So I'm 18 and about to graduate and move out. I have about $1,500 to my name. I make about $550 a month working part time at 7.25 an hour. I went to Wells Fargo and talked to a "Financial Advisor" to talk about setting up a Roth IRA and/or a Money Market account and to ask him his thoughts on investing in OCM Gold Fund but I could barely understand him through his accent and I felt like he was just trying to sell me things and he said he wasnt able to give advice on stocks I guess because I could sue him and Wells Fargo if shit doesnt go my way. He was saying that it would be pretty pointless to open a Roth IRA if I was only looking to put about $100 a month into it and that I really should just open a Savings account with them and build credit. What would you guys advise me to do at this point in my life?
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>Angela merkel
>Michelle Obama
I'm laughing
just invest in a total market fund.
this image is great /pol/ bait
I feel you. It's a real, unaltered image though
Typically I would stay silent and think you're an idiot to myself.
I'm feeling bored today though so here goes:
That advisor's work performance is based on how many and which products he sells you.
Advice like that can't be given at the branch side. First the advisor needs to have passed the required tests, and be licensed in the exact securities he's advising on. Also you can't just buy anything at the branch side, most likely a brokerage account may be needed.
I'm in Canada so the following may not be 100% accurate so please correct me.
If the IRA account is the tax sheltered one that also allows you to claim less income for the year then the advisor is right, you shouldn't just that type of account for $100.
Also, you make also no money at all to be able to invest properly.
You're going and stupid and I hate that I had to respond to your bait.
and Veeky Forums bait
gonna try it now
Work at a bank, can confirm we really can't say buying a particular security is a good investment to an 18 y/o noob with $100.
There's no diversification, idk about this bank but commission for the trade is usually $5-$10 which is like 10-20% of your investment to buy & sell, and we can really only say the investment fits your goals or it doesn't. You're right, if we say X security is gonna go up!! Or any variation we can lose our licensing & be held responsible.
So what do you faggots think I should do
Dont move out and pay rent on minimum wage dumbass
edge aside hitler was a strong leader so really they're just saying "leaders whose ideologies I disagree with"
Stop repeating things that I have already stated or implied in my post as a rebuttal.
Also,
"You're going and stupid and I hate that I had to respond to your bait."
"you shouldn't just that type of account for $100."
"Also, you make also no money "
Is your brain turned on you fucking weakling
So would it be worth my time to take a look into penny stocks since I barely make any money
Up to you. At a young age, growth stocks are certainly the better investment, but you've gotta be willing to lose that 1500 if that's the route you go with.
Also, bank advisors are fucking awful.
You should be very careful when taking advice from people at banks or wealth management firms. The shocking thing is that despite the fact that these people's jobs are about managing money, most are absolutely terrible at it. I found that out the hard way with some mutual funds that performed unacceptably despite the fees the funds were raking in.
That said, it's great that you are thinking about putting money into an IRA to save. However, at the moment, you don't earn enough and don't have enough free cash to be able to do that safely, in my opinion.
Money you put into an IRA lowers your AGI (adjusted gross income) and thus lowers the amount of taxes you pay. However, your income is low enough that I don't think you'll pay any income taxes. You will still have to pay FICA (Social Security and Medicare) taxes, though, and an IRA will give you no relief from those taxes.
same with angela so dont hate nigga
>says roth IRA is pointless
>suggests a savings account
never go back there OP
For the time-being, you should put your money in a savings account and keep on accumulating cash until you have 6 - 12 months' of living expenses saved up. After that, you should start putting money into either a traditional IRA or Roth IRA.
Veeky Forums has recommended in its past putting one's money into Vanguard's low-fee funds, which is a good plan. If you go outside of Vanguard's low-fee, diversified funds, always read the prospectuses fully and be vigilant on fees that the fund company charges. Typical fees are 1% of assets and some even have loads. You should typically avoid any fund with a load.
Finally, on the subject of penny stocks, you should avoid them. While it is possible to make money on them, most people don't. You should only speculate (and that's all it is, speculation) on penny stocks when you are relatively well-off and are willing to gamble with 1% or so of your net worth to try to juice your overall gains.
For now, though, I think you should most concern yourself with finding a way to earn more money, preferably by finding a job that pays a higher rate. The best investment you can make right now is an investment in yourself: this is either educating yourself in a trade or in college.
Thanks for the responses, guys. I went into the bank actually telling myself that they are basically gonna try to sell me a service but that it will be a learning experience.
Damn I wanna be rich man
>Also, bank advisors are fucking awful.
Most advisors (Certified Financial Planners) are more salesman than actual wealth advisor and know very little about how to make money.
Those that do are quite useful and are particularly helpful for a person who is better-off. In those circumstances, the CFP can advise on money allocation strategies that lower taxes paid and they may even know a thing or two about making money.
But my experience is that good financial advisors are rarer than hens teeth.
Yea it was a really weird experience honestly man
Thanks for your response, man. Shits exactly what I was looking for. No offense to you but I just hope you know what youre talking about.
If you know how to judge someone on their knowledge of this topic then can you advise me a little
;) Yes, I know more about money than most regular people and more than most people working on Wall Street.
I'm just a faceless person here but I am a multi-millionaire despite never making too much money at a desk job.
You should verify the advice I have given with other people whom you know and trust to be knowledgeable about money. Or, at the very least, present the ideas to people you don't trust and see what they have to say.
Unfortunately, knowing how to judge people typically means you have to be extremely knowledgeable yourself on the subject or you know someone who has vetted out someone that can be trusted.
When it comes to stock markets, I would strongly recommend that you register with GMO (Grantham, Mayo, van Otterloo): gmo.com
Jeremy Grantham is a legend in the investment community and I believe him to be an honest and honorable man. He is also very, very knowledgeable about markets. You ignore Grantham's calls at your own peril. He successfully called the Japanese (1990), dot-com (2000), and housing (2008) bubbles and crashes. In fact his 2008 call was one of the greatest calls ever as, in 2007, he wrote that there was a bubble in *everything*. He was correct, of course.
>You should verify the advice I have given with other people whom you know and trust to be knowledgeable about money. Or, at the very least, present the ideas to people you don't trust and see what they have to say.
I understand this and actually think its quite the obvious thing to do but I am very glad you mentioned that since it gives more reassurance that you do know your stuff and also that youre an honorable man yourself.
Also, yea thats the thing is that no one around me really knows about money like that at all. Maybe my uncle but I really doubt he has a vast knowledge of this kinda shit. Pretty sure he will just have knowledge about his own little area he's made a little money in.
Damn yea thanks man for all this info. Been telling myself i need to start looking for something like this for a while now.
But yea anyways, I dont really trust anyone around me and I especially dont trust that they have a significant amount of knowledge about things like this
hi Jeremy