Quote:
Originally Posted by OneThought
Thanks for the advice. What you said makes complete sense. I guess my post shows how new I am to the investing game.
So hypothetically, let's say there's a 24 yo guy, who's single, has no kids, and has no assets. If he had an extra $2k each month to invest, where should he be putting it in the beginning (for the first year)?
This is where every opinion will differ. This can be viewed as a philosophical question, or a question of what your situation is and what you want. There are so many variables that there is no "correct" answer.
For example, are you a person who has goals of having a large family and a wife? Are you a person who doesn't value family and children and value financial success over all other things? This is a very hard thing to understand because people come from different perspectives and goals, and both of them can change over the course of time.
I'll give you the logical answer. As in poker, you should always have an "out". in my 20s, I was a person who never wanted to have kids, never wanted to marry. I broke up with my girlfriend of 6 years at one point because I wouldn't even discuss the topic of marriage. But I always had an out. I always put my money in a way that gave me the most flexibility "just in case" things didn't turn out the way I expected.... and they didn't.
The answer to your question is "it depends". What situation are you in right now? What do you want in life? If you want to be rich and screw as many girls as you can, it's dramatically different than say being devoutly religious and having a large family. This is simple logic, as we see examples of both of these in society, as much so as countless other examples.
Invest for the maximum flexibility. Have short/mid/long term goals. Money isn't what you think it is. Money, in many aspects, is freedom. The more financially secure you are, the more you can pick and choose what you want
because you can. Poor people have relatively limited choices. Rich people have almost unlimited choices.
I'm sorry for the philosophical perspective, but to answer your question : only you can determine what is best for you. It's different for each person. You ask what is best for a 24 year old guy who is single and can do what they want with 2k a month? There are so many factors involved that there is no right answer because there isn't enough information.
In the end, I would say you should have at least 2 goals, short/long term. You could say 3, short/mid/long, but mid is very hard to define, as short/long is pretty easy. Develop a plan for short/long term, and know that the situation is fluid and can change at any time. But at the very least, plan for the short term, because that is the only thing you can really see. The rest you have to figure out on your own, dependent on your situation. (short term safety, long term risky).