What Are You Doing Right Now
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@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
If you make less than $116k as a single person and (I think) $183k as a couple you should be putting $5500 per year into a Roth IRA and using it as a container for mutual funds.
I do neither. No mutual funds, no retirement accounts
And by doing that is how I retired at 39.
Also by making a whole lot more than $189K/yr (at least in the end).
Seriously though, because of your connections as well as your OJT, what did you invest in that gave you a great portfolio that allowed you to retire so young?
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Check out acorns. They round up any debit purchases you make and invest it for you into mutual funds. It's great. By the end of the year I can pay for my Christmas gifts with it.
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@Dashrender said in What Are You Doing Right Now:
Seriously though, because of your connections as well as your OJT, what did you invest in that gave you a great portfolio that allowed you to retire so young?
All of my investments went into Index Funds, real estate and direct business investments. None of the mutual funds, bonds and equities that most people do.
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@scottalanmiller said in What Are You Doing Right Now:
Bit of a headache, not feeling so productive.
Make sure to take the 50 cent aspirin.
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@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
If you make less than $116k as a single person and (I think) $183k as a couple you should be putting $5500 per year into a Roth IRA and using it as a container for mutual funds.
I do neither. No mutual funds, no retirement accounts
And by doing that is how I retired at 39.
Your earning potential far exceeded the mean income of a household though
But most people in my bracket can't retire at 39. Most of them lock up their investments and can't touch them till they are 65.
Yeah because you get outrageous benefits for doing so
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@scottalanmiller said in What Are You Doing Right Now:
@Dashrender said in What Are You Doing Right Now:
Seriously though, because of your connections as well as your OJT, what did you invest in that gave you a great portfolio that allowed you to retire so young?
All of my investments went into Index Funds, real estate and direct business investments. None of the mutual funds, bonds and equities that most people do.
An Index fund is a mutual fund that people typically invest in. Especially when they are younger
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@dafyre said in What Are You Doing Right Now:
@travisdh1 said in What Are You Doing Right Now:
@tiagom said in What Are You Doing Right Now:
I put pretty much every purchase on credit cards, took and paid off a car loan, loan on bike and my credit score continues to increase.
So i dont believe debt=bad unless your irresponsible.
Well, all debt isn't bad. But with the education system (at all levels), pushing the debt=good drum ad nauseam, and combined with sales minions, well, the majority of loans end up being bad.
My grandfather always used to say "If it takes you 30 years to pay for something, you can't afford it." While a terrible generality, I think the idea behind it is good. Basically, if you will be paying for it longer than it's expected to last, you can't afford it.
There are some things I think that are ok to get into debt for... Cars and houses... Anything else is just asking for trouble. Am there, am working on that... Still trying to find a T-Shirt in my size.
Actually, I disagree with the car. As for a house, well most people are either paying rent and gaining no equity, or buying a house/condo/etc, and gaining equity, so that makes sense.
As for the car, since they almost never appreciate in value, debt on one is generally bad unless you can spend the money elsewhere more wisely.
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@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
If you make less than $116k as a single person and (I think) $183k as a couple you should be putting $5500 per year into a Roth IRA and using it as a container for mutual funds.
I do neither. No mutual funds, no retirement accounts
And by doing that is how I retired at 39.
Your earning potential far exceeded the mean income of a household though
But most people in my bracket can't retire at 39. Most of them lock up their investments and can't touch them till they are 65.
Yeah because you get outrageous benefits for doing so
Benefits like... being forced to work till you are 65 even if you made enough to retire earlier and not having access to money when needed and having to pay higher loan rates because you lack available collateral
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@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
Interesting. Are there any index funds (like Vangard, I think?) that will let you put cash in that you can withdraw at any time without penalty? [Note, I'm not talking about IRA or 401k type programs]
Vanguard definitely lets you cash out anytime. I think you can even write a check straight out of the account! It isn't instant like a savings account, takes like a day or two before the money comes out. But nearly instant.
About two years ago, I started "investing" with LendingClub... I've seen a nice return on that (~9% over the two years)... I've had to raid the funds a time or two for emergencies, but it's a rather nice program. Once your balance reaches a certain limit, you can fire & forget... (it's only like $2,500... I'm not there yet, lol).
Fire and forget?
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@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@Dashrender said in What Are You Doing Right Now:
Seriously though, because of your connections as well as your OJT, what did you invest in that gave you a great portfolio that allowed you to retire so young?
