I need financial/general advice

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333tk
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Joined: Sat Apr 25, 2020 1:35 pm

I need financial/general advice

Post by 333tk »

As the title says I am in need of financial advice. I am 28. I have been working a job I hate for two years, and have managed to save close to 10k. At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount). Now. I am extremely lucky. I am in an extremely fortunate position. I want to capitalize off of this the most that I can so I can help my own family and friends in the future like the person who left me this inheritance helped me.

I have a very low cost of living, I moved a little over two years ago with my parents to a property they purchased years ago, and I live rent free in a small cabin on the property. With bills, food, and necessities I probably pay $380 a month most months, but never more than $480. When I am working, which I haven't been for the last 2 weeks due to COVID, the only added expense is gas which is about $80-$100 a month(of course it's much cheaper now).

So, like I said before I realize that I am extremely fortunate. I've been completely broke, living in a really crappy 1 bedroom apartment while working at a job many considered a career, paying $600 a month in rent and barely being able to afford food. I am stressing the fact that I realize how fortunate I am because I think it is important that I take advantage of every opportunity that I have being in my position. A lot of people can't afford to think about quitting their job to learn something that might help them earn more. A lot of people inherit money but have to spend most of it on their current living arrangement and bills.

With that said, I am thinking about quitting my job. It truly makes me miserable, and I think having more time to focus on learning to invest and possibly day trade among other things would be worth it in the long run. I am only going to be 28 once, and if I can take this year to develop skills by 29 that I wouldn't have if I stayed at my job, and I can profit off those skills, why shouldn't I do it?

With COVID causing so many to lose their jobs, I figure there will be no shortage of jobs in the future. I have enough money in my savings alone to live comfortably for at least 6 months, at least a year even. But, I acknowledge that my ambition and the amount of resentment I hold for my current job might be clouding my judgment. So I would like to ask for advice/opinions on what I should do?


Should I quit?

If so, is the stock market/trading a realistic way of earning income considering our economy today?

I have already began taking some courses on TD ameritrade's website, I opened a brokerage account and downloaded thinkorswim(trading program), and I have been observing stocks and messing with trendlines and different forms of analysis. I am seriously motivated to learn this. I do not want to be broke, I do not want to be one of those idiots who inherits money and burns through it. This is a blessing and I want to take advantage of it fully.



I appreciate any help. Thank you.
mhalley
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Re: I need financial/general advice

Post by mhalley »

Boy, did you pick the wrong forum to ask about day trading.
I don't think quitting your job with no definite plan is a good idea. Quitting your job before having a plan increases the possablity that the money is squandered. By all means, look for a new job, or think about getting training or a college degree, but you need to have a plan. What type of career do you want, and what does it take to get it? A 4 year degree? An apprentenship?
Day trading is a fools paradise. Sure, some people manage to do it, but if people with years of experience and training can't be successful, how can you? The only people that make consistent money day trading are the ones that sell you their system.
losing money at day trading is easy!. In a 2011 research paper titled "The Behavior of Individual Investors," Professors Brad M. Barner and Terrance Odean at the University of Calif., Berkeley revealed that individual investors who traded actively and speculatively without diversified portfolios typically lost money over time.1

 Day traders can also incur high fees from transaction costs, so picking the right broker and creating a manageable trading strategy with proper risk management is essential.
https://www.investopedia.com/articles/a ... raders.asp
peterwantstosave
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Re: I need financial/general advice

Post by peterwantstosave »

You should find a steady job with a good income (40-60k/year), save the lion's share of that money, and invest the boglehead way. You'll be a millionaire in ten years. My portfolio is below. Feel free to copy it.

Hope this helps, Peter
403b: 54% VTSAX, 36% BTMKX 10% QCBMRX | GSRA: 100% Money Market (100% QCBMRX on Dec 11, 2020) | Roth IRA: 100% FIPFX | Taxable: 100% FSKAX
tibbitts
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Re: I need financial/general advice

Post by tibbitts »

333tk wrote: Sat Apr 25, 2020 1:58 pm ...is the stock market/trading a realistic way of earning income considering our economy today?
Not yesterday, not today, not tomorrow.
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fredflinstone
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Re: I need financial/general advice

Post by fredflinstone »

An intelligent person would have better odds of success as a professional poker player.
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JPH
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Re: I need financial/general advice

Post by JPH »

No. Don't quit your job for the reasons you state. Your plan is not sound. If you want to use some of the inheritance to develop skills or training that will permit you to enter a job that you love, then carefully plan that out. Day trading is certainly not the way to go. There are no skills that promote success at that. It is purely gambling. No amount of training would help you be successful at it. It is a myth.
While the moments do summersaults into eternity | Cling to their coattails and beg them to stay - Townes Van Zandt
livesoft
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Re: I need financial/general advice

Post by livesoft »

Have you thought about joining the military?
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sd323232
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Re: I need financial/general advice

Post by sd323232 »

333tk wrote: Sat Apr 25, 2020 1:58 pm As the title says I am in need of financial advice. I am 28. I have been working a job I hate for two years, and have managed to save close to 10k. At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount). Now. I am extremely lucky. I am in an extremely fortunate position. I want to capitalize off of this the most that I can so I can help my own family and friends in the future like the person who left me this inheritance helped me.

I have a very low cost of living, I moved a little over two years ago with my parents to a property they purchased years ago, and I live rent free in a small cabin on the property. With bills, food, and necessities I probably pay $380 a month most months, but never more than $480. When I am working, which I haven't been for the last 2 weeks due to COVID, the only added expense is gas which is about $80-$100 a month(of course it's much cheaper now).

So, like I said before I realize that I am extremely fortunate. I've been completely broke, living in a really crappy 1 bedroom apartment while working at a job many considered a career, paying $600 a month in rent and barely being able to afford food. I am stressing the fact that I realize how fortunate I am because I think it is important that I take advantage of every opportunity that I have being in my position. A lot of people can't afford to think about quitting their job to learn something that might help them earn more. A lot of people inherit money but have to spend most of it on their current living arrangement and bills.

With that said, I am thinking about quitting my job. It truly makes me miserable, and I think having more time to focus on learning to invest and possibly day trade among other things would be worth it in the long run. I am only going to be 28 once, and if I can take this year to develop skills by 29 that I wouldn't have if I stayed at my job, and I can profit off those skills, why shouldn't I do it?

With COVID causing so many to lose their jobs, I figure there will be no shortage of jobs in the future. I have enough money in my savings alone to live comfortably for at least 6 months, at least a year even. But, I acknowledge that my ambition and the amount of resentment I hold for my current job might be clouding my judgment. So I would like to ask for advice/opinions on what I should do?


Should I quit?

If so, is the stock market/trading a realistic way of earning income considering our economy today?

I have already began taking some courses on TD ameritrade's website, I opened a brokerage account and downloaded thinkorswim(trading program), and I have been observing stocks and messing with trendlines and different forms of analysis. I am seriously motivated to learn this. I do not want to be broke, I do not want to be one of those idiots who inherits money and burns through it. This is a blessing and I want to take advantage of it fully.



I appreciate any help. Thank you.
Dont quit and dont day trade. It will be a very expensive lesson. But if you do decide to quit and daytrade, good luck, may be it is better if you experience first hand.
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CAsage
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Re: I need financial/general advice

Post by CAsage »

333tk wrote: Sat Apr 25, 2020 1:58 pm At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount).
This forum might help you better tax manage that windfall (read the "windfall" under the wiki here) if you can be more specific about the exact nature of that inheritance. If it's an Inherited IRA, you will be taxed, but as ordinary income which might end up being very little tax in a low-employment year. You don't have to take it out all at once, and you should carefully plan that to minimize the tax hit (i.e. spread the withdrawal over years). Any inheritance that is not IRA or 401k is not taxed, and you can manage that like cash. Take your time, don't invest in any get-rich-quick schemes, and see if that seed money can secure you a better long term job or opportunity.

In neither case is day trading a 'job' or anything you can develop skill at. It's at best a hobby, and at worse a way to go broke fast.
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.
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Sandtrap
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Re: I need financial/general advice

Post by Sandtrap »

Suggestions:
(there is more here than just what to do with $150 k)
0
Do not quit your job.
Find a full time job that you enjoy that earns well.
1
Read this at least twice, better yet, memorize it:
MANAGING A WINDFALL
https://www.bogleheads.org/wiki/Managing_a_windfall
2
While it is great to be altruistic, at age 28, your windfall is not very large, and will not last long if given to help others or family.
Using the funds to invest in yourself, skillsets, higher education, etc, is more fruitful to yourself and benefits others in the very long run, if not, a lifetime.
3
Many folks do not like their job at age 28. Many continue working and paying bills and try to get ahead.
4
Once you start spending the 150k it will be like breaking a $20 or $100 dollar bill. It won't last long. Careful.
5
What is your educational level and skillset now?
Can the 150k be applied to earning further job enhancing skills, degrees, etc?
6
Living in a cabin at minimal expense and "getting by". Hmmmm. Perhaps a "life / self / career / reset is in order.
Read: "Life Code" and "Life Strategy" by Dr. Phil.
7
Day trading. Trading. Etc. (pass on this) (you have inherited money and may burn through it very quickly).
8
Make a long list of career and lifestyle options: Fireman, EMS, Nursing school, Degree and tech job for the State, Military, Law Enforcement, Teaching degree and teaching career, etc. Things a little more than quick/short/and minimal, perhaps?
9
This is a wonderful time to make a life and self transition.
10
Do not quit your job.
Find a full time job that earns well and that you enjoy.

j :happy
Last edited by Sandtrap on Sat Apr 25, 2020 6:02 pm, edited 6 times in total.
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aristotelian
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Re: I need financial/general advice

Post by aristotelian »

Do not quit your job. We are at the very beginning of a recession and we don't know long it will last. Unemployment can go on for longer than you think when everyone is desperate to find work and can easily turn into a long gap that will make you look more and more like damaged goods. If it is easy as you think it is to find a new job you should be able to do so without going unemployed.

You have a nice nest egg. Put a few years expenses in a savings account or CD to earn some interest, then invest the rest in diversified index funds according to your risk tolerance.
capran
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Re: I need financial/general advice

Post by capran »

I spent 37 years as a counselor, and the last 26 of that as a guidance counselor. The very short summary of a career guidance class I used to teach is this. Work life is often a compromise of many factors: what you love/like to do (passion), your interests, what you absolutely must have, what you want to have (needs), what you might develop in the way of skills, your aptitude/strengths, your goals, your personality. You want to match as many of those things in a career. If you have a sense of most of those things, go online to the Occupational Outlook Handbook and do some reading, or take a community college career exploration class to help you identify those things to help you discover the best careers to explore. Are you a hands on person, or more of an intellectual? Do you like working with people, things or ideas? Do you want a job that has a family oriented work schedule, or want to travel? Do you want to be outside (in every kind of weather) or inside? Those are just a few of the things to consider. (I retired 7+ years ago so I may be forgetting a few things). It's worth taking the time to make an informed decision. If one works 40 years, getting up every day to go to work, you best be happy with the balance your career provides.

After the Military I went into Law Enforcement for three years, and decided I liked working with people but not in that capacity. I finished my BA and then found a job as a therapist in residential treatment, while working on my graduate degree. With an MS I went into Psychiatric Assessment and treatment for 7 years. Then I went back to school to pick up a school certificate and worked my last 26 years as a school counselor. It was a better schedule (family friendly), gave me lots of time off (so I could explore my passion sailing to tropical islands), paid decent money, allowed me to work in a job that was not often repetitive, and allowed me to use my creativity. Your story will follow it's own path, but look and plan thoughtfully. Good luck.
squirm
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Re: I need financial/general advice

Post by squirm »

Nobody here knows you, so take all advice with caution. If I were in your shoes, yes I'd quit. Being stressed out and having a bad job is not good for ones health. I haven't read any replies, but you'll probably get the ol, "no don't quit, save every dime until you die".

Be careful with the money, find another job asap that you'll enjoy, if you daytrade you'll loss the money, algo boxes are faster and smarter. PM me if you want. Good luck.
Fallible
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Re: I need financial/general advice

Post by Fallible »

333tk wrote: Sat Apr 25, 2020 1:58 pm ...
With that said, I am thinking about quitting my job. It truly makes me miserable, and I think having more time to focus on learning to invest and possibly day trade among other things would be worth it in the long run. I am only going to be 28 once, and if I can take this year to develop skills by 29 that I wouldn't have if I stayed at my job, and I can profit off those skills, why shouldn't I do it?
...
If so, is the stock market/trading a realistic way of earning income considering our economy today?

I have already began taking some courses on TD ameritrade's website, I opened a brokerage account and downloaded thinkorswim(trading program), and I have been observing stocks and messing with trendlines and different forms of analysis. I am seriously motivated to learn this. I do not want to be broke, I do not want to be one of those idiots who inherits money and burns through it. This is a blessing and I want to take advantage of it fully. ,,,
Welcome to the forum!

A couple of very important questions:

_How much do you know about the huge downsides of day trading?
_Why do you think you can overcome these downsides when so few can?
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
LeftCoastIV
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Re: I need financial/general advice

Post by LeftCoastIV »

I would suggest setting a goal for yourself that the money can *only* be used for two purposes:

[1] Education towards your desired career path. This could be specific, like programming courses, etc... or broad such as a community college or 4-year degree.

[2] Invested for long-term growth. This does not mean day trading. Your future self will thank you immensely if you never day trade.

Also, as mentioned by another poster, take your tax situation seriously. How and when you withdraw the money could have a significant impact on how much of they money you actually keep after taxes. There are experts on this forum that can help you here for free.
Arthur Digby Sellers
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Re: I need financial/general advice

Post by Arthur Digby Sellers »

You say that you haven’t been working for two weeks due to Covid—is there a chance that you will be laid off (or furloughed, employer go out of business, etc.)? If you are laid off or otherwise lose your job, you will be eligible for enhanced unemployment benefits. If you quit, you get nothing. I definitely would not quit and give up the possibility of unemployment benefits if there is a chance the job will end anyway.

And as others have said, quitting to day trade is a poor idea. That is the quickest way to completely blow the fortunate financial position you find yourself in.
ARoseByAnyOtherName
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Re: I need financial/general advice

Post by ARoseByAnyOtherName »

333tk wrote: Sat Apr 25, 2020 1:58 pm As the title says I am in need of financial advice. I am 28. I have been working a job I hate for two years, and have managed to save close to 10k. At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount). Now. I am extremely lucky. I am in an extremely fortunate position. I want to capitalize off of this the most that I can so I can help my own family and friends in the future like the person who left me this inheritance helped me.

I have a very low cost of living, I moved a little over two years ago with my parents to a property they purchased years ago, and I live rent free in a small cabin on the property. With bills, food, and necessities I probably pay $380 a month most months, but never more than $480. When I am working, which I haven't been for the last 2 weeks due to COVID, the only added expense is gas which is about $80-$100 a month(of course it's much cheaper now).

So, like I said before I realize that I am extremely fortunate. I've been completely broke, living in a really crappy 1 bedroom apartment while working at a job many considered a career, paying $600 a month in rent and barely being able to afford food. I am stressing the fact that I realize how fortunate I am because I think it is important that I take advantage of every opportunity that I have being in my position. A lot of people can't afford to think about quitting their job to learn something that might help them earn more. A lot of people inherit money but have to spend most of it on their current living arrangement and bills.

