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Replies: 38
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All-In [46934]
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Investing Advice
Dec 15, 2015, 12:31 PM
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Looking to invest in a Roth IRA for me (I'm 26 and eligible for retirement at 50 but probably won't retire then and I also have the state retirement plan so this will be supplemental to that plan.) and for my wife (29 started her career late but does have a 401k from her previous employer).
First off, what investment strategies do you recommend for us?
Is Roth the right way to go?
What should we be investing in (looking to do 80% stocks and 20% bonds or MF and bring the stock amount down 10-20% every 10 years).
What service would be best for this? Vanguard? somewhere else?
What advice can you give.
All of this is for retirement.
TIA.
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Rock Defender [54]
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You've seen the answers given for legitimate questions,
Dec 15, 2015, 12:34 PM
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and you're seeking investment advice from TigerNet?
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All-In [46934]
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Re: You've seen the answers given for legitimate questions,
Dec 15, 2015, 12:34 PM
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I just put new batteries in my meter.
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Rock Defender [54]
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Good luck to you!***
Dec 15, 2015, 12:35 PM
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Legend [15926]
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Freshman [2]
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Re: Investing Advice
Dec 15, 2015, 12:39 PM
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Lotto
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All-Pro [661]
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Re: Investing Advice
Dec 15, 2015, 12:39 PM
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You want to diversify your tax strategies but - yes generally Roth is best especially when you are currently in a lower tax bracket then you will be when you retire (also Taxes tend to go up). As far as Strategy - you can put it in a general market index funds which will have low fees and outperform the more active higher fee funds - or one of those target retirement funds which also has low fees but will change the strategy as you get older to safer assets. I would suggest going to a fee only investment adviser who you pay for the appointment only and not one who makes money off your money and never a whole-life insurance agent.
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CU Guru [1116]
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Re: Investing Advice
Dec 15, 2015, 12:53 PM
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Diversify, Buy low, sell high.
401 if you are working for a company and you can also set up you're own IRA.
I'M 71 and retired which seems like every night is Saturday night and every day is Sunday.
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Legend [15926]
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I'm 37, just went to a fee only financial planner in Chas last month..
Dec 15, 2015, 1:03 PM
[ in reply to Re: Investing Advice ] |
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Wish I had at your age.
Its pricey, $200/hr, but it is worth every penny. Find a fee only planner and make a strategy that suits you and your goals..
Honestly, we had to sit with the fp to help us even understand what a reasonable goal was.
Good luck
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All-TigerNet [10427]
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^^^ Not Bad Advice... Pretty Good In Fact
Dec 15, 2015, 1:06 PM
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Do your own due diligence and educate yourself a bit too.
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All-In [44112]
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Uhh. I'm not sure what kind of human you are, pal. Do you
Dec 15, 2015, 12:42 PM
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not realize that our #1 team is in need of capital to finance the new facilities?
The building WILL be built. You may or may not live until retirement. I cannot even recognize your questions as actual questions.
Get it together bud!
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All-TigerNet [10427]
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Re: Investing Advice
Dec 15, 2015, 12:49 PM
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I recommend cash stored in your mattress or buried in the backyard.
HTH
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Rock Defender [54]
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Re: Investing Advice
Dec 15, 2015, 12:55 PM
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All-In [46934]
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Re: Investing Advice
Dec 15, 2015, 1:13 PM
[ in reply to Re: Investing Advice ] |
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"I don't know how much cash I have but I know how many pounds of money I have" --Ron Swanson
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Orange Blooded [2420]
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Re: Investing Advice
Dec 15, 2015, 3:35 PM
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Hey, open an account with Fidelity, TD Ameritrade etc for a ROTH IRA in both you and the wife's name separate accounts and fund them to the max. Invest it yourself in products that you believe in pick two or three stocks and go for it. Google, apple, Bidu, Chipotle, brk-b, bwld, fb, nflx, ua, Zillow... you pick companies you believe in and invest in those companies. pick three for each account and invest in those companies. do it at the first of the year and keep it there through april and then you can move it to money market or keep it invested in those stocks. you and wifey pick some stocks between you and make it a contest for the year to see who does best. Long term investing is the best thing you can do. It will go up and down, but long term it should go up.
You can put money in for eight years and never put anymore in one account and then start another account and put money in every year until you are 65 and that money, even though you put more in every year, it will never be as much as that for the first eight years, even though you don't add a penny to the first account. Good luck and start young. You will retire RICH!
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Orange Blooded [2420]
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Re: Investing Advice
Dec 15, 2015, 3:46 PM
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Also, buying a nice fixer upper house and fixing it up and selling every two years gives you tax free money also. The nice thing about a ROTH is you never pay taxes on the money, if you wait until retirement age or a few other reasons. Only invest what you can afford to leave in your account for at least five years. Your money should double every seven years.
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110%er [5093]
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Re: Investing Advice
Dec 15, 2015, 12:52 PM
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If you work for the state and plan to retire from the state you should be looking at the 457 or 403b option as you can start taking distributions before 59 1/2.
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All-In [46934]
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Re: Investing Advice
Dec 15, 2015, 1:12 PM
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I understand that but from all the teachers I have talked to, the retirement for teaching is no where near enough to live off of during retirement. So wouldn't it make sense to go with the best and most diversified funds to offset the minimal amount we get from state retirement? (disclaimer: I haven't researched those plans as thoroughly as the IRA)
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CU Medallion [64730]
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Serious answer (no really)....