All of my investments went into Index Funds, real estate and direct business investments. None of the mutual funds, bonds and equities that most people do.
An Index fund is a mutual fund that people typically invest in. Especially when they are younger
Index Funds are funds without fund managers, they are lower overhead and managed by index, not by people. Has nothing to do with people being younger.
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@Dashrender said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
Interesting. Are there any index funds (like Vangard, I think?) that will let you put cash in that you can withdraw at any time without penalty? [Note, I'm not talking about IRA or 401k type programs]
Vanguard definitely lets you cash out anytime. I think you can even write a check straight out of the account! It isn't instant like a savings account, takes like a day or two before the money comes out. But nearly instant.
About two years ago, I started "investing" with LendingClub... I've seen a nice return on that (~9% over the two years)... I've had to raid the funds a time or two for emergencies, but it's a rather nice program. Once your balance reaches a certain limit, you can fire & forget... (it's only like $2,500... I'm not there yet, lol).
Fire and forget?
Auto draws on your account to invest monthly or whatever.
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@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@Dashrender said in What Are You Doing Right Now:
Seriously though, because of your connections as well as your OJT, what did you invest in that gave you a great portfolio that allowed you to retire so young?
All of my investments went into Index Funds, real estate and direct business investments. None of the mutual funds, bonds and equities that most people do.
An Index fund is a mutual fund that people typically invest in. Especially when they are younger
Index Funds are funds without fund managers, they are lower overhead and managed by index, not by people. Has nothing to do with people being younger.
Index funds are extremely variable for that reason and typically younger people invest in them because they have the time needed for it to produce gains. Age is a resource when talking about investments.
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@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
If you make less than $116k as a single person and (I think) $183k as a couple you should be putting $5500 per year into a Roth IRA and using it as a container for mutual funds.
I do neither. No mutual funds, no retirement accounts
And by doing that is how I retired at 39.
Your earning potential far exceeded the mean income of a household though
But most people in my bracket can't retire at 39. Most of them lock up their investments and can't touch them till they are 65.
Yeah because you get outrageous benefits for doing so
Benefits like... being forced to work till you are 65 even if you made enough to retire earlier and not having access to money when needed and having to pay higher loan rates because you lack available collateral
How risky are those things you invested in compared to the typical investment vehicles?
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@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@Dashrender said in What Are You Doing Right Now:
Seriously though, because of your connections as well as your OJT, what did you invest in that gave you a great portfolio that allowed you to retire so young?
All of my investments went into Index Funds, real estate and direct business investments. None of the mutual funds, bonds and equities that most people do.
An Index fund is a mutual fund that people typically invest in. Especially when they are younger
Index Funds are funds without fund managers, they are lower overhead and managed by index, not by people. Has nothing to do with people being younger.
Index funds are extremely variable for that reason and typically younger people invest in them because they have the time needed for it to produce gains.
That's not logical nor mirrored in the market. Index Funds are very stable, in fact they are the most stable earning vehicle that there is. They are more stable than mutual funds and are the only really reliable investment tool of its type. There is no reason to lean on it for youth and not when old unless you are expected to die in under ten years, then, if the markets are not in your favour, you stop investing and start hedging with bonds, money markets, commodities and such.
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@Dashrender said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
If you make less than $116k as a single person and (I think) $183k as a couple you should be putting $5500 per year into a Roth IRA and using it as a container for mutual funds.
I do neither. No mutual funds, no retirement accounts
And by doing that is how I retired at 39.
Your earning potential far exceeded the mean income of a household though
But most people in my bracket can't retire at 39. Most of them lock up their investments and can't touch them till they are 65.
Yeah because you get outrageous benefits for doing so
Benefits like... being forced to work till you are 65 even if you made enough to retire earlier and not having access to money when needed and having to pay higher loan rates because you lack available collateral
How risky are those things you invested in compared to the typical investment vehicles?
Index Fund is the lowest risk vehicle that there is as long as you have at least ten years before you need to pull from it. Which means up to ten years before retirement (and that's only a maximum, could go right up to retirement) or ten years before you die, depending on how you want to use it.
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@wirestyle22 said in What Are You Doing Right Now:
Age is a resource when talking about investments.
Of course, but I don't see how it plays into Index Funds. Unless you are comparing it to day trading.
