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Hi 27- dreaming of FIRE
Old 05-05-2009, 10:18 PM   #1
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Hi 27- dreaming of FIRE

Whats up everybody. Love this site, which I heard about through another lurker. Ill try to get him to join. But, figured Id say hi, and let you all know my situation, and of course, I appreciate any advice.

Im 27 swm originally from Ohio, currently working as a field grunt in Arkansas. The j*b is ok, but like most employees, I believe I am underpaid for what I do, and especially for what my company bills me at, Every time I think about it, I am reminded how much I want to F*** It. Retire Early. I dont really have a goal or date set in my mind, but Ive never had a j*b that I like, and even though my ER life would probably come off as boring to most, it keeps me motivated. What I find the mind boggling is people talking about being at some job for 30 years, doing the same thing over and over, dont save for the future, and plan to work til they die. I dont think Ill ever find a niche in the w*rking world, but I guess thats why Im a member on this forum.

Enough talk about w*rk.

My financial situation:

Roth IRA: 16k total with 6500 in Vanguards 500 index, 8500 in USL, 1000 in SKF. Unusual allocation, I know, but I figure Im young now, and I have full intentions of future contributions going into index funds, and maybe some TIPS.

401(k): 9k total and I have to choose from John Hancock, so 20% conservative (JILCX) The rest is in index funds: 20% aggressive (JESIX, JEIEX) 10% growth (JECIX) 50% growth and income (JEINX) My current payroll contributions goes into conservative (JILCX). I dont really have a reason for that other than, once I "feel" I am getting heavy on the conservative lifestyle fund, or if the market tanks to a point where I think loading up on aggressive funds is a good idea, then I can always realocate.

dumb money account: about 3500. Gambler by heart, always interested to make a quick buck trading stocks. This was my very first investment, as a no-nothing 23 year old. Figured Id open up a Scottrade account, and buy a grand of Revlon. Sunk about 10k into it over the years. Now, as a no-nothing 27 year old, Im still shorting about a grand of JPM from 23 dollar range with no exit strategy, and the rest is in cash and penny stocks hanging on til I die, because the 7 dollars to sell them wouldnt be worth it. LOL. I know its a losers game, which is why no more money will be going towards day trading.

cash: about 12k (ING, checking and CD's) My plan for 10k in cash is to buy either Vanguard 500 index, or Vanguard total market index in a taxable account, but I need to wait about 2 more paychecks, and however long it takes to move the money around. (Probably beginning of June)

debt: 0.00 I despise being in debt.

net worth: approx 41k as of May 1st. (Nowhere near what it should be or could have been if I started saving right out of college, especially compared to a lot of the people on this board, even a lot of high earners my age, who dont LBYM. But, I think this is pretty good compared to the majority of people my age. Maybe Im wrong, but at least Im glad I started saving.) I realize that I am at a disadvantage as far as ER is concerned, but Im determined to make it w*rk!

I like to track my net worth monthly, and Ive been doing it for awhile. I just use a simple excel spreadsheet, with a few columns for different assets and liabilities. What Id like to do is post my monthly updates, and a short summary of why it went up or down. I think it'll keep me even more motivated, as I grow as a member of this forum.

A little bit more about me, before I ask for feedback... I am a big proponent of LBYM, but Ive only been doing it for about a year. My current j*b helps in that I live for free in hotels, I get free travel home 4x a year, my cell phone paid, free co. vehicle, free gas, and per diem of 30$ a day. I also get company stock, (somewhere around a grand a year) but Ive only been w*rking at this co for 2.5 years, so Im not fully vested. (and I think its kind of questionable how they come up with what these tiny esop companies stock is worth, so I dont count it towards my nw.) So basically I have no bills, other than vacation expenses, cigarettes, booze, and if Im lucky enough to get a date. But the trade off is Im kinda lonely a thousand miles away from friends and family. But I figure, Im young, with no wife, no kids, no mortgage, no tie downs, so why not?

I plan to max out my roth IRA every year in January. (undecided on what I want to invest in for 2010, either an index find or TIPS) Anyway, Im under the impression that getting divys on the full amount from the beginning of the year is more profitable, as opposed to monthly contributions.

Its only been recently that Ive upped my 401(k) contributions to reach the maximum per year, but I plan on sticking with this indefinately. Ill be close to 15.5k this year, (depending on overtime) By the way, does anyone know what the max is for 2010?

Also, Im looking into buying a small amount of gold and/or silver, as well as buying into a foreign currency ETF to hedge the USD a bit.

