Why wouldn't I just increase my contribution to my 401k or IRA or whatever?

https://www.policygenius.com/blog/be...e-investments/

 

If you're talking about the "roundup" method, I'd ask myself if i always pay off the credit cards i link. Otherwise, you're going to pay some interest to borrow that money. Not the wisest way to increase wealth.

As for the rest, you can invest directly with companies like Vanguard in those same index ETF and not have the monthly fee. Note, they tell you the etf fees are seperate.

That said, the concept is interestingly similar to the old savings account concept some of us grew up with. A little over a long time = a lot. In this case, given the market the = could be less.

Just my thoughts.

 

because who wants pre-tax contributions that are easy, when you can invest chump change post-tax and get taxed on it again!

ugh, I've lost about $10K in my IRA in a year's time. why did I click this thread, then go look?!

 

Can you invest in Vanguard in small amounts like that. I'm looking at it now and the $3k minimum investment seems standard.

 

No.

Like others,I'd advise you to just increase your IRA or 401 contributions. But hey it's your money.

 

I'm trying to start a savings plan for a downpayment in the next 5 years. I invest as much as my employer will match in my 401k but am looking into other savings/investment vehicles.

 

Vanguard has some options with lower minimums, iirc

 

I think I originally set up my Vanguard with a $1000 dollar deposit into a 2050 fund or something along those lines. You can use your Vanguard as a mini bank, deposit money in there however you can until you get to the minimum to buy into a fund. Once you get a fund set up you can automate however much you want, $100 a month, $500 a month, etc.

 

I started a separate savings account to direct deposit a portion of my paycheck into, when I reach the investment minimum I'll probably transfer it to a Vanguard index fund.

 

Sounds like a good plan. I had several friends that loved the ING Direct online savings accounts, but I don't know how it has changed since it got rolled into Capital One.

 

I read about those. I have a local credit union I've been with forever. I opened an extra savings account online and am ready to go.

 

Out of the 5 or so mutual funds i have, Vanguard growth index and Selected Funds (sel am shares) have done the best. I did a one time deposit to each right before the tech bubble burst. It took some time to recover from that. Since then, the two above have weathered just about every market down turn.

 

I've had Vanguard for years. They seem to weather the downturns better than most other funds. Fidelity (my 401k) has absolutely sucked at that aspect.

 

+1 to fidelity sucking. I invested in their agg growth fund. Made $360 in SIXTEEN years on a 3k investment. At least it is in the black now. On the other hand, that selected funds has made 3.4 times my initial investment.

 

ETrade does a thing where they take the cash balance of your brokerage account and (daily) put it into an interest bearing account called a "sweep" account. it's automatic and, i'm sure, very low interest, but at least it aint sittin idle while you wait.

 

I'm gonna push pretty hard to save the minimum. Trying to get to it in a year, so either way it won't make much different.

 

So basically growing up a poor immigrant I have issues with spending money that I have, I could not have shiny things when I was young so want shiny things now. My wife is an American Air force brat with parents that never had a budget. To curtail that we hide money from ourselves.

1. We only keep enough in our Checking account to pay monthly bills. Only use CC's with like 2 or 3% returns for any purchases and pay them off monthly.

2. The wife and I have a savings account in Ally since it has a good return. Pump money into it from every paycheck automatically and every time it reaches 10k move it to Fidelity and buy moar Vanguard total market funds.

3. We both do about 10% to our 401k. Should do moar but meh.

 

I will chime in with something appropriate to the conversation that may help some in their mid-20's or younger but is already too late for others... join the military.

Specifically, if you have a college degree, join as an officer. If you can get a ROTC scholarship or acceptance to an academy or officers school and be commissioned by 23, with guaranteed promotion and yearly raises, retirement as an O-4(Major/LCDR) or O5(LtCol or CDR) at the 20yr mark with a guaranteed paycheck forever, plus cheap medical insurance for life, and the unlimited bennies of being a veteran, having base access, social networking, friends everywhere, etc... you're not doing yourself any favors by not looking into it.

If you ever get stationed in a state with no income tax, get a drivers license and register to vote there... and never pay state income tax again no matter where they send you. All Naval Aviators are residents of either Texas or Florida for that very reason.

If you manage to stay single, you'll be downright rich at the end of 20yrs if you're smart and don't buy a new M3 every time they offer it in a new color (Air Force ****).

Sure, there are plenty of downsides, including deployments, lots of moving, tough on families, long hours, etc... but **** man, 40 is the new 30. I come from seriously excellent genes and barring catastrophe, should live to 100 and still slayin' it in the bedroom. I will be retired from the Navy in July of 2020 at the age of 43, and collect +/-$40k yr right away for doing nothing. Yes, $40 ******* thousand dollars a year as long as I'm breathing... and I even get a raise on that every year too, though it's not very much.

Yup, I'll need to get another job and work for another 15 or so, but as a retired military guy, just about anybody will pay me $75k yr to do just about any damned thing just because. Don't get me wrong, we save a ****-ton of money, and my wife goes back to work full-time next year as my youngest hits 1st Grade and can now ride the bus to/from with her sister. Here's another helpful life hint from a Navy guy...MARRY A ******* NURSE, THANK ME LATER.

 

Would they take a 33 year old with a creaky knee?

 

Yes; they'll even take a 36 year old with a cranky knee.

They won't take a 37 year old in perfect health though.

If I choose to retire at 38 years old as a Major, I can start collecting my $36k/year at age 50. If I stick around and retire as a LTC at 43 years old, then I get to start collecting my $40k+/year immediately.

Sam is right. Believe in Sam.

I didn't marry a nurse, though; I married an exceptional business woman. She's not great with money, so she gives me her paycheck and in return, I give her an allowance.

I never thought retirement could look so "reachable".