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Posted: 2/5/2015 3:59:41 PM EDT
[#1]
"28 - and I always feel like I'm behind my peers in retirement prep."
Wrong --- You are way ahead of 96.73% of all age groups in the category of retirement prep! A huge percentage of people of all ages have <$10,000 saved for retirement and little chance that will change as time marches on. |
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Posted: 2/5/2015 4:13:01 PM EDT
[#2]
One has to assume your pending marriage will have the effect of pushing you into a more expensive home. Save the money so you can put alot down, get a great rate, and avoid PMI.
I honestly don't think there is anything worth the risk/reward in the stockmarket right now. Maybe some solid, Blue chip dividend paying stock, but only if it is paying whatever your mortgage rate is, plus taxes. (I don't think any do, right now). I'm going to look into Lockheed Martin tonight. They pay a dividend, and if they get their fusion reactor to market, it's be the game changer of all game changers. if I could buy some acreage that would pay for itself, including taxes, I would be highly tempted to go that direction. |
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Posted: 2/5/2015 4:27:39 PM EDT
[#3]
Quote HistoryQuoted:
One has to assume your pending marriage will have the effect of pushing you into a more expensive home. Save the money so you can put alot down, get a great rate, and avoid PMI. I honestly don't think there is anything worth the risk/reward in the stockmarket right now. Maybe some solid, Blue chip dividend paying stock, but only if it is paying whatever your mortgage rate is, plus taxes. (I don't think any do, right now). I'm going to look into Lockheed Martin tonight. They pay a dividend, and if they get their fusion reactor to market, it's be the game changer of all game changers. if I could buy some acreage that would pay for itself, including taxes, I would be highly tempted to go that direction. We've discussed housing costs. She, for whatever reason, is obsessed with having a two-story house because she never did as a kid. Whatever, easy enough. We've agreed on 150k max house cost. For our area, a decent two story house is super easy in that range. |
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Posted: 2/5/2015 4:49:52 PM EDT
[#4]
You mention 401ks but what about IRAs? Max those out (last year and this year) if you haven't
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Posted: 2/5/2015 5:20:15 PM EDT
[#5]
Quote HistoryQuoted:
You mention 401ks but what about IRAs? Max those out (last year and this year) if you haven't IRA are looking like my best option- dumping all of the money into an IRA or mutual funds through my USAA account. |
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Posted: 2/5/2015 5:32:48 PM EDT
[#6]
Keep contributing to your 401's . Keep living within your means...
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Posted: 2/5/2015 5:45:47 PM EDT
[#7]
Quote HistoryQuoted:
Keep contributing to your 401's . Keep living within your means... This save money for wedding and new house. Get married before buying the new house |
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Posted: 2/5/2015 6:14:08 PM EDT
[#8]
Sounds like you have investments for the future already well in hand.
10K in AR's and CCW pistol(s). 20K in ammo and training. Gotta protect the wife, new house, and future babies somehow. In 20 years, what is likely to have more value; the stock market or your guns? |
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Posted: 2/5/2015 6:21:38 PM EDT
[#9]
Quoted: How would you invest that extra amount? I'm going for long-term growth and retirement security, not trying to flip stuff to buy a boat in six months or something crazy. 1) I own my own home but am close to selling it to purchase a new one with the SO. I have about 95k left on the house to pay off. I have absolutely zero debt of any kind, other than the house. 2) 55k total in life savings that is split between various accounts and funds, willing to invest 30k of it 3) SO has less than 5k to her name, but is a full time teacher in grad school with zero debt other than some reasonable school loans which I plan on totally paying off as a wedding gift. She is 29. 4) no kids, but will within two years 5) She came from fairly poor family, is scared to live like that again and hates spending money. Her being reckless with money is not a factor. 6) She has teacher pension and a 401k. I have 401k, .mil pension if it even exists later, and the 30k that I want to invest. I always feel like I'm behind my peers in retirement prep. What would you do? I would put the money into that loan for now, then use it to make the loan for the new house smaller. Money --> More equity in home --> More money from sale --> Smaller loan on new house --> Less interest paid on new loan and lower payment. On the "other side" of the home purchase and marriage, I'd put more into 401k (matching?) and other distributed retirement type investments. Basically, use the 30k to make the numbers on all the transactions lower over the short term. Your point #6 makes it sound like the 30k is HER money, is this the case? |
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Posted: 2/5/2015 6:29:23 PM EDT
[#10]
Whatever investment vehicle you choose, the stock market is your best long term bet. Remember, a sum will double its amount over 10 years if the return is 7%. So at age 38, 48, 58, and 68 you will have four doubling periods. $30K x 2 x 2 x 2 x 2 = $480K. If you get the return and if you keep your hands off of it.
