Questions from a friend

Questions:  I was wondering if you have some favorite web sites to get information about investing for a thirty something person.  And also for a teenager that has a part time or full time job.  In both cases, to save for retirement or even to save up for a down payment on a condo or house.

Thanks for your questions.  My advice to teens and young adults is to start an emergency fund before investing in securities.  They should gradually build a large emergency fund of dollars in the bank to use for job-loss and other big financial emergencies (see book called the Index Card in the Young Adults section of the link below).  

Teens who declare earned income to the IRS can deposit an equal amount of earnings in a custodial Roth account (see video on Hannah’s Roth account in the teens section of the link below).  It’s important for teens to learn how to open and manage an investment account such as the Roth.  In the Roth, I recommend holding a broad index stock fund for life; it will weather the ups and downs of the stock market over time (several good internet sites for teens in the link below).  

Thirty something persons need a tax-advantaged retirement account.  Employed persons should participate in their employers 401(K) plan [or similar plan] to the fullest extent above all other financial goals, with exception of building an emergency fund and getting out of debt as very top priorities; the condo and house are lower priorities.  Unemployed persons should check eligibility for SEPs, other retirement accounts, or IDAs (start with the “money basics” and sec .gov websites in the Young Adults section link)

Link: 

Copyright © 2019 Douglas R. Knight 

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