Investment showdown -- beyond the Roth, SDP, & TSP

[Hodor]

This is a good thread.

I learned most of how not to manage money from seeing my parents struggle up until a couple years ago.

I didn't learn all the lessons though, cause I took out the stupid USAA Career Starter Loan. I used some of it to jump start my Roth IRA when I graduated, but most of it I used for a car to replace my 27 year old truck. Well, the truck has out lasted the car and I just about have my student loans and my USAA loan paid off. I have enough to cover a few months expenses on hand plus half of that in cash, plus my Roth IRA (6k), TSP (2k), and Roth TSP.

I've been in for a little over 2 years and am finishing up IQT, any pro-tips to help me get ahead of the curve as far as where to start with investing more aggressively? I know nothing. . .

Edited January 3, 2014 by Hodor

[brabus]

Looking into opening an account with Vanguard...any feedback on them? A lot of their funds are enticing, especially with low expense ratios. Just looking for one last sanity check before I put a decent amount of money into their funds.

[Disregard]

I opened two Vanguard accounts recently: Roth IRA in VFIFX (0.18% expense ratio) and general investments in VTSAX (0.05% expense ratio). I haven't had my account for a while, but I'm happy that I finally moved the money from USAA. It took one month from opening the account to getting the money transferred, but some of that was probably due to the extra time to mail the forms from downrange.

[brabus]

Did you run all the transfer paperwork through Vanguard, or did you have to also work directly with USAA? I have money with another bank as well, so this may end up being a pain in the ass to transfer it all, but seems worth it based on my research.

[zach braff]

I transferred my USAA Roth to Vanguard this past autumn. It took about a month but it was no trouble. I did the application online with a rep on the phone, then mailed the paperwork. One day about 3-4 weeks later I had no money in USAA and a bunch in Vanguard. Didn't have to do anything on the USAA end. After the transfer you have to do one more ID verification with Vanguard before you can deposit/trade any more $$$, but you can do it by email. Super easy.

So while we're on the net worth game - I started late after making a few dumb mistakes in my 20s. Now sitting okay but lots of catchup to do. Age 35 with about $75K(ish) between IRAs, TSP, kiddo's 529 and cash. No debt, good or bad (car is paid off, CCs paid each month, not a homeowner so no mortgage). Comm cyber O-3 with no bonus or flight pay, but pulling a little extra cash being overseas right now.

Now I'm maxing IRAs for me & wife, plus loading the TSP & 529 as best I can. I'm not a very "active" money guy so my strategy is put as much away before I ever see it (via allotments & automatic deposits) - then I treat my checking account like I'm still in college - have as much fun as I can with it and zero that beeyoch out every month.

zb

[Striper_WSO]

Looking into opening an account with Vanguard...any feedback on them? A lot of their funds are enticing, especially with low expense ratios. Just looking for one last sanity check before I put a decent amount of money into their funds.

I've had an IRA with Vanguard for about 10 years. My wife has had one with them for about 8. Very satisfied customers. Expense ratios are the lowest in the industry. Website is easy to use. Once you get over a certain dollar amount (think it is 50K) that do not charge an annual maintenance fee.

One potential downside may be the number of options for funds, ETFs, and stocks for your IRA. I have only put money in Vanguard Index funds with Vanguard. Not sure what the fees are if you wanted to do something different than that. Probably worth looking into if you want to do that and are going to put your money with Vanguard.

[Skitzo]

20K Liquid Cash....Emergency Fund in a Money Market

50K ROTH IRA w/Fidelity Value Discover, Perm Portfolio Fund and some Ford, Kohls and American Airlines Stock (My IRA)

10K ROTH IRA w/Fidelity Contra Fund (Wife's IRA)

Prepaid College Plan for 3 x Kids

Started a ROTH TSP last year, pretty small amount

I'm thinking the market is going to be in for a major correction this year, kind of want to take a cash position or possibly bonds or something to mitigate the risk. Anyone else? I know I have a lot of years ahead before retirement, just don't want to see that much money go.

[Homestar]

I've been in for a little over 2 years and am finishing up IQT, any pro-tips to help me get ahead of the curve as far as where to start with investing more aggressively? I know nothing. . .

I prefer the "set it and forget it" method. I'm a buy and hold kind of guy, but I'm only really making deposits into Roth IRAs and TSP funds right now. I think the only real pro tip should be to start early and be consistent with deposits.

I'm 34, get pilot pay, married with 4 kids (wife raises the kids, so no income), and have 11 years of service this spring. Here are my balances:

Checking and Savings (emergency fund cash): 63K

TSP: 127K

My Roth IRA: 64K

Wife's Roth IRA: 33K

Mutual Fund account: 24K

Total net worth (assets minus liabilities) = roughly 327K. I include the resale value of my two (paid for) cars in my net worth figure. I don't own a home anymore.