Paying for more home equity only makes sense if you abhor debt or can get better than 6%+ per year growth in value, which is hard to do. Imagine your house is an investment vehicle like any other. If house values are going up at 2-3% per year on average, would you put a big chunk of cash into that kind of investment? Plus, home mortgages are tax advantaged (deductible interest), making the paying of interest a little more palatable. |
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Posted: 2/5/2015 11:17:32 PM EDT
[#11]
Open Roth IRA, send in 11,000 (5,500 for 2014 and 5,500 for 2015). Put it in the S&P500 index fund. Make another contribution in 2016, 2017, etc. Check the balance in 30 years.
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Posted: 2/6/2015 1:05:02 AM EDT
[#12]
Quote HistoryQuoted:
Your use of "own" and my use of "own" are a bit different. I would put the money into that loan for now, then use it to make the loan for the new house smaller. Money --> More equity in home --> More money from sale --> Smaller loan on new house --> Less interest paid on new loan and lower payment. On the "other side" of the home purchase and marriage, I'd put more into 401k (matching?) and other distributed retirement type investments. Basically, use the 30k to make the numbers on all the transactions lower over the short term. Your point #6 makes it sound like the 30k is HER money, is this the case? Quote HistoryQuoted:
Quoted:
How would you invest that extra amount? I'm going for long-term growth and retirement security, not trying to flip stuff to buy a boat in six months or something crazy. 1) I own my own home but am close to selling it to purchase a new one with the SO. I have about 95k left on the house to pay off. I have absolutely zero debt of any kind, other than the house. 2) 55k total in life savings that is split between various accounts and funds, willing to invest 30k of it 3) SO has less than 5k to her name, but is a full time teacher in grad school with zero debt other than some reasonable school loans which I plan on totally paying off as a wedding gift. She is 29. 4) no kids, but will within two years 5) She came from fairly poor family, is scared to live like that again and hates spending money. Her being reckless with money is not a factor. 6) She has teacher pension and a 401k. I have 401k, .mil pension if it even exists later, and the 30k that I want to invest. I always feel like I'm behind my peers in retirement prep. What would you do? I would put the money into that loan for now, then use it to make the loan for the new house smaller. Money --> More equity in home --> More money from sale --> Smaller loan on new house --> Less interest paid on new loan and lower payment. On the "other side" of the home purchase and marriage, I'd put more into 401k (matching?) and other distributed retirement type investments. Basically, use the 30k to make the numbers on all the transactions lower over the short term. Your point #6 makes it sound like the 30k is HER money, is this the case? I wrote that a little oddly- It's all mine |
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Posted: 2/6/2015 1:08:03 AM EDT
[#13]
Quote HistoryQuoted:
Open Roth IRA, send in 11,000 (5,500 for 2014 and 5,500 for 2015). Put it in the S&P500 index fund. Make another contribution in 2016, 2017, etc. Check the balance in 30 years. This seems like the most common route that I'm hearing. Housing stuff I'm going to look into. I'm not sure how the loans work and how that plays into buying and selling future homes. My house was purchased on a VA loan so I need to figure out how the down payment will work on my next home, as a house down payment would be that same 30k. It's going to have to be one or the other. |
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Posted: 2/6/2015 1:14:48 AM EDT
[#14]
Financial education. Either buy or go to You Tube and dig out, "The Richest Man in Babylon." It's cuneiform tablets from the Babylonian era that has wisdom that is just as relevant today as when it was first pressed into clay thousands of years ago.
Next, go get some of those Rich Dad/Poor Dad books from the library. Read some of those books. They're easy reading and can be done in a couple of nights. Third, stop following the mainstream media. Instead, follow the financial news. Find out about quantitative easing both here and abroad (in Japan they call it Abenomics). Then decide where to squirrel away your ducats. |
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Posted: 2/6/2015 4:27:59 AM EDT
[#15]
do realize that there is a strong arguemtn that thte housing market, like equities, is in a bubble b/c of QE while the rest of the econ has deflationary tendencies. if the housing and/or equities market pop, the value of extra equity in your house will sink, just as the value of that 30k would sink.
