I am 16, Bogleheads help me be rich one day

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Topic Author
MiloMoney
Posts: 49
Joined: Wed Mar 18, 2020 11:37 pm

I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 19, 2020 12:13 am

I am 16 and last year made $700 in income as a parking lot attendant as well as earning $30 a week dog walking. I am a saver and stash or invest around 80% of my income.

Emergency funds: I do not currently have expenses but have $1,100 in the bank.

Debt: None

Tax Filing Status: Single

Tax Rate: Not Applicable /b]

State of Residence: Minnesota

Age: 16

Desired Asset allocation: Whatever makes me the most money

Please provide a hint as to the size of your current total portfolio (as in high four-figures, mid five-figures, low six-figures, etc.) What might be appropriate for a very large portfolio might not be appropriate for a new investor.


I will be transparent here, no need in making you guess. I have $1,800 in my Vanguard Roth IRA and $40 in a Robinhood brokerage.

Current retirement assets

Taxable
0% cash (for investing – do not include emergency funds)
17.38% Global X Nigeria ETF (NGE) (0.89% Expense Ratio)
42.20% Stag Industrial (STAG)
7.83% Urban One (UONE)
0.07% Hexindai (HX)
8.27% A.P Moller Maersk (AMKBY)
1.71% Canntrust (CTST)
16.41% Waitr Holdings (WTRH)
0.58% Globalstar (GSAT)
1.83% Inuvo (INUV)
2.65% Chanticleer Holdings (BURG)

Roth IRA at Vanguard
100% PowerShares QQQ Trust, Series 1 (QQQ)

Contributions

New annual Contributions
$2,102.00 his IRA/Roth IRA 2019
$107.33 his IRA/Roth IRA 2020



Questions:
1. I moved my money from my a Vanguard Targeted Retirement to QQQ is this right? I heard that I should be more aggressive.

2. I am in a US Bank Star Savers club, I am restricted to six withdrawals a month and only get 0.005% interest is this bad? I think it is terrible. I want to change to the Sallie Mae High Yield Savings 1.4% APY is this a good idea? Should I do a money market?

3. How do I budget?

mhalley
Posts: 8222
Joined: Tue Nov 20, 2007 6:02 am

Re: I am 16, Bogleheads help me be rich one day

Post by mhalley » Thu Mar 19, 2020 12:56 am

A tr fund at your age would be perfect. It would have 90% stocks and fully diversified between us and intl. QQQ gives less diversification. An online savings account might give a little more interest, but with the recent rate cuts will be low. Use something like bankrate.com to look for the best deal.
Mint.com is a good free budgeting tool.
I suggest you start with the if you can pdf.
https://www.etf.com/docs/IfYouCan.pdf

bluquark
Posts: 1096
Joined: Mon Oct 22, 2018 2:30 pm

Re: I am 16, Bogleheads help me be rich one day

Post by bluquark » Thu Mar 19, 2020 1:10 am

It's not clear to me that QQQ is actually much more aggressive than a target retirement. Many of the tech stocks that fill the Nasdaq 100 are now blue-chips, their biggest growth days might be over.

If you want something more aggressive than Target Retirement, I would recommend Vanguard Total World (VT/VTWAX), which is 100% stocks and the most diversified stock fund there is.

I don't think it's worth moving cash to money market at this time. I would wait a month to see where interest rates settle on various kinds of accounts before making a move -- many of them are likely about to drop because of the Fed rate cut.

Sounds fine to have fun with your $40 at Robinhood with all those individual stocks as well, it is useful to learn how individual stocks work to develop a better sense of what you're really investing in when you buy a fund.

Budgeting will be most relevant when you need to balance rent, food, etc against your income. If you're not currently paying for that yourself, you can only learn with hypothetical scenarios. But I think it might not worth learning to budget yet as it's not rocket science and you can figure it out when the need arises.

travellight
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Joined: Tue Aug 12, 2008 5:52 pm
Location: San Diego

Re: I am 16, Bogleheads help me be rich one day

Post by travellight » Thu Mar 19, 2020 1:22 am

I think you are off to a great start already. In general, maximize your Roth IRA and I would be aggressive in my asset allocation. I think I was 100% equities until the age of 40 because it was money I didn’t need and I had time to recover.

Invest in your education or whatever it takes to maximize your income... I consider it the get rich slow pathway. I find it to be less volatile and more bankable.
364

keanoz
Posts: 72
Joined: Sun Oct 02, 2016 1:27 am
Location: Sunnyvale, CA

Re: I am 16, Bogleheads help me be rich one day

Post by keanoz » Thu Mar 19, 2020 3:02 am

Your young and your hungry. This alone should take you far. Get a good education in something you are passionate in. Continue saving and investing aggressively and if all goes well some day you will be :moneybag Goodluck! :happy

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dratkinson
Posts: 4897
Joined: Thu Jul 26, 2007 6:23 pm
Location: Centennial CO

Re: I am 16, Bogleheads help me be rich one day

Post by dratkinson » Thu Mar 19, 2020 3:11 am

Congratulations on your early start.



Budget. You only need a budget if you spend more than you make. Don't expect that will be your problem. But you can search the forum for ideas.
Search forum: http://www.google.com/search?&q=budget+ ... rg%2Fforum



Four stock market lessons. Sixty+ years of academic research into investing success teach four major stock market lessons; ignore them at your peril:
--It’s very easy to get the market return, just buy index funds.
--It’s so impossible difficult to get more than the market return, that it's not worth trying.
--The short-term market return is mostly noise, so should be ignored.
--If you must reach for yield, can have a 5% (of total investments) play money account to scratch that itch. Quit playing when you lose.

Therefore, long-term investing for retirement is simple---just do a few things right and avoid serious mistakes. Notice I said “simple”, I didn’t say “easy”. Why? Because human nature desires to do “better”---resulting in multiple behavioral investing mistakes---the search for the “perfect plan” gets in the way of executing a “good plan”.


How do these lessons apply to you?

--Your rIRA (Roth IRA). A target date fund is good enough. I covers all the bases (stocks/bonds, US/international) and is self balancing. The time you don't spend here can be spent learning the skills needed to have a successful career.

--Your taxable account. This is your play money account. Use it to play and learn. The greatest lesson we all learn is that we are not as smart at the whole market. Why? Because by the time we rationalize what will be the next great investment, it's old news. And anything that everyone knows is not worth knowing.



Simplicity. Setup your life for simplicity. The less time you spend managing minutia, the more time you have for important stuff.

--Tax-advantaged retirement accounts (your IRA, employer's 401k,...). TDR funds keep your life simple.

--Bank accounts. I've found zero-fee low-interest CU accounts (checking, savings) to be the simplest to live with. Why? Because all CUs that are part of the COOP network have a "shared branch" relationship with other COOP CUs. This means you can walk into a local shared-branch CU, where ever you go, and physically access your accounts, to withdraw/deposit cash/checks. It makes live much simpler when you don't have to find a new bank every time you move, for school, work,....

You're worried about losing interest on low-interest bank accounts. And want to chase bank teaser rates for fear of leaving money on the table. These accounts will complicate your life.

There is a way to earn a higher return on low-interest bank accounts. Search forum from "ABP by CC technique". Of course this technique only works after you are out on your own, making money, and paying monthly bills.



To know the road ahead, ask those coming back. --Chinese proverb.
"If I Knew Then What I Know Now": viewtopic.php?t=161092



Suggested books from public library.
The Only Investment Guide You’ll Every Need, Andrew Tobias. General personal finance topics.
The Bogleheads’ Guide to Investing. A structured overview of wise retirement investing.
Date… or Soul Mate, Warren. Priceless if it helps avoid bad relationship/marriage/divorce.



Welcome.
d.r.a., not dr.a. | I'm a novice investor, you are forewarned.

User avatar
tvubpwcisla
Posts: 421
Joined: Sat Nov 09, 2019 10:09 am

Re: I am 16, Bogleheads help me be rich one day

Post by tvubpwcisla » Thu Mar 19, 2020 4:43 am

Great health, happiness, and having a career you love will make you the most rich.

On the investment side, buy low-cost index funds often, as much as you can, and never sell them.

Picking a good life partner is also helpful.
Last edited by tvubpwcisla on Thu Mar 19, 2020 7:49 am, edited 1 time in total.

sd323232
Posts: 395
Joined: Thu Jun 21, 2018 4:45 pm

Re: I am 16, Bogleheads help me be rich one day

Post by sd323232 » Thu Mar 19, 2020 5:05 am

MiloMoney wrote:
Thu Mar 19, 2020 12:13 am
I am 16 and last year made $700 in income as a parking lot attendant as well as earning $30 a week dog walking. I am a saver and stash or invest around 80% of my income.

Emergency funds: I do not currently have expenses but have $1,100 in the bank.

Debt: None

Tax Filing Status: Single

Tax Rate: Not Applicable /b]

State of Residence: Minnesota

Age: 16

Desired Asset allocation: Whatever makes me the most money

Please provide a hint as to the size of your current total portfolio (as in high four-figures, mid five-figures, low six-figures, etc.) What might be appropriate for a very large portfolio might not be appropriate for a new investor.


I will be transparent here, no need in making you guess. I have $1,800 in my Vanguard Roth IRA and $40 in a Robinhood brokerage.

Current retirement assets

Taxable
0% cash (for investing – do not include emergency funds)
17.38% Global X Nigeria ETF (NGE) (0.89% Expense Ratio)
42.20% Stag Industrial (STAG)
7.83% Urban One (UONE)
0.07% Hexindai (HX)
8.27% A.P Moller Maersk (AMKBY)
1.71% Canntrust (CTST)
16.41% Waitr Holdings (WTRH)
0.58% Globalstar (GSAT)
1.83% Inuvo (INUV)
2.65% Chanticleer Holdings (BURG)

Roth IRA at Vanguard
100% PowerShares QQQ Trust, Series 1 (QQQ)

Contributions

New annual Contributions
$2,102.00 his IRA/Roth IRA 2019
$107.33 his IRA/Roth IRA 2020



Questions:
1. I moved my money from my a Vanguard Targeted Retirement to QQQ is this right? I heard that I should be more aggressive.

2. I am in a US Bank Star Savers club, I am restricted to six withdrawals a month and only get 0.005% interest is this bad? I think it is terrible. I want to change to the Sallie Mae High Yield Savings 1.4% APY is this a good idea? Should I do a money market?

3. How do I budget?


At 16, your main objective is to aim to get a well paying job. It will be alot easier if you do. It is all about saving rate. You basically pile much as much cash as possible in your 20s and 30s. Your market return should not matter during that time. All about saving rate. Get a good degree and maximize your income.

deikel
Posts: 1069
Joined: Sat Jan 25, 2014 7:13 pm

Re: I am 16, Bogleheads help me be rich one day

Post by deikel » Thu Mar 19, 2020 7:44 am

spent a lot of time to understand what makes you rich - hint: Its not about the dollar value
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immediately and destroy any copy or remembrance of it.

daheld
Posts: 878
Joined: Wed Sep 13, 2017 8:14 am
Location: Midwest US

Re: I am 16, Bogleheads help me be rich one day

Post by daheld » Thu Mar 19, 2020 7:48 am

Other people will give you good investing advice. I'm going to first say that your desire to save and invest is awesome and will help you immensely as you get older.

The other thing I want to say is it will sometimes be hard to not compare yourself to others--after you graduate college you'll likely have friends who make a higher salary or drive a newer, nicer car. Resist the urge to want to compete with them. Other people might LOOK like they're doing better than you, but you don't know their debt situation, how much they spend on frivolous, silly purchases, and how much they've saved for retirement. You do you and worry about yourself. You're obviously on the right track. The future is bright.

fortyofforty
Posts: 2083
Joined: Wed Mar 31, 2010 12:33 pm

Re: I am 16, Bogleheads help me be rich one day

Post by fortyofforty » Thu Mar 19, 2020 7:55 am

Simplify. You have a (relatively) little money spread around a lot. Buy a total stock market index fund, or a total world stock index fund. Then save as much as you can, for as long as you can. Add bonds in future years. And view these days as a tremendous buying opportunity.

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Cyclesafe
Posts: 1127
Joined: Wed Dec 31, 2014 1:03 pm

Re: I am 16, Bogleheads help me be rich one day

Post by Cyclesafe » Thu Mar 19, 2020 8:03 am

I think all would agree here that there is a basic and unavoidable level of education that must be mastered for nearly everyone to function most effectively. Despite what you might think now, at 16 years of age you are far, far away from this level of competence. This stuff must be learned (or relearned) at some point; so the excessive spare time you have on your hands now (under semi-lockdown) can be best utilized pushing for mastery. There are a lot of people in your life who want to help. Talk to them.

In high school (waaaaaay before video games and the internet) I was excluded from school for two months after contracting mononucleosis. (I don't know if this is still a thing.) I realized that I needed to spend that time wisely to keep up with exams when I returned to school and to get the high grades I needed to get into my desired university. I studied not only from my textbooks, but I got many supplemental books from libraries to augment my learning. You are blessed with the internet that answers all questions instantly.

Anyway, I achieved the objective you seek. At 16, you have the opportunity to do so as well.
"Plans are useless; planning is indispensable.” (Dwight Eisenhower) | "Man plans, God laughs" (Yiddish proverb)

FI4LIFE
Posts: 486
Joined: Sun Apr 28, 2019 9:27 am

Re: I am 16, Bogleheads help me be rich one day

Post by FI4LIFE » Thu Mar 19, 2020 8:15 am

MiloMoney wrote:
Thu Mar 19, 2020 12:13 am
I am 16 and last year made $700 in income as a parking lot attendant as well as earning $30 a week dog walking. I am a saver and stash or invest around 80% of my income.

Emergency funds: I do not currently have expenses but have $1,100 in the bank.

Debt: None

Tax Filing Status: Single

Tax Rate: Not Applicable /b]

State of Residence: Minnesota

Age: 16

Desired Asset allocation: Whatever makes me the most money

Please provide a hint as to the size of your current total portfolio (as in high four-figures, mid five-figures, low six-figures, etc.) What might be appropriate for a very large portfolio might not be appropriate for a new investor.


I will be transparent here, no need in making you guess. I have $1,800 in my Vanguard Roth IRA and $40 in a Robinhood brokerage.

Current retirement assets

Taxable
0% cash (for investing – do not include emergency funds)
17.38% Global X Nigeria ETF (NGE) (0.89% Expense Ratio)
42.20% Stag Industrial (STAG)
7.83% Urban One (UONE)
0.07% Hexindai (HX)
8.27% A.P Moller Maersk (AMKBY)
1.71% Canntrust (CTST)
16.41% Waitr Holdings (WTRH)
0.58% Globalstar (GSAT)
1.83% Inuvo (INUV)
2.65% Chanticleer Holdings (BURG)

Roth IRA at Vanguard
100% PowerShares QQQ Trust, Series 1 (QQQ)

Contributions

New annual Contributions
$2,102.00 his IRA/Roth IRA 2019
$107.33 his IRA/Roth IRA 2020



Questions:
1. I moved my money from my a Vanguard Targeted Retirement to QQQ is this right? I heard that I should be more aggressive.

2. I am in a US Bank Star Savers club, I am restricted to six withdrawals a month and only get 0.005% interest is this bad? I think it is terrible. I want to change to the Sallie Mae High Yield Savings 1.4% APY is this a good idea? Should I do a money market?

3. How do I budget?


I've never seen a 16 year old with such perfect grammar, spelling and punctuation coupled with a vast knowledge of investing whilst simultaneously having a net worth of a thousand bucks. Sorry I don't buy it.

bloom2708
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Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: I am 16, Bogleheads help me be rich one day

Post by bloom2708 » Thu Mar 19, 2020 8:20 am

Maybe this current crisis will help the OP re-define "rich".

If you have your health, enough quality food to eat, family and friends and shelter, you are "rich".

I would be a kid at 16. Get through high school. It is fine to start planning and learning about money, but it is a long slog if you are driven by money from 16 to 86.

Good luck.
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead

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Sandtrap
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Location: Hawaii No Ka Oi , N. Arizona

Re: I am 16, Bogleheads help me be rich one day

Post by Sandtrap » Thu Mar 19, 2020 8:37 am

Welcome :D
Have a seat for a moment. .. . . :D

Do you want to be wealthy one day?
Do you want to be able to someday enjoy a job that pays very high dollars?
Do you want to look forward to going to work every day with passion and excitement and drive?
Do you want to feel like your profession benefits society as well as yourself?
Do you want all of the fruits of life that can be achieved and earned? (material and immaterial)

Wealth = material possesions (incl money), personal growth, strength of character, integrity, real self confidence, maturity, wisdom.

Actionable Steps:
1. Get the highest level of education (yes, that means school) that you can achieve in the passion of your choice.
2. Find your passions and natural gifts as a person, then grow those things.
How do you find them now? Self knowledge, not what others think of you or what you want to think of you.
IE: take an MBTI test, and do it occasionally over time to see how you evolve. Take a MENSA test. Speak with counselors and mentors (listen).
2b. Read about successful people. Get inspired. Light some inner sparks. Keep doing this. Love reading.
3. Learn how to learn. Many folks don't know how to learn conceptually and experientially. It's a skill. Learn.
4. Develop a love for work, a love for ambition, and appreciation for it.
5. Surround yourself with people and surroundings that are not negative or toxic. Learn to recognize what/who is toxic.
6. Develop a compassionate, empathetic, and strong character.
7. Learn the words, "ethos", and all that it links to.
8. Have a vision, a big one. Whether doctor, engineer, or the next "Jeff Bezos" or "Bill Gates". No limits.
Discover and decide to be a leader of yourself, or others, or a follower.
9. People rarely achieve more than their peers as long as they think and act and visualize within that limitation.
10. Repeat #1-10

Did you notice that I have not mentioned the money you have now nor how you are earning it?
Did you know that if you do #1-10, you will likely go farther than you ever dreamed instead of only focusing on money?

Read:
"The Richest Man In Babylon" by Clason. Carry it around with you for 10 years, read it in the morning and evening, wake up and sleep.
"Think and Grow Rich" by Napolean Hill,
"How to Win Friends and Influence People" by Carnegie.

Welcome to the forum.
Thanks for asking and listening.
j :D
Last edited by Sandtrap on Thu Mar 19, 2020 8:50 am, edited 1 time in total.
Wiki Bogleheads Wiki: Everything You Need to Know

Glockenspiel
Posts: 1048
Joined: Thu Feb 08, 2018 1:20 pm

Re: I am 16, Bogleheads help me be rich one day

Post by Glockenspiel » Thu Mar 19, 2020 8:44 am

Try earning $6,000/year for the next few years and put all of it into a Roth IRA, assuming your parents will help you out with daily expenses. Invest it all in something like a Total Stock Market Index Fund. No need for bonds or cash. Also, don't invest in individual stock funds. Far too risky unless it's a very small percentage of your overall savings.

Just starting at at age 16 instead of 22-24 like most people start investing will paid off handsomely, due to the compounding interest.

Topic Author
MiloMoney
Posts: 49
Joined: Wed Mar 18, 2020 11:37 pm

Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 12:45 am

FI4LIFE wrote:
Thu Mar 19, 2020 8:15 am
MiloMoney wrote:
Thu Mar 19, 2020 12:13 am
I am 16 and last year made $700 in income as a parking lot attendant as well as earning $30 a week dog walking. I am a saver and stash or invest around 80% of my income.

Emergency funds: I do not currently have expenses but have $1,100 in the bank.

Debt: None

Tax Filing Status: Single

Tax Rate: Not Applicable /b]

State of Residence: Minnesota

Age: 16

Desired Asset allocation: Whatever makes me the most money

Please provide a hint as to the size of your current total portfolio (as in high four-figures, mid five-figures, low six-figures, etc.) What might be appropriate for a very large portfolio might not be appropriate for a new investor.


I will be transparent here, no need in making you guess. I have $1,800 in my Vanguard Roth IRA and $40 in a Robinhood brokerage.

Current retirement assets

Taxable
0% cash (for investing – do not include emergency funds)
17.38% Global X Nigeria ETF (NGE) (0.89% Expense Ratio)
42.20% Stag Industrial (STAG)
7.83% Urban One (UONE)
0.07% Hexindai (HX)
8.27% A.P Moller Maersk (AMKBY)
1.71% Canntrust (CTST)
16.41% Waitr Holdings (WTRH)
0.58% Globalstar (GSAT)
1.83% Inuvo (INUV)
2.65% Chanticleer Holdings (BURG)

Roth IRA at Vanguard
100% PowerShares QQQ Trust, Series 1 (QQQ)

Contributions

New annual Contributions
$2,102.00 his IRA/Roth IRA 2019
$107.33 his IRA/Roth IRA 2020



Questions:
1. I moved my money from my a Vanguard Targeted Retirement to QQQ is this right? I heard that I should be more aggressive.

2. I am in a US Bank Star Savers club, I am restricted to six withdrawals a month and only get 0.005% interest is this bad? I think it is terrible. I want to change to the Sallie Mae High Yield Savings 1.4% APY is this a good idea? Should I do a money market?

3. How do I budget?


I've never seen a 16 year old with such perfect grammar, spelling and punctuation coupled with a vast knowledge of investing whilst simultaneously having a net worth of a thousand bucks. Sorry I don't buy it.


I use Grammarly and watch far too many personal finance videos on Youtube.
Last edited by MiloMoney on Thu Mar 26, 2020 3:02 am, edited 1 time in total.

Topic Author
MiloMoney
Posts: 49
Joined: Wed Mar 18, 2020 11:37 pm

Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 12:58 am

bluquark wrote:
Thu Mar 19, 2020 1:10 am
It's not clear to me that QQQ is actually much more aggressive than a target retirement. Many of the tech stocks that fill the Nasdaq 100 are now blue-chips, their biggest growth days might be over.

If you want something more aggressive than Target Retirement, I would recommend Vanguard Total World (VT/VTWAX), which is 100% stocks and the most diversified stock fund there is.

I don't think it's worth moving cash to money market at this time. I would wait a month to see where interest rates settle on various kinds of accounts before making a move -- many of them are likely about to drop because of the Fed rate cut.

Sounds fine to have fun with your $40 at Robinhood with all those individual stocks as well, it is useful to learn how individual stocks work to develop a better sense of what you're really investing in when you buy a fund.

Budgeting will be most relevant when you need to balance rent, food, etc against your income. If you're not currently paying for that yourself, you can only learn with hypothetical scenarios. But I think it might not worth learning to budget yet as it's not rocket science and you can figure it out when the need arises.
First off thank you for taking the time to respond to this. I choose QQQ as it has a low expense ratio and has outperformed the S&P 500 for the last few years. The person that recommended QQQ said I should not be worried about diversification as my only goal right now is to get a pile of money than rebalance it at age 50.

Topic Author
MiloMoney
Posts: 49
Joined: Wed Mar 18, 2020 11:37 pm

Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:00 am

mhalley wrote:
Thu Mar 19, 2020 12:56 am
A tr fund at your age would be perfect. It would have 90% stocks and fully diversified between us and intl. QQQ gives less diversification. An online savings account might give a little more interest, but with the recent rate cuts will be low. Use something like bankrate.com to look for the best deal.
Mint.com is a good free budgeting tool.
I suggest you start with the if you can pdf.
https://www.etf.com/docs/IfYouCan.pdf
Is diversification important at my age or should I just be chasing returns?

Topic Author
MiloMoney
Posts: 49
Joined: Wed Mar 18, 2020 11:37 pm

Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:04 am

travellight wrote:
Thu Mar 19, 2020 1:22 am
I think you are off to a great start already. In general, maximize your Roth IRA and I would be aggressive in my asset allocation. I think I was 100% equities until the age of 40 because it was money I didn’t need and I had time to recover.

Invest in your education or whatever it takes to maximize your income... I consider it the get rich slow pathway. I find it to be less volatile and more bankable.

Thank you for responding! I think aggressive is the way to go; my sibling's portfolio drives me nuts. She is 60% Stocks 40% Bonds at age 18 in a general brokerage saving for retirment.

I think I'm going to keep the phrase "get rich slow pathway." I love it!

Topic Author
MiloMoney
Posts: 49
Joined: Wed Mar 18, 2020 11:37 pm

Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:05 am

keanoz wrote:
Thu Mar 19, 2020 3:02 am
Your young and your hungry. This alone should take you far. Get a good education in something you are passionate in. Continue saving and investing aggressively and if all goes well some day you will be :moneybag Goodluck! :happy

Thank you :D

vipertom1970
Posts: 769
Joined: Fri Jun 21, 2019 7:06 pm

Re: I am 16, Bogleheads help me be rich one day

Post by vipertom1970 » Thu Mar 26, 2020 1:08 am

80% of the best stock pickers could not beat S&P500 in a long run so might as well stick with S&P 500 and sell everything else and focus on career choice. GREAT START !!!

Topic Author
MiloMoney
Posts: 49
Joined: Wed Mar 18, 2020 11:37 pm

Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:13 am

dratkinson wrote:
Thu Mar 19, 2020 3:11 am

Budget. You only need a budget if you spend more than you make. Don't expect that will be your problem. But you can search the forum for ideas.
Search forum: http://www.google.com/search?&q=budget+ ... rg%2Fforum



Four stock market lessons. Sixty+ years of academic research into investing success teach four major stock market lessons; ignore them at your peril:
--It’s very easy to get the market return, just buy index funds.
--It’s so impossible difficult to get more than the market return, that it's not worth trying.
--The short-term market return is mostly noise, so should be ignored.
--If you must reach for yield, can have a 5% (of total investments) play money account to scratch that itch. Quit playing when you lose.