I cant really think of anything else at this point, but Im here to learn. So please, provide me with some feedback about my situation, and what I could/should be doing to better myself financially. I already read books, I already know that I should be advancing my career. What I want advice on specifically, is my investment strategy. I look forward to the future on these boards, and one day FIRE!

Mill
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Old 05-05-2009, 10:52 PM   #2
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Hello and Welcome Mill! I noticed the ETF SKF in your portfolio. I do use the triple downs a bit just be wary of holding as it can deteriorate pretty fast (I think the pros call it decay)! I will let the others critique you further. My hats off to 41K at your age with the ability to basically double it in a years time. Just a few years of sacrifice and you will be very well on your way to ER! Congrats!
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Old 05-05-2009, 11:03 PM   #3
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Welcome Mill....glad to see you here!
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Old 05-06-2009, 11:04 AM   #4
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Welcome Mill.

Quote:
I like to track my net worth monthly, and Ive been doing it for awhile. I just use a simple excel spreadsheet, with a few columns for different assets and liabilities. What Id like to do is post my monthly updates, and a short summary of why it went up or down. I think it'll keep me even more motivated, as I grow as a member of this forum.
Have you ever heard of networthiq.com? It's a great place to track and post your net worth on a monthly basis. You can also add comments to explain why it went up or down. Plus you get to compare your net worth with that of other members' to see how you are stacking up. The only thing you won't get is a great community support and feedback. For that, you should stick around here...

Again, welcome.
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Old 05-06-2009, 11:45 AM   #5
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Welcome.
I must say I am very impressed with your introduction post. You have a lot going on, eye right square on the ball, at 27. Watch out that some young thing doesn't grab you right up as prime husband material.
Just kidding.
I like your zero-debt approach and see that you recognize your "mad money" as just that. Lower stakes for the bucking broncos and horsing around plays in the market. Larger stakes for the long term. We think alike, except I stick with mutual funds. I was always too chicken for individual stock playing strategies.
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Old 05-06-2009, 04:47 PM   #6
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Welcome Mill. You seem to be doing pretty well for one so young (!). Since you asked for suggestions, mine is:

Give up smoking.
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Old 05-09-2009, 11:58 PM   #7
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Thanks for the welcoming everyone. Not sure how to do multiple quotes

quote=crazy connie
I do use the triple downs a bit just be wary of holding as it can deteriorate pretty fast (I think the pros call it decay)! I will let the others critique you further. My hats off to 41K at your age with the ability to basically double it in a years time. Just a few years of sacrifice and you will be very well on your way to ER! Congrats!


ahh. SKF. Or "The SKF" as Cramer calls it. Sold most of it at a good price to buy USL, and now what I have left isnt worth selling or losing sleep over as I watch it decay. As volitile as it is, I wouldnt be surprised to see it make another run to 200's. so Ill hold my 20 little shares


Quote:
Originally Posted by FIREdreamer View Post
Welcome Mill.

Have you ever heard of networthiq.com? It's a great place to track and post your net worth on a monthly basis. You can also add comments to explain why it went up or down. Plus you get to compare your net worth with that of other members' to see how you are stacking up. The only thing you won't get is a great community support and feedback. For that, you should stick around here...

Again, welcome.
Thanks for the reference.




I still havent been able to find any info on max contributions to 401(k) and IRA's for 2010. "indexed to inflation" isnt really helpful to me. I like to start planning for my IRA contribution in October-ish so I can be sure to have enough cash to cover a lump sum contribution in January.

Also, what is everybodys opinion about TIPS (maybe VIPSX) as my IRA contribution?
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Old 05-19-2009, 09:54 AM   #8
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Originally Posted by Mill View Post
I still havent been able to find any info on max contributions to 401(k) and IRA's for 2010.
Check out http://personal.fidelity.com/plannin.../fidmatrix.pdf for limits and other such nonsense. Welcome aboard!..bob
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Old 05-20-2009, 11:58 PM   #9
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Quote:
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Check out http://personal.fidelity.com/plannin.../fidmatrix.pdf for limits and other such nonsense. Welcome aboard!..bob
That chart doesnt answer my question. FAIL!
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Old 05-21-2009, 05:23 AM   #10
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That chart doesnt answer my question. FAIL!
That sounds a little harsh.
I think the problem is 401k limits are indexed for inflation, which is mentioned in the chart. Since we don't know what inflation will turn out to have been for 2009, they cannot yet set the limits for 2010. Look for an announcement from the IRS later in the year. If you do a google search for "2009 401k" you should pull up many sources corroborating.
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