Successful Sales, Roth IRA, and Packing a Huge Desk

Quick update on my sales.

$99.99 – ✔
$53.99 – ✔

Sweet. More deals on the way hopefully.

I still find it awesome that playing EVE opened my eyes to the possibility of using the same technique from in-game in real life. Truly amazing, or maybe I just wasn’t opening my eyes to it :P.

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In other news, I just opened my Roth IRA with OptionsXpress. I expect to be at a higher tax bracket when I retire, so having a Roth vs a Traditional IRA would be beneficial for me. I’m also considering opening a Traditional IRA in order to take advantage of the tax deductible. It will also insulate me from the potential tax law fluctuations that may occur. Who knows what’s going to happen in the future.

But for now, I’ll just stick to the Roth IRA to keep things simple. Once I get the hang of things I’ll consider branching out.

Can I Contribute to a Roth and Traditional IRA in the Same Calendar Year?

Yes, you can contribute to both a traditional and Roth within the same calendar year, but the maximum IRA contribution limit allowed by the IRS is for the two combined. For 2013 or 2014, you could contribute $5,500 ($6,500 if age 50 or older) total between the two. (http://20somethingfinance.com/roth-ira-basics-in-a-question-and-answer-format/)

The question then arises: how am I going to get my portfolio started?  Given my age (20s) and that time is on my side, I’m considering doing an 80/20 spread of stocks/bonds. I may substitute bonds for ETFs (exchange traded funds). From my understanding, they are similar to mutual funds in that they spread the number of companies you are invested in (or go by an index, or go by a specific sector-ed index), but they are different in that they trade like a stock. Mutual funds trade once at the end of the market day, ETFs trade through the entire market day just like a stock. (I might even go for a 80/10/10 of stock/ETFs/Mutual Funds).

It’s a work in progress. I’ll keep updating about the status of my Roth Portfolio. Assuming I max my Roth IRA every year till I’m 65, and I average an 8% return on my investments, the account should be worth ~$1,538,795.72 {=FV(0.08,40,5500,0,1)}. A nice amount of money to have, although I’m still a little cloudy on how to adjust for inflation … Either way, the money I put in every month, is going to be $5500/12 = ~$460/month.

So, I’ll have two automatic payments set up bi-weekly (since I’m paid bi-weekly). $230 every other week to the Roth IRA, and $200.07 every other week to the $2800.01 left on the subsidized student loan. Not sure how to make the best of the rest of my paycheck. (Another automated payment would be the piece of my paycheck and the 3% match that goes to the company 401k, free $$$ aw yis)

I probably could write more about this personal finance thing I have going, but I should probably get ready for work tomorrow. 3 day weekend was nice.

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Last part of this post.

Holy shit this was such a difficult thing to accomplish. Long story short, we bought the desk off some website and when it arrived it was damaged. The desk was 53″x 30″x 12″. The only box that fits something like that is a 60″ LCD TV box. We were lucky enough to spot one in a dumpster by Fry’s. Dumpster diving, I DUN IT.

Ridiculously hard to pack this thing. Never want to do it again.

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Weekly Update: 2/15/2014 2:47PM

Haven’t posted in the past few days. A few updates!

1. Work!

I just finished my first full week of full time work. It was pretty awkward the first few days, but after those first few days things were more comfortable.

What I do in a nutshell: use company software to verify and update certain ‘products’ that eventually enter a large database to be drawn from with SQL/Access for custom/set products ordered by large companies regarding corporate governance/executive compensation/proxy advising/payment plans. It could be called something like data entry/analysis I suppose. 

I basically spend a ton of time on investopedia trying to understand all the terms.

2. Valentines Day!

I went out with my friend and we had beers and watched Wolf on Wall Street; I can’t believe it lasted 3 hours. It definitely did not feel that long. Dicaprio without an Oscar again? Whats new. Jonah Hill didn’t deserve the Oscar imo.

3. Financial Updates!

Student Loan

As of 2/15/2014 4:00 PM

  • Principal: $2801.00
  • Subsidized: $2801.00 (3.4%)
  • Unsubsidized: $0 (6.8%)
  • Accrued Interest: $0
  • Total Owed: $2801.00

They fixed my end of school date… So I have my grace period until 06/14/2014 since I ended school around 12/14/2014.

Assuming I allocate the loan into 7 payments, (I’m paid bi-weekly) I could pay the loan off right about when my grace period would end. Although, this would require that I am offered a full time offer AND accept it.

Each payment would come out to ~$400.14. This is great since I can cover the dispersed loan payments and have more than enough left over for adding to the emergency fund.

Emergency Fund

It’s a “rule of thumb” that you should keep three to six months’ worth of expenses. Some even suggest keeping nine to twelve months due to the high rate of unemployment.

The rate of unemployment is getting better according to this source though. New 5 year low at 6.6% in January 2014!

For me, I live at home, and I’m so astronomically lucky that my parents enjoy throwing money at me. In college, my mom used to call me every week to make sure I had enough money. Needless to say … I always did.

In fact, this constant influx of money probably delayed my understanding of how to appreciate and save money. Not to say that it isn’t my fault … but yeah. On top of this, my meals are all made for me. Mom makes breakfast, brown bag lunch, and dinner.

So, point being I’m not too sure how to allocate for my emergency fund. I don’t plan on living at home for any longer that I have to, and that hinges on whether or not I choose to pursue a full time career or pursue a graduate degree. I’ll write a post about this tomorrow most likely.

For now, I’m just going to put 15% of my bi-weekly paychecks toward an emergency fund that can grow on it’s own until I feel I have enough saved.