I'm putting $1,000/month into Roth TSP right now plus 5% into the regular TSP and max out both Roth IRAs. Haven't bothered much with the mutual fund account lately. I pretty much stick with USAA for everything because it's easy, I pay for everything with a credit card, pay off the balance each month, and use the 1% cash back to pay for Christmas every year.

My overall goal has been 20% of pre-tax income to savings/investments and 10% pre-tax income to church/charity.

(edit to fix pilot math)

Edited January 3, 2014 by Homestar

[MilitaryToFinance]

Looking into opening an account with Vanguard...any feedback on them? A lot of their funds are enticing, especially with low expense ratios. Just looking for one last sanity check before I put a decent amount of money into their funds.

I've had Vanguard accounts since 2001 and they are great. If you want passive funds with low expense ratio and no-load fees they are the best option in my opinion.

As to the main question of the thread, I had a net worth of about $200,000 shortly after pinning on Captain but then I separated from the AF, moved to NYC and started graduate school. So I'm guessing when I turn 30 and graduate I will be starting back from $0 again if not a negative net worth.

[Day Man]

Plenty of O's, too.

2

FIFY

Great point.

I didn't learn all the lessons though, cause I took out the stupid USAA Career Starter Loan.

Back when I took it, the interest rate was 2%, and you could get 4% through their savings. It was stupid not to take it. As with everything investing, YMMV.

[Vicious3027]

If you have not registered for Mint.com I would HIGHLY suggest it. Its a completely free service and has apps on many platforms. (I have the iPhone and iPad apps, oh good for me)

It is very easy to upload your financial info that downloads automatically, which you can get the up-to-date look at your finances.

[AnimalMother]

The RZR pretty much said it all. Diversify your shit. You say you have $XX in the bank? That's cool, how much real wealth do you actually have though? Do you hold any foreign currency or equities? Any foreign real estate? Any real money? How much diversification are you actually achieving?

Some food for thought:

https://www.telegraph.co.uk/finance/financialcrisis/10548104/IMF-paper-warns-of-savings-tax-and-mass-write-offs-as-Wests-debt-hits-200-year-high.html

[rancormac]

For those quoting Dave Ramsey, did you just read his book? I'd like to get more savvy with investing.

I'm 28 and as I start my USAF aviation career I want to invest smarter. I know there's a lot of options.... mutual funds, traditional/roth IRA, state tuition fund etc.

So far I have $18k in stocks that I play with, $80k in 401k, and about $15k in cash.

Single, no kids.

Edited January 3, 2014 by rancormac

[Day Man]

Haven't read his shit, but you don't sound like Dave Ramsey's target audience. Like AM said, how diversified are you? Do you have $18k split between 3 auto/airline/fleshlight stocks? Look into ETFs that offer inherent diversification like mutual funds, but usually have lower fees and higher liquidity.

[rancormac]

I'd actually like a detailed, math focused source that gets in the weeds. Everything I've seen on Amazon is super novice and seems simple -- get out of debt, diversify, etc.

My 3 stocks are split between solar, tech, and airline (specifically SPWR, MU, and DAL). Using Scottrade. I've used Vanguard for mutual funds before when I was really young.

I know I'll eventually need some IRA stuff, just a matter of when. And whatever exists.

Edited January 3, 2014 by rancormac

[Spur38]

Investing? I just started with the Motley Fool letter. I have watched them off and on and finally decided to dive in....anyone else have experience with their recomendations?

[xaarman]

For those of you looking to get smart on long term retirement saving/investing, I can't recommend this book enough:

https://www.amazon.com/gp/aw/d/0071747052/ref=mp_s_a_1_1?qid=1388770069&sr=8-1&pi=SY200_QL40

I am a Boglehead, subscribe to the thought of long term, diversified, low expense ratio index funds are the key to success. I'll post more, but on iPhone currently.

[MilitaryToFinance]

I'd actually like a detailed, math focused source that gets in the weeds. Everything I've seen on Amazon is super novice and seems simple -- get out of debt, diversify, etc.

My 3 stocks are split between solar, tech, and airline (specifically SPWR, MU, and DAL). Using Scottrade. I've used Vanguard for mutual funds before when I was really young.

I know I'll eventually need some IRA stuff, just a matter of when. And whatever exists.

If you want something with more meat on it and not the typical stuff like you mentioned then ignore Ramsey, he is worthless. Here are probably two of the best books to start from.

