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#1
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that\'s a nice position to be in...my thoughts
Clayton –
Good for you that you have the other money problem: having too much. 90% of the people I know don’t have enough money. Almost everyone I know, from college kids to my friends to my colleagues, continually complains about not having enough money. And it sucks. Kinda funny, I work at a bank. One thing that makes me really sad is how many people I know can’t manage money to save their lives. More often than not, lottery winners who have never had too much money eventually blow it all on CRAP and wind up worse than before they won. I don’t know how much is too much for you, but it really doesn’t matter. Of course, the decision is yours, but since you asked for the advice...here’s my bottom line: Whatever you do, keep some of it (hopefully two or three months’ worth of your current income) in the bank and easily accessible as a rainy day fund / cash flow cushion. Only in case of emergency do you break the glass. The peace of mind is refreshing. Now, for the rest of the money. Don’t take on additional liabilities or expenses that will pinch your cash flow too tight, especially for something that won’t hold its value. A cautionary tale. One of my friends thought he had enough money to buy an incredible 2000 GT Roush Mustang, price tag $45,000. Beautiful ride. He could swing the payments, but the maintenance ate him alive. He had to give up the car and pay the dealership $7500 to get out of his lease. Now he drives a beat-up used POS and is living paycheck to paycheck. If he had kept that extra money in the bank, at least he wouldn’t be freaking out every time he had to pay a bill. Sure, you could get into a mortgage and buy a house. I love my house. It gets better every day. But I also intend to stay here for the next ten years or more. If you don’t plan on staying in your college town, either you have to sell it or rent it. If you improve it and sell, maybe you can flip it for profit. If you rent it out, having that revenue-generating asset may be nice if you can keep it occupied with quality tenants. A possibility, but please think this one through. Investments have been mentioned. I’m not a fan of IRA’s (Roth or otherwise) unless I have an employer who will allow pre-tax contributions and match funds. Yes, you should save for your retirement. The return may be decent. Compounding interest is even better. Problem is, in order to avoid taxes and penalties, you have to wait until retirement age (65 or better) to withdraw your money. Another problem is that most stock fund managers have terrible track records. If you choose this route, I would get a self-directed IRA and do some serious research. Sure, you could invest in an index fund, but the market’s current returns are anemic at best, and they’re not showing any signs of returning to historic market average any time soon. You could also invest on your own, but again, please do your research before buying. Caveat emptor, pal. There it is. That spare-no-expenses Vegas trip sounds really fun though. Can I go? =) ScottieK |
#2
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Re: When you have more money than you need
don't buy expensive toys. Just keep it your bankroll and try to move up in limits or something.
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#3
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Re: When you have more money than you need
Also, I think you are only allowed to contribute to a Roth IRA if you have earned income, so unless you got a job also, that won't work.
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#4
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Re: When you have more money than you need
Listen to the folks who are telling you to invest/save anything extra for the future. You still have tuition to pay for next year. If you have tuition covered you'll graduate someday and want a house, decent car, food. If you can invest now you can have some income coming in post-college even without a regular job.
At your age charity is a distant second choice, but viable. Your college would certainly welcome a check in any amount to be invested in the endowment of your choice. The beauty of this is it helps future students. But the first thing I'm doing is building my bankroll so that I can play bigger games. As the amount of money involved increases, so does the challenge. Since you seem to be board at your current games, move up a level or two and see if you can beat those games. |
#5
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Re: When you have more money than you need
people who say buy crap are losers.
there are so many cool/different things you could do with this money. if you are really that goofy that you cant figure out how to spend it then just find a really hot chick that will let you shag her and let her handle the money part. |
#6
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Re: When you have more money than you need
Travel, see the world. i don't understand why more young internet poker players don't use some of their winnings travel, and i don't mean to whichever european city is hosting the next WPT tournamant. go somewhere random.
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#7
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Re: When you have more money than you need
[ QUOTE ]
and i don't mean to whichever european city is hosting the next WPT tournamant. [/ QUOTE ] hahahahahahahahah Post Of The Month |
#8
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Re: When you have more money than you need
If you're talking something less than 10K its really not that much. Save some of it for emergency funds and use the rest to go backpacking through europe or asia for awhile. Or send it to me I'll put it to good use [img]/images/graemlins/tongue.gif[/img]
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#9
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Re: When you have more money than you need
[ QUOTE ]
Investments have been mentioned. I’m not a fan of IRA’s (Roth or otherwise) unless I have an employer who will allow pre-tax contributions and match funds. Yes, you should save for your retirement. The return may be decent. Compounding interest is even better. Problem is, in order to avoid taxes and penalties, you have to wait until retirement age (65 or better) to withdraw your money. Another problem is that most stock fund managers have terrible track records. If you choose this route, I would get a self-directed IRA and do some serious research. Sure, you could invest in an index fund, but the market’s current returns are anemic at best, and they’re not showing any signs of returning to historic market average any time soon. [/ QUOTE ] do not listen to this. at a bare minimum start a roth and secure your future. this will be your FUTURE. |
#10
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Re: When you have more money than you need
This post is silly. If youre burned out on poker and have a bunch of money sitting around, then take a damn break. Fill your young life with something but poker. Throw a kick ass party, take a girl out on an extravagant date, and save most for your bankroll when you start playign again. Jesus if this is a big enough problem that you have to make a post, youve got issues.
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