Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Hi - I'm Glad to Be Here
Old 01-28-2007, 06:36 AM   #1
Confused about dryer sheets
 
Join Date: Jan 2007
Posts: 2
Hi - I'm Glad to Be Here

Because I don't know much about retirement/investments I was feeling pretty stupid, and I was going to beat myself up about that in this post. However, your warm welcome to "theguyonthecouch" changed my perspective, and I'll just begin at the beginning.

I'm 39, wife is 37 we just had our first (and perhaps only) baby girl. We have about $45,000 cash that we're "trying to figure out how to invest".

$300.00 in credit card debt, will be paid off in two weeks.

1 Car loan: we borrowed $12,000 from my father in law and we're paying him back 7% interest over three years.

Other car is paid off and running well.

$130,000 left on the house; (refinanced from 30 to 15 years; according to my calculations we'll be able to pay it off in 8 years) others are selling at $330,000 in our neighborhood.

I would LOVE to retire to Mexico ASAP. According to my intel, one can enjoy an excellent life for $20,000/year (and that includes housekeepers).

We would like to know where to start investing.

Thanks for the wonderful opportunity to find this stuff out.
__________________

__________________
Imaginativeone is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Hi - I'm Glad to Be Here
Old 01-28-2007, 07:51 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 6,882
Re: Hi - I'm Glad to Be Here

Welcome! There is another thread on the board discussing Target funds. I would study those funds as they are an easy way to diversify and get the job done. BTW, just saw on the news last night that Panama is a pretty cheap place to live. That might be something to look into. Good luck with your plans.
__________________

__________________
Full time wuss............
Dawg52 is offline   Reply With Quote
Re: Hi - I'm Glad to Be Here
Old 01-28-2007, 10:28 AM   #3
Thinks s/he gets paid by the post
MooreBonds's Avatar
 
Join Date: Aug 2004
Location: St. Louis
Posts: 1,856
Re: Hi - I'm Glad to Be Here

Quote:
Originally Posted by Imaginativeone
Because I don't know much about retirement/investments
Just remember one thing - when we're just one tiny cell and one day old, we all start at the same point with knowledge about retirement/investments (hint: it's not very much. )

Quote:
Originally Posted by Imaginativeone
I was feeling pretty stupid, and I was going to beat myself up about that in this post.
Too late for that. :P


Quote:
Originally Posted by Imaginativeone
I'm 39, wife is 37 we just had our first (and perhaps only) baby girl. We have about $45,000 cash that we're "trying to figure out how to invest".

1 Car loan: we borrowed $12,000 from my father in law and we're paying him back 7% interest over three years.
I'm assuming that your car loan with your FIL is 'off the books' (i.e. you're not deducting the interest on your taxes), which would make this even more so.....but, if you know of any other place to earn a "guaranteed" 7% AFTER TAX return for 3 years, please let me know. If not, the first step is to pay off your FIL's loan, which will earn you 7% on your 12,000 for 3 years (or $2,520 tax-free guaranteed over 3 years).

Assuming your mortgage is your only other debt, and it has a decent (5.5% or less) rate, it next depends on your income tax rate and the rest of your portfolio. If your retirement accounts and taxable investment accounts are all 100% equities, some more bonds would be in order. If you don't have an emergency fund, then that would be next. If you don't have any ROTH/regular IRAs, that would factor in as well.
__________________
Dryer sheets Schmyer sheets
MooreBonds is offline   Reply With Quote
Re: Hi - I'm Glad to Be Here
Old 01-28-2007, 11:49 AM   #4
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,563
Re: Hi - I'm Glad to Be Here

Welcome to the board, IO. Sounds like you guys have a handle on the situation, and now it's just learning & compounding.

Quote:
Originally Posted by Imaginativeone
I would LOVE to retire to Mexico ASAP. According to my intel, one can enjoy an excellent life for $20,000/year (and that includes housekeepers).
The Kaderlis have spent quite a bit of the last 16 years in the Chapala region, and they have a lot of info on the expat life. Have you already looked at their Mexico info? http://www.retireearlylifestyle.com/

Quote:
Originally Posted by Imaginativeone
We would like to know where to start investing.
There are many roads to ER and they all end up at the same place. It's not easy to declare one road better than another.

However two very good books on the subject are the "Boglehead's Guide to Investing" and William Bernstein's "Four Pillars of Investing". Once you've decided on your asset allocation then the rest is pretty straightforward. Or as horrendously complicated as you choose to make it...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
"Why I'm glad I'm retired" reason #437 Nords Life after FIRE 19 04-06-2007 08:28 PM
Hello, so glad to have found you all! DrJDoe Hi, I am... 26 05-03-2005 08:33 PM
We're "ctbktb" - glad we found you! ctbktb Hi, I am... 4 03-22-2004 08:27 AM
Glad to find this forum!, ordway Hi, I am... 10 01-30-2004 03:06 PM

 

 
All times are GMT -6. The time now is 06:03 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.