With that said, I am thinking about quitting my job. It truly makes me miserable, and I think having more time to focus on learning to invest and possibly day trade among other things would be worth it in the long run. I am only going to be 28 once, and if I can take this year to develop skills by 29 that I wouldn't have if I stayed at my job, and I can profit off those skills, why shouldn't I do it?

With COVID causing so many to lose their jobs, I figure there will be no shortage of jobs in the future. I have enough money in my savings alone to live comfortably for at least 6 months, at least a year even. But, I acknowledge that my ambition and the amount of resentment I hold for my current job might be clouding my judgment. So I would like to ask for advice/opinions on what I should do?


Should I quit?

If so, is the stock market/trading a realistic way of earning income considering our economy today?

I have already began taking some courses on TD ameritrade's website, I opened a brokerage account and downloaded thinkorswim(trading program), and I have been observing stocks and messing with trendlines and different forms of analysis. I am seriously motivated to learn this. I do not want to be broke, I do not want to be one of those idiots who inherits money and burns through it. This is a blessing and I want to take advantage of it fully.



I appreciate any help. Thank you.
Don’t daytrade. You will lose your money, and in the process of losing your money you won’t learn much that is otherwise useful, except that day trading is a bad idea.

But if you really really hate your job I think it’s fine to quit. (Better to be laid off as you get unemployment.) So long as you have a plan about what you’ll do with the time. That could include going back to school, taking online classes, etc. (as long as they’re not about day trading.) Find something that interests you, learn about it, see what it takes to get a full time job in that field. Learn a new skill. Something useful.
BarbBrooklyn
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Re: I need financial/general advice

Post by BarbBrooklyn »

Can you tell us in a general way what you do, and what you hate about It?

Day trading is a bad idea, but think about what appeals to you about it. Working with numbers, adrenaline rush, decision making?

What did you enjoy most in school?
BarbBrooklyn | "The enemy of a good plan is the dream of a perfect plan."
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Raymond
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Re: I need financial/general advice

Post by Raymond »

Welcome to Bogleheads!

+1 to the advice above about NOT day trading, unless you like odds of 20% success or less - you might as well go to a casino and play roulette, you would have better odds of winning there (but I wouldn't do that either):

"The odds of day trading yourself to a profit are lower than you expect" - marketwatch.com

-----
333tk wrote: Sat Apr 25, 2020 1:58 pm ...At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount)...

Could you clarify what kind of account this is - a regular taxable account or is it an IRA?
Or are there two accounts - taxable and IRA?
333tk wrote: Sat Apr 25, 2020 1:58 pm ...I am thinking about quitting my job. It truly makes me miserable...

What kind of work do you do, and how miserable does it make you - do you think, "Bah, I have to go to that crappy job today, but whatever", or are you losing sleep and getting stomach ulcers?
333tk wrote: Sat Apr 25, 2020 1:58 pm ...With COVID causing so many to lose their jobs, I figure there will be no shortage of jobs in the future...

I'm not sure how this sentence makes any sense.
A lot of jobs will be *gone*, period. It's not like the jobs are still there waiting to be filled.
If anything, it's going to be harder to find a job, as there will be a whole lot of people looking for one.
"Ritter, Tod und Teufel"
DesertDiva
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Re: I need financial/general advice

Post by DesertDiva »

I didn’t like my job a few years ago. After talking to my director and rearranging some of my responsibilities, i have a newfound appreciation for it. Just saying
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arcticpineapplecorp.
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Re: I need financial/general advice

Post by arcticpineapplecorp. »

there's an old joke...

Q: what's the easiest way to end up with a $1 million?

A: start with $2 million and trade all day long. :oops:
Last edited by arcticpineapplecorp. on Sun Apr 26, 2020 10:52 am, edited 1 time in total.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
Topic Author
333tk
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Re: I need financial/general advice

Post by 333tk »

mhalley wrote: Sat Apr 25, 2020 3:15 pm Boy, did you pick the wrong forum to ask about day trading.
I don't think quitting your job with no definite plan is a good idea. Quitting your job before having a plan increases the possablity that the money is squandered. By all means, look for a new job, or think about getting training or a college degree, but you need to have a plan. What type of career do you want, and what does it take to get it? A 4 year degree? An apprentenship?
Day trading is a fools paradise. Sure, some people manage to do it, but if people with years of experience and training can't be successful, how can you? The only people that make consistent money day trading are the ones that sell you their system.
losing money at day trading is easy!. In a 2011 research paper titled "The Behavior of Individual Investors," Professors Brad M. Barner and Terrance Odean at the University of Calif., Berkeley revealed that individual investors who traded actively and speculatively without diversified portfolios typically lost money over time.1

 Day traders can also incur high fees from transaction costs, so picking the right broker and creating a manageable trading strategy with proper risk management is essential.
https://www.investopedia.com/articles/a ... raders.asp
I think I forgot to mention I have been in college full time while working. I am 6 credits away from an associates degree. After I receive that I will be working full time on my Bachelors...but I really don't want to spend the money on bachelors if I might be able to do something better with it.... I really don't know what I want to do with the bachelors, I have an idea but I don't know if it is really what I want to do with my life. Another reason I would sort of like some time to figure things out without constantly working/studying.

Day trading was just an idea, after hearing a lot of opinions about it from others that I have asked, it is not looking like a very good option for me. I am still going to continue my courses on stocks and stuff like that because I do think it is valuable information but I probably won't pursue day trading any time soon.
Topic Author
333tk
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Re: I need financial/general advice

Post by 333tk »

livesoft wrote: Sat Apr 25, 2020 4:05 pm Have you thought about joining the military?
Absolutely not joining the military.

That's all I will say about that.
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333tk
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Re: I need financial/general advice

Post by 333tk »

squirm wrote: Sat Apr 25, 2020 5:57 pm Nobody here knows you, so take all advice with caution. If I were in your shoes, yes I'd quit. Being stressed out and having a bad job is not good for ones health. I haven't read any replies, but you'll probably get the ol, "no don't quit, save every dime until you die".

Be careful with the money, find another job asap that you'll enjoy, if you daytrade you'll loss the money, algo boxes are faster and smarter. PM me if you want. Good luck.
Best thing that I have heard anyone say to me across multiple forums. not "yes I'd quit." but "Nobody here knows you, so take all advice with caution." It is absolutely amazing and quite revealing how much people project onto others over the internet. I have been boxed up 100 different ways and only a few were anywhere near accurate. Also pretty sad how many people think life is just some generic game to be played the same way by everyone, or that everyone is able to be measured with the same stick. But I never expected anything more than that. Still appreciate everyone's time and replies. I will PM you. Thanks.
squirm
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Re: I need financial/general advice

Post by squirm »

333tk wrote: Sat Apr 25, 2020 9:18 pm
squirm wrote: Sat Apr 25, 2020 5:57 pm Nobody here knows you, so take all advice with caution. If I were in your shoes, yes I'd quit. Being stressed out and having a bad job is not good for ones health. I haven't read any replies, but you'll probably get the ol, "no don't quit, save every dime until you die".

Be careful with the money, find another job asap that you'll enjoy, if you daytrade you'll loss the money, algo boxes are faster and smarter. PM me if you want. Good luck.
Best thing that I have heard anyone say to me across multiple forums. not "yes I'd quit." but "Nobody here knows you, so take all advice with caution." It is absolutely amazing and quite revealing how much people project onto others over the internet. I have been boxed up 100 different ways and only a few were anywhere near accurate. Also pretty sad how many people think life is just some generic game to be played the same way by everyone, or that everyone is able to be measured with the same stick. But I never expected anything more than that. Still appreciate everyone's time and replies. I will PM you. Thanks.
No problem. Take care, my friend.
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333tk
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Re: I need financial/general advice

Post by 333tk »

Arthur Digby Sellers wrote: Sat Apr 25, 2020 7:24 pm You say that you haven’t been working for two weeks due to Covid—is there a chance that you will be laid off (or furloughed, employer go out of business, etc.)? If you are laid off or otherwise lose your job, you will be eligible for enhanced unemployment benefits. If you quit, you get nothing. I definitely would not quit and give up the possibility of unemployment benefits if there is a chance the job will end anyway.

And as others have said, quitting to day trade is a poor idea. That is the quickest way to completely blow the fortunate financial position you find yourself in.
I was already laid off and just started receiving the benefits, but my employer has asked me to come back to work. I will probably slowly build up to full time depending on how business is going so I should still get the benefits...I just might not get the extra $600 a week anymore. But, it is what it is.
I'll be honest, completely honest. I hate this job so much, and it has caused me so much stress, I wouldn't even care about eating up a little of my savings to live stress free for a couple of months with no benefits. I really wouldn't. Might be hard for many to understand but many aren't in my shoes. I went through a lot of stuff prior to the two years that I have been working and going to school everyday and I really haven't had a real break. I know many people never get a break, but I find myself in a position where I *could* take one.

But I have seriously reconsidered the day trading, and I still don't know if I want to quit my job for sure or not. I still want to have some sort of income ideally, and if that means putting up with the stress and being miserable for a bit longer I might just do that. Being miserable isn't that hard, but it definitely has a cost.
Topic Author
333tk
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Re: I need financial/general advice

Post by 333tk »

BarbBrooklyn wrote: Sat Apr 25, 2020 7:31 pm Can you tell us in a general way what you do, and what you hate about It?

Day trading is a bad idea, but think about what appeals to you about it. Working with numbers, adrenaline rush, decision making?

What did you enjoy most in school?
I don't like getting into it especially over the internet, where people assume to know everything and base their opinions on info I should have never given them. Really don't need everyone telling me my job isn't so bad. If it wasn't so bad I wouldn't be so desperate to get away from it. But, I will say that it is a retail environment, I deal with the public a lot as well as fulfilling a lot of managerial/supervisory roles. Technically I guess I am a supervisor, but I just generally disagree with the way my boss runs his business. Example, manager is just a kid relative of bosses who doesn't even have a diploma let alone the skills to manage a business and I am forced to pick up after him and do his job for him while he takes the credit and gets paid for my work. I have stayed up countless nights over the past two years working on ideas and presenting solutions to boss to help make his business run smoother and solve problems. And, many of them have been accepted and utilized but others get the credit for them while they run them into the ground because they had nothing to do with creating them, and have no desire to see the business better than it is. They are more presentable, more mold-able I would say to be the people my boss wants in positions of authority and control. And you know that is fine with me, it is his business. But at the same time it is really frustrating giving boss my best and watching people who don't work as hard or care half as much get paid more and respected more while they essentially treat me like garbage.

It's easy to say "just ignore them" and I even used to tell myself that but after two years I have realized even if you ignore people like that, that energy is still going to effect you. If you walk into a room everyday and everyone in that room just hates your guts, you are gonna end up taking that home. It makes me see myself as a bad person, a worthless person, a dumb person. I'm a practical thinker, I don't really get involved in social/emotional games, and as we all know this is what most work environments are structured around. So from day one when I started offering solutions and trying to make things better, everyone who was already there that was happy with getting paid to just come in and operate as is, they started treating me like I'm some sort of snob, or mean and rude because I don't get involved in drama and games. They want me to be an emotionally and mentally weak person that gives in to half ass standards so they can feel okay with doing the same and that isn't me. They can't stand it, I can't stand them.

wow. didn't realize I had that much to say about that.

But to sum up, I just imagine that my good intentions and good energy and dedication would take me a hell of a lot further doing ANYTHING else, even if it is just taking a break from the job and applying myself to something in my own time. I guess for the last week or two it has been the idea of trading or getting involved in the stock market. But after a lot of opinions I am reconsidering this.

What was appealing to me at first about this was honestly, the way it was presented to me, it seemed easy. I was told people make easy money, not a lot, but enough to supplement at least a minimum wage income, and I figured if I could make just minimum wage trading an hour a day, I could spend my time focusing on figuring something else out while not eating up my savings entirely.

I have since started considering something like real estate, but this is a more long term goal, it will require more work-which there's nothing wrong in my book with work, it's just I like the idea of working smart and not hard above all else when applicable.

My best subject in school was/is English. Right now my best grade is in Philosophy, followed by Psychology. I have taken a lot of classes that I enjoyed so It's hard to say, and often even I enjoy the content of a class I don't get much joy out of it because as soon as you structure something I am interested in and make it a requirement I tend to view it in a way that makes it a wall and not a door way. If that makes sense.
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333tk
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Re: I need financial/general advice

Post by 333tk »

Raymond wrote: Sat Apr 25, 2020 7:41 pm Welcome to Bogleheads!

+1 to the advice above about NOT day trading, unless you like odds of 20% success or less - you might as well go to a casino and play roulette, you would have better odds of winning there (but I wouldn't do that either):

"The odds of day trading yourself to a profit are lower than you expect" - marketwatch.com

-----
333tk wrote: Sat Apr 25, 2020 1:58 pm ...At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount)...

Could you clarify what kind of account this is - a regular taxable account or is it an IRA?
Or are there two accounts - taxable and IRA?
333tk wrote: Sat Apr 25, 2020 1:58 pm ...I am thinking about quitting my job. It truly makes me miserable...

What kind of work do you do, and how miserable does it make you - do you think, "Bah, I have to go to that crappy job today, but whatever", or are you losing sleep and getting stomach ulcers?
333tk wrote: Sat Apr 25, 2020 1:58 pm ...With COVID causing so many to lose their jobs, I figure there will be no shortage of jobs in the future...

I'm not sure how this sentence makes any sense.
A lot of jobs will be *gone*, period. It's not like the jobs are still there waiting to be filled.
If anything, it's going to be harder to find a job, as there will be a whole lot of people looking for one.
Not too fond of the day trading anymore as I have said in other replies.

The original trust account is taxable but there was also what I assume is an IRA account and that had a little in it. Amounts were divided among multiple beneficiaries.

Person managing the taxable acct suggested I take it out sooner than later, all at once, and that I would pay less taxes on it this way than if I were to leave it in or take some now and some later.

Makes me completely miserable. I have been 'bah' miserable and quit an amazing job when I was younger. I'm not as stupid at this stage in my life and I know when something isn't good for my well being, and this job is not. Have lost plenty of sleep and really lost myself. It destroyed me. truly. To get into that would create an entirely separate topic and I don't think we need to go there. But it could be worse I will acknowledge that, it isn't good for me at all, but it could be worse. I guess with my savings and this inheritance I figure the benefit of not feeling so shitty all the time would out weigh the benefit of extra income, because if I felt better I might be able to think clearer and formulate a reasonable plan.

A lot of people have been laid off, and a lot of people are using COVID to just quit jobs where they aren't required to come in right now. So, there are going to be job openings. There are going to be a lot of people looking for jobs once this is over, and yeah you are right, that could make it harder to get a job. But I guess that's a risk I would take if I decided to quit.
rgs92
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Re: I need financial/general advice

Post by rgs92 »

You are an excellent writer. You communicate very clearly and succinctly. I actually kind of hung on to every word you wrote.

Perhaps you could write some short opinion pieces and submit them to online publications or news services. Maybe pursuing this would provide at least the hope of a useful pathway forward to capitalize on your talent.

Perhaps you could give this a try for at least a few weeks while you save up a little more money and invest the money you have in a moderately conservative portfolio (Vanguard Wellesley maybe?). You could live on for awhile if your job ends for whatever reason.

