Results 1 to 6 of 6

Thread: I am totally naive....

  1. #1
    Featured Member Kalligirl's Avatar
    Joined
    Jun 2006
    Posts
    1,134
    Thanks
    0
    Thanked 18 Times in 15 Posts

    Default I am totally naive....

    ..when it comes to different kinds of bank accounts where you can get interested. Actually, on just investing money in general I am EXTREMLY naive and have not educated myself. Please be sensitive to my naivety, it may shock you. (Just by looking a lot of the posts in this section, I am lost in most of them which makes me want to learn more. any-who...)

    I want to open a bank account which will be my retirement fund. Here are some of my questions:

    - Are there any types of bank accounts where I can continually put money into w/o touching for a certain amount of time, where I will gain interest?

    - Would I have to pay tax on this?

  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: I am totally naive....

    Kalli, if you are SURE that you are willing to commit this money to a retirement fund, then there are some tax advantaged types of accounts approved by the gov't / IRS that you may want to consider. I'm referring to IRA's, which come in a few different flavors. On the plus side, the gov't / IRS have set up IRA's to allow money destined for retirement savings to avoid or defer taxes that would otherwise be due if that money was saved or invested in a 'normal' account / investment. On the minus side, in exchange for this tax-preferred status, a whole bunch of complex rules apply to IRA's that limit your access to that money until you reach 'retirement age' - which will be at least age 62. So the first question to ask yourself is whether or not you can reasonably guarantee that you will NOT need to touch this money until you reach age 62, because if you do, a whole pile of penalty charges and taxes will instantly come into play.

  3. #3
    God/dess VenusGoddess's Avatar
    Joined
    Oct 2003
    Location
    Home
    Posts
    13,598
    Thanks
    0
    Thanked 28 Times in 23 Posts

    Default Re: I am totally naive....

    I would strongly, strongly suggest you visit a financial planner to find the right accounts for you and your lifestyle. Most consults are free and it can give you a lot to think about/ponder.

    There are so many great ways to invest/shelter your money for retirement...but there are also a lot of restrictions that only a seasoned professional will know about (to the smallest fine print). Go do some consults and see what you come up with. When you talk to them, you can get a better idea of the different programs and you can go learn/search more and get yourself up to speed.

  4. #4
    Featured Member Kalligirl's Avatar
    Joined
    Jun 2006
    Posts
    1,134
    Thanks
    0
    Thanked 18 Times in 15 Posts

    Default Re: I am totally naive....

    Thank you so much Melonie and Venus.

    I am going to look up some financial planners phone # as soon as my schedule permits.

  5. #5
    Sitri
    Guest

    Default Re: I am totally naive....

    While it is easy to say "Talk to a financial planner" the fact of the matter is that it is extremely hard to find a good one and the term is almost ubiquitous with anyone in the industry .. Insurance Agents, Stock Brokers, Registered Investment Advisors, etc. Some will charge a fee to just talk to you while others will make their money from your investments.

    Start a little self education by buying magazines like "Money Magazine" or watching some of the financial talk show to pick up the lingo. That way when you have saved some money and want to dive in a little deeper, you will be a little more comfortable.

    In the meantime, it is probably more important to start the "discipline" of saving and not worry too much about the "interest return". At this point your biggest return will be in learning to manage your money, build a base of cash, and learn about finances.

    IMHO

  6. #6
    God/dess Mr Hyde's Avatar
    Joined
    Oct 2004
    Location
    Tampa
    Posts
    4,035
    Thanks
    278
    Thanked 586 Times in 346 Posts

    Default Re: I am totally naive....

    Yes, agree with Sitri, plus....saying you will talk to a financial planner is like saying you will talk to a car salesmen when you need to buy a car. Most are paid on commission (which means that their first thoughts are 'what investments can I sell her?'), and some are better than others, and there is no real guarantee you're getting a good one, even if they have CFP certification.

    I'd reccomend what Sitri said...read Money magazine for a few months, and maybe look online for reviews of good books for beginning investing.

    A few questions for you...

    1-How old are you?
    2-What is your income? How steady is that income?
    3-What is your debt status right now?
    4-What are your current expenditures?
    5-Do you have a goal for your savings? If so, what is it?

    If you can answer these, I might be able to give you some advice on what you might do.
    Last edited by Mr Hyde; 04-26-2007 at 05:42 AM.

Similar Threads

  1. Tell me if I'm a naive n00b here...
    By Intravenus in forum Newbie Board
    Replies: 14
    Last Post: 06-28-2012, 06:16 PM
  2. Be totally honest: would this outfit flatter or totally minimize an A CUP
    By bluelight in forum Stripping (was Stripping General)
    Replies: 11
    Last Post: 08-17-2009, 11:10 PM
  3. I was naive
    By Kaylinn in forum Stripping (was Stripping General)
    Replies: 29
    Last Post: 10-13-2007, 04:08 PM
  4. Do you ever feel naive?
    By Jillian in forum The Lounge
    Replies: 10
    Last Post: 08-29-2006, 12:50 AM
  5. New and Naive
    By southstbabe in forum Newbie Board
    Replies: 7
    Last Post: 04-05-2005, 02:42 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •