Today we answer listener questions about stock prices, early retirement, and morning routines.
We love answering listener questions. We can reach more of you via the pod than personal e-mails so if you have a question, send it in!
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1. Once a company IPO’s how does the stock price affect day to day operations? The price doesn’t affect the company initially, however, it effects stock holders. If the price tanks, the share holders can affect things like leadership. But day to day fluctuations don’t have a lot of impact.
2. How can I establish a morning routine when I work constantly changing shifts? See if there is any way you can get a more regular schedule. Failing that, getting enough sleep is more important than getting up early. A routine doesn’t have to have a fixed time. If you get up at 6:00 or 10:00, you can follow the same routine as long as you have the same amount of time in which to do it.
3. What are some things you wish you knew about personal finance when you were young? Compound interest! The earlier you start, the longer your money has to grow. It matters less how much than how early. Don’t buy dumb shit! All that stuff you buy as a teenager, early 20’s, is just junk you won’t even remember in five years, let alone still have. Save and invest that money instead.
4. I’m saving money for a down payment in about two years. Because that is short term, should I put it in Betterment or leave it in a savings account? I’d hate to lose a chunk of that money in the market. Go with your gut. Two years is too short to invest, five years should be the minimum. Leave it in the savings account or put it into a CD or US Treasury Bonds, which will get you slightly more interest than a savings account.
5. I’m 27 and looking to retire in 15-20 years. Should I use tax sheltered investments like IRA’s, 401K’s, and HSA’s when I will need that money before the age of 59 and will incur early withdraw penalties? It would be a mistake not to use these accounts but you don’t want to put the majority of your money into them when your goal is early retirement. It’s not entirely true that you can’t access those monies at all. You can borrow against an IRA and 401K.
Thanks for the questions everyone. Keep sending them in.
Boulder Beer Winter IPA: A full bodies red ale.
Buffalo Sweat Oatmeal Cream Stout: A smooth, dark beer.
Mint: The easy way to manage your money.
Betterment: The smart way to invest.
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