Time For An Investment Manager?

cobracide

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Pay off your debts first ie credit cards in full every month. investments should make MORE than the interest rate you are paying on a house. Only pay off the house first if you are super conservative. I guess you are since you are doing 500 index fund. Solid plan. Personally I prefer a more aggressive stance - but to each his own. Not sure i get the vacation home thing but if you get a good deal and can sell it later for more, that's a win. Real Estate appears to be peaking right now. Bought my house @ 2007 as a foreclosure so made out well there too. Play your cards right and your plan can work out.
 

03cobra#2

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Pay off your debts first ie credit cards in full every month. investments should make MORE than the interest rate you are paying on a house. Only pay off the house first if you are super conservative. I guess you are since you are doing 500 index fund. Solid plan. Personally I prefer a more aggressive stance - but to each his own. Not sure i get the vacation home thing but if you get a good deal and can sell it later for more, that's a win. Real Estate appears to be peaking right now. Bought my house @ 2007 as a forcloseure. Play your cards right and your plan can work out.

No credit card debt so I'm good there. Only debt I have besides mortgage is a car payment with a 2.6% rate that is worth a lot more that what I owe on it ($27k payoff).

What would you suggest that is a bit more aggressive? No problems being aggressive for awhile.
 

cobracide

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Well the theory goes the younger you are the more aggressive you should go. Being that you have more time to make any losses back. I broke all the "rules" and made out anyways so there's that.

Instead of going all in on an index, make a few bets lower priced stocks that may be hits. I hit on AMD, Tesla, a few other things. Too late to get in on those now but you get the idea.
 

Detroit Iron

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I would just buy SPY, it's an ETF that tracks the S&P 500. Most financial advisors will use this as a benchmark for comparison. When you start buying individual stocks or foreign investments, you better know what you are doing.
 

03cobra#2

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I would just buy SPY, it's an ETF that tracks the S&P 500. Most financial advisors will use this as a benchmark for comparison. When you start buying individual stocks or foreign investments, you better know what you are doing.

I don't have the time or desire to track individual stocks. So I have been strickly mutual / index funds so far. I'll look Into SPY. Thank you.


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Blown 89

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My 401k was transferred to a new company last year and I’m down 20% the past 6 months. I’m all ears for a suggested places to transfer it to.

FWIW, I manage half of my retirement and it’s up significantly this year. I’m thinking about taking the reigns entirely.
 

Adower

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My 401k was transferred to a new company last year and I’m down 20% the past 6 months. I’m all ears for a suggested places to transfer it to.

FWIW, I manage half of my retirement and it’s up significantly this year. I’m thinking about taking the reigns entirely.
Everyone is pretty much down in the past 6 months. I am down ~13%. What are invested in with your 401k?
 

VegasMichael

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I think it's important to have your mortgage paid off by the time you retire.
I agree if your income in retirement will be noticeably less than in your working years and if you plan to stay in that house and living the way you currently do AND your retirement accounts are not enough to subsist on the rest of your life in the manner you want.

I still had 18 years left on my mortgage when I retired in May and sold the house. I downsized from 2500 sq ft to 900 sq ft and rent now, and even though my income in retirement is roughly 20% lower than when I worked, my living expenses(housing and utilities.) are much less as well. My car insurance went from about $1200 a year to less than $500 for the same coverage since I no longer commute and I get gas in the SUV once every three weeks instead of twice a week.
 

03cobra#2

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I agree if your income in retirement will be noticeably less than in your working years and if you plan to stay in that house and living the way you currently do AND your retirement accounts are not enough to subsist on the rest of your life in the manner you want.

I still had 18 years left on my mortgage when I retired in May and sold the house. I downsized from 2500 sq ft to 900 sq ft and rent now, and even though my income in retirement is roughly 20% lower than when I worked, my living expenses(housing and utilities.) are much less as well. My car insurance went from about $1200 a year to less than $500 for the same coverage since I no longer commute and I get gas in the SUV once every three weeks instead of twice a week.

Awesome. Thank you for the insight. I'm never leaving my house lol.


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Adower

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One of the dumbest things I have ever heard is people who say it is more important to pay off your house than it is to fund your retirement accounts.
Agree. Especially when you could have possibly had a 2.3-3% interest rate.
 

MG0h3

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One of the dumbest things I have ever heard is people who say it is more important to pay off your house than it is to fund your retirement accounts.

True. I knew it wasn’t the smartest move, but I just wanted to see how it felt. Still remember going for beers after to celebrate.

Could always remortgage if I wanted I guess.


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VegasMichael

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Every time I hear this I always have to ask, do people ever cash out their home equity and invest it? The answer is always no...
I don't know. Most people seem to take their equity and pay bills or buy stuff, take trips or make home improvements. My point was that I think too many people focus more on paying off a house than they do on funding retirement accounts. I always scratch my head at those that could be adding to a 401k and getting a match from an employer but instead put it towards the mortgage. That's FREE money they are just throwing away.

I sold my house in May and currently rent and the equity is still sitting in a few different accounts till I see something I like investment-wise.
 

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