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Old 03-08-2010, 07:37 AM
 
1 posts, read 2,004 times
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Hello!

Just another member seeking some investment advice from people more knowledgeable!

I am single 24 years old. Good dependable job (military) that I plan on retiring from after my 20 years. Over the past two years I have been maxing out a Roth IRA and I have a emergency fund setup with 4 months income and 6k in a separate savings account. I just got into a mortgage but other than that no debt.

I have redone my budget after the new expenses of being a home owner and found I have another $300-400 a month I could be investing plus the 6k I currently have in savings. What are some options I have for this money? I would rather avoid self investment in stocks just because I don't have the time to read up on different stocks and what they are doing daily. Should I go safe or be more aggressive? I am perfectly fine with putting this money away into another account I wont touch until retirement.

Long term goals is to retire somewhat early (age 55), so trying to get an early start. Ill have my military retirement pay and medical at that point as well.

Thanks for any advice yall can offer! Really appreciate it!

Last edited by PPAATT; 03-08-2010 at 07:53 AM..
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Old 03-08-2010, 08:52 AM
 
28,455 posts, read 85,370,617 times
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If you are not already putting some of your pay into the Federal Thrift Savings Plan that would be the first thing I'd recommend: Thrift Savings Plan

If you are doing that then I would look for tax efficient mutual funds and /or any low cost fund that has the kind of long term growth potential you should be focused on at 24...
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Old 03-14-2010, 08:15 AM
 
Location: Seminole, FL
569 posts, read 1,058,702 times
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Quote:
Should I go safe or be more aggressive?
Don't invest in something that you don't know or don't have the time to research (pure stocks as you pointed out), but be aggressive! The younger you are the more aggressive you should be and you're about as young as they come for retirement investment advice. The reason is that your time horizon is so huge that you can weather losses and recoup them down the line, so the risk of an aggressive plan isn't quite as risky to you. It's like starting a business when you're young as opposed to starting it when you're old. So find yourself an aggressive mutual fund to invest in. Also, if you want to, you could invest in a "simple" stock or two. For example, I would consider Berkshire Hathoway to be similar to a mutual fund that's run by Warren Buffet. You should be able to put money in there and forget about it until Buffet's health starts fading significantly.

Lastly, I know that you mentioned you're maxing out your Roth at the $5k / year limit, and you've got your military retirement pay coming. I'm not familiar with the military retirement package. Do you have any other tax-deferable vehicles open to you, such as a 401k, optional pension plan, etc.? I believe that's what the poster above me was talking about. Take advantage of all of these before you start playing with money in a taxable account. Also, if you have the option to put money into a TASC account - again I don't know what military options are - I would put as much in as you're comfortable with spending this year. Anything put in there immediately "earns" you whatever your tax rate is so long as you don't let it go to waste.
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Old 03-14-2010, 12:12 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,711 posts, read 58,042,598 times
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spend some time looking over the plan C-D user 'forestbeekeeper' did while in military. (Buying Multi-family investment props)

You want a well diversified investment strategy in several asset classes. You will want to have additional income for the 'bridge' years (early retirement and still active). An alternative to working is to have assets working for you. The correct investments in real estate (hint... not single family housing) will be paid off in 20 yrs or less, and you will be collecting rents while sitting on the beach in Tahiti. As you get aged... you can sell those assets and carry the loan for buyers after they lay down a 30% down payment. That will keep you on EZ street well into your 80's, AND protect you from inflation AND give you a presence in the real estate market (which late 2010 and early 2011 should bring some delightful bargains.) Buy 'owner financed then, sellers will be desperate. (JMHO)
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