I want some wealth

[kymgirly]

I got my discharge in august and have been thinking about trying to gain some wealth. I want some stocks maybe a IRA or something. Does anybody know reputable financial planners? I make peanuts for pay but with no out standing debt I can save etc....

[tobee43]

that's a difficult question to ask and answer...it's like asking someone if that restaurant is good and you eat there and you go there and think it's terrible.

i personally, have always felt only invest in the market what you can afford to lose. that being said, we invested ONLY in (safe...although nothing is SAFE nowadays) bonds with major corps...i.e. we invest 10k in ford the bond pays 7.9% annually, its a 15 year bond, rated AAA....while these bonds yield the almost 8% annually, your principle is protected ( that is of course if the company doesn't go under!)...and of course they can (ford in this example) call the bond in early.......at which time you would get your entire initial investment of 10k back...thereby protecting your principle....that's called "conservation" investing and paid better than one's local bank on cds.

however, this is an extremely personal choice and you do decide to go with a firm, i would suggest that it has an excellent track record...hard press to find now a days!!

best of luck to you!!...and READ and READ and education yourself!!!

[dumpinmydebt]

I think in this economy I would personally be a little scared to start investing in stocks. I know, it requires investors to build the economy back up, but still. Bonds are a better option.

I like to know where my money is at and not worry that someone else's mistake may cause me to lose it. I don't trust anyone with our money except us. lol.

[FTWORTH]

I think in this economy I would personally be a little scared to start investing in stocks. I know, it requires investors to build the economy back up, but still. Bonds are a better option.

I like to know where my money is at and not worry that someone else's mistake may cause me to lose it. I don't trust anyone with our money except us. lol.

Companies are making record profits so it's been a great time to invest. Airlines have never made money in a recession and they're making lots of dough. Things are better than they appear.

AMR employee here

[DebtHater]

This is probably a better time than any to invest, as long as you plan on keeping the money in long term. Sure, stocks are on the unpredictable side right now. The economy is down. So if you have the money, when is a better time? It's better to buy when things are on sale, right? Right now the market is on sale. Buy low, sell high.

As far as what to buy? I would stay away from single stocks that are all or nothing. As a beginner, check out some mutual funds with a long term proven track record. I have money in Vanguard accounts, not saying it's better than others, but it's working for me. Before investing anything I recommend getting well educated in investing. Even by going to a financial planner, you have to find the right one. One that is looking out for your own interests (making money) not looking out for his own pocket.

[tobee43]

[QUOTE=DebtHater;474923]This is probably a better time than any to invest, as ls

and many of the vanguard mutual funds have held out....but frankly, i'm scared to death!!!!! LOL!!!!!!

we are way to old to recoup any more lose at this point in our lives.

one should also be mindful of where or what position they are in their lives...a young 20 year old always has the ability to recoup any loss that may occur early on in their investing adventure...( i do call it an adventure...

then you got 30 something married now worried about getting their kids thru college...and need to yield high gains...tough one.

then you got the 40 somethings ....getting ready to look carefully to see if and when they will be able to retire at 65 if they are careful...and so on and so forth.

we here in our 50 and 60's are too volatile and cannot manage another large loss...that's for certain...........so for us...it's our mattress..LOL!!!!!! oh! and good homeowners insurance just in case of a fire!

[AngelinaCat]

You may want to start listening to the talk radio shows in your area and look for the financial planning shows. Bob Brinker is nationally syndicated and is well respected. The Dolans, and The Motley Fool, also are syndicated nationally. Your area will have local financial planning talk shows. These usually only air on the weekend.

There is a show, who's name escapes me right now, that is basically an hour-long infomercial for the guy's books and webinars. Stay away from that one.

Good luck to you.

[bk2009]

I would not be doing any investing until I had a six month fully funded emergency fund.

[AngelinaCat]

I would not be doing any investing until I had a six month fully funded emergency fund.

Excellent advice. I would also add this: my DH and I each carry a $100.00 bill folded and hidden in our wallets for emergency use only. This is for events such as breaking down in the middle of I-26 in the Smokey Mountains, and having to be carried off the mountain by a roll-back. Those drivers usually do NOT take checks or credit cards...

[tobee43]

I would not be doing any investing until I had a six month fully funded emergency fund.

BEST advise EVER!!!! especially with this economic climate!!! for me, after what we have been through...i think it may even be a year of two!!

[jcj112562]

As has been said here, get a proper, liquid emergency fund. I would also recommend that, if your employer has a 401k or similar, and they match contributions in some fashion, make sure you put as much in there as you can, up to what they match. I know my employer matches 75 cents for every dollar I contribute, up to 6% of my gross salary. I don't know quite where you can get 75% interest on tax deferred savings except in that way. I am just happy that I can now fund that fully, and park a reasonable amount into my "hidden" savings account, aka emergency fund.

John

[meateater]

kymgirly,
I very much agree with the folks suggesting a fully funded emergency fund before any investing. Did you have funds set aside in a retirement account that survived BK? I'd consider setting up a Roth IRA and putting money there, you can always get it out if there's an emergency, but once a year passes, there's no way to put money in for that year.

About 5 years post-BK, I finally started saving for retirement (I SHOULD have started once the BK discharged). Then the recession hit. I've made contributions to my IRA every year, to the max, but have it in the most conservative account possible (essentially, a savings account). I will shift it to something that has a better return as soon as the initial deposit (which was in a fund targeted to the expected year of my retirement) gets back to the level I initially funded it at. This might not be the best decision from a return perspective, but the fund has been volatile, and I am extremely risk aversive.

If your going to have major expenses in the next few years (buying a car, moving, etc.) I'd consider keeping whatever you can save in a safe savings vehicle. ING might only pay 1.1%, but you know the money will be there when you need it.

[kymgirly]

I opened a interest baring saving's account with Chase and they have some financial planning services i can take advantage of. I do contribute to a 401K also.

[DebtHater]

I opened a interest baring saving's account with Chase and they have some financial planning services i can take advantage of. I do contribute to a 401K also.

A savings account is good for an emergency fund due to it's liquidity. As has been said, six months is a good emergency fund. Some "experts" will say eight months.

After an emergency fund is fully funded a retirement account is a must. 15% of you income is a good amount to contribute to retirement accounts. A 401K is a account through an employer. I would definitely contribute to one as long as they match and then only contribute up to the amount to get the full match. After that see if you're eligible for a ROTH IRA. If you can put the balance of the 15% of you income into a ROTH, great. If you still fall short of the 15% then put the balance into the 401K.

As far as Chase's investment services, I wouldn't discount them all together (aside from the fact I like the big banks as much as my ingrown toe nail), but an investment company such a Vanguard, offers a more diverse selection of funds. If you have doubts I would see the help of an INDEPENDENT financial planner.

[HHM]

Most regular financial planners have minimum amounts, e.g. $100K

So, that pretty much leaves you with the retail establishments such as Edward Jones or Ameriprise.