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Most of us will not become wealthy in this profession. What else do you do for income?


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As for investing and the market... In my own non-professional opinion, the market is extremely inflated right now and it is more or less a bad time to be investing large chunks of money.  I have about 35% of my savings invested in stocks, and the other 65% on the sideline in bonds/monkey market savings.  I will wait for a dip in the market and buy accordingly.  Agree with mentioned above, passive funds historically perform as well as actively managed funds at a lesser fee.

 

 

Agree with this as well---the stock market and real estate market in many regions is majorly inflated right now. Depending on your strategy, it's a less-than-optimal time to invest. If you are an index buy and holder, there really aren't bad times but certainly putting large sums of money in at peak inflation is not ideal.

 

Nice work on your finances. You are ahead of the game!!

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the stock market and real estate market in many regions is majorly inflated right now

I have been thinking about this myself, as my retirement is about 50% index or value funds and 50% blue chip stocks that people tend to flock into when things go really bad.  So I may be okay to just let it ride (I got about 20 years to go).  I didn't get this far making radical moves, but...I do take your point. 

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Common consumer refrain. There is this grand misconception that the less you spend the less you enjoy life.

 

Saving >50% seems extreme to most Americans, and indeed by today's consumer standards it is! I'm still not there. But it's necessary if you want financial independence while you are still relatively young. The way I see it, I can be a typical American consumer and save about 10%, inflate my lifestyle and accommodations every few years, "live for the now" (aka spend for happiness), and retire at the typical age of 60-65 if I'm lucky. OR---I could never inflate my lifestyle, stay in my little starter home, pay off my vehicles and drive them till they fall apart, do work myself instead of outsourcing everything, and retire 20 years before my peers so I can LIVE without being chained to employment and that precious few weeks of vacation every year.

 

There is a spectrum of savings and frugality. What seems absurd to you is normal for me, and there are people a few levels above me saving living on rice and beans, having no hobbies that cost money, and riding a bike everywhere...which I find unappealing.

 

 

Look, obviously I agree with the general principle that debt is bad and saving is good, and I get that you don't need to spend money to be happy or enjoy yourself. But it is a spectrum, like you said, and we tend to view anyone too far from us in either direction as extreme. Further, what one person considers lavish and extreme, another person might consider indispensable. Life is choices, and who are we to define someone else's right or wrong?

 

And make no mistake, you are trying to "buy happiness" as much as any "consumer." It's just that you don't define happiness as having more stuff, you define it as being able to sit upon a big pile of money. I personally enjoy a few hobbies, and they cost money - it would be easy to characterize them as frivolous spending, but it would also be able to easily characterize someone with no hobbies as uninteresting - again, it's a spectrum and it's up to us to find our own balance.

 

But hey, I'm about 7 years away from a $50k/yr pension for the rest of my life. It's not enough to support my current lifestyle, but if I wanted to, I could simplify my life and live on it at any moment - I've certainly lived on much less. So maybe that colors my perception somewhat. That, and my million-dollar life insurance policy, I guess. Although, to be honest, I actually want to work into my 60s or beyond, at least part-time - I've had a job since I was 15, and think I'd be really bored without one.

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Ugh - count me out. Saving is one thing, but 50%? Whenever I encounter Dave-Ramsey-evangelizer types, I just can't help but think, what about the now? if you're always saving for the future, when do you finally allow yourself to enjoy the fruits of your labor? I seriously doubt after decades of pinching pennies that anyone can unlearn being that degree of a cheapskate. I agree that saving is important, but there has to be a balance between enjoying yourself in the present and planning for the future. Quite honestly, I'd be perfectly content to die with $0.35 in my bank account - because you can't take it with you!

 

Not only that, but none of us are guaranteed tomorrow...

 

That's true, but, statistically, a good portion of us will live well into our 70s. We have a far greater chance of living to that age than not.

 

 

I find this thread very telling about some of my personal concerns in regards to income, wealth-perception, and being financially content in life. I'm at a point where, introspectively, I find myself thinking quite often about the long-term ramifications of my less than optimal financial decisions - (e.g. not saving/investing as much, and lack of real estate prowess). I feel like I'm behind the proverbial eight-ball in certain aspects in life.

 

BruceBanner is definitely right...consumerism a disease. Also, WorkHardPlayHard is spot-on about NOT being chained to your job as a means to escape the rat race sooner

 

Consumerism is a disease, yes, unless you are not a consumer at all. If you are a PRODUCER, it's a great thing.

