Investments - what has served you well?

ScottR

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Hey all, I am at the phase in life where I am planning to do more aggressive investing for retirement. I am curious what all of you here have done to really build up investments, and what type have you invested in?
 
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Hilltop

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I have a couple rentals and feel they are a great low risk investment if you manage them properly. My wife and I also have a retirement fund managed by a company that has done ok but not as good as the rentals imo.
 

ScottR

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I have a couple rentals and feel they are a great low risk investment if you manage them properly. My wife and I also have a retirement fund managed by a company that has done ok but not as good as the rentals imo.
Getting a rental or two is on my list. At the moment it is a buy very high investment and I will wait with a pile of cash for the right opportunity.
 

JimP

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The best thing to do is to find a financial advisor and go have a talk with him. Let him know where you want to be in xx more years. They will do a risk management survey with you to see just what you need to do to get to where you want to be in that time frame.

I started investing in a mutual fund clear back when I was 25 and if I would of got out of it when I should of I would be a lot better off. Then a couple of years before I retired at 55 I went and saw a independent advisor who set me up even better. Then when I retired I was to the point that I don't have to work unless I want to.

Also where I worked we had a US Savings Bond program where I picked up a $100 bond every paycheck. This has turned into my hunting fund and now I have a bond maturing every two weeks. That along with investing the maximum into my companies 401K has set me up quite nice.

Just for a suggestion I am using Raymond James as a investment company now. I have to drive a ways to see their representative but he keeps me advised by phone and I'll sit down with him once a year to go over everything. I am quite happy with them.
 

Colorado Cowboy

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I was fortunate enough to work 40 years for a large aerospace company that had great benefits. In addition to a total company paid retirement they had an employee savings plan where they matched dollar for dollar your input up to 8% and 50% on up to 12% of you contribution. You could invest it numerous ways. I bought 50% of my investment in company stock. I also got a management bonus in stock options.

When I retired I started to divest an certain % every year because my income was a lot less and taxes would be less. I have everything now in jumbo cd's and muny bonds. They are the safest and I am old enough, that I could not earn it back if there was a big stock market problem.
 

El Serio

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Feb 1, 2018
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I'm partial to index funds, in particular from Vanguard, but that may not be what you will want to use.

I would advise you to read Investing For Dummies by Eric Tyson, which gives a good overview of the basic investing options (stocks, bonds, real estate etc.) I find his advice to be very solid ( I also have read his Personal Finance for Dummies, Mutual Funds for Dummies & Mortgage for Dummies books), as well as entertaining and easy to read. He also recommends some other books that I found useful, (Stocks for the Long Run & A Random Walk Down Wall Street come to mind). The investment plan that is best for you may not be the best for me, due to differences in age, risk tolerance, location and other personal priorities. I think the key is to educate yourself about the risk/reward opportunities of different types of assets, then tailor your own plan.
 

Hilltop

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Getting a rental or two is on my list. At the moment it is a buy very high investment and I will wait with a pile of cash for the right opportunity.
The market is tough right now but there are opportunities. We are finishing our most recent one now. We picked it up for 20K (it was rough but had a good foundation and bones), invested 45K into renovations through a contractor, so total cost is $65k. It will rent it for $750 and profit $600 after taxes and insurance. I have the tenant lined up already. $7,200 return per year on 65k isn't bad...
 

tim

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Jun 4, 2011
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north idaho
I am no financial guru at all, i am probably pretty conservative in investments compared to most people.
The best advice i think a person could have with stocks, is: time in the market and take the long term approach.
I am in my early 50's and my ira\401k accounts where started when I was in my teens. They have a sizeable account balance, because of the RULE OF 72. interest rate x years= 72. 7.2 years at 10% interest will double your money. It is a rule and it works. It is not always about swinging for the fence and finding that one winner stock, but finding a bunch of stocks that do pretty decent and having time in the market.
remeber the rule of 72 allows you to know when your money will double.
 
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buckbull

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Jun 20, 2011
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I don't think housing rental property can be beat if you are willing to do most of the maintenance yourself and are willing to deal with the headaches. My ex-wifes grandfather and father have done extremely well on their rentals however they spend alot of time dealing with them.

Roth 401ks, IRA's etc are all good. When I was married and actually had money to investment I did the index funds through Vanguard that El Serio mentioned earlier. Index funds typically have very low fees and one of the reasons I liked those.

It hasn't been mentioned but if you have kids I highly recommend starting them with a college fund. I did the state sponsored 529 plan (called Brighstart) in my home state. I put 10k in for each kid and by the time they graduated high school they had close to 40k. That isn't near enough for college these days (UIUC is 40k a year) but it helps. Nice thing about this is that the Ex-Wife couldn't get her hands on it when we divorced. If she had she would have pissed it away.
 

Shane13

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Aug 8, 2012
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Abilene, Texas
I'm a Certified Financial Planner. I can't give random advice on the internet, but I'd be glad to visit with you on the phone and answer any questions you have in hopes of getting you pointed in the right direction. Shoot me a PM and I'll send you my phone number if you'd like. No charge or expectation of doing any business. Just glad to help if I can.
 

tim

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Jun 4, 2011
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north idaho
It hasn't been mentioned but if you have kids I highly recommend starting them with a college fund. I did the state sponsored 529 plan (called Brighstart) in my home state. I put 10k in for each kid and by the time they graduated high school they had close to 40k. That isn't near enough for college these days (UIUC is 40k a year) but it helps. Nice thing about this is that the Ex-Wife couldn't get her hands on it when we divorced. If she had she would have pissed it away.
While this makes alot of sense, be careful, i did this for my brothers kid. the oldest one has no intention of going to school, this ended up being the same as flushing the money down the toilet.
 

RICMIC

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I looked at starting a college fund for my grandkids, but backed off when I found that the pool of $ in their name affected the $ available to them in grants. I help them out when they need it to help cover expenses outside of college.
 
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ScottR

Eastmans' Staff / Moderator
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While this makes alot of sense, be careful, i did this for my brothers kid. the oldest one has no intention of going to school, this ended up being the same as flushing the money down the toilet.
That is what scares the tar out of me with those plans. Higher education is also going through major shifts right now and what those institutions look like in 10 years could be very different.
 

kidoggy

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put it all on red, momma needs new sneakers! 🤪

check out dave ramsey and follow his advice . he won't steer you wrong
 

JimP

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While college plans sound nice and you get to defer the taxes on them I would still look at a good mutual fund to put the money into for the kids education.

This is where a good financial planner can do all kinds of things for you along with setting things up for yours and your kids future.
 

Colorado Cowboy

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I can't believe the cost of college today. I went to a major west coast private (for profit) university in the PAC 12 on a football scholarship. Today the cost to attend that school is $60,000 per year plus room & board. By the time you get done with 4 years, it could easily be 350 to 400 K. That is absurd!

Back in my time 60 years ago the graduation rate among athletes was really low....less than 25%. After my first year, I realized I was not good enough to play pro and I had better get an education, (which I did). I was damn lucky!
 
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