Sure, I think that eventually he dollar will collapse or be hyperinflated away etc, but as I've come to understand more and more about its status as the global reserve currency, petro dollar, and currency of choice for all the financil markets etc etc, I don't think there is even a chance of this happening anytime remotely soon. In fact, there are lots of reasons to belive that in the next few years the dollar's purchasing power will climb. My point is that if you want to preserve that value from volatility so that you can use it in the next year or two for the new house/wedding etc, some sort of US bond or bond fund, mone market will do. For ultimate security, cash in a SD box or burined in the back yard. I mean, is this money to be used relatively soon as you start your new life for wedding, new house, preggo medical fees, paying off her student loans, extra savings for your added responsibilities? |
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Posted: 2/6/2015 6:00:36 AM EDT
[#16]
Quote HistoryQuoted:
This seems like the most common route that I'm hearing. Housing stuff I'm going to look into. I'm not sure how the loans work and how that plays into buying and selling future homes. My house was purchased on a VA loan so I need to figure out how the down payment will work on my next home, as a house down payment would be that same 30k. It's going to have to be one or the other. Quote HistoryQuoted:
Quoted:
Open Roth IRA, send in 11,000 (5,500 for 2014 and 5,500 for 2015). Put it in the S&P500 index fund. Make another contribution in 2016, 2017, etc. Check the balance in 30 years. This seems like the most common route that I'm hearing. Housing stuff I'm going to look into. I'm not sure how the loans work and how that plays into buying and selling future homes. My house was purchased on a VA loan so I need to figure out how the down payment will work on my next home, as a house down payment would be that same 30k. It's going to have to be one or the other. Open Roth for your wife as well and max both. That should take care of 22,000 right off the bat. Save the 8k and invest it in Roth next year. Buy dividend stocks depending on your risk level. XOM might be good if you want lower risk. Look into huge companies with a ~3% return. Most of mine pay out ~7% and are fairly stable. DNP, KYN are examples of higher yield stocks. |
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Posted: 2/6/2015 6:44:20 AM EDT
[#17]
Municipal Bonds
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Posted: 2/6/2015 7:40:26 AM EDT
[#18]
Quote HistoryQuoted:
This save money for wedding and new house. Get married before buying the new house Quote HistoryQuoted:
Quoted:
Keep contributing to your 401's . Keep living within your means... This save money for wedding and new house. Get married before buying the new house I agree with above. Don't buy a house with SO. But with wife. Also, don't spend money on wedding. |
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Posted: 2/8/2015 12:20:26 AM EDT
[#19]
I'd never pay off student loans for a bride to-be as a wedding gift, your SOL if she tells you to screw after 6months or 6 yrs. Good luck with that!
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Posted: 2/8/2015 4:05:41 AM EDT
[#20]
Worry about your own finances first, once she's really your wife and things move that way you can invest with your spouse. Until then you're doing no one any favors to give her something she didn't earn. That's my opinion and it's served me well. Teach her to use her funds to better herself and invest in her Roth too, and for her to work on her debt as well.
As for yourself, I'd max out your Roth for last and this year, easy growth with tax avoidance (on gains), the rest maybe just keep as an individual account that can be fairly liquid for future house purchase. If you want to put it in a fund or portfolio do so, or not. |
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Posted: 2/8/2015 4:10:21 AM EDT
[#21]
Max out your IRA and leave the rest in your savings
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Posted: 2/8/2015 4:15:31 AM EDT
[#22]
Buy land. I am 38, just got enough $ together with my wife to buy 150 acres and build a house. there is nothing better! We live off grid, and I can walk out my door and shoot. I have two shooting ranges, a fruit orchard, chickens, ducks, and more to come. It'll cost you more than $30k, but that's a good start. The stock market and traditional paper/electronic investments are rigged against the small guy. I have a degree in economics - and I don't recommend you try to beat the casino
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Posted: 2/8/2015 8:01:06 AM EDT
[#23]
Quote HistoryQuoted:
Sounds like you have investments for the future already well in hand. 10K in AR's and CCW pistol(s). 20K in ammo and training. Gotta protect the wife, new house, and future babies somehow. In 20 years, what is likely to have more value; the stock market or your guns? Is my sarcasm detector broken or? OP tell us what you end up doing. If it were me and I were not maxing my 401K and Roth IRA I would use the money to do that. Up your 401K contribution as high as you can and use that cash to make up the difference with paying bills. It's the most tax advantaged way to do it. |
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Posted: 2/8/2015 11:18:54 AM EDT
[#24]
Quote HistoryQuoted:
Municipal Bonds I'd shy away from them. They're reliant on property values and when the housing bubble is finally allowed to deflate, they swirl down the toilet. Municipalities also pension obligations that they're unlikely to meet. Unlike the '30s, bonds will not be a safe haven. |
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Posted: 2/8/2015 11:21:41 AM EDT
[#25]
Quote HistoryQuoted:
Buy land. I am 38, just got enough $ together with my wife to buy 150 acres and build a house. there is nothing better! We live off grid, and I can walk out my door and shoot. I have two shooting ranges, a fruit orchard, chickens, ducks, and more to come. It'll cost you more than $30k, but that's a good start. The stock market and traditional paper/electronic investments are rigged against the small guy. I have a degree in economics - and I don't recommend you try to beat the casino In HI? where? |
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Posted: 2/8/2015 11:37:11 AM EDT
[#26]
Buy into a low cost "target date" or all-in-one fund. I use FFNOX from Fidelity.
