15
votes

Young People Need To Think About Investing

posted October 8, 2008 - 7:58am
Young People Need To Think About Investing

Recently, I've been talking with a friend who is the same age as me (29,30) about investing. With stocks plummeting like the Titanic after ramming an ice berg, young people need to pay attention.

If you aren't planning to retire in 30 years then this may be the time for you to buy into some top companies at the lowest price possible.

Let me rephrase that, 2009 might be the time to get into the market for the long term. If you are lucky enough to have an extra grand or so lying around. This is not the time to invest money you need or money you'll need in 5 years.

The good news is we're going to see valleys happen in the next year or so. Look for when big companies' stock starts to turn on the up. I'm only talking about 20-30 year long term positions.

Personally, I think we've got a long way to fall before we hit the valley. Wait till the holiday season when people decide they are not going to buy presents. Then the major layoffs will start in January.

If you are under 40 just keep in mind that you might be able to take advantage of this situation. Keep saving what you can and wait. I do not recommend putting money in a 401k right now. That's called buying on the way down. It doesn't make sense. I am not an expert investor, but I do not understand why the talking heads are saying to keep contributing to your 401k. I just don't get it.

Everyone should be worried about losing their job. So now is the time if you are young to try to save something. I know it is hard, but spending money on big purchases isn't smart right now.

Use Xomba to generate some savings. If you can get up to $100 a month then that's an extra $1,200 a year.

Thoughts? Comments?

Author: Nick - Xomba CEO
-A +A


Comments

@Life-is-sweet-me-Rycharde Manne-nick--Directing Money's Flow

mythman - Wed, 2008-12-11 8:31 am
That IS one way of looking at it, thinking money 'grows' as you build your dam higher-and-higher to stop more of it. The money system is a river of 'sewage that the wise use as fertilizer'. You take your scoop down to the river and carry the crap to your local bank, they will wisely use it as fertilizer---whatever type of account you open. If you don't know how to use the savings-account's overflowing return-money as fertilizer, then it's better that you open a checking-account and let the money flow go on uninterrupted. It'll be there when you can take up the scoop again! lol ---Uncle MythMan (http://www.geocities.com/jmythh2k5) & we Xombies Help You GET PAID if You Help Us! Explaining Money, Love, God etc. WAKE UP & Defend Your Honor! ...

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That's one way of looking at

life-is-sweet - Tue, 2008-11-11 10:32 am
That's one way of looking at it, but I think in the end it all comes down to each individual and how THEY choose to look at things. I choose to look at it in the first way as I mentioned in my previous post. I know that even if I don't have a savings account, my money will still grow without interest if I keep adding to it, instead of indulging in unnecessary things. Buy books cheap on half.com

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@Life-is-sweet-me-Rycharde Ma.-Ni.--Each Way is 'Better' Somehow

mythman - Tue, 2008-11-11 10:02 am
The two main methods these 'ways' are better are '-for yourself' and '-for everyone.' The best aim is to make them both the same. (I think the bank invests your money and takes profits anyway, they just 'cut you in' for a bit of it when you take a savings account.) At first, the 'savings account' would seem to be the 'better for you (and thus slightly 'sinful')' approach; but that's only if you spend ALL your cash on selfish ends---if you invest the interest in improving your local community, your family-life and your co-workers' comfort, then it's almost 'sinful' to open a 'checking account!' ---Uncle MythMan (http://www.geocities.com/jmythh2k5) & we Xombies Help You GET PAID if You Help Us! Explaining Money, Love, God etc. WAKE UP & Defend Your Honor! ...

