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I posted a call for advice on what to do when my families post tax income doubles in the up coming months. They all said INVEST! INVEST IT ALL FOR RETIREMENT!
There are investment accounts that are not retirement accounts. You can easily go to brokerage companies like Scottrade, Fidelity, Etrade, Charles Schwab, etc. to open a brokerage account which would allow you to buy securities the same way you would with an IRA.
would you write out "wtf" to start a post? if not, then you probably shouldn't use "wtf." if you are really getting emotional over this subject, don't. this is business.
you should invest the money in an etf and just keep adding to the position. some kind of index or balanced etf. that's the simple answer for someone with limited knowledge on the subject. you also may consider getting more informed on the subject also. that doesn't even mean you would change the strategy, but you would at least have a better understanding of what your money is doing. I definitely wouldn't recommend land or rental property.
It's a stupidly high surplus. Right now we live very comfortably on $26k post taxes, with another $4k set aside for vacations and $10k being dropped into a 401(k). Our income is going to jump to $86k post taxes in the very near future, leaving us with $60k a year of funds that have no where they have to be. Just a few years later the post tax earning jump to $132k (assuming tax brackets and exemptions for children remain constant (definitely losing the Child Credits...).
I will be taking a retirement investing course later this semester, so that should help me figure some things out, it was just a shock that one can max out their tax protected retirement at such a low level.
You didn't say how much you had set aside to invest. I didn't see if you had a lump sum of cash other than the 60k a year surplus that is coming to you
My parents own property, which is providing them with rental income that they are living off for retirement, but they purchased it with cash at that time, no financing. If they hadn't owned the property outright they would have been sunk at various times throughout the years when income generated by the property didn't match expenses.
Last edited by arrieros81; 02-08-2014 at 12:06 PM..
You can get a CD or Money Market acct at any bank. Interest rates are low, but it's a safe place to stash cash.
You can open investment accounts and set it up as a brokerage acct. You can buys stocks and get dividends paid into your acct. You can also get mutual funds, bonds, ETFs and hold all in same acct.
You can get these accounts at the same firms that run 401Ks. Main difference is your acct is setup as an individual (or joint) taxable acct, versus and IRA or Roth IRA. But when you setup your own acct, you usually have many more investment choices (more EFTs, many more Mutual Funds) versus typical 401k choices. Also when you setup as brokerage acct, it allows you to trade individual stocks, if you choose. You can choose to setup as brokerage acct and only get mutual funds or ETFs for awhile and if/when you want to get stocks, your acct is setup that way. If you never want to get a stock, you don't. The brokerage acct doesn't force you to get stocks.
Contact any of the big investment companies to set up an individual acct: Fidelity, Wells Fargo, Vanguard and many more.
With Fidelity, you can get a Rewards Visa or MasterCard and you get 2% rewards on all purchases. The rewards go directly into your Fidelity account.
Isn't it 1.5% for the first $15,000 in purchases per year?
my fidelity retirement rewards card gets 2% on all purchases. they are automatically deposited monthly into a fidelity account of my choosing (doesn't have to be retirement account).
Don't forget, if you want to have exposure to real estate without having to worry about tenants or being able to sell when you need to, REITs may work for you. Vanguard, for example, has a REIT ETF that you can buy and sell like stocks that provided quarterly income that you can either reinvest or take the cash.
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