Sunday, January 11, 2009

Elements of Investing for the Future

So I've started reading books about investing (well okay, just one book so far but there's several more in The Stack already), and already I'm seeing several positive steps that I am taking. In fact, the first chapter contains a list of things you should do before starting to invest, and I am doing all of them! I was pleasantly surprised to discover that I am better prepared than I thought. I have also learned that there are several things on my side when it comes to investing. my age (relatively low) of course helps, but ironically so does my not-that-high salary: it's low enough that I can contribute to a Roth, which will work out brilliantly for me in terms of taxes and I'm in a relatively low tax bracket now.[1] I am learning about asset allocation and diversification, as well as the difference between kinds of stocks, kinds of bonds, annuities, T-bills, all sorts of stuff. I am even learning about taxes. By the time I am done, I will be so smart that I will be able to wisely invest and grow money. Now, I just need to get some money.[2]

[1] This is, of course, the only time that I have not made just-barely-too-much-for-the-awesome-thing, which is how my salary is actually worded in my contract.
[2] And herein lies the problem with that not-that-high salary. Damn.

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