About to turn 26!

[bode316]

Here are my stats

401k- $56,182.83
Roth- $8,205.00
Taxable- $6,000

Save 15% + 200 for roth, matching 12% from company...


How does that rank? I have a house that I still owe 130,000k on, and I messed up and splurged on a vehicle, and have 8 grand left on it... Other then that, I have no other debts....

The reason I am lucky is, i have a good job, company vehicle, and great benefits with my company... My question is....

I want to invest outside of the stock market, maybe land, or something... could someone please help me out with somewhere other to invest... I dont want to be too leveraged...

 

[Dawg52]

Looks like your in pretty good shape. I wouldn't take on anymore debt though. Others will have to advise you on where to invest outside of stocks and bonds.

 

[bode316]

i also do think i have too much debt at the moment. My vehicle should be paid off by middle of next year... I have only had my house for 3 years, and I am paying extra each month, so i hope to have it paid off in about 11 more years or so... I just really wanna know where else I should invest other than the stock market. Even though I feel as though now is the best buying time of my lifetime.

 

[travelover]

I think you need more fast women and beautiful cars in your life. This will provide balance and also take care of the extra money problem.

 

[WM]

Welcome! I think for 26 you're doing great.

Thoughts:

- Why pay off the mortgage early? I think the consensus here is that it may or may not be the best option, just depends on your goals, psychological comfort with a mortgage payment, and your other investing options. If you're paying it early by default, you may want to read some older threads and make sure it makes sense for you.

- A general rule of thumb is to max the 401k up to employer match, then max the Roth, then fill up the remainder of the 401k. I would consider fully funding the Roth before going all the way up to 15% on the 401k. Fantastic match on that, by the way, that's a great perk.

- Why are you looking to invest outside the stock market, or what are your overall goals? I think you'll find many people here who don't invest outside of stocks and mutual funds, aside from bonds. If you can be more specific about what you're trying to accomplish, or let us know your current asset allocation, that will help people know what to suggest.

 

[rescueme]

I think you need more fast women and beautiful cars in your life. This will provide balance and also take care of the extra money problem.

How true. Although it was another time, when I was 26 I had been married for five years and had a four year old son.

Retirement savings? None; those were the days of those antiques called "company sponsored pensions" . There were no IRA's, 401k's or any other retirement focused plans.

Of course I could have invested in taxable funds, but I certainly had no "extra" money ... My focus was keeping the wolf away from the door.

Not to complain at all; things worked out well (retired before the age of 60). Just to give an example of how things have changed, in some way.

 

[bode316]

Fast women- well, i have been married for 3 years, and she keeps me grounded, we also have a 5 month old, so I am really grounded.

I almost max out my roth, I put 400 a month into it (direct deposit) so I put 4800, which is basically maxed.

I have just been looking at maybe purchasing some raw land, or farm land, or something... Not really for an income, but just as an asset.

I am also paying about 300 dollars a month more per month on my mortgage.

I dont really know why I want to get out of the stock market, well i shouldnt say "get out", just start invested and becoming more diversified.

Let me know what you think

Thanks

 

[ProspectiveBum]

Sounds like you're doing great! With a wife and a young son at home, I'm wondering was kind of shape your emergency fund is in? Do you have any term life insurance in case something happens to you?

If you're the sole breadwinner, and you haven't already done so, I'd look to get 12 months of expenses into a savings account or CD, and would definitely get a 20-year term life policy. I'd put priority on those 2 things ahead of paying down the mortgage early or funding other investments.

 

[bode316]

Ive got alot of life insurance on myself and wife. I have 250k in AD&D and over a million in life insurance, plus I have half a million on my wife. I have roughly 20k in emergency funds, but that is including stock options etc, but they are all liquid. Also, my wife only works part time now, (1 day a week) so she can be home with the little angel.

 

[beerdreams]

Dude

I'm paying telephone (texting) bills and other odd expenses for sons your age.

You're doing great.

If you're uncomfortable with the stock market, look at real estate. Look at businesses that seem to work in your area and make sense for you to invest in. Invest in yourself. Learn about leverage, rates of return, etc. Attach yourself to someone you admire in your area.

Hire me in 5 years