Therefore, long-term investing for retirement is simple---just do a few things right and avoid serious mistakes. Notice I said “simple”, I didn’t say “easy”. Why? Because human nature desires to do “better”---resulting in multiple behavioral investing mistakes---the search for the “perfect plan” gets in the way of executing a “good plan”.


How do these lessons apply to you?

--Your rIRA (Roth IRA). A target date fund is good enough. I covers all the bases (stocks/bonds, US/international) and is self balancing. The time you don't spend here can be spent learning the skills needed to have a successful career.

--Your taxable account. This is your play money account. Use it to play and learn. The greatest lesson we all learn is that we are not as smart at the whole market. Why? Because by the time we rationalize what will be the next great investment, it's old news. And anything that everyone knows is not worth knowing.



Simplicity. Setup your life for simplicity. The less time you spend managing minutia, the more time you have for important stuff.

--Tax-advantaged retirement accounts (your IRA, employer's 401k,...). TDR funds keep your life simple.

--Bank accounts. I've found zero-fee low-interest CU accounts (checking, savings) to be the simplest to live with. Why? Because all CUs that are part of the COOP network have a "shared branch" relationship with other COOP CUs. This means you can walk into a local shared-branch CU, where ever you go, and physically access your accounts, to withdraw/deposit cash/checks. It makes live much simpler when you don't have to find a new bank every time you move, for school, work,....

You're worried about losing interest on low-interest bank accounts. And want to chase bank teaser rates for fear of leaving money on the table. These accounts will complicate your life.

There is a way to earn a higher return on low-interest bank accounts. Search forum from "ABP by CC technique". Of course this technique only works after you are out on your own, making money, and paying monthly bills.



To know the road ahead, ask those coming back. --Chinese proverb.
"If I Knew Then What I Know Now": viewtopic.php?t=161092



Suggested books from public library.
The Only Investment Guide You’ll Every Need, Andrew Tobias. General personal finance topics.
The Bogleheads’ Guide to Investing. A structured overview of wise retirement investing.
Date… or Soul Mate, Warren. Priceless if it helps avoid bad relationship/marriage/divorce.



Welcome.
Thank you. You are wise. It's 1 in the morning and I would privaley message you with a better response later. One question on bank accounts, I have had my account at US Bank for 7 years they say that my account realtionship is valuable for credit and loans in the future is that true?

Topic Author
MiloMoney
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Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:15 am

tvubpwcisla wrote:
Thu Mar 19, 2020 4:43 am
Great health, happiness, and having a career you love will make you the most rich.

On the investment side, buy low-cost index funds often, as much as you can, and never sell them.

Picking a good life partner is also helpful.
Thank you for responding! Picking a good life partner is a priority. I see my parents argue a lot.

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iceport
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Re: I am 16, Bogleheads help me be rich one day

Post by iceport » Thu Mar 26, 2020 1:24 am

MiloMoney wrote:
Thu Mar 26, 2020 1:00 am
mhalley wrote:
Thu Mar 19, 2020 12:56 am
A tr fund at your age would be perfect. It would have 90% stocks and fully diversified between us and intl. QQQ gives less diversification. An online savings account might give a little more interest, but with the recent rate cuts will be low. Use something like bankrate.com to look for the best deal.
Mint.com is a good free budgeting tool.
I suggest you start with the if you can pdf.
https://www.etf.com/docs/IfYouCan.pdf
Is diversification important at my age or should I just be chasing returns?
The answer is contained in the linked booklet.

(Hint: chasing returns is on the get rich too slow pathway. It's the classic example of a behavioral mistake.)

Your level of financial sophistication at such a young age is really impressive. But a strategy of chasing returns is very likely to lead to lower returns than just adopting the simple index fund portfolio described in the booklet.
"Discipline matters more than allocation.” ─William Bernstein

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MiloMoney
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Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:26 am

sd323232 wrote:
Thu Mar 19, 2020 5:05 am
At 16, your main objective is to aim to get a well paying job. It will be alot easier if you do. It is all about saving rate. You basically pile much as much cash as possible in your 20s and 30s. Your market return should not matter during that time. All about saving rate. Get a good degree and maximize your income.
Thank you for responding, I appreciate that. Compound interest is powerful. I see a lot of people on here talking about my career choice this is what I am thinking as of now. It will likely change but I love marketing and have wanted to be in it since I was 10.

Image

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MiloMoney
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Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:28 am

deikel wrote:
Thu Mar 19, 2020 7:44 am
spent a lot of time to understand what makes you rich - hint: Its not about the dollar value
Removed.
Last edited by MiloMoney on Thu Apr 02, 2020 2:25 pm, edited 1 time in total.

Topic Author
MiloMoney
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Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:30 am

daheld wrote:
Thu Mar 19, 2020 7:48 am
Other people will give you good investing advice. I'm going to first say that your desire to save and invest is awesome and will help you immensely as you get older.

The other thing I want to say is it will sometimes be hard to not compare yourself to others--after you graduate college you'll likely have friends who make a higher salary or drive a newer, nicer car. Resist the urge to want to compete with them. Other people might LOOK like they're doing better than you, but you don't know their debt situation, how much they spend on frivolous, silly purchases, and how much they've saved for retirement. You do you and worry about yourself. You're obviously on the right track. The future is bright.
I appreciate it. I still take the bus to school and all my friends drive. It's hard, I want to drive but I won't. My friends burn all their money at the pump.

Topic Author
MiloMoney
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Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:31 am

fortyofforty wrote:
Thu Mar 19, 2020 7:55 am
Simplify. You have a (relatively) little money spread around a lot. Buy a total stock market index fund, or a total world stock index fund. Then save as much as you can, for as long as you can. Add bonds in future years. And view these days as a tremendous buying opportunity.
Simplicity is key is what I am getting from this forum. Thank you for responding! :happy

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MiloMoney
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Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:33 am

Sandtrap wrote:
Thu Mar 19, 2020 8:37 am
Welcome :D
Have a seat for a moment. .. . . :D

Do you want to be wealthy one day?
Do you want to be able to someday enjoy a job that pays very high dollars?
Do you want to look forward to going to work every day with passion and excitement and drive?
Do you want to feel like your profession benefits society as well as yourself?
Do you want all of the fruits of life that can be achieved and earned? (material and immaterial)

Wealth = material possesions (incl money), personal growth, strength of character, integrity, real self confidence, maturity, wisdom.