Do avoid day trading; it's similar to gambling. All the best to you.
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333tk
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Re: I need financial/general advice

Post by 333tk »

rgs92 wrote: Sat Apr 25, 2020 10:22 pm You are an excellent writer. You communicate very clearly and succinctly. I actually kind of hung on to every word you wrote.

Perhaps you could write some short opinion pieces and submit them to online publications or news services. Maybe pursuing this would provide at least the hope of a useful pathway forward to capitalize on your talent.

Perhaps you could give this a try for at least a few weeks while you save up a little more money and invest the money you have in a moderately conservative portfolio (Vanguard Wellesley maybe?). You could live on for awhile if your job ends for whatever reason.

Do avoid day trading; it's similar to gambling. All the best to you.
Hmm. I like this idea. Ya know. I guess I've been told this 1000 times but I never really actually considered it. Seemed like it was just out of the question for me. But maybe it isn't. I actually love writing, well I used to really love it. Have a whole bunch of notebooks filled with stuff, always was writing. Will definitely think about this more. Thank you.

will not be trading anytime soon.
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Re: I need financial/general advice

Post by livesoft »

333tk wrote: Sat Apr 25, 2020 9:06 pm
livesoft wrote: Sat Apr 25, 2020 4:05 pm Have you thought about joining the military?
Absolutely not joining the military.

That's all I will say about that.
That makes two of us. :)
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BV3273
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Re: I need financial/general advice

Post by BV3273 »

333tk wrote: Sat Apr 25, 2020 1:58 pm As the title says I am in need of financial advice. I am 28. I have been working a job I hate for two years, and have managed to save close to 10k. At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount). Now. I am extremely lucky. I am in an extremely fortunate position. I want to capitalize off of this the most that I can so I can help my own family and friends in the future like the person who left me this inheritance helped me.

I have a very low cost of living, I moved a little over two years ago with my parents to a property they purchased years ago, and I live rent free in a small cabin on the property. With bills, food, and necessities I probably pay $380 a month most months, but never more than $480. When I am working, which I haven't been for the last 2 weeks due to COVID, the only added expense is gas which is about $80-$100 a month(of course it's much cheaper now).

So, like I said before I realize that I am extremely fortunate. I've been completely broke, living in a really crappy 1 bedroom apartment while working at a job many considered a career, paying $600 a month in rent and barely being able to afford food. I am stressing the fact that I realize how fortunate I am because I think it is important that I take advantage of every opportunity that I have being in my position. A lot of people can't afford to think about quitting their job to learn something that might help them earn more. A lot of people inherit money but have to spend most of it on their current living arrangement and bills.

With that said, I am thinking about quitting my job. It truly makes me miserable, and I think having more time to focus on learning to invest and possibly day trade among other things would be worth it in the long run. I am only going to be 28 once, and if I can take this year to develop skills by 29 that I wouldn't have if I stayed at my job, and I can profit off those skills, why shouldn't I do it?

With COVID causing so many to lose their jobs, I figure there will be no shortage of jobs in the future. I have enough money in my savings alone to live comfortably for at least 6 months, at least a year even. But, I acknowledge that my ambition and the amount of resentment I hold for my current job might be clouding my judgment. So I would like to ask for advice/opinions on what I should do?


Should I quit?

If so, is the stock market/trading a realistic way of earning income considering our economy today?

I have already began taking some courses on TD ameritrade's website, I opened a brokerage account and downloaded thinkorswim(trading program), and I have been observing stocks and messing with trendlines and different forms of analysis. I am seriously motivated to learn this. I do not want to be broke, I do not want to be one of those idiots who inherits money and burns through it. This is a blessing and I want to take advantage of it fully.



I appreciate any help. Thank you.
You remind me a lot of my younger self. Right after I graduated college in 08’ I took a job that I liked but when the market crashed the business dried up and I took a job in the same industry but different area of business. I made it about 6-8 months in this new job and I hated it. I wound up quitting with no other opportunities lined up. I had some cash saved. If I could’ve slapped some sense into my old self I would have. Answer these two questions and go from there.

What do you have lined up?

Can you play the game until you have something lined up?
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Sandtrap
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Re: I need financial/general advice

Post by Sandtrap »

Some behavioral disadvantages of a windfall or inheritance are lack of ambition, complacency, and ambivalence — perhaps overconfidence.
Self is forged in the crucible of adversity, dissatisfaction, struggle, and prolonged angst. That begets clarity and a purpose driven life.

Often, windfalls and inheritances become training wheels and safety nets. Counterproductive indeed.

I know an intelligent personable fellow with huge potential who inherited 200k. He travels across the USA living in an old VW Camper van, no roots no job no goals, and has managed to make that 100k last for 7 years so far. One path of many.

Actionably: invest the windfall into education, expanding ones skill sets, and forging a Self.

Good luck in your efforts.

This is the Way
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Topic Author
333tk
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Re: I need financial/general advice

Post by 333tk »

BV3273 wrote: Sun Apr 26, 2020 8:17 am
333tk wrote: Sat Apr 25, 2020 1:58 pm As the title says I am in need of financial advice. I am 28. I have been working a job I hate for two years, and have managed to save close to 10k. At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount). Now. I am extremely lucky. I am in an extremely fortunate position. I want to capitalize off of this the most that I can so I can help my own family and friends in the future like the person who left me this inheritance helped me.

I have a very low cost of living, I moved a little over two years ago with my parents to a property they purchased years ago, and I live rent free in a small cabin on the property. With bills, food, and necessities I probably pay $380 a month most months, but never more than $480. When I am working, which I haven't been for the last 2 weeks due to COVID, the only added expense is gas which is about $80-$100 a month(of course it's much cheaper now).

So, like I said before I realize that I am extremely fortunate. I've been completely broke, living in a really crappy 1 bedroom apartment while working at a job many considered a career, paying $600 a month in rent and barely being able to afford food. I am stressing the fact that I realize how fortunate I am because I think it is important that I take advantage of every opportunity that I have being in my position. A lot of people can't afford to think about quitting their job to learn something that might help them earn more. A lot of people inherit money but have to spend most of it on their current living arrangement and bills.

With that said, I am thinking about quitting my job. It truly makes me miserable, and I think having more time to focus on learning to invest and possibly day trade among other things would be worth it in the long run. I am only going to be 28 once, and if I can take this year to develop skills by 29 that I wouldn't have if I stayed at my job, and I can profit off those skills, why shouldn't I do it?

With COVID causing so many to lose their jobs, I figure there will be no shortage of jobs in the future. I have enough money in my savings alone to live comfortably for at least 6 months, at least a year even. But, I acknowledge that my ambition and the amount of resentment I hold for my current job might be clouding my judgment. So I would like to ask for advice/opinions on what I should do?


Should I quit?

If so, is the stock market/trading a realistic way of earning income considering our economy today?

I have already began taking some courses on TD ameritrade's website, I opened a brokerage account and downloaded thinkorswim(trading program), and I have been observing stocks and messing with trendlines and different forms of analysis. I am seriously motivated to learn this. I do not want to be broke, I do not want to be one of those idiots who inherits money and burns through it. This is a blessing and I want to take advantage of it fully.



I appreciate any help. Thank you.
You remind me a lot of my younger self. Right after I graduated college in 08’ I took a job that I liked but when the market crashed the business dried up and I took a job in the same industry but different area of business. I made it about 6-8 months in this new job and I hated it. I wound up quitting with no other opportunities lined up. I had some cash saved. If I could’ve slapped some sense into my old self I would have. Answer these two questions and go from there.

What do you have lined up?

Can you play the game until you have something lined up?
By play the game do you mean stay at my job?

sure, but for all the reasons I have already stated here, I don't think it would be better to stay at the job than to quit. I haven't been convinced of that yet. Obviously it is a good idea to stay, especially to those reading this who haven't spent two years witnessing their mental and physical health deteriorate.
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333tk
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Re: I need financial/general advice

Post by 333tk »

Sandtrap wrote: Sun Apr 26, 2020 8:51 am Some behavioral disadvantages of a windfall or inheritance are lack of ambition, complacency, and ambivalence — perhaps overconfidence.
Self is forged in the crucible of adversity, dissatisfaction, struggle, and prolonged angst. That begets clarity and a purpose driven life.

