Comments on: An Alternative Investing Approach For Young Investors http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/ Helping a unique generation achieve financial independence. Sat, 13 Mar 2010 15:33:11 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Jordan Clark http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87618 Jordan Clark Sun, 21 Sep 2008 16:47:37 +0000 http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87618 I'm in this age group, but I disagree with this advice. I don't think we can pick stocks that perform better then the index over the long term. I also don't want a second job trying to find good stocks to buy. There are other advantages to indexing as well such as lower taxes, lower fees, no need for a financial advisor (most of which suck), no guilt about buying a bad stock, or worry about when to sell if you are high or low. If I had to give advise to a 20 something I would say this is absolutely the best time in life to save money like a fiend. Keep your costs low, you don't need or deserve a new car or an iPhone. Live like a starving college student for a couple years and you will quickly build more wealth then you could possible get from the stock market. Also stay away from debt, avoid credit cards, don't owe anyone anything. If you have debt, you would do better to pay it all off before saving $1 towards building wealth. If you want to be a roller buy everything with cash, it will keep your spending honest. If you avoid debt from the beginning you should only need to borrow money once, to buy a home. Speaking of home, stay at you're parent's home as long as possible and save 50% or more of your income. Even one extra year living under your parent's roof could easily add $10k to your investments. I’m in this age group, but I disagree with this advice. I don’t think we can pick stocks that perform better then the index over the long term. I also don’t want a second job trying to find good stocks to buy. There are other advantages to indexing as well such as lower taxes, lower fees, no need for a financial advisor (most of which suck), no guilt about buying a bad stock, or worry about when to sell if you are high or low.

If I had to give advise to a 20 something I would say this is absolutely the best time in life to save money like a fiend. Keep your costs low, you don’t need or deserve a new car or an iPhone. Live like a starving college student for a couple years and you will quickly build more wealth then you could possible get from the stock market.

Also stay away from debt, avoid credit cards, don’t owe anyone anything. If you have debt, you would do better to pay it all off before saving $1 towards building wealth. If you want to be a roller buy everything with cash, it will keep your spending honest. If you avoid debt from the beginning you should only need to borrow money once, to buy a home.

Speaking of home, stay at you’re parent’s home as long as possible and save 50% or more of your income. Even one extra year living under your parent’s roof could easily add $10k to your investments.

]]> By: Weekend Linkage - September 21, 2008 http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87611 Weekend Linkage - September 21, 2008 Sun, 21 Sep 2008 15:36:55 +0000 http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87611 [...] An Alternative Investing Approach For Young Investors Diversify, diversify, diversify. Even young investors with time on their side still need to have well diversified portfolios to weather the storm. [...] [...] An Alternative Investing Approach For Young Investors Diversify, diversify, diversify. Even young investors with time on their side still need to have well diversified portfolios to weather the storm. [...]

]]> By: Sunday Links - Sept 21, 2008 | Million Dollar Journey http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87583 Sunday Links - Sept 21, 2008 | Million Dollar Journey Sun, 21 Sep 2008 10:30:41 +0000 http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87583 [...] Generation X Finance gives us An Alternative Investing Approach For Young Investors. [...] [...] Generation X Finance gives us An Alternative Investing Approach For Young Investors. [...]

]]> By: Jerry http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87345 Jerry Thu, 18 Sep 2008 22:07:25 +0000 http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87345 I find this very useful for all age groups, we have seen more older people lose focus. I do agree with Jimmy, and go with at least ten stocks to a well diversified portfolio. I find this very useful for all age groups, we have seen more older people lose focus. I do agree with Jimmy, and go with at least ten stocks to a well diversified portfolio.

]]> By: Matt at Steadfast Finances http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87283 Matt at Steadfast Finances Thu, 18 Sep 2008 04:20:48 +0000 http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87283 I'm living proof this strategy works. Buying companies like Apple, Google, or China Mobile paid off big time when I bought them 5 years ago. Diversification is a necessary evil, but it can also hold you back. Look at how well those well popular index funds have done over the last 10 years... pull up a decade long chart of the S&P 500 sometime if you want a nice laugh. I’m living proof this strategy works. Buying companies like Apple, Google, or China Mobile paid off big time when I bought them 5 years ago.

Diversification is a necessary evil, but it can also hold you back. Look at how well those well popular index funds have done over the last 10 years… pull up a decade long chart of the S&P 500 sometime if you want a nice laugh.

]]> By: Jimmy http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87256 Jimmy Wed, 17 Sep 2008 22:08:09 +0000 http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87256 I do recommend this strategy. But I would also suggest to diversify a little more than with just three stocks. I would go with at least ten stocks to have a well diversified portfolio. Three seems a bit risky. I do recommend this strategy. But I would also suggest to diversify a little more than with just three stocks. I would go with at least ten stocks to have a well diversified portfolio. Three seems a bit risky.

]]> By: Chad @ Sentient Money http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87231 Chad @ Sentient Money Wed, 17 Sep 2008 14:37:40 +0000 http://genxfinance.com/2008/09/17/an-alternative-investing-approach-for-young-investors/#comment-87231 This advice isn't just for twenty somethings. Everyone should consider it, as no one cares more about our finances than ourselves. This advice isn’t just for twenty somethings. Everyone should consider it, as no one cares more about our finances than ourselves.

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