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Posted: 2/9/2015 12:15:08 AM EDT
[#27]
Talk to an investment advisor, ask about dividend paying mutual fund investments. The cash you invest is somewhat liquid if you need it in an emergency.
Blackrock has been good to me. |
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Posted: 2/13/2015 11:24:47 AM EDT
[#28]
Quote HistoryQuoted:
Instead, follow the financial news. Find out about quantitative easing both here and abroad (in Japan they call it Abenomics). I've been taking your advice, Have learned a decent amount in the last week. Not even having cable in the first place definitely helped with pursuing new interests. |
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Posted: 2/19/2015 12:50:58 PM EDT
[#29]
EDIT- Wrong thread.
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Posted: 2/23/2015 8:52:40 AM EDT
[#30]
Quote HistoryQuoted: This seems like the most common route that I'm hearing. Housing stuff I'm going to look into. I'm not sure how the loans work and how that plays into buying and selling future homes. My house was purchased on a VA loan so I need to figure out how the down payment will work on my next home, as a house down payment would be that same 30k. It's going to have to be one or the other. Quote HistoryQuoted: Quoted: Open Roth IRA, send in 11,000 (5,500 for 2014 and 5,500 for 2015). Put it in the S&P500 index fund. Make another contribution in 2016, 2017, etc. Check the balance in 30 years. This seems like the most common route that I'm hearing. Housing stuff I'm going to look into. I'm not sure how the loans work and how that plays into buying and selling future homes. My house was purchased on a VA loan so I need to figure out how the down payment will work on my next home, as a house down payment would be that same 30k. It's going to have to be one or the other. That's would I would do and wish I would have done at 28. The only thing I'd do different is start to move some to a bond index fund like vanguard's BND fund as you get older, and maybe start off with a percentage in one of their international index funds. |
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Posted: 2/28/2015 11:23:38 AM EDT
[#31]
wait until SP500 drops 5%, then buy SPXL, and watch it go back up.
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Posted: 2/28/2015 4:13:09 PM EDT
[#32]
Skip the funds from USAA, they do a lot of things well but that isnt one of them their fees are excessively high. Good bet would be Vanguard Target 2045. Learn about and keep in mind the things no one talks about like fees and active vs passive mgmt and the implications those things have.
ETA: Im about your age and a couple tours from retirement myself, just got off my ass last year and started a Roth at Vanguard. |
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Posted: 2/28/2015 4:17:50 PM EDT
[#33]
People
Gold 10 years ago was under $500 |
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Posted: 3/4/2015 9:31:46 PM EDT
[#34]
Quote HistoryQuoted:
People Gold 10 years ago was under $500 Buying gold for capital appreciation is not investing it's speculation. |
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Posted: 3/4/2015 10:05:48 PM EDT
[#35]
Quote HistoryQuoted:
I'd shy away from them. They're reliant on property values and when the housing bubble is finally allowed to deflate, they swirl down the toilet. Municipalities also pension obligations that they're unlikely to meet. Unlike the '30s, bonds will not be a safe haven. Quote HistoryQuoted:
Quoted:
Municipal Bonds I'd shy away from them. They're reliant on property values and when the housing bubble is finally allowed to deflate, they swirl down the toilet. Municipalities also pension obligations that they're unlikely to meet. Unlike the '30s, bonds will not be a safe haven. incorrect. munis come in many forms, not all subject to the same risks. |
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Posted: 3/7/2015 2:05:51 PM EDT
[#36]
I would echo some of the thoughts from the thread. First put enough into your 401ks to get ALL of your company match. Then max out your Roth IRA contribution. If you still want to invest the rest I would advice market index funds for long term investing. I personally like Vanguard because of their low fees.
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Posted: 3/21/2015 7:50:58 AM EDT
[#37]
Quote HistoryQuoted:
Open Roth IRA, send in 11,000 (5,500 for 2014 and 5,500 for 2015). Put it in the S&P500 index fund. Make another contribution in 2016, 2017, etc. Check the balance in 30 years. Bingo...... |
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Posted: 3/22/2015 12:32:16 AM EDT
[#38]
Quote HistoryQuoted:
Municipal Bonds High yield but there will be a long series of bankruptcies as time goes on. |
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Posted: 3/22/2015 12:40:04 AM EDT
[#39]
The best financial advice I can give is marry the right woman. I hope you have found her. |
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Posted: 3/22/2015 12:43:26 AM EDT
[#40]
Buy Apple, shit hasn't disappointed me in 5 years
 ' merica just gets buying the NeW and improved
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