 

Agree with this as well---the stock market and real estate market in many regions is majorly inflated right now. Depending on your strategy, it's a less-than-optimal time to invest. If you are an index buy and holder, there really aren't bad times but certainly putting large sums of money in at peak inflation is not ideal.

 

Nice work on your finances. You are ahead of the game!!

 

 

you're young, how come you invest so little in stocks?

 

Stocks are a fool's errand. They're something that you have no control over. Whenever I hear my coworkers discuss them, it literally gives me chills (and not the good kind). The thing with stocks is that you have absolutely no control over anything. You have a 50/50 chance of being successful. Want to know if your stock will be successful, just flip a coin.

 

If I were you guys, I would put the vast majority of my money into TIPS (Treasury Inflation-Protected Securities), which, as can be inferred, protects your money from inflation. Also, it's directly through the federal government. So if this fails, we'll have way more problems than losing a lot of money.

 

And, if you must play the market, options are the way to go. To be fair, there's a very steep learning curve and you will need to be actively involved in trading. But you have, for all intents and purposes, a 67% chance at success with any given trade (and you could stack the probability in your favor even further once you understand the market).

 

After doing the buy-and-hold, day trading, and swing trading, I've found the most consistent success with options.

 

Man, I could on all day about this stuff. :-)

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That's true, but, statistically, a good portion of us will live well into our 70s. We have a far greater chance of living to that age than not.

 

 

 

Consumerism is a disease, yes, unless you are not a consumer at all. If you are a PRODUCER, it's a great thing.

 

 

 

 

Stocks are a fool's errand. They're something that you have no control over. Whenever I hear my coworkers discuss them, it literally gives me chills (and not the good kind). The thing with stocks is that you have absolutely no control over anything. You have a 50/50 chance of being successful. Want to know if your stock will be successful, just flip a coin.

 

If I were you guys, I would put the vast majority of my money into TIPS (Treasury Inflation-Protected Securities), which, as can be inferred, protects your money from inflation. Also, it's directly through the federal government. So if this fails, we'll have way more problems than losing a lot of money.

 

And, if you must play the market, options are the way to go. To be fair, there's a very steep learning curve and you will need to be actively involved in trading. But you have, for all intents and purposes, a 67% chance at success with any given trade (and you could stack the probability in your favor even further once you understand the market).

 

After doing the buy-and-hold, day trading, and swing trading, I've found the most consistent success with options.

 

Man, I could on all day about this stuff. :-)

You talk about statistics of living to 70, but then ignore the statistics of the stock market which has, over the past century, gone up tremendously.  I believe there has only been ONE 10 year period where the DOW was down, and it recovered again the next year.  That is ONE ten year period, out of NINETY ten year periods over the past 100 years, that the DOW was down.

 

Over the past 60 years I believe the average DOW increase has been something like 8-9%.  That's a LOT better than your TIPS.

 

And you don't need a "steep learning curve" to invest in a couple of inexpensive, broad-spectrum mutual funds.  It takes an intellectually average person about an hour to figure out what a ROTH is, get a base understanding of mutual funds, and then go to Vanguard/Fidelity/Dodge&Cox/etc to set up an account and transfer money.

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you're young, how come you invest so little in stocks?

 

Typically I do, I have withdrawn a lot of my money (and profits) over the last few months.  Again the stock market is at an all time high, heights never before reached... yet our economy is clearly slowing down, growth is crawling.  A lot of it is speculation of Donald Trumps financial policies.  Cut taxes, coupled with government spending...

 

My question is:  We are $20 trillion dollars in debt as a country. Ever man, woman, and child would owe roughly $60,000 cash today if the debt had to be paid.  With taxes being cut, and money being spent on our countries infrastructure... what is going to happen to the national debt?  Does anyone even pay attention to it, or will that all fall on my generation... or the next generation?  

 

There will come a time where people are paying 70% to taxes....

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Maverick, You are wrong about the stock market. Over the long term if you are invested in blue chip stocks that pay dividends, you should be fine. The emphasis is on LONG TERM. Quick case and poit in 2008 my stocks "lost" on paper. I never sold and of course you know that I recouped the "loss" and a lot more since then. It is like a roller coaster yes. 145,000

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That's true, but, statistically, a good portion of us will live well into our 70s. We have a far greater chance of living to that age than not.