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Mythman, Regardless of

life-is-sweet - Mon, 2008-10-11 6:50 pm
Mythman, Regardless of whether or not this dogma applies to my religion, just think about what it states: no one sins unless there's a better practice to choose instead. There is always a better practice if we really look into matters. For instance, instead of putting money in a savings account (interest yielding) I can put money in a checking account. It's very simple, however, we tend to look at what's good for us, instead of what's right/wrong; sinful/or not. Buy books cheap on half.com

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@Life-is-sweet--On Religion-in-the-Market

mythman - Sun, 2008-9-11 9:36 am
A scene from *Jesus Christ Superstar* flashes into my head: My--- tem-ple should be--- A house of pray`r ... But you have made it--- A den of theives. GET OUT, GET OUT, GET OU-OU-OU-OUT. I'm not angry with you for applying your philosophy to money, but 'the devil's in the DOGMA' (i.e. no one sins unless there's a better practice to choose instead). I know that the 'dogma' ~I~ apply (Anarchist Christianity) may not seem to be the same as ~yours~ (Islam); but the way I see it, money is off-limits to any dogma but 'filling the need.' And if you sense no need withing your self/family/community, it's best to put the money back into the system (the best way you learn how). ---Uncle MythMan (http://www.geocities.com/jmythh2k5) & we Xombies Help You GET PAID if You Help Us! Explaining Money, Love, God etc. WAKE UP & Defend Your Honor! ...

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good stock market education

Prabhjeet - Sun, 2008-9-11 9:27 am
Nick, this is a very relevant and timely post full of financial prudence. The post along with the thread is a good stock market education for a novice like me. Thanks, nick for such detailed write up. I had found a similar useful website on stock market/financial education some time back that i mentioned in my Xomblurb Here

Prabhjeet's Xombyte

@Rycharde Manne-Life-is-sweet--Money STARTS OUT as "Interest"

mythman - Sun, 2008-9-11 9:05 am
Actually money starts out as "debt," the way this free video from Dennis Kucinich explains it; but people probably prefer to think of it as 'interest' ('repayment of debt beyond that which is owed'). So all money starts out as 'imaginary'; it becomes 'real' when one "earns it" with 'the sweat of one's brow' (Andrew Carnegie/Napoleon Hill's terminology for what we would call 'doing the time' today). ---Uncle MythMan (http://www.geocities.com/jmythh2k5) & we Xombies Help You GET PAID if You Help Us! Explaining Money, Love, God etc. WAKE UP & Defend Your Honor! ...

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Stock investing

Idlewild - Sat, 2008-8-11 10:55 am
You're welcome. Here's a link to an article I wrote a year or so ago on investing that might be helpful... http://www.associatedcontent.com/article/158660/how_small_investors_can_buy_stocks.html Long ago I had rolled over some retirement money into an IRA and starting putting it in stock mutual funds... and then the 1987 market crash happened a few months later. I didn't even think of pulling the money out, because that would have meant locking in a huge loss. The stock market rebounded in less than two years, and I recouped my losses (and then some). Stocks perform well over the long haul, but can be volatile in the short term. If a young person has money to invest for retirement 20 or more years in the future, they can ride out the ups and down of the markets. If someone's looking to invest for shorter-term goals, a bond fund or even a money market fund might be a better choice.

Very interesting Idle, thank

life-is-sweet - Sat, 2008-8-11 10:39 am
Very interesting Idle, thank you. You're probably right, if I keep looking, I am sure I'll find stocks that adhere to my religious restrictions. With stocks being so widely popular in every part of the globe, there must be something out there. I am surprised at how you managed to keep a positive view about the 401K. I have had very, very close family members losing so much money over the past few months from their 401K. This made me just toss the idea out of my mind. However, I can understand your point about how this would look in the long run even if things are not so good now. Also, why don't one of you guys write up a detailed xombyte explaining stocks, I'll be glad to read it. Buy books cheap on half.com

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Good point

Xomba Admin - Sat, 2008-8-11 12:51 am
"Not to mention the fact that if you invest in your 401k or other retirement plan with pre-tax dollars, you can really reduce the taxes you pay." Xomba Team

Jeremy Nettles
Vice President of Operations

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