Often, windfalls and inheritances become training wheels and safety nets. Counterproductive indeed.

I know an intelligent personable fellow with huge potential who inherited 200k. He travels across the USA living in an old VW Camper van, no roots no job no goals, and has managed to make that 100k last for 7 years so far. One path of many.

Actionably: invest the windfall into education, expanding ones skill sets, and forging a Self.

Good luck in your efforts.

This is the Way
j🌺
What's wrong with traveling across the USA and living in a camper? And does he really have no goals or does he just not have the type of goals that you consider 'goals'? Maybe his idea of success is different than yours. If he can stretch that money and he understands what he is doing with it, and he is happy, good for him. Many people will work until they are 65 and never get the chance to travel the country while young and healthy, they will never get to experience what he is experiencing, which some would consider a lot more valuable than having more money later on down the road.

Gotta live and let live. Different strokes for different folks. Life isn't something to be generalized there are so many different variables at work in each individuals life.

I hear you though, I am trying my best to not let it get to me in terms of cutting ambition, complacency etc. But, just because I'm 28 and most people my age are pretty shallow and haven't done much forging, I'd like to think I'm a bit different. I really don't think it's a bad idea to think of the inheritance as a safety net if I want to take time to explore parts of my self that may contribute to a future I am more happy in. I would argue that most people end up in careers they hate because they never take the time to do this or in most peoples cases they can't take the time to do this. I can, if I want to.
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Re: I need financial/general advice

Post by Sandtrap »

333tk wrote: Sun Apr 26, 2020 9:27 am
Sandtrap wrote: Sun Apr 26, 2020 8:51 am Some behavioral disadvantages of a windfall or inheritance are lack of ambition, complacency, and ambivalence — perhaps overconfidence.
Self is forged in the crucible of adversity, dissatisfaction, struggle, and prolonged angst. That begets clarity and a purpose driven life.

Often, windfalls and inheritances become training wheels and safety nets. Counterproductive indeed.

I know an intelligent personable fellow with huge potential who inherited 200k. He travels across the USA living in an old VW Camper van, no roots no job no goals, and has managed to make that 100k last for 7 years so far. One path of many.

Actionably: invest the windfall into education, expanding ones skill sets, and forging a Self.

Good luck in your efforts.

This is the Way
j🌺
What's wrong with traveling across the USA and living in a camper? And does he really have no goals or does he just not have the type of goals that you consider 'goals'? Maybe his idea of success is different than yours. If he can stretch that money and he understands what he is doing with it, and he is happy, good for him. Many people will work until they are 65 and never get the chance to travel the country while young and healthy, they will never get to experience what he is experiencing, which some would consider a lot more valuable than having more money later on down the road.

Gotta live and let live. Different strokes for different folks. Life isn't something to be generalized there are so many different variables at work in each individuals life.

I hear you though, I am trying my best to not let it get to me in terms of cutting ambition, complacency etc. But, just because I'm 28 and most people my age are pretty shallow and haven't done much forging, I'd like to think I'm a bit different. I really don't think it's a bad idea to think of the inheritance as a safety net if I want to take time to explore parts of my self that may contribute to a future I am more happy in. I would argue that most people end up in careers they hate because they never take the time to do this or in most peoples cases they can't take the time to do this. I can, if I want to.
Great points.

Yes.
There are many ways to do things. Something for everyone. No wright or wrong. No correct or incorrect.

Good luck in your efforts.
j :happy
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$tar-Lord
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Re: I need financial/general advice

Post by $tar-Lord »

Your topic thread has been interesting to me and I l felt like sharing a few thoughts. These are my opinions, take or leave what you will:

1) Preserve your windfall at all costs, don't pull and spend more that 3% from it. Invested securely in index funds is the best option now. Re-invest all non-optional withdrawals over 3%. Possibly a business venture later but that's a much riskier option.

2) Go back to your job or get a new job but don't go without one. Also, don't go back the same as you were. You are currently not considering even going back because of your low cost of living or windfall, or both. You have a degree of financial independence, leverage it. Go back and use it. Don't get mentally tied up in trying to please your bosses or the owner anymore. Use it. Make money, keep your head clear and decide as quickly as you can how and to where you will go to get away from this job. Think of the people there, getting you down, as a step up. Step on their heads, boost yourself up and away to something better.

3) Get a new job quick. If it pays and isn't illegal the newness of it should be enough to keep you motivated for a short while. Even better if you don't have to go back to your old job at all.

4) Plan and explore as many good options as possible. Leverage your real skills, skills that you possess of the greatest value that others will pay dearly for. Learn to love your skills or develop ones you like more. I dare say that you wouldn't be where you are now if you had started out with this mentality.

5) Be your own best critic. The fact that you even proposed day trading as an option leads me to believe you are slightly blind to downside risk and are highly optimistic, to a fault, about yourself and your abilities. Developing a better self critique and diving in on topics that challenge your ego could save you future pain.

Congratulations on your good fortune, best of luck!
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Re: I need financial/general advice

Post by Cobra Commander »

Instead of asking whether you should quit I'm wondering why you bother working. Do your stated expenses include tuition towards your degree? If you're talking about drawing down a few grand from the inheritance to cover your low expenses until you graduate I dont see that as a problem.

The job sounds like a step above basic retail so it doesnt sound like you are building skills that will be valuable down the road plus you hate it. It seems like your time would be better spent taking more classes to graduate sooner or studying more and getting higher grades. Also, spend extra time doing a detailed analysis of possible career paths. Read BLS employment stats and outlooks and other sources but also meet with people that do the job you want and ask them what their days are like.
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Re: I need financial/general advice

Post by JPM »

Some people do not want a conventional life. A few make a success of unconventional lives but not nearly as many as fantasize about one or even opt to try it.

Most Bogleheads would probably quit that crummy thankless job, finish the AA ASAP, and start State U in the fall with some of that $150,000 and maybe husband some of the money with an eye toward med school, law school ,or an engineering masters. Doesn't sound like that plan appeals to OP.

OP sounds confused, depressed, and frustrated. Or maybe something worse. Finding a way to deal with any such depression, frustration, confusion, or whatever would probably be a precondition for any conventionally constructive life move at this point in his/her life. Money alone won't do that. The determination to do something with yourself and whatever opportunity you have has to come from within. Lots of good advice here for getting from where he/she is to a successful conventional life, but OP does not seem in a psychological state that would enable him/her to take it.


I know a guy who quit college due to depression with one year to go. His family was supportive and influential and was able to get him admitted to another college and arrange coverage for his expenses. But he never went, preferring crummy jobs, Jack Daniels, and Mary Jane to capitalizing on an opportunity. His mother threw him out, but he manages to find a place to stay. I know a lot of people like him. But as OP says, to each his own. Or as Frank Sinatra sang, "But if you don't like to go to school, You could grow up to be a mule."
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333tk
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Re: I need financial/general advice

Post by 333tk »

$tar-Lord wrote: Sun Apr 26, 2020 10:24 am Your topic thread has been interesting to me and I l felt like sharing a few thoughts. These are my opinions, take or leave what you will:

1) Preserve your windfall at all costs, don't pull and spend more that 3% from it. Invested securely in index funds is the best option now. Re-invest all non-optional withdrawals over 3%. Possibly a business venture later but that's a much riskier option.