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@scottalanmiller said in What Are You Doing Right Now:
@Dashrender said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
Interesting. Are there any index funds (like Vangard, I think?) that will let you put cash in that you can withdraw at any time without penalty? [Note, I'm not talking about IRA or 401k type programs]
Vanguard definitely lets you cash out anytime. I think you can even write a check straight out of the account! It isn't instant like a savings account, takes like a day or two before the money comes out. But nearly instant.
About two years ago, I started "investing" with LendingClub... I've seen a nice return on that (~9% over the two years)... I've had to raid the funds a time or two for emergencies, but it's a rather nice program. Once your balance reaches a certain limit, you can fire & forget... (it's only like $2,500... I'm not there yet, lol).
Fire and forget?
Auto draws on your account to invest monthly or whatever.
What he said. You give it a spread of risk vs reward and it'll automatically handle stuff for you. As it is now, I have to log in a couple of times a month to make sure I'm getting paid, lol... Bank transfers from Lending Club to my Bank account generally happen over night (which is great for emergencies).
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@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@wirestyle22 said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@Dashrender said in What Are You Doing Right Now:
Seriously though, because of your connections as well as your OJT, what did you invest in that gave you a great portfolio that allowed you to retire so young?
All of my investments went into Index Funds, real estate and direct business investments. None of the mutual funds, bonds and equities that most people do.
An Index fund is a mutual fund that people typically invest in. Especially when they are younger
Index Funds are funds without fund managers, they are lower overhead and managed by index, not by people. Has nothing to do with people being younger.
Index funds are extremely variable for that reason and typically younger people invest in them because they have the time needed for it to produce gains.
That's not logical nor mirrored in the market. Index Funds are very stable, in fact they are the most stable earning vehicle that there is. They are more stable than mutual funds and are the only really reliable investment tool of its type. There is no reason to lean on it for youth and not when old unless you are expected to die in under ten years, then, if the markets are not in your favour, you stop investing and start hedging with bonds, money markets, commodities and such.
This is one instance where I don't agree with you, but that is okay
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@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@Dashrender said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
@dafyre said in What Are You Doing Right Now:
@scottalanmiller said in What Are You Doing Right Now:
Free money!
Where does the tax benefit come in?
Home mortgage debt gets a tax write off.
Even if it's just a home equity loan?
I believe so. But you'd have to verify.
Interesting. Are there any index funds (like Vangard, I think?) that will let you put cash in that you can withdraw at any time without penalty? [Note, I'm not talking about IRA or 401k type programs]
Vanguard definitely lets you cash out anytime. I think you can even write a check straight out of the account! It isn't instant like a savings account, takes like a day or two before the money comes out. But nearly instant.
About two years ago, I started "investing" with LendingClub... I've seen a nice return on that (~9% over the two years)... I've had to raid the funds a time or two for emergencies, but it's a rather nice program. Once your balance reaches a certain limit, you can fire & forget... (it's only like $2,500... I'm not there yet, lol).
Fire and forget?
Auto draws on your account to invest monthly or whatever.
What he said. You give it a spread of risk vs reward and it'll automatically handle stuff for you. As it is now, I have to log in a couple of times a month to make sure I'm getting paid, lol... Bank transfers from Lending Club to my Bank account generally happen over night (which is great for emergencies).
It's a form of dollar cost averaging which statistically sees better gains as an investment tactic. Basically you don't worry about how the market is doing and you always invest the same amount every month.
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@wirestyle22 said in What Are You Doing Right Now:
This is one instance where I don't agree with you, but that is okay
But what artifact of Index Funds makes you feel that way? If you feel that they work this way, what's the reason?
I'm basing my approach to it off of their lifetime historical performance going back to the beginning of recorded markets. Index Funds are specifically good for investing in even with only as little as ten years to recover. They have outperformed equities investing, mutual funds, commodities and others in every ten year period and nearly any shorter period... in recorded history.
So they are mathematically the best investment even for people in their 50s that need to pull money out in just one decade and easily still very, very good for retirees who need to live off of retirement investments for decades yet to come.
If anything, you can be more reckless in your investing when you are young. The old need stable, reliable investments because they have no time to make up for bad ones. Kids can take wild gambles and maybe get lucky or maybe work extra hard to make up for them over the course of their careers.
So that's why I'm saying that while IFs are good for everyone, they are least important for youths and most important for the elderly when risk aversion becomes higher. Since IFs are the lowest risk vehicle that there is, they are most important when you can't afford risk.
