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40

The six months of savings is for an emergency fund. The advice is for 3 to 6 months. This emergency fund is to cover you for a six month period of time if you are not employed. This isn't invested in any instruments that have the risk of losing money. So what other purposes should you have a pot of money, in addition to the job loss emergency fund, that ...


20

First off, I have to say "rent, gas, electric, internet: 20%" is phenomenal, do everything in your power to keep this at that % for as long as possible. Then, given the safety nets that are standard for most European countries, a large amount of savings isn't required. Unless that is, if you need a lump sum of money for a significant investment (real ...


12

TL;DR I'd agree with most others: 3-6 months in cash, invest the rest. If you feel like 6 months cash is not enough, you can keep more cash, but if you have investments that you can sell without harsh penalties, it's probably safe to count them as part of your emergency fund for longer term emergencies such as extended unemployment. Long version One ...


9

I don't see why I'd need more than 6 months' worth of savings. If you work in a region dominated by one company or industry and can't/won't move, then having more than six months of expenses socked away in something stable would be a good idea. Especially if that company nosedives right around when the market falls like a stone.


8

But lately I've been looking at Cryptocurrencies and I want to Invest some Money into it. Does Anyone have any recommendations on how much to Invest and where. Really any advice is appreciated. Yes. I have always said that to invest in gold, the best choice is a gold mine. Or, a mining equipment manufacturer. To invest in cryptocurrencies, there are two ...


8

That thing is called a mutual fund. They are readily available, either as a mutual fund proper, which has rules for investing and withdrawing, or as an exchange-traded fund, which trades in real time just like a stock. - What you are specifying is an actively managed mutual fund, where a monkey throws poo at a wall to pick stocks at random ... and ...


7

I don't think rich people will prefer shares(stocks) with dividend or even bonds. Because in both these cases they will need to pay taxes. I think rich people will prefer non dividend paying , high growth stocks with high beta. For middle class should look at asset allocation


7

Pay off any debts you own. Interest on debts will likely be higher than any money you can make investing. Ensure that you have an emergency fund to cover 6 months of normal living-- imagine that you lose your job. Can you afford food, rent, utilities, day-to-day expenses for 6 months? Take this money and put it in something very safe like a high interest ...


6

FWIW, you unwittingly laid a trap by setting up your question the way you did, and half of your responders fell into it. How much you're spending on what right now is completely irrelevant. So are your current assets, because they're so small. Current debt is marginally relevant. The only questions that drive the "Financially Independent"/"Retirement" ...


6

There’s no standard for early redemption penalties. Some mortgages have them and some don’t — read the small print of any mortgage you are thinking about applying for. But in general, avoid fixed-rate mortgages and go for floating rates, which are much less likely to have redemption penalties.


6

At a high level, the market (buyers and sellers) determine the price, not some mythical "calculator". How that is determined is that buyers and sellers come together and agree on a price to transact at. The exchange takes care of all of this - there is no human-to-human interaction in exchange trades. For most stocks, there are many buyers and many sellers. ...


5

What you are doing is active management. If you bought and sold positions in the same day, then you'd be considered a day trader. You use human judgment, not just a fixed criteria, to choose what securities to invest in. That is the definition of active management. people say actively managed portfolios typically under perform relative to the index ...


5

I would recommend reading Mr. Money Mustache which provides advice on how to cut down on your living expenses, manage debt, avoid sinking money on things that don’t add value to your life, and offers tips on investing for retirement. I would also recommend reading JL Collin’s stock series which will give you a primer on how investments work, where to invest, ...


4

In your current circumstance, the best thing you could do is pay off your current debt as quickly as possible while avoiding any new debt. If you paid an extra $1k a month towards your student loans, you could be debt-free in under 2 years. Even quicker if you diverted some of your monthly savings towards paying that off. In those 2 years, spend an hour a ...


4

It's not day trading, because you hold the stock overnight. It is active management. If you decide to do this with real money, start small and don't use capital that you cannot afford to lose. The markets are famous for strategies that work in the simulator and lose money in real life.