2) Go back to your job or get a new job but don't go without one. Also, don't go back the same as you were. You are currently not considering even going back because of your low cost of living or windfall, or both. You have a degree of financial independence, leverage it. Go back and use it. Don't get mentally tied up in trying to please your bosses or the owner anymore. Use it. Make money, keep your head clear and decide as quickly as you can how and to where you will go to get away from this job. Think of the people there, getting you down, as a step up. Step on their heads, boost yourself up and away to something better.

3) Get a new job quick. If it pays and isn't illegal the newness of it should be enough to keep you motivated for a short while. Even better if you don't have to go back to your old job at all.

4) Plan and explore as many good options as possible. Leverage your real skills, skills that you possess of the greatest value that others will pay dearly for. Learn to love your skills or develop ones you like more. I dare say that you wouldn't be where you are now if you had started out with this mentality.

5) Be your own best critic. The fact that you even proposed day trading as an option leads me to believe you are slightly blind to downside risk and are highly optimistic, to a fault, about yourself and your abilities. Developing a better self critique and diving in on topics that challenge your ego could save you future pain.

Congratulations on your good fortune, best of luck!
"4) Plan and explore as many good options as possible. Leverage your real skills, skills that you possess of the greatest value that others will pay dearly for. Learn to love your skills or develop ones you like more. I dare say that you wouldn't be where you are now if you had started out with this mentality."

I understand that this is the internet and you have no way of knowing my story but, I will say that I believe I did start with this mentality. Some people have skills that are not easily translated into a career or sold to others. A lot of my skills have sat in the back of my mind gathering dust because I am preoccupied with trying to figure out other ways to make it in life and have been for quite a while. That isn't to say these skills are not profitable whatsoever, but after years of trying to make them work for me and failing I decided it was time to focus on more 'reasonable' ways of making money.

And I don't know how many times I have said that I have reconsidered day trading but I guess nobody reads anything after the initial post. I am no longer considering it, at least anytime in the near future. Maybe years and years down the road when I have made a good amount of money. It really just became something I am interested in over the past two weeks, and I still don't think there is anything wrong with dedicating myself to learning about trading/stock market.

Am I highly optimistic about myself and my abilities? absolutely. I've learned this is the only way to ever transcend your self consistently. That isn't to say though that I am foolish, and have no discretion. If I always stopped when others told me to stop, if I always went when others told me to go, if I never listened to myself who would I be? I take what is relevant and leave the rest. So my initial thoughts of trading were based on an uninformed point of view, I have informed myself, and have developed new thoughts in regard to trading. On to whatever I come across next. If my ego were tied up in this as much you imply I don't think I would have let it go so easily. But, regardless, I thank you for the advice/reply. I do like what you said about going back to work differently, this is something I have thought about myself... skeptical that it will make much of a difference but we'll see.
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arcticpineapplecorp.
Posts: 7007
Joined: Tue Mar 06, 2012 9:22 pm

Re: I need financial/general advice

Post by arcticpineapplecorp. »

333tk wrote: Sat Apr 25, 2020 1:58 pm I want to capitalize off of this the most that I can so I can help my own family and friends in the future like the person who left me this inheritance helped me.
so you're asking two questions. one about your job and the other about what to do with your inheritance. I won't give you job advice for many of the reasons others have commented on. But I will give you some advice about the inheritance. Though the two may be connected if you can't get income to pay what little bills you have. You see, if you don't have income how are you going to pay your bills? Maybe you get UC, maybe your parents stop charging your rent...who knows. But at some point you'll have to do something to get income otherwise it will be too easy to just start tapping your inheritance to cover your current expenses. And then where will your inheritance be?

If you want to grow the money that was given to you, then you can't spend it (now). Or if you spend some of it now, you can invest the rest, but the question is, how much do you want to leave to your friends and family in the future? If you have no specific amount in mind, how will you know when you've reached your goal?

So the first thing I'd do is get clear on how much you'd like to leave your friends and family and then determine how to get from here to there (that's called financial planning). Once you know your goal you can determine (based on a rate of interest earned, and an amount invested) how many years it will take (roughly speaking) to reach your goal. Without specific goals, you're aimless.

Now as far as "how to capitalize off this the most" I suppose you mean, how do you grow it the fastest? Obviously you think day trading will accomplish that. Others, including myself, think that's probably the fastest way to lose it. So if you're on bogleheads, I'm surprised you haven't discovered the most frequently mentioned investment vehicles involve total stock market and total bond market index funds (and in combination) are generally the way to invest. Why?

Because when you invest you only have three options: 1. beat the market, 2. get the return of the market, 3. underperform the market. Obviously #3 is out, right? So, the only question left is: Can you beat the market? If you're not sure, then why would you take a chance when you can get a guaranteed return of the market? Is anything wrong with that? To invest in anything but the total market means taking many different risks you diversify away when you own the total market like: sector risk, size risk, style risk, stock risk, country risk, manager risk. Why take additional risks that generally aren't compensated when you can avoid those by owning the total market. There's beauty in simplicity. Don't overcomplicate this.

I suggest you start here:
https://www.bogleheads.org/wiki/Managing_a_windfall
https://www.bogleheads.org/wiki/Getting_started

There's a wealth of information right there. Won't cost you a thing.
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
Topic Author
333tk
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Joined: Sat Apr 25, 2020 1:35 pm

Re: I need financial/general advice

Post by 333tk »

Cobra Commander wrote: Sun Apr 26, 2020 10:30 am Instead of asking whether you should quit I'm wondering why you bother working. Do your stated expenses include tuition towards your degree? If you're talking about drawing down a few grand from the inheritance to cover your low expenses until you graduate I dont see that as a problem.

The job sounds like a step above basic retail so it doesnt sound like you are building skills that will be valuable down the road plus you hate it. It seems like your time would be better spent taking more classes to graduate sooner or studying more and getting higher grades. Also, spend extra time doing a detailed analysis of possible career paths. Read BLS employment stats and outlooks and other sources but also meet with people that do the job you want and ask them what their days are like.
Yeah, you seem to be saying exactly what I am thinking. As of right now I have financial aid, so once every semester I am paying only a portion of tuition. It's usually about $5-800. And I am not really even considering using the inheritance for bills, I was really just considering using my savings for bills and getting another job long before I am even close to spending all of my savings. So ideally, I would never even touch the inheritance. It would just be there in case my plan fell through.

I have high grades to begin with but in the last two weeks they went up just because I had more time to actually put thought and consideration into my work. Usually when I am working I just blaze through school work just to 'get it done'.

Thanks for your reply/advice. Appreciate it!
Keenobserver
Posts: 624
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Re: I need financial/general advice

Post by Keenobserver »

If the job makes you miserable, then quit. No need to stay in your situation. Plz DO NOT go into day trading. Put the inheritence money in an index fund and let it grow. Meantime, find a j9b or career you like. There is no reason for you to stay in your current job as you hate it. You barely have any bills or reslonsibities.
MathIsMyWayr
Posts: 2652
Joined: Mon Mar 27, 2017 10:47 pm
Location: CA

Re: I need financial/general advice

Post by MathIsMyWayr »

333tk wrote: Sat Apr 25, 2020 1:58 pm As the title says I am in need of financial advice. I am 28. I have been working a job I hate for two years, ...
I stopped reading at the comma. You are only 28 and have a job You HATE for two years. You should prepare to change your job or even a career. Otherwise, you will end up slaving for your employer(s) for your entire working years if lucky while dreaming a retirement. Don't listen to noise. "Hating work and looking for FIRE" is not a badge of honor.
Last edited by MathIsMyWayr on Sun Apr 26, 2020 11:16 am, edited 1 time in total.
Topic Author
333tk
Posts: 14
Joined: Sat Apr 25, 2020 1:35 pm

Re: I need financial/general advice

Post by 333tk »

arcticpineapplecorp. wrote: Sun Apr 26, 2020 11:06 am
333tk wrote: Sat Apr 25, 2020 1:58 pm I want to capitalize off of this the most that I can so I can help my own family and friends in the future like the person who left me this inheritance helped me.
so you're asking two questions. one about your job and the other about what to do with your inheritance. I won't give you job advice for many of the reasons others have commented on. But I will give you some advice about the inheritance. Though the two may be connected if you can't get income to pay what little bills you have. You see, if you don't have income how are you going to pay your bills? Maybe you get UC, maybe your parents stop charging your rent...who knows. But at some point you'll have to do something to get income otherwise it will be too easy to just start tapping your inheritance to cover your current expenses. And then where will your inheritance be?