 

 

 

Consumerism is a disease, yes, unless you are not a consumer at all. If you are a PRODUCER, it's a great thing.

 

 

 

 

Stocks are a fool's errand. They're something that you have no control over. Whenever I hear my coworkers discuss them, it literally gives me chills (and not the good kind). The thing with stocks is that you have absolutely no control over anything. You have a 50/50 chance of being successful. Want to know if your stock will be successful, just flip a coin.

 

If I were you guys, I would put the vast majority of my money into TIPS (Treasury Inflation-Protected Securities), which, as can be inferred, protects your money from inflation. Also, it's directly through the federal government. So if this fails, we'll have way more problems than losing a lot of money.

 

And, if you must play the market, options are the way to go. To be fair, there's a very steep learning curve and you will need to be actively involved in trading. But you have, for all intents and purposes, a 67% chance at success with any given trade (and you could stack the probability in your favor even further once you understand the market).

 

After doing the buy-and-hold, day trading, and swing trading, I've found the most consistent success with options.

 

Man, I could on all day about this stuff. :-)

 

Aside from religion and politics, never has there been a subject where people are more convinced of their position than investing. ;)

 

It's fun to talk about though. I try to remember there are many ways to skin a cat. There is a wrong way, but no single right way.

 

Remember that stocks themselves ARE an inflation hedge, like TIPS but higher yield. Bonds are a deflation hedge.

 

I'm more of a Boglehead in my philosophy, so I tend to believe that holding funds in a self-cleansing, low-cost, broad-based index like the NASDAQ or VSTAX is one of the soundest investing strategies there is. Yes I know these markets are overvalued right now, but that's not really the point. The trend will always be relentlessly upward over the long term. There are faster ways to make money, but carry higher risk, and safer ways to make money, but offer lower yield. The people who say buy and hold is doesnt work simply never held.

 

Every solo or maverick (no pun intended) investor I've read or talked to seems to think they have a novel trademark on some method of dancing in and out of the market with spectacular results. And maybe they did, but I've yet to see a method that is a) reliable, and b) repeatable, or that doesnt directly benefit them in some way via your involvment.

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I think I'm just going to become a slumlord later in life

Not worth the hassle.  You're dealing with trying to collect money from the people who drive you NUTZ in the ED.

 

Better to have paid-for rentals in the middle range for your area, and then screen screen screen and screen tenants.  

 

I own a couple, and my strategy is having simple/basic but nice rental in a decent neighborhood.  Screen the tenants carefully, charge a slightly higher than average rent, collect first/last/security, and only offer an initial 6 month initial with the idea of "that gives us 6 months to figure out if we like each other."  During initial 6 months I'm in the house at LEAST every month doing a walk-through.  If, after 6 months I like them (they pay rent on time, keep house clean, are not overly needy) then I cut the rent in exchange for a 1 year lease.

 

 

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The only problem with buy and hold is that everyone eventually gets to the point where they have to stop holding. Unexpected job loss, major medical, BOTH... Yes you should have a cash savings to tide over a tough 3-6 months but if you happen to get to the end of that when the market is in the toilet then you can be in a bad spot. I know folks it has happened to.. That said, I agree it is still the most sound strategy in my opinion. The odds are definitely in your favor over the long haul. 

 

And, what ever you do don't buy a condo as a rental (or keep one you own to become a rental) what a nightmare. Worst investment I ever made. Constant headaches and will never break even. Bought in the wrong place at the wrong time in the market. Live and learn....

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The only problem with buy and hold is that everyone eventually gets to the point where they have to stop holding. Unexpected job loss, major medical, BOTH... Yes you should have a cash savings to tide over a tough 3-6 months but if you happen to get to the end of that when the market is in the toilet then you can be in a bad spot. I know folks it has happened to.. That said, I agree it is still the most sound strategy in my opinion. The odds are definitely in your favor over the long haul. 

 

And, what ever you do don't buy a condo as a rental (or keep one you own to become a rental) what a nightmare. Worst investment I ever made. Constant headaches and will never break even. Bought in the wrong place at the wrong time in the market. Live and learn....

The idea of buy and hold is for retirement.  Just like you didn't put all your money in at one time (and therefore some deposits were during down times and some during up times), you won't pull all the money OUT at the same time (some during down times, some during up times).

 

Additionally, with an average of 8% growth, one could take about 6% out of their retirement every year without ever touching the base value (after inflation).

 

Regarding your condo....do you own it outright?  Or have a mortgage??