Intelligent Investor:

https://www.amazon.com/The-Intelligent-Investor-Practical-Counsel/dp/0060155477/ref=sr_1_3?ie=UTF8&qid=1388771737&sr=8-3&keywords=intelligent+investor

Security Analysis:

https://www.amazon.com/Security-Analysis-Edition-Foreword-Editions/dp/0071592539/ref=sr_1_1?ie=UTF8&qid=1388771785&sr=8-1&keywords=security+analysis

For a modern take on this style of investing I recommend Greenwald's book.

https://www.amazon.com/Value-Investing-Graham-Buffett-Finance/dp/0471463396/ref=sr_1_1?ie=UTF8&qid=1388771814&sr=8-1&keywords=bruce+greenwald

There's also Peter Lynch's classic.

https://www.amazon.com/One-Up-Wall-Street-Already-ebook/dp/B006YDFYW6/ref=sr_1_1?ie=UTF8&qid=1388771861&sr=8-1&keywords=one+up+on+wall+street

[Fud]

Did you run all the transfer paperwork through Vanguard, or did you have to also work directly with USAA? I have money with another bank as well, so this may end up being a pain in the ass to transfer it all, but seems worth it based on my research.

They will take care of all the transfer stuff for you. I moved my kid's education funds over as well. However, I did make one call to USAA and when asked why I was closing my investments, I told them my reasons were personal. I am very happy with Vanguard for my long term investments, but my emergency fund is still with USAA in a money market fund for easy accessibility.

[rancormac]

Awesome, thanks for the info dudes

[Fud]

I'd actually like a detailed, math focused source that gets in the weeds. Everything I've seen on Amazon is super novice and seems simple -- get out of debt, diversify, etc.

My 3 stocks are split between solar, tech, and airline (specifically SPWR, MU, and DAL). Using Scottrade. I've used Vanguard for mutual funds before when I was really young.

I know I'll eventually need some IRA stuff, just a matter of when. And whatever exists.

Go see a certified CFP for a consultation. They will do it all for you, but the good ones are expensive. Personally, I don't have the time to read about all the companies I wish I had invested in years ago (Netflix, Apple, etc...)

[Day Man]

...all the companies I wish I had invested in years ago (Netflix, Apple, etc...)

This is important...hindsight is 20/20, and you can't go on kicking yourself or saying "I should have..." Take a look at why those companies have done so well, and how it can help you find the next GOOG/NFLX/PCLN.

[rancormac]

I recently started looking for stocks using the stock screener that have:

over last 6 months: > 40%

over last 3 months: > 20%

Volume: > 1-2M

In attemp to find those rising stocks, hopefully before its too late. Since I'm playing with money for now, I'm trying to ride the wave for about 3 months and make 20-30% each time. So far I'm up 25% on SPWR and 15% on MU. Just bought DAL, we'll see what happens. It's amazing how many stocks in 2013 had over 100% in 1 year

I'm curious what the marijuana stocks are going to do. "Other related stocks that are on the rise on Thursday include Medical Marijuana (MJNA), Hemp Inc. (HEMP), Tranzbyte (ERBB), GrowLife (PHOT), Greengro Technologies (GRNH) and Cannabis Science (CBIS)."

Go see a certified CFP for a consultation. They will do it all for you, but the good ones are expensive. Personally, I don't have the time to read about all the companies I wish I had invested in years ago (Netflix, Apple, etc...)

Anyone have any experience with a CFP? I was always under the assumption they just tried to manage any debt, and would try to make commission by selling you insurance and funds

Edited January 3, 2014 by rancormac

[Fud]

This is important...hindsight is 20/20, and you can't go on kicking yourself or saying "I should have..." Take a look at why those companies have done so well, and how it can help you find the next GOOG/NFLX/PCLN.

Huge 2

I'm curious what the marijuana stocks are going to do. "Other related stocks that are on the rise on Thursday include Medical Marijuana (MJNA), Hemp Inc. (HEMP), Tranzbyte (ERBB), GrowLife (PHOT), Greengro Technologies (GRNH) and Cannabis Science (CBIS)."

Anyone have any experience with a CFP? I was always under the assumption they just tried to manage any debt, and would try to make commission by selling you insurance and funds

I am very curious about the medical marijuana industry as well. Which stock screener do you use? I bet there is free access to one if you get it from your base library. I'll check more out.

[rancormac]

Huge 2

I am very curious about the medical marijuana industry as well. Which stock screener do you use? I bet there is free access to one if you get it from your base library. I'll check more out.

I've tried Scottrade's, Google Finance, and Yahoo.

I think Yahoo was the one that let me search for price % by last 3 months, last 6 months, volume, and market component.

The other two were trickier, with a lot more technicals. I just wanted the basics. One of them wouldn't even screen by volume, and kept giving me low volume chinese penny stocks.