Best type of investment

[Handlebar Moustache]

JMHO:

1. If you aren't married yet, invest in a lawyer to draft you up a good prenup. I'm not whining or being sarcastic...that's what I'd make myself do if I could go back in time.

2. With some obvious assumptions implied, rental homes have a great ROI, especially before they're paid off if you can get a low interest rate on a loan. Tax benefits are nice too. Tenant management isn't bad if you are picky about your tenants, keep them happy, and price your rent to where it is hard for them to leave. Buy them a Christmas present and a housewarming gift. Take care of their concerns. Be the cool landlord. You can keep the same tenants for years and years if you like them. I like that strategy. It has worked for me for the last 10+ years.

3. I agree about low-commission S&P index funds.

Disclaimer: just opinions here. Biggest ROI with the lowest risk is the prenup.

 

[Ohio Snake]

I use it in my personal accounts. Most of my money is in individual stocks that I follow closely. Core positions I trade around.

Im a stock person myself, but do use ETF and some funds.


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[VegasMichael]

JMHO:

1. If you aren't married yet, invest in a lawyer to draft you up a good prenup. I'm not whining or being sarcastic...that's what I'd make myself do if I could go back in time.

2. With some obvious assumptions implied, rental homes have a great ROI, especially before they're paid off if you can get a low interest rate on a loan. Tax benefits are nice too. Tenant management isn't bad if you are picky about your tenants, keep them happy, and price your rent to where it is hard for them to leave. Buy them a Christmas present and a housewarming gift. Take care of their concerns. Be the cool landlord. You can keep the same tenants for years and years if you like them. I like that strategy. It has worked for me for the last 10+ years.

3. I agree about low-commission S&P index funds.

Disclaimer: just opinions here. Biggest ROI with the lowest risk is the prenup.

I agree with your statements. Prenups are good. Still don't get the mindset of women and their disdain of them. Marriage/divorce laws all favor the female for old, outdated reasons. Why should the man enter a governmental/financial contract without a bit of safety? I've always shied away from rental properties due to the tenant from hell possibilities. I might reconsider though. Not sure I would manage it, however. Might farm it out to a mangagement company. I just do not want to be bothered. Maybe even offer a discount if you pay your rent a week early every month.

 

[Handlebar Moustache]

Also...if you have a high-deductible health insurance plan and a healthcare savings account...that can be a good investment vehicle. Money goes in pre-tax...there are lots of tax advantages after that fact, and some employers contribute money to it along with your funds. Depending on the setup, you can invest the HSA funds into the stock market (75% of mine are in a low commission Vanguard S&P fund and 25% is in a Vanguard bond fund). When you turn 65, you can use the funds for anything (not just health-related expenses). Pretty cool.

 

[Ohio Snake]

Also...if you have a high-deductible health insurance plan and a healthcare savings account...that can be a good investment vehicle. Money goes in pre-tax...there are lots of tax advantages after that fact, and some employers contribute money to it along with your funds. Depending on the setup, you can invest the HSA funds into the stock market (75% of mine are in a low commission Vanguard S&P fund and 25% is in a Vanguard bond fund). When you turn 65, you can use the funds for anything (not just health-related expenses). Pretty cool.

I believe HSA distributions after age 59.5 are taxable as ordinary income for non qualified healthcare expenses ( like an IRA) or tax-free for qualified healthcare expenses ( including long term care premiums).


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[Handlebar Moustache]

I believe HSA distributions after age 59.5 are taxable as ordinary income for non qualified healthcare expenses ( like an IRA) or tax-free for qualified healthcare expenses ( including long term care premiums).


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Right, but I think you get hit with a 20% penalty if you withdraw as ordinary income before age 65. After 65, no penalty; it's just taxed as you said above. Also there's no mandatory withdrawals at age 70.5 like there are with a 401(k). I see some big advantages in pumping an HSA up and/or maxing it out every year, assuming you have some decent investment options inside the plan.

 

[Ohio Snake]

Right, but I think you get hit with a 20% penalty if you withdraw as ordinary income before age 65. After 65, no penalty; it's just taxed as you said above. Also there's no mandatory withdrawals at age 70.5 like there are with a 401(k). I see some big advantages in pumping an HSA up and/or maxing it out every year, assuming you have some decent investment options inside the plan.

I wonder if you can convert an HSA to a Roth via conversion. Ill have to google that one.


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[Ohio Snake]

I wonder if you can convert an HSA to a Roth via conversion. Ill have to google that one.


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I looked it up. You cant convert an HSA to a Roth, however you can take a distribution from an HSA, pay the tax then make a Roth contribution ( if you qualify) for the maximum contribution. Interesting!


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[musclefan21]

Can you guys stop the nonsense and actually let people to contribute to this thread? I m interested in investing like 5k somewhere and hopefully it grows for a few years to fall back on. Nothing crazy I know, but it’s something.

 

[Ohio Snake]

Can you guys stop the nonsense and actually let people to contribute to this thread? I m interested in investing like 5k somewhere and hopefully it grows for a few years to fall back on. Nothing crazy I know, but it’s something.

Ok, Its all yours.


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[Twisted2v]

Can you guys stop the nonsense and actually let people to contribute to this thread? I m interested in investing like 5k somewhere and hopefully it grows for a few years to fall back on. Nothing crazy I know, but it’s something.

I'd suggest a Roth IRA, or if your income is too high, a back-door Roth conversion from a regular IRA. Contribute every year, and let it sit through retirement until you need it.

 

[Ohio Snake]

I'd suggest a Roth IRA, or if your income is too high, a back-door Roth conversion from a regular IRA. Contribute every year, and let it sit through retirement until you need it.

If you do a conversion and you have other traditional IRA’s, you must include them under the IRS pro-rate rule. In other words the IRS looks at all your IRA’s if they were one. 401 K are exempt.


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