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Upside down mortgage.. Bought 8 months before the collapse... It is what it is.. at least it is a very low interest rate and it rents easily even if it only covers about 75% of the cost... There is always the tax deductions.. 

 

Yes I get that buy and hold is for retirement.. But, when the market tanks people tend to find themselves without work. So unless they are fortunate to find new work with similar income quickly, not easy when the market has tanked... then they also tend to be forced to draw from their what they intended to be their retirement at the worst time. It is the reality of the system. Showing up to work on time and doing a great job everyday does not guarantee you a job when the company decides they don't need you any more, or people stop building houses because the market is in the toilet. Very few working folks, regardless of how financially responsible they are can weather 6 months with no income. And since your health insurance (until ACA) is tied to your job that is gone too at the worst time. So if a kid gets hurt or the wife gets cancer, the average family is essentially set back to ground zero. 

 

I am certainly not arguing against buy and hold. It is what I do. It is what I advise everyone else to do. But, it is still an investment strategy and nothing is guaranteed. Things happen, usually at the worst time and sometimes in a catastrophic chain of events. 

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From my moderate experience in real estate, you should NEVER go into debt for real estate investments.  If you do, the only person who makes money is the bank.  I started in real estate doing the same thing you did (getting mortgage to buy rental) and never made a penny.  I've worked very hard over past 2 years and have paid off almost all of my mortgages, and now my rentals are becoming lucrative.

Your worldview seems, to me, to be one of sadness and victimhood.  Maybe I'm wrong.

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I've worked very hard over past 2 years and have paid off almost all of my mortgages, and now my rentals are becoming lucrative.

 

I'm only 27, so I don't have much experience, but learning from my father who has been incredibly successful (granted a retired colonel and MD) and the bit I have learned myself, the above is the key.  There is a period of working hard.  If you hadn't pushed yourself to pay off those mortgages then the banks would still be making YOUR money.  You had to sacrifice in the past to enjoy today.

 

Obviously there are those who get lucky and those who are unlucky, but for the majority it's about making a sacrifice for the future.  I used to be a teacher making ~$35,000.  I have sacrificed for 3 very hard years to get into and through PA school (assuming I pass my last standardized patient encounter tomorrow!), but my family will be far better off financially as I have a job waiting for me where I will be making $95,000 base salary.  It took a past/present sacrifice for my family to enjoy the future just a bit better!

 

Of course, it doesn't stop there.  I am going to continue making a sacrifice to pay off my student loans, and may sacrifice to enter army reserves as the incentives are great (of course not the only reason to join).

 

Lastly, I am much more in the buy and hold camp.  I haven't been able to put much into retirement over the last 3 years for obvious reasons, but plan to educate myself a bit more on index funds, as most of what I have now are mutual funds.

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I'm only 27, so I don't have much experience, but learning from my father who has been incredibly successful (granted a retired colonel and MD) and the bit I have learned myself, the above is the key.  There is a period of working hard.  If you hadn't pushed yourself to pay off those mortgages then the banks would still be making YOUR money.  You had to sacrifice in the past to enjoy today.

 

Obviously there are those who get lucky and those who are unlucky, but for the majority it's about making a sacrifice for the future.  I used to be a teacher making ~$35,000.  I have sacrificed for 3 very hard years to get into and through PA school (assuming I pass my last standardized patient encounter tomorrow!), but my family will be far better off financially as I have a job waiting for me where I will be making $95,000 base salary.  It took a past/present sacrifice for my family to enjoy the future just a bit better!

 

Of course, it doesn't stop there.  I am going to continue making a sacrifice to pay off my student loans, and may sacrifice to enter army reserves as the incentives are great (of course not the only reason to join).

 

Lastly, I am much more in the buy and hold camp.  I haven't been able to put much into retirement over the last 3 years for obvious reasons, but plan to educate myself a bit more on index funds, as most of what I have now are mutual funds.

Absolutely right.  There are those who make excuses for their failures, subjecting themselves to victimhood and blaming "others" for their inability to succeed.

 

On the other end of the spectrum are people like yourself who works hard and sacrifices TODAY so they can have success tomorrow.

 

Re: your last paragraph.  All of my mutual funds ARE in index funds.  A basic, and mostly successful, strategy for retirement is to put 50% into growth funds (an S&P 500 index fund), 25% into an international mutual fund, and 25% into small cap (aggressive growth) mutual fund. 

