keep a level head, try not to move money around too much because it's easy to get burnt this way if you aren't a financial guru. I personally invest $250 a week via dollar-cost averaging. If you need some money in the future, you can lower your DCA amounts to offset any future expenses you foresee. Do your best to avoid buying a car (especially new), don't get anything over $20-25k if you must. Car payments keep people perpetually poor because it's money they could be investing, and after all, why get a cool car to impress other poor people? Same goes for the latest iPhone, latest $60 videogame release, etc. Try to avoid living in a big city if possible. As you grow older and get married, have kids etc, your contributions will have to lower, so it's imperative that you get started now. And remember the most important piece of Boomer wisdom - time IN the market always beats trying to time the market.

This won't fast-track you to retirement by 30, but with the range you gave, you can easily be sitting on a milly and achieve a ~$40k passive income if you manage to follow these steps. There are better/faster ways to do this, but require more risk and knowledge. More anons may be able to spill the beans on them.

[Anonymous No.22841441]

>>22841303
Also, I'd like to add that I'm all-in on LINK. I trust its potential growth the next few years more than I do stocks, but that isn't a good enough reason to shun stocks entirely especially as you want stability while you grow older. Since we're young, investing in volatile markets isn't nearly as risky in terms of consequences.

[Anonymous No.22841472]

>>22841303
>>22841441
How do you extract liquid value from investments, though? index fund, for example. and I already max out 401k and roth ira, but again, what exactly is the point of having all this money tucked away growing if you can never actually use all of it? you're forced to drip feed yourself.

[Anonymous No.22841476]

post more khazaar

[Anonymous No.22841619]

>>22841472
I don't trust retirement schemes either. They serve a purpose (and are good), but at the end of the day it's meant to keep you working. However, not contributing what your employer will match essentially means you're leaving money on the table. It's something that may save your life later on, or serve as extra gravy. 3-5% of your income is worth the security it adds especially as you enter the latter half of your life.

If you have $1m in an index fund, assuming an annual return of 4%, that means your $1m will be worth $1.04m after a year. The longer you leave the money in the fund, the more its value will accrue over time, which is why reinvesting returns back into the fund is important if you don't need to use all of it. As an engineer you should have no problem getting about $2m by the time range you provided, as your money invested early will continue to grow.

[Anonymous No.22841803]

>>22841220
Stop posting jewesses

[Anonymous No.22841889]

>>22841619
>>22841303
What do you think about maxing out 401k? I started working this year also as an engineer and maxxed out my 401k to decrease my taxable income, then reinvested everything I have left over (1k/month). Right now I have ~20k in my 401k and 120k in crypto (link)

[Anonymous No.22842135]

>>22841889
The problem with the 401k is that you'll pay taxes on the money as you withdraw it, and since you'll likely be withdrawing at a higher tax bracket, you'll pay more in taxes. However, it also allows your money to grow more in the meantime because you're contributing before taxes. I don't max my contributions just because my expenses aren't at a point where I'd feel it's justified, but if you can make ends meet doing that then sure it's great, provided you're okay with not touching any of that money until you're 60. Different strokes for different folks. The fact that you have over 100k in link leads me to think that your strategy is A-OK for you

[Anonymous No.22842219]

>>22840970
by reading books?

[Anonymous No.22842249]

>>22840970
i bet reddit knows.
Real answer buy crypto.
But you won't

[Anonymous No.22842310]

>>22841803
This, no more jewess

[Anonymous No.22843189]

>>22840970
Who is this big titties Jew ?

[Anonymous No.22843213]

>>22843189
thats a man. name's ben.

[Anonymous No.22843251]

>>22843189
Ben shapiros sister, Abigail. She has a YouTube channel where she tells women to stop dressing like whores and such

[Anonymous No.22843269]

>>22840970
some into 401, some into btc. come back in 20 years. ez.

[Anonymous No.22843276]

>>22840970
Them titties sitting right.

[Anonymous No.22843364]

>>22843251
She is a whore I would like to suck on those titties

[Anonymous No.22843429]

>>22841441
Since you seem to have a good head on your shoulders mind sharing your stack size? I just want to know how btfo I am as a 35 yo

[Anonymous No.22843437]

>>22843189
The great-granddaughter of Anne Frank and Adolf Hitler.