Dec 15, 2015, 12:52 PM
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A sound investment strategy would include a broadly diversified asset mix of stocks and bonds that offers the best chance for meeting the objective, subject to the investor's constraints. This has been well documented in theory and in practice. Broad diversification reduces a portfolio's exposure to specific risks while providing opportunity to benefit from the markets' current leaders.
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All-In [46934]
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Re: Serious answer (no really)....
Dec 15, 2015, 1:09 PM
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are you talking individual investments or over all? Roth at Vanguard puts money into wide ranging investments such as US Stocks, International Stocks, MM, and Bonds. Is this what you are referring to?
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CU Medallion [64730]
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Yup!***
Dec 15, 2015, 1:16 PM
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All-TigerNet [10427]
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All-In [46934]
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Re: Investing Advice
Dec 15, 2015, 1:08 PM
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I'm a teacher. I qualify for stuff that nobody with a full time career should qualify for.
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Orange Blooded [3968]
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Re: Investing Advice
Dec 15, 2015, 12:57 PM
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If you invest in stocks or bonds right now, you're nuts. If anything, invest in commodities and real estate.
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All-In [46934]
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Re: Investing Advice
Dec 15, 2015, 1:07 PM
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That would work if I plan on moving assets constantly. But as a (almost) set it and forget it fund, the trend of stocks and especially bonds/mutual funds always go up over long periods of time. So why would I not? Yes the Feds will eventually raise IR and the stock market will take a hit, but soon after, it (historically) will rally back. Will it be back to a bear market? maybe, but if you look at the trends of 20-30 years, it always increase by an average of 7%. So can you explain your post please? Not saying you're wrong just saying I don't see what you mean.
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Orange Blooded [2002]
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Re: Investing Advice
Dec 15, 2015, 1:01 PM
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You should both max out your Roth every year. And yes Vanguard is great.
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All-In [46934]
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Re: Investing Advice
Dec 15, 2015, 1:07 PM
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That would be almost 500 a month. That's a lot of cash.
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MVP [506]
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Advice: find an advisor, don't ask these knuckleheads***
Dec 15, 2015, 1:02 PM
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All-TigerNet [10427]
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What about the knucklehead recommending an advisor?***
Dec 15, 2015, 1:06 PM
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All-In [44144]
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Max out your IRA while you can.
Dec 15, 2015, 1:15 PM
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Decide how aggressive you want to be as an investor. Most advise being a relativity conservative investor at your age and stage, meaning that you make safe investments which historically pay a nice and predictable return over the long haul. You won't generate fast cash this way, but by the time you are at retirement age you should have a nice amount of cash accumulated.
The other philosophy is to invest in yourself - your training, your small business adventure, etc., and in doing so you will make far more than you would through conventional investment channels. This can be a safe bet or a very risky one, depending on who you are and what you plan to do with the money. 
Oh, and diversity is key. Buy low/sell high, all that good stuff.
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All-In [44144]
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I just realized that you are a teacher. That changes everything.
Dec 15, 2015, 1:18 PM
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The best thing you can do for your financial future is to find another line of work. You are not, and likely never will be, paid fairly for what you know and do as an educator. If you can't or won't change careers, start a side business and put your spare time and energy into that. You must have an alternative income stream.
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All-In [46934]
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Re: I just realized that you are a teacher. That changes everything.
Dec 15, 2015, 1:20 PM
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My major is history education with a minor in international studies. There ain't much more I can do with my major
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Orange Blooded [2111]
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I know a real
Dec 15, 2015, 1:25 PM
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good investor I can put you in contact with. His name is Nevin Shapiro!
hth
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All-TigerNet [10427]
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Isn't he bunking with Bernie Madoff now?***
Dec 15, 2015, 1:37 PM
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All-TigerNet [10572]
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Message removed by Author
Dec 15, 2015, 1:45 PM
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Message removed by Author
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All-In [46934]
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Re: I cannot comment on this thread because
Dec 15, 2015, 1:51 PM
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a.....?
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Mascot [23]
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Re: Investing Advice
Dec 15, 2015, 1:57 PM
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Is Roth the right way to go?
-Roth's are best when you envision yourself being in a higher tax bracket when you get older. Since you are a teacher I don't know if this would be the best thing for you since your income/raises are determined by the state. If your wife is going to progress up the corporate ladder and start making more money I would definitely recommend a roth if not you may want to look for different options.
What should we be investing in (looking to do 80% stocks and 20% bonds or MF and bring the stock amount down 10-20% every 10 years).
-It depends on how risky you want to be... I've always heard you should use your age as the percent bond that you are investing in ( 26% bonds and 74% stocks for a 26 year old and adjust as you get older to reduce risk).
What service would be best for this? Vanguard? somewhere else?
I use Vanguard for my Roth and from everything I've seen they've had the lowest fees and good returns on investment.
The best advice I can give you is start ASAP the more time you have the more opportunity you have for compounding interest.
"Compounding interest is better than sex because it works when you're old." - Foard Tarbert
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Legend [15863]
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Put all your cash in Llamas - they are skyrocketing
Dec 15, 2015, 3:38 PM
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in value
you can always eat the ones that don't make it
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CU Guru [1835]
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Re: Investing Advice
Dec 15, 2015, 3:48 PM
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I would avoid any bonds for the next year or two. The bond market is very unstable right now.
For the short term I would put the majority in funds that hold solid stocks like GE, Johnson & Johnson, Colgate-Palmolive, and P&G. These stocks also pay dividends. Also put 10-20% in gold & silver funds.
If you see a market correction of 20%+ then I would move about half in to tech, medical, and energy funds.
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Replies: 38
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50