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 All of my mutual funds ARE in index funds.  A basic, and mostly successful, strategy for retirement is to put 50% into growth funds (an S&P 500 index fund), 25% into an international mutual fund, and 25% into small cap (aggressive growth) mutual fund. 

 

How about target-age funds? 

 

like 2030, 40, 50, 60s and the likes? From what I understand, they are aggressive at first then become more conservative as the retirement age (hence target-age) creeps up.

 

Are they good investing vehicles? I solely participate in one from my job (easier to pick since I'm not to well versed into investing principles. 

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How about target-age funds? 

 

like 2030, 40, 50, 60s and the likes? From what I understand, they are aggressive at first then become more conservative as the retirement age (hence target-age) creeps up.

 

Are they good investing vehicles? I solely participate in one from my job (easier to pick since I'm not to well versed into investing principles. 

I don't think they are WRONG, but I think it's YOUR money, so YOU should UNDERSTAND where your money is.  The target-age funds lets someone else figure out where to put your money.

 

I think it is very important to understand what you invest your money in, and since most successful investing is simple investing, it's not hard to figure out.  You don't have to be an expert in investing to be "well versed" in some of the basics.

 

ROTH IRA = Post tax money into a retirement account that will grow tax free forever.  When you take money out of this it's tax free!  You can put in $5500 a year (unless you make over $182K AGI).  This should be MOST people's first investment option.

 

401K/403B = Offered through your job.  This is PRE-TAX money that goes in, and sometimes your job will offer a "match" up to a specific amount.  The match is great, but since this is PRE-TAX money, you will pay tax on the money you withdraw from the account in retirement.  These are usually run by a manager who may charge a lot, and may do a lousy job (look how many public sector retirements, such as teachers, PD, and firefighters are bankrupt).

 

ROLLOVER IRA = when you leave a job and take the 401K with you.  This allows you to invest the money how you want (and avoiding the high fees/poor management often associated with 401K/403B)

 

There are other IRAs, such as SEP IRA, that some people qualify for as well,

 

WITHIN your 401K/403B or IRA you can select various stocks, bonds ,or mutual funds.  The 401K/403B/IRA acts as a general account (based upon the tax laws) that holds the stocks, bonds, or mutual funds you (or your manager) chooses.

 

A stock is a piece of an individual company.  I don't generally invest in stocks as they are too volatile for my taste.

 

A bond is generally issued by a government (city, state, national) and promise to give a certain interest rate.  These are GENERALLY very safe, as long as you avoid the cities and states that are broke (California, Illinois, NY, Chicago, etc).  Oh...by the way, have you seen that the US is almost at $20 TRILLION debt?  That is mostly the US debt to it's bond holders.  I think $20 trillion in debt = broke, so I don't have much in bonds.

 

A MUTUAL FUND is a group of stocks that are "mutually funded" by various people who put money in and a fund manager selects stocks for that mutual fund.

 

 An INDEX mutual fund is run by a manager who, generally, picks stocks that mirror a specific index, such as the Dow Jones, the Nasdaq, the S&P, etc.  

 

So, if you deposit $5500 into your ROTH IRA this year (and you should), you could put all $5500 into an S&P Index Fund that is held within your ROTH IRA.  That $5500 will, generally, go up and down with the S&P index that you see on the news.

 

Make sense??

 

 

 

 

 

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I don't think they are WRONG, but I think it's YOUR money, so YOU should UNDERSTAND where your money is.  The target-age funds lets someone else figure out where to put your money.

 

I think it is very important to understand what you invest your money in, and since most successful investing is simple investing, it's not hard to figure out.  You don't have to be an expert in investing to be "well versed" in some of the basics.

 

 

 

Make sense??

 

 

 

Made sense.

 

However, it is not easy for someone to pick a fund/stock/bond and get results.

there are so many funds from different companies tracking same indices or niches but with different returns... how come?

 

that's why I feel like the typical worker will not know where to put his/her money, and get a great return like we all want, with so many options being available; therefore, "automatic" funds like target funds make more sense and less time consuming for the investor?

 

I read somewhere that we should contribute fully to 401k/403b  ($18,000) before the roth ira  ($5,500) 

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Made sense.

 

However, it is not easy for someone to pick a fund/stock/bond and get results.

there are so many funds from different companies tracking same indices or niches but with different returns... how come?