Actionable Steps:
1. Get the highest level of education (yes, that means school) that you can achieve in the passion of your choice.
2. Find your passions and natural gifts as a person, then grow those things.
How do you find them now? Self knowledge, not what others think of you or what you want to think of you.
IE: take an MBTI test, and do it occasionally over time to see how you evolve. Take a MENSA test. Speak with counselors and mentors (listen).
2b. Read about successful people. Get inspired. Light some inner sparks. Keep doing this. Love reading.
3. Learn how to learn. Many folks don't know how to learn conceptually and experientially. It's a skill. Learn.
4. Develop a love for work, a love for ambition, and appreciation for it.
5. Surround yourself with people and surroundings that are not negative or toxic. Learn to recognize what/who is toxic.
6. Develop a compassionate, empathetic, and strong character.
7. Learn the words, "ethos", and all that it links to.
8. Have a vision, a big one. Whether doctor, engineer, or the next "Jeff Bezos" or "Bill Gates". No limits.
Discover and decide to be a leader of yourself, or others, or a follower.
9. People rarely achieve more than their peers as long as they think and act and visualize within that limitation.
10. Repeat #1-10

Did you notice that I have not mentioned the money you have now nor how you are earning it?
Did you know that if you do #1-10, you will likely go farther than you ever dreamed instead of only focusing on money?

Read:
"The Richest Man In Babylon" by Clason. Carry it around with you for 10 years, read it in the morning and evening, wake up and sleep.
"Think and Grow Rich" by Napolean Hill,
"How to Win Friends and Influence People" by Carnegie.

Welcome to the forum.
Thanks for asking and listening.
j :D
I will private message you with a response. Thank you is what I can say for now.

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MiloMoney
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Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:35 am

Glockenspiel wrote:
Thu Mar 19, 2020 8:44 am
Try earning $6,000/year for the next few years and put all of it into a Roth IRA, assuming your parents will help you out with daily expenses. Invest it all in something like a Total Stock Market Index Fund. No need for bonds or cash. Also, don't invest in individual stock funds. Far too risky unless it's a very small percentage of your overall savings.

Just starting at at age 16 instead of 22-24 like most people start investing will paid off handsomely, due to the compounding interest.

Thank you for responding. How much difference will those few years make?

Topic Author
MiloMoney
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Re: I am 16, Bogleheads help me be rich one day

Post by MiloMoney » Thu Mar 26, 2020 1:36 am

vipertom1970 wrote:
Thu Mar 26, 2020 1:08 am
80% of the best stock pickers could not beat S&P500 in a long run so might as well stick with S&P 500 and sell everything else and focus on career choice. GREAT START !!!
Thank you!

jjface
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Re: I am 16, Bogleheads help me be rich one day

Post by jjface » Thu Mar 26, 2020 2:10 am

You are doing a lot of things right - you are earning, saving, asking questions and learning! A roth IRA is also a great place to sock away your money right now.

One thing you need to understand better is risk. All risk is not good risk. There are things you can do to drastically reduce your risk and not impact your expected return.

EG QQQ is tech heavy and if there is a tech crash like in 2000/2001 you will be hit hard. It dropped 80% at one point. Don't overestimate your ability to keep a level head faced with that especially when the rest of the market is doing twice as well. You may be tempted to bail and lock in losses. How would you feel if you work your socks off for several years and make $10,000 and then one day you look at your balance and it is $2,000?! I know I would have a heart attack. Tech may also underperform for a long time and you may wish you have invested elsewhere. By diversifying across all sectors with a total stock market fund you reduce risk whilst keep expected returns high.

Then there is your taxable account which you are filling with lots of little things I have never even heard of. Portfolios do not need to be complicated and I believe firmly in simplicity for most people is the best way to go. One well diversified fund is better than trying to pick a million stocks and funds that may have overlap or too much risk in one area, introduce manager risk, or specific stock risk. All of which you can remove by keeping things well diversified and simple. With $40 in the brokerage some of those holding must be pennies?! Not needed at all.

So yes a target retirement fund is a good idea or simply picking the total stock market index fund is perfectly fine at your age if you want to max expected returns. But do read the Ifyoucan booklet already posted and consider adding some bonds to reduce risk a bit (target retirement starts at 10% bonds).

Good luck!

Thesaints
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Re: I am 16, Bogleheads help me be rich one day

Post by Thesaints » Thu Mar 26, 2020 2:26 am

MiloMoney wrote:
Thu Mar 19, 2020 12:13 am
I am 16, Bogleheads help me be rich one day
The first thing you have to realize is that with this kind of capital and income it does not matter if you get a 0.005% interest, or 15%. You'll never make any substantial money after factoring in taxes and inflation.

If you want to be wealthy the surest way is going to a good graduate school, which will greatly increase your chances not only of finding a very well paying job, but also a wife who makes good money, or already has got it.

If instead your objective is to become very rich, as in tens of millions and more, try to be lucky. Very lucky.
Last edited by Thesaints on Thu Mar 26, 2020 1:15 pm, edited 1 time in total.

Topic Author
MiloMoney
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Key Takeaways

Post by MiloMoney » Thu Mar 26, 2020 2:36 am

Image
Key Takeaways
  • Get back into a targeted retirement.
    Invest and save like a madman and let compound interest do the heavy lifting.
    Use the time that passive investing gives to hone my trade and earn more money to invest more.
    Use the time that passive investing gives to live a rich and happy life.
Random Questions
  • I am reaching the age where credit cards are coming. Should I stay away from them? Revolving debt scares me.
Thank you again to everyone!

minimalistmarc
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Re: I am 16, Bogleheads help me be rich one day

Post by minimalistmarc » Thu Mar 26, 2020 2:52 am

MiloMoney wrote:
Thu Mar 19, 2020 12:13 am
I am 16 and last year made $700 in income as a parking lot attendant as well as earning $30 a week dog walking. I am a saver and stash or invest around 80% of my income.

Emergency funds: I do not currently have expenses but have $1,100 in the bank.

Debt: None

Tax Filing Status: Single

Tax Rate: Not Applicable /b]

State of Residence: Minnesota

Age: 16

Desired Asset allocation: Whatever makes me the most money

Please provide a hint as to the size of your current total portfolio (as in high four-figures, mid five-figures, low six-figures, etc.) What might be appropriate for a very large portfolio might not be appropriate for a new investor.


I will be transparent here, no need in making you guess. I have $1,800 in my Vanguard Roth IRA and $40 in a Robinhood brokerage.