Current Investments (Real and Virtual)

  • Common Stocks

My portfolio with Optionshouse is a mish mash of speculation and lack of investment knowledge. But hey, it’s virtual money and I’m in the process of learning.

I recently learned what an option is. An option is the right, but not the obligation to purchase/sell a given security after a pre-determined period of time.

I plan to learn more about diversification and understanding the different vehicles available to me.

And if I choose to pursue a full time position at a company then obviously match my employer’s 401k contributions.

Opening a Roth IRA is in the near future as well, but I’ll save updates about these things for when I actually have the opportunity to open them.

  • Dogecoin

This is my current balance:

I’m very excited about the future of this cryptocurrency.

There a few “articles” written by “knowledgeable people” about the future of this currency.

There are also articles about the farce that dogecoin might be.

It’s difficult to understand all the aspects of the market, future, and other various factors that surround dogecoin. Although, I would venture to say that the vast majority of people acquainted with dogecoin would agree that it would fall under the category of risk capital.

I am willing to put money into investing in dogecoins (as I have). But I am not sure as to how much I should invest. One of the quotes from what I have read alluded to “insulating” yourself from the market by purchasing $5 worth of dogecoin daily. This practice may prove useful, but I’m still so ridiculously ‘green’ when it comes to investing.

Edit: Found it! Dollar Cost Averaging!

I’ll do more research into investing, but for now I should probably stop spending my money on dogecoin 😛 It just isn’t good practice to be investing purely on feelings and emotion.

First Day Of Work

First, to be safe:

“The views expressed on this website/blog are mine alone and do not necessarily reflect the views of my employer.”

Okay.

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My first day was full of meetings; they were all lined up from 9 AM till 12:30 PM then we took a break for lunch. After lunch it was meetings till 3:45 PM. After that I spent my time researching and understanding the pieces of information that were shared with me as well as familiarizing myself with the software that I would be using on a daily basis. The majority of my time is going to be spent in front of my two LCD screens analyzing and getting the results from what is assigned to me.

Basically, that is a lot of time in front of a computer screen.

Anyway, I got home and checked my dogecoin mining process! Quite happy with the results from my 2+ year old Radeon HD 6850!

I’m really giving some thought into building that rig. It would put me back more than $1000. I don’t even have the money, but if dogecoin value skyrockets … Maybe it’d be better to just buy dogecoin. I need to spend more time hashing the details out. I might just purchase some dogecoin as I just do not have the capital to justify building a mining rig as of now. C’est la vie.

On another note. I’m going to take a break from EVE. I have garnered the very basic idea/strategy of buying low and selling high. I plan to apply this tactic to a real world venture now. Somehow… More updates to come!

I have my first day of work in less than 9 hours. I should be sleeping. EVE: Net Wealth Update 2/10/2014 12:09 AM & DogeCoin Mining




Current Net Wealth: 301.097,751.40

  • Items For Sale: 172,678,876
  • Items in Transit: 200,000,000
  • Less a 20% Provision: 298,143,100.80
  • ISK Currently in Wallet: 2,954,650.57

*The purpose of the 20% Provision is to account for the fact that the current sell orders may not sell at their currently listed prices. Competitors will undercut as time goes on, and sell order prices must be adjusted accordingly in order for them to succeed and gain the benefit of profit from margin. Buying low, selling high! The beauty and simplicity of Regional Trading.

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Also, I started mining for DogeCoin! Not very much at this point, I’m contemplating about building a rig… We’ll see though.

EVE: Net Wealth Update 2/8/2014 10:44 PM, First Day of Work Coming…


Current Net Wealth: 241,864,566.90

  • Items For Sale: 298,835,830
  • Less a 20% Provision: 239,068,664
  • ISK Currently in Wallet: 2,795,902.93

*The purpose of the 20% Provision is to account for the fact that the current sell orders may not sell at their currently listed prices. Competitors will undercut as time goes on, and sell order prices must be adjusted accordingly in order for them to succeed and gain the benefit of profit from margin. Buying low, selling high! The beauty and simplicity of Regional Trading.

* * *

I’m starting work on Monday. I’m not used to getting up early, but it shouldn’t be too big of an issue. I wonder what it’ll be like. I’m going to slow down on EVE. My main goal is to have 1 billion ISK, but trading is taking it’s toll on my time. I don’t think I should playing as much as I am right now… Anyway, I’ll focus on continuing my Intro to Finance Class and brushing up on SEC Filings.

Going to sleep earlier now.

EVE: Net Wealth Update 2/8/2014 1:18 AM, The New Corporation, The New Alt, & Courier Contracts


Current Net Wealth: 219,339,307.30

  • Items For Sale: 266,502,171
  • Less a 20% Provision: 213,201,736.80
  • ISK Currently in Wallet: 6,137,571.53

*The purpose of the 20% Provision is to account for the fact that the current sell orders may not sell at their currently listed prices. Competitors will undercut as time goes on, and sell order prices must be adjusted accordingly in order for them to succeed and gain the benefit of profit from margin. Buying low, selling high! The beauty and simplicity of Regional Trading.

* * *

I started my own corporation in EVE. I also started an alt. The main purpose for these two actions was to eliminate the need to fly between trade hubs. Now I can deposit all of my money into a corporate account that is shared. There is no tax, as I set the tax rate in my corporation to 0%. So, my alt buys the items I need at a low price, then writes a courier contract to have them delivered to my main in a separate trade hub to sell high. This guy explains it much more clearly than I can. Basically, it makes my life easier. I don’t have to go out into space and risk being shot at anymore. 

* * *

Some amazing profits today. Fridays are great for sales.