 

that's why I feel like the typical worker will not know where to put his/her money, and get a great return like we all want, with so many options being available; therefore, "automatic" funds like target funds make more sense and less time consuming for the investor?

 

I read somewhere that we should contribute fully to 401k/403b  ($18,000) before the roth ira  ($5,500) 

 

If I go shopping for jeans, I buy Levi's.  My daughters goes shopping for jeans, she has about 8 kabillion options while I stand there looking stupid.

 

Levi's work well.  They would PROBABLY work even better for my daughters, but they, of course, want all those "special" jeans.

 

The same thing can be said for investing.  There is simple investing that is very good.  Use a major firm for your ROTH, like Vanguard or Fidelity, open a ROTH, pick their S&P 500 fund and put your money in there.  Your money will rise and fall with the S&P index, which has traditionally earned about 8% a year for DECADES!!!!  That is a much better return than many of the more fancy strategies...kinda like buying Levi's.

 

Want to diversify?  (you should).  Within that same ROTH IRA, at the same investment firm, buy some of their international mutual fund, and then buy some of their small cap fund.  50% in the S&P, 25% in international, and 25% in small caps is pretty good diversity if you're relatively young and have lots of time before retirement.  Hell, I'm already retired and I have about that mix. 

 

Make sense?  This basic investing isn't that difficult.  You won't get all the bells and whistles of the fancy jeans, but your levi's will probably do you better anyway.

 

Regarding 401K vs ROTH, neither are wrong, but I'll give you my take and my reasoning.  I'll also add in another incredibly important factor:  DEBT!

 

If you have debt, you should cut spending, pull extra shifts, and hit the debt in the face HARD.  As others have said, some "rich" people make a lot of money, have great houses, drive brand new cars, vacation all the time, and have kids in private school.  In reality they are broke.  Meanwhile your neighbor may have the modest house, the 10 year old cars, and have a million bucks in the bank.  Who's rich??  I fully endorse Dave Ramsey's teachings on getting OUT OF DEBT, and then having your full income at your disposal instead of sending money every month to the bank in debt payments.  I think you should be (at least nearly) out of debt (except for your mortgage) before you begin heavily investing. 

 

By "heavily investing" I mean investing in things outside of your ROTH and your 401K/403B beyond the match. 

 

The ROTH is an absolutely fantastic investment tool, ESPECIALLY for young people.  Put $5500 (after tax) in now, and in 30 years (at 8% a year) it turns into $55,000 that you pull out without paying taxes on.  That's pretty awesome.  However you can only put in $5500 a year (each), so if you you have your debts under control (ie: you are making HUGE debt payments on your debt every month) then I suggest you BEGIN diverting some of your debt payments toward your ROTH.

 

Likewise, the 401K/403B MATCH from your employer is, literally, free money.  If you can afford to invest up to that match, while still making HUGE debt payments every month, then it is reasonable to do that.

 

However, DON'T let your retirement investing let you lose focus on getting OUT OF DEBT!

 

Once you're out of debt (except for your mortgage) you'll see that, as a PA, you make GREAT money!  You'll be able to invest 15% of your gross into retirement (ROTH, 401K, and additional investments), make huge extra payments toward your mortgage, and still be able to live a very pleasant lifestyle.  Vacation 3 times a year?  Why not.

 

Make sense??

 

 

My understanding is to fund your 401k/403b to get your full employer match, then switch to funding your ROTH IRA - and then if you still have more left to invest go back to the 401k/403b.  But it's all about deciding what's best for you.

 

I would argue to fund your ROTH first, then 401K/403B to match, then fully funding the 401K/403B...but completely agree, it's all what's best for you.  If everyone did your plan (once they are out of debt) they would be well off.

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Not worth the hassle.  You're dealing with trying to collect money from the people who drive you NUTZ in the ED.

 

Better to have paid-for rentals in the middle range for your area, and then screen screen screen and screen tenants.  

 

I own a couple, and my strategy is having simple/basic but nice rental in a decent neighborhood.  Screen the tenants carefully, charge a slightly higher than average rent, collect first/last/security, and only offer an initial 6 month initial with the idea of "that gives us 6 months to figure out if we like each other."  During initial 6 months I'm in the house at LEAST every month doing a walk-through.  If, after 6 months I like them (they pay rent on time, keep house clean, are not overly needy) then I cut the rent in exchange for a 1 year lease.

 

 

 

Oh I was being facetious- if I got into the rental game I'd do pretty much what you describe.  It definitely seems appealing

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