How do you all set up your investing?

Skooby

Skooby

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I'm kind of in the same boat as the original post. Just had a big jump in income now I'm trying to decide where to put the extra money.

I have no debt or kids, I already have an emergency fund, put $5,500 towards a Roth IRA and I get the company matching (5%).

So I can either increase my contribution to the TSP (government version of the 401k), get index funds/etfs somewhere else (probably Vanguard or Schwab) or individual stocks.

The TSP does have very low expense ratios (The net expense ratio is 0.038%). And they have a Roth TSP (Roth 401k) option as well.

TSP: Fund Comparison Matrix
 
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Truefan31

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Skooby said:
I'm kind of in the same boat as the original post. Just had a big jump in income now I'm trying to decide where to put the extra money.

I have no debt or kids, I already have an emergency fund, put $5,500 towards a Roth IRA and I get the company matching (5%).

So I can either increase my contribution to the TSP (government version of the 401k), get index funds/etfs somewhere else (probably Vanguard or Schwab) or individual stocks.

The TSP does have very low expense ratios (The net expense ratio is 0.038%). And they have a Roth TSP (Roth 401k) option as well.

TSP: Fund Comparison Matrix
Click to expand...

first, you're in a great spot breh. no debt, emergency fund already there, maxing roth ira. All great.

Are you maxing your TSP? they match 5% so yeah, max your TSP, breh. I prefer Roth 401k myself, because of the tax free growth, so imo doing a roth tsp is a great idea.

So at this point you're maxing out basically all entry level retirement accounts. So now, is there anything you're trying to save for? Home/vacation/any other purchases? You could start saving up for those things so that you stay out of debt.

In addition, you could look into some nice no load mutual funds through vanguard, and/or look into things like real estate to further your investing.
 
Skooby

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Truefan31 said:
first, you're in a great spot breh. no debt, emergency fund already there, maxing roth ira. All great.

Are you maxing your TSP? they match 5% so yeah, max your TSP, breh. I prefer Roth 401k myself, because of the tax free growth, so imo doing a roth tsp is a great idea.

So at this point you're maxing out basically all entry level retirement accounts. So now, is there anything you're trying to save for? Home/vacation/any other purchases? You could start saving up for those things so that you stay out of debt.

In addition, you could look into some nice no load mutual funds through vanguard, and/or look into things like real estate to further your investing.
Click to expand...
Thanks.

I'm contributing up the matching for the TSP. But I'm not at the full $18,000 per year. But I do want to start saving for a down payment on a home in a few years.

Our matching 5% has to go into the regular TSP. But anything over the matching can go into the regular or Roth TSP. I think I'm going to start off with contributing an extra 5% to the Roth TSP (total of 10% with 5% going to regular) and whatever is left over go to my house fund.
 
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Truefan31

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Skooby said:
Thanks.

I'm contributing up the matching for the TSP. But I'm not at the full $18,000 per year. But I do want to start saving for a down payment on a home in a few years.

Our matching 5% has to go into the regular TSP. But anything over the matching can go into the regular or Roth TSP. I think I'm going to start off with contributing an extra 5% to the Roth TSP (total of 10% with 5% going to regular) and whatever is left over go to my house fund.
Click to expand...

Tell you what then. Whatever your income is, do 15% of it toward retirement n investing after you're debt free n got ur emergency fund setup. Since you wanna save for a home, dedicate the rest toward that goal.
 
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dark_magic

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Goldz-n-hoez said:
What would you guys invest in with $100,000?
Click to expand...

Depending on circumstances, education, skill, and experience:

1) Eliminate debt. That can be the equivalent of 8%+ return on the money.
2) Deposit some in life insurance. Opportunity cost fund.
3) Small business so long as the business is profitable and profitability can be increased.
4) If you are defensive investor, index funds.
5) If you are an enterprising investor, a portfolio of your choosing.
6) Rental real estate

Given the market is at all time highs, it might make sense to hold to cash until a correction takes place. Wouldn't hurt to convert a portion of cash into gold and silver coin either. The life insurance, gold, and silver coin can be hedges against the stock market and inflation.
 
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dark_magic said:
Depending on circumstances, education, skill, and experience:

1) Eliminate debt. That can be the equivalent of 8%+ return on the money.
2) Deposit some in life insurance. Opportunity cost fund.
3) Small business so long as the business is profitable and profitability can be increased.
4) If you are defensive investor, index funds.
5) If you are an enterprising investor, a portfolio of your choosing.
6) Rental real estate

Given the market is at all time highs, it might make sense to hold to cash until a correction takes place. Wouldn't hurt to convert a portion of cash into gold and silver coin either. The life insurance, gold, and silver coin can be hedges against the stock market and inflation.
Click to expand...
You realize how old these post are? I already doubled the 100k
 
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dark_magic

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For Da Bag said:
Does gold/silver prices drop when the economy is doing well? And rise when the economy is in a recession?
Click to expand...

The price of gold or silver coin is influenced by a multitude of factors including supply and demand for the metal. Gold and silver are also industrial metals, more so silver, used in manufacturing processes.

Generally speaking, there is some inversion between the performance of the market and the spot price of gold and silver.

Gold and silver are hedges against currency inflation of the monetary supply. Gold and silver preserve its purchasing power better than paper currency. Also, gold and silver have been used as currency for nearly 5000 years. The use of paper as currency is a relatively new development in human history.

In 1933, when the US government condemned and seized gold domestically, gold was about $20.67/ounce.
Today, spot gold is about $1600. This rise in price is due to inflation.
 
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