Current retirement assets

Taxable
0% cash (for investing – do not include emergency funds)
17.38% Global X Nigeria ETF (NGE) (0.89% Expense Ratio)
42.20% Stag Industrial (STAG)
7.83% Urban One (UONE)
0.07% Hexindai (HX)
8.27% A.P Moller Maersk (AMKBY)
1.71% Canntrust (CTST)
16.41% Waitr Holdings (WTRH)
0.58% Globalstar (GSAT)
1.83% Inuvo (INUV)
2.65% Chanticleer Holdings (BURG)

Roth IRA at Vanguard
100% PowerShares QQQ Trust, Series 1 (QQQ)

Contributions

New annual Contributions
$2,102.00 his IRA/Roth IRA 2019
$107.33 his IRA/Roth IRA 2020



Questions:
1. I moved my money from my a Vanguard Targeted Retirement to QQQ is this right? I heard that I should be more aggressive.

2. I am in a US Bank Star Savers club, I am restricted to six withdrawals a month and only get 0.005% interest is this bad? I think it is terrible. I want to change to the Sallie Mae High Yield Savings 1.4% APY is this a good idea? Should I do a money market?

3. How do I budget?



You’re doing great. I would stick to one fund only like vanguard all world, which means you own a piece of every company in the world.

Other than that, have fun, work hard, talk to lots if girls (or boys).

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dratkinson
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Re: I am 16, Bogleheads help me be rich one day

Post by dratkinson » Thu Mar 26, 2020 3:19 am

MiloMoney wrote:
Thu Mar 26, 2020 1:13 am
...
Thank you. You are wise. It's 1 in the morning and I would privaley message you with a better response later. One question on bank accounts, I have had my account at US Bank for 7 years they say that my account realtionship is valuable for credit and loans in the future is that true?
Let everyone see all of your replies, so we are all working on the same information, in helping you work toward a good solution.


Having a long-term financial home is good for your credit history*. So keep your US Bank account for now. And when you move, if you can't find a local US Bank branch, then look for a COOP CU to be your new financial home. (* US Bank reports your credit history to the credit reporting bureaus. So your credit history is available where ever go, whether you stay with US Bank, or not.)



Disclosure. I've had my free CU accounts for many years and been generally satisfied with them. I've always appreciated the simplicity of reestablishing myself in a new location every time I moved.

But! my current CU could not sell me paper US Savings Bonds---when I was on that kick---not a product they supported.

US Bank. So I bought my paper savings bonds from a US Bank branch. But! the same branch would not redeem them---when I decided to go another route---because they don't redeem paper savings bonds for non-clients, and wouldn't open an account just to redeem my savings bonds.

Wells Fargo Bank. However, WF did redeem my paper savings bonds without requiring me to open an account. I just had to sit through a sales presentation trying to convince me to move my banking to WF. But! WF did not have a published list of services/fees, and I didn't want to move if they could not tell me how much it was going to cost me.

Bottom line. You may not find a bank/CU that has all of the features you want. So pick one that provided the most convenient features for your life. And if you need a new feature later, then find another bank/CU that provides it, and add it to your financial life... while keeping your other accounts.



ACH (Automated Clearing House) transactions. It's easy to interlink bank and investing accounts. So you could keep your US Bank account, add a CU account later, and link both to your investing account. Then if you need to move money among them, it's easy to do by initiating an ACH transaction.

N.B. (Nota bene, Latin for "note well", important note.) Some banks/CUs charge for some ACH transactions, but others are free. This is why you need to request/get a bank/CU's published listing of services/fees---so you know and can avoid unnecessary fees.

Example. My CU charges for an ACH "push" transaction, but not for an ACH "pull" transaction. So I don't have to remember which is which, and always avoid fees, I initial all transactions on my CU account from my investing account---I sell investments and push the money into my CU account, or buy investments and pull the money out of my CU account. Easy peasy.

Search ACH: http://www.google.com/search?&q=ACH



Backup plan. Another reason to have more than one bank account is as a backup plan. If for some reason, one checking account is compromised, you have another ready to go. Just ACH in some money and resume writing checks.

Where did you get the money? Probably from your settlement accounts, or by selling some bonds in your taxable account.

You'll also need to tell your employer's HR department to change the DD (direct deposit) of your salary into your new checking account.

Plan for the worst. Hope for the best.



All of these comments, that generate other ideas/comments, are why you want all of your advice to be given in a public forum. Not by PM.
d.r.a., not dr.a. | I'm a novice investor, you are forewarned.

fortyofforty
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Re: Key Takeaways

Post by fortyofforty » Thu Mar 26, 2020 6:21 am

MiloMoney wrote:
Thu Mar 26, 2020 2:36 am
Image
Key Takeaways
  • Get back into a targeted retirement.
    Invest and save like a madman and let compound interest do the heavy lifting.
    Use the time that passive investing gives to hone my trade and earn more money to invest more.
    Use the time that passive investing gives to live a rich and happy life.
Random Questions
  • I am reaching the age where credit cards are coming. Should I stay away from them? Revolving debt scares me.
Thank you again to everyone!
Credit cards are a tool. If you can pay off the balance every month, and collect some reward (e.g. cash back, airline miles, discounts for things you need to buy) then they can be great. If you can't be disciplined and pay off the balance, they are a dangerous path to go down. Once you carry a balance, interest is charged on everything else you buy until the entire balance is paid off, and even then there can be a lag of a month or two. OTOH, debit cards pull money right out of your bank account, which is not appealing to me. When you purchase something with a credit card, you sometimes get an extended warranty and you also get protection in case the seller does not provide the promised item, both of which can be valuable. Again, like fire, credit cards are a tool that, when used wisely, are very valuable; when used foolishly, they can burn you.

3funder
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Re: I am 16, Bogleheads help me be rich one day

Post by 3funder » Thu Mar 26, 2020 7:47 am

The fact that, at your age, you're even inquiring about this, tells me that you're likely to achieve your financial goals.

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Wiggums
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Re: I am 16, Bogleheads help me be rich one day

Post by Wiggums » Thu Mar 26, 2020 8:01 am

3funder wrote:
Thu Mar 26, 2020 7:47 am
The fact that, at your age, you're even inquiring about this, tells me that you're likely to achieve your financial goals.
+1

Good luck to you.

rustymutt
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Re: I am 16, Bogleheads help me be rich one day

Post by rustymutt » Thu Mar 26, 2020 8:12 am

OK, Get a college education, and go to work daily, on time, and save as much as possible in all ways. Roth, 401K, any way to save.
And if you do that for 30 years, you'll wake up 1 am and say to yourself, "wow I'm a millionaire". But nothing changes then because you have learned to live below your means, and are quite content with what you have. Anyone can do this, even without a college degree, but it's harder to find the dollars without a degree. It's not a secret that in the US anyone can have wealth. But lazy people not so much. Good luck. :moneybag
Even educators need education. And some can be hard headed to the point of needing time out.

tindel
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Re: I am 16, Bogleheads help me be rich one day

Post by tindel » Thu Mar 26, 2020 9:38 am

MiloMoney wrote:
Thu Mar 19, 2020 12:13 am
2. I am in a US Bank Star Savers club, I am restricted to six withdrawals a month and only get 0.005% interest is this bad? I think it is terrible. I want to change to the Sallie Mae High Yield Savings 1.4% APY is this a good idea? Should I do a money market?

