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What should I be doing with my savings?

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mike1201
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What should I be doing with my savings?  Reply with quote  

'm 41, single, and make about 55K a year. I have about 60K in savings and about 6K in checking. I have about 35K in my 401k. I pay $900 in rent and about $500 more in other monthly bills with no credit card debt. Should I be investing money, buy a home, or just stand pat?
Post Mon Jun 15, 2015 12:28 am
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oldguy
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Your savings adds up to about $101,000 - I would say that you're doing great!. A key decision for you is the selection of your investment return. Eg, if you add about $7500/yr to your $101,000, you'll have about $2,000,000 at age 65 if you select an 11%/yr return. If you select 5.5%/yr, it will be $715,000. As you can see, it's not linear, ie twice as much return has way more than twice as much effect.
Post Mon Jun 15, 2015 2:52 am
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Wino
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Re: What should I be doing with my savings?  Reply with quote  

quote:
Originally posted by mike1201
'm 41, single, and make about 55K a year. I have about 60K in savings and about 6K in checking. I have about 35K in my 401k. I pay $900 in rent and about $500 more in other monthly bills with no credit card debt. Should I be investing money, buy a home, or just stand pat?

Open a Vanguard or Fidelity account, and start to educate yourself on mutual funds. The reason for mutual funds is that people watch the investments full time, so you don't have to. Some good funds to investigate are any S&P 500 index fund, any total stock market index fund, any international index fund, and any other such funds you can find. Here's a link to Vanguard's list. There are selections on the left for you to make your choices to find funds you like.

https://investor.vanguard.com/mutual-funds/vanguard-mutual-funds-list?mgmt=i

I would shy away from most Financial Planners, because they always take 5% off the top and always charge more in annual fees. The key point is that they have NO FIDUCIARY duty to you, even though you're paying them. They don't need to look out for your interests, so they tend to look out for their own.

Check out "index fund investing" on Google to start your search. Don't invest in anything you don't understand. Ask questions and listen to the answers. If you still don't understand, ask again.

Do NOT go to an insurance company or bank for investing. Those are for insurance or loans and savings. Again, NOT investing. Some financial planners can and will help, but most that I have found look out for themselves only.

Actively managed mutual funds tend to do better in down markets. Index funds tend to do better in up markets. As the markets are generally more up than down, the index funds tend to do better and cost less.

Good luck on your decisions.
Post Mon Jun 15, 2015 7:00 am
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littleroc02us
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I was going to add something intelligent to the conversation, but Old Guy and Wino have this covered pretty well. Smile

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Mon Jun 15, 2015 8:27 pm
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Excentris
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I would Suggest spending your money on something that will make you more.. try inventing on something or improve something and put it out there if you can..
(Advance Humanity to make a better world for your children and all)
Improving humanity is the best way to spend money in my eyes.. if everyone done this we would have one epic present and a way brighter future then we do now!

You could also spend some on investing.. You could Invest in my Industry (Star Tech Sciences and Industries).. Making a better future..

I have a Prototype idea for a Hard drive that spins epic fast.. I dont know how fast it will spin yet as the means to do it are untested but proven facts of physics..
All I Know its 100% guaranteed.. I will even sign a contract..
The Specifics are perfect.. I just don't know how fast it will spin..
It will Produce a lot of money..

Invest in something like that but I would not suggest investing in the stock market these days.. Dont roll the dice unless you are absolutely sure
I would only need like 6K at most.. and You will ether get your 6K back (If it failed and it wont) or you will get more back.. After this prototype is finished I would even go as far as giving you the remainder unused money back

Or save it up for your woman.. Get her Love gifts with it and make her life a dream.. I dont know what else to do with it but spend it on stuff you want.. save it.. or Invest in something cool

what is the difference between me and you to Albert Enestine! nothing.. only yourself! look at you! rise above yourself!
(energy equals everything squared!
sovereign light! fallow the path of light or descend!
Post Sat Jun 27, 2015 1:21 am
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27Rocks
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Re:What should I be doing with my savings  Reply with quote  

You are in such a good position that you can do anything you want, If I were you I would have bought the house and then there is a possibility that I might shift my focus to open some business of my own.
Post Thu Jul 02, 2015 1:34 pm
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CarlosVance
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That's a very nice financial standing. If I were in your position. Id be thinking of exploring ways to generate passive income. and then spend the rest of my life roaming the world. I guess that would be fun. Smile
Post Thu Jul 16, 2015 2:29 am
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oldguy
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quote:
I have a Prototype idea for a Hard drive that spins epic fast.. I dont know how fast it will spin yet as the means to do it are untested but proven facts of physics..
All I Know its 100% guaranteed.. I will even sign a contract..
The Specifics are perfect.. I just don't know how fast it will spin..
It will Produce a lot of money..


Proven facts of physics? Why start with a prototype (and blow it up). Why not simply do the analysis first so that you'll know how fast it can safely spin? The equation for centrifugal force is simple. And the strength of materials is listed in an engineering handbook. In fact, flywheel design was studied extensively a couple decades ago when the buses in CA were testing flywheel driven buses. Huge flywheels in a vacuum, they were rev'ed up overnite and then the energy stored in the flywheel drove the bus for the day. Maybe you could read their reports?
Post Thu Jul 16, 2015 2:51 pm
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Brian Smith 1964
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If I were you, I would invest  Reply with quote  

Savings make little sense until they start working for you. Most of us see money as means for buying goods, services etc. But money can also be seen as capital, able to earn you profits. If you just sit on it, money may depreciate in value. Think about inflation. Today let's say you have enough to buy a car. In a year you have enough for one restaurant meal. You know what I am saying? Mishaps happen. Political instability, strikes, natural disasters and even civil wars. All this is hard to predict and even harder to offset. Save money while you have it by investing it smartly.
Post Tue Sep 29, 2015 12:42 pm
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