Hi - I'm Glad to Be Here

[Imaginativeone]

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.

 

[Dawg52]

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.

 

[MooreBonds]

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. )

I was feeling pretty stupid, and I was going to beat myself up about that in this post.

Too late for that.

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.

 

[Nords]

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

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/

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...