3. How do I budget?
2. Most bank savings accounts offer lousy rates. 0.005% is half of the lousy rate I got when I was your age (before the internet - if you can believe there were such a period). This rate was one of the reasons I gave up on saving until my late 20's. I'd be much richer if I knew there were options. I remember getting about one penny each month on my $100 I had saved. It just hadn't been worth the work to save the money. I wish then that, like you, I had explored my options... I would be much wealthier today if I had. So good on you for exploring.

I like Sallie Mae, and I don't think they get enough love around here - likely due to the fact that they are one of the largest student load debt lenders. I really like their Money Market account over their High Yield, personally... a slightly better rate than their high yield savings, but with check writing ability. The rates have remained competitive over the years - not top, but competitive. A few down sides 1) All deposits are held for 5 business days. 2) they hold deposits $5000 or more for 10 business days - or they used to, I can't find that on their website anymore. 3) Their website is poor - even after their recent 'improvements'. 4) Customer service is adequate, but slow.

3. Search for "You Need A Budget" to learn how to budget.

a_movable_life
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Re: I am 16, Bogleheads help me be rich one day

Post by a_movable_life » Thu Mar 26, 2020 9:54 am

You can Roth before age 21. Many companies even if you get in a 18 won't let you invest in the 401K until 21. I've worked with RN's who can't contribute the first year or two after school.

Right now consider how to leverage as low a cost/free college education, and pick a degree that leads to a career that pays well. It's a lot easier to get rich on the salaries that get talked about here frequently than making 40K a year. Coming out with low or no debt gives you a big leg up when you get out.

You may also want to consider the trades if you are hands on. A good Electrician or Plumber can be very busy just on word of mouth. That also dovetails very well if you want to do real estate. So many tax benefits to being self employed. You can always go back for a business degree later.

knowledge
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Re: I am 16, Bogleheads help me be rich one day

Post by knowledge » Thu Mar 26, 2020 9:59 am

It's fine to be financially motivated, but don't be short-sighted. Your highest return will come from investing in yourself. That's primarily through education. Sure, $6k into a Roth at the age of 16 is awesome, but investing that into your human capital is likely even more so.

If you can do both...amazing.

MindBogler
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Re: I am 16, Bogleheads help me be rich one day

Post by MindBogler » Thu Mar 26, 2020 10:33 am

MiloMoney wrote:
Thu Mar 26, 2020 1:04 am
Thank you for responding! I think aggressive is the way to go; my sibling's portfolio drives me nuts. She is 60% Stocks 40% Bonds at age 18 in a general brokerage saving for retirment.

I think I'm going to keep the phrase "get rich slow pathway." I love it!
At your age you have the most important resource for building wealth: time.

The allocation of your portfolio is hardly relevant. How much you can save from each paycheck matters far more. Avoiding behavioral traps like market timing and being overly ambitious (greedy). Stick to index funds and don't buy individual stocks.

I prefer closer to 75% stocks / 25% bonds but I would happily argue your sibling's portfolio is quite wise (tax-efficient placement of the funds notwithstanding).

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cashboy
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Location: USA

Re: I am 16, Bogleheads help me be rich one day

Post by cashboy » Thu Mar 26, 2020 10:35 am

learn how to enjoy and appreciate each and every moment of life in good times and bad times.

be the person that possess the positive character traits you wish everyone else had.

if you can master that then even if you only have $10 in your wallet you will be one of the richest people alive.
Three-Fund Portfolio: FSPSX - FXAIX - FXNAX (with slight tilt of CDs - CASH - Canned Beans - Rice - Bottled Water)

voodoo72
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Re: I am 16, Bogleheads help me be rich one day

Post by voodoo72 » Thu Mar 26, 2020 10:44 am

If at 16 you already asking these questions, I have no doubt you will be rich, you have the greatest gift of all, " TIME" dont squander it away. Continue investing and never stop. Tweak portfolio from time to time, use this sight as a blueprint and learn from everyone elses mistakes.

ddurrett896
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Re: I am 16, Bogleheads help me be rich one day

Post by ddurrett896 » Thu Mar 26, 2020 10:51 am

Setup a Target Date Fund with auto contributions and forget about it.

I was around 18 years old when the 2008 recession hit and In 2009, I checked my Roth IRA and the value was like 50% of what I had contributed. What did I do? Stop contributing.

2010 - 2012 didn't contribute at all. In 2013, I setup automatic contribution each month. So easy and I don't even think about it. Don't make the same mistake.

Invest early and often. It takes around 25 years to make $1mm, then 8 more years to hit $2mm, 6 years for $3mm and 4 more years to hit $4mm.

18 years old + 25 + 8 + 6 + 4 = 57 years old. You're in a GREAT POSITION!
Last edited by ddurrett896 on Thu Mar 26, 2020 12:24 pm, edited 2 times in total.

oldfort
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Re: I am 16, Bogleheads help me be rich one day

Post by oldfort » Thu Mar 26, 2020 11:01 am

The way to get rich is to have a high paying job.

tibbitts
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Re: I am 16, Bogleheads help me be rich one day

Post by tibbitts » Thu Mar 26, 2020 11:15 am

It seems like half the supposed-Bogleheads who've been posting lately don't believe any of us will survive Covid-19, so maybe just enjoy yourself while you're still alive.

Seriously though you're overthinking this. Having a Roth is nice, especially if somebody will be matching ((or just plain making) your contributions, which seems to happen for many younger people here. Keep it all in a target fund or total market fund. Nobody knows where our QQQ idea came from but I suppose if you want... whatever. Just pick one thing and stick with it.

For taxable put everything into a bank or MM account of your choice. The rate doesn't matter at the amounts you have, but if you want to choose one with relatively high rates. Just don't waste time moving funds around monthly for .1%. You say you have no expenses but you do - someone else is just paying them. Some day they won't and you may have to use your savings.

What will matter is education and eventually employment and spending less than you make, not minor differences in how you invest.

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