4

Your sample scenario is correct, but on such a short timeline the advantage is likely not very significant. If instead of 2023 you waited until 2050 to request reimbursement, you could have significantly more than your initial $10k contributions depending on investment performance. The great benefit of an HSA is that it gets pre-tax contributions, tax-free ...


3

tl;dr: Your idea is mathematically a good one, but maybe you still shouldn't do it. I believe you're on to something with postponing your charitable donations, but for a different reason than you're thinking. It sounds like the change in the standard deduction from 2017 to 2018 affected your ability to deduct donations (as it did many people), since it ...


3

No, You cannot enter any order without the risk of the order getting executed. In my humble opinion, the fault resides with those who read and look at the order books and then take advantage. But the general public loves a hanging, and I fully agree, This article is by a similar sounding name.


3

spending (eating, eating out, clothing, leisure, other life expenses): 42% rent, gas, electric, internet: 20% For most people, these are the other way round, and rent is their single largest expenditure. If you've got a really low rent you're in an excellent position. by financial independence I mean enough to have bought a home, car, and maintain ...


3

One practical solution is to invest in an ETF like DGRO. Currently it is yielding 2.29%, so to live off of divdends, you have: (1500*12) / .0229 = 786,000. At $500/month, you have some work to do.


3

If no one is depending on you - six months should be plenty. (depending = spouse, child, parent, etc.) Put the extra into investments. The money you invest is still available to you if you need it. The downside is that if there is a bad economic problem and you lose your job at the same time then you may need to pull the money out while the investments ...


2

To add a bit to what Charles Fox has written: Lend the money to yourself for your retirement. In other words put the money into whatever vehicles you would normally use to save for your own retirement. Keep a note of how much of it you would like to have donated, and when the tax laws change in your favour, simply take money you would otherwise have put in ...


2

That depends, what will you be investing in for dividends? Will it be a mutual fund/index fund/ETF that will produce a 0.5%-3% dividend? Possibly a bond fund that will give ~2% in dividends? Will it be energy/oil stocks that can give anywhere from 2%-7%? How about REITS that can give anywhere from 2%-8%? That all depends on you, but I will set up the ...


2

recommendations on how much to Invest No more than what you're willing and able to completely lose. The value will heavily sway on people's confidence that it'll be useful/valuable in the future so having a significant chunk of the value you put into it completely tank isn't out of the question. and where An exchange. Coinbase is the simplest US-based ...


2

The question seems to assume that bonds and stocks are nearly perfect substitutes for each other. They are not. They are exposed to different risks (market risk vs. interest rate risk, primarily) and have expected rates of return that correspond to the market's pricing of that risk. There are gains from diversifying across stocks and bonds, so I would say ...


2

There are 3 main arguments for why you should concentrate your investments in the US rather than holding international funds, they are covered in greater detail here. But broadly speaking they boil down to: Added risk - currency risks and a lower level of transparency in relation in the market tend to make international funds riskier investments. The US has ...


2

In Canada only TFSAs and RRSPs are tax efficient in the sense that they allow you to forgo paying taxes on dividends and capital gains (TFSAs), or defer paying taxes until a later time (RRSPs). Any major bank will be able to set up an investment account for you where you can buy/sell/trade US equities. You will have to pay capital gains taxes on any ...


2

Invest in an index fund. Every few years (bunching donation deductability as per TTT's answer), donate the appreciated investments. You will be able to deduct the entire value at time of donation from your taxes. If they haven't appreciated, you can either wait longer for them to appreciate, or sell them, take up to $3000 the loss off your taxes, and donate ...


2

You seem to have gotten an idea that things are more complicated than they actually are. Here's what to do: Choose an online broker from the list at https://monevator.com/compare-uk-cheapest-online-brokers/ . These are generally called "platforms". Which one is better/cheaper for you may depend a bit on whether you anticipate investing more in funds or ...


2

There are some very good reasons to have more than 6 months of income saved, and also some good ones to have less. You must weigh what applies to you. For example a person with a very secure job, who has a spouse that also works and has expenses that are less than either salary probably does not need 6 months of savings. Three months could be more than ...


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