If you want to grow the money that was given to you, then you can't spend it (now). Or if you spend some of it now, you can invest the rest, but the question is, how much do you want to leave to your friends and family in the future? If you have no specific amount in mind, how will you know when you've reached your goal?

So the first thing I'd do is get clear on how much you'd like to leave your friends and family and then determine how to get from here to there (that's called financial planning). Once you know your goal you can determine (based on a rate of interest earned, and an amount invested) how many years it will take (roughly speaking) to reach your goal. Without specific goals, you're aimless.

Now as far as "how to capitalize off this the most" I suppose you mean, how do you grow it the fastest? Obviously you think day trading will accomplish that. Others, including myself, think that's probably the fastest way to lose it. So if you're on bogleheads, I'm surprised you haven't discovered the most frequently mentioned investment vehicles involve total stock market and total bond market index funds (and in combination) are generally the way to invest. Why?

Because when you invest you only have three options: 1. beat the market, 2. get the return of the market, 3. underperform the market. Obviously #3 is out, right? So, the only question left is: Can you beat the market? If you're not sure, then why would you take a chance when you can get a guaranteed return of the market? Is anything wrong with that? To invest in anything but the total market means taking many different risks you diversify away when you own the total market like: sector risk, size risk, style risk, stock risk, country risk, manager risk. Why take additional risks that generally aren't compensated when you can avoid those by owning the total market. There's beauty in simplicity. Don't overcomplicate this.

I suggest you start here:
https://www.bogleheads.org/wiki/Managing_a_windfall
https://www.bogleheads.org/wiki/Getting_started

There's a wealth of information right there. Won't cost you a thing.
no rent, don't plan on touching the inheritance, using savings to cover bills for 6 months to a year at the most at which point I would find another job. Ideally.

By capitalize the most I mean, take advantage of my situation where most would take it for granted, as well as grow the money as much as I can. Not necessarily preoccupied with doing it quickly. The trading idea sounded good to me when I knew nothing about trading because it sounded like a plausible way to temporarily supplement the income from my job until I decided to find a new one. I now understand it isn't plausible.

Thanks for your reply, will check those things out.
Topic Author
333tk
Posts: 14
Joined: Sat Apr 25, 2020 1:35 pm

Re: I need financial/general advice

Post by 333tk »

MathIsMyWayr wrote: Sun Apr 26, 2020 11:13 am
333tk wrote: Sat Apr 25, 2020 1:58 pm As the title says I am in need of financial advice. I am 28. I have been working a job I hate for two years, ...
I stopped reading at the comma. You are only 28 and have a job You HATE for two years. You should prepare to change your job or even a career. Otherwise, you will end up slaving for your employer(s) for your entire working years if lucky while dreaming a retirement. Don't listen to noise. "Hating work and looking for FIRE" is not a badge of honor.
I'm not sure if you are saying quit, or get a different job. but either way. Appreciate the reply. And I agree with the rest.
bluebolt
Posts: 1283
Joined: Sat Jan 14, 2017 9:01 am

Re: I need financial/general advice

Post by bluebolt »

Do you have a professional mentor? Someone who is later in their (hopefully successful) career who you can talk to about this honestly. They may have experiences and perspective that will be helpful. Ideally, it would be someone who has a career or traits you'd like to emulate.

If I could go back and advise my 28-year-old self when I was in jobs I disliked, I would give the following advice:
1) Figure out where you want to go before you leave the place where you are
2) Don't take too long to do #1
BV3273
Posts: 720
Joined: Mon Oct 19, 2015 7:20 pm

Re: I need financial/general advice

Post by BV3273 »

333tk wrote: Sun Apr 26, 2020 9:13 am
BV3273 wrote: Sun Apr 26, 2020 8:17 am
333tk wrote: Sat Apr 25, 2020 1:58 pm As the title says I am in need of financial advice. I am 28. I have been working a job I hate for two years, and have managed to save close to 10k. At the beginning of the year I inherited a little over 150k, the 150k is going to be taxed when I take it out of the account it is in but the remaining money is not taxed(can't remember the amount). Now. I am extremely lucky. I am in an extremely fortunate position. I want to capitalize off of this the most that I can so I can help my own family and friends in the future like the person who left me this inheritance helped me.

I have a very low cost of living, I moved a little over two years ago with my parents to a property they purchased years ago, and I live rent free in a small cabin on the property. With bills, food, and necessities I probably pay $380 a month most months, but never more than $480. When I am working, which I haven't been for the last 2 weeks due to COVID, the only added expense is gas which is about $80-$100 a month(of course it's much cheaper now).

So, like I said before I realize that I am extremely fortunate. I've been completely broke, living in a really crappy 1 bedroom apartment while working at a job many considered a career, paying $600 a month in rent and barely being able to afford food. I am stressing the fact that I realize how fortunate I am because I think it is important that I take advantage of every opportunity that I have being in my position. A lot of people can't afford to think about quitting their job to learn something that might help them earn more. A lot of people inherit money but have to spend most of it on their current living arrangement and bills.

With that said, I am thinking about quitting my job. It truly makes me miserable, and I think having more time to focus on learning to invest and possibly day trade among other things would be worth it in the long run. I am only going to be 28 once, and if I can take this year to develop skills by 29 that I wouldn't have if I stayed at my job, and I can profit off those skills, why shouldn't I do it?

With COVID causing so many to lose their jobs, I figure there will be no shortage of jobs in the future. I have enough money in my savings alone to live comfortably for at least 6 months, at least a year even. But, I acknowledge that my ambition and the amount of resentment I hold for my current job might be clouding my judgment. So I would like to ask for advice/opinions on what I should do?


Should I quit?

If so, is the stock market/trading a realistic way of earning income considering our economy today?

I have already began taking some courses on TD ameritrade's website, I opened a brokerage account and downloaded thinkorswim(trading program), and I have been observing stocks and messing with trendlines and different forms of analysis. I am seriously motivated to learn this. I do not want to be broke, I do not want to be one of those idiots who inherits money and burns through it. This is a blessing and I want to take advantage of it fully.



I appreciate any help. Thank you.
You remind me a lot of my younger self. Right after I graduated college in 08’ I took a job that I liked but when the market crashed the business dried up and I took a job in the same industry but different area of business. I made it about 6-8 months in this new job and I hated it. I wound up quitting with no other opportunities lined up. I had some cash saved. If I could’ve slapped some sense into my old self I would have. Answer these two questions and go from there.

What do you have lined up?

Can you play the game until you have something lined up?
By play the game do you mean stay at my job?

sure, but for all the reasons I have already stated here, I don't think it would be better to stay at the job than to quit. I haven't been convinced of that yet. Obviously it is a good idea to stay, especially to those reading this who haven't spent two years witnessing their mental and physical health deteriorate.
Only you know how bad it really is.

If it was that bad why wouldn’t you have started looking for a new job while you were employed there?

I worked a job that felt like I was being stabbed everyday. Not enough to kill me, but just enough to remind me how bad it was. I quit eventually cause I had just had enough of it. It was not fulfilling and not satisfying at all. No prospects and no income. I went months without a job. It sucked!

All I’m saying is you can quit and sustain yourself with this money OR you can invest it and still work while looking for a new job that you will like. You can grow this money into multiples of itself if you give it enough time.
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