What would you do with $30k at 30 years old?

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kylemerriman
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What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 10:08 am

I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else?

Tamalak
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Re: What would you do with $30k at 30 years old?

Postby Tamalak » Tue Jan 10, 2017 10:11 am

I'd tuck it straight in VTSAX and VTIAX according to cap weight (~54% VTSAX ~46% VTIAX right now). I'd do it right this instant.

I have no idea what you could comparatively make out of it with your house-flipping skills, since I do not have that skill.

Bogle826
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Re: What would you do with $30k at 30 years old?

Postby Bogle826 » Tue Jan 10, 2017 10:14 am

flipping will give you the most upside, but how experienced are you with running the entire deal - not just the construction aspect but the regulatory, financing and deal execution aspect.

assuming little to no moderate, I would start slow and invest in the market like the poster above alluded (just to be safer), but eye toward investing in your own talent.

wilked
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Re: What would you do with $30k at 30 years old?

Postby wilked » Tue Jan 10, 2017 10:16 am

Around that age I had $30K clear after doing an overseas assignment (3 months, 14 hr days, 6 days a week, and hazard pay).

I put every penny into a Taxable account, one fund (Total Stock Market with Vanguard).

5 years later I used it to buy a house and it was a significant part of my downpayment.

So I would advise to do the same thing with it

edit to add here was my post on the same topic
viewtopic.php?f=1&t=71665&p=1004078#p1004078

brad.clarkston
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Re: What would you do with $30k at 30 years old?

Postby brad.clarkston » Tue Jan 10, 2017 10:28 am

Party like it's 1999?

But seriously if you're going to max your 401k and roth and are looking for something else then a Traditional IRA account and/or even a taxable brokerage account (no contribution limits but you'll be doing taxes) are good options.

Depending on your level of risk I-Bonds or a CD ladder wouldn't be bad safe options.

Also what's your Emergency Fund look like? Do you have 6 months of living expensive saved ? Is it in a easy to get to account ?

One of the things I didn't think about in my early 30's was to save for a new vehicle even if it's not needed now. The best way to get a lower price is to walk in with a giant wad of cash and say "give me 8k off that one right there sir! I'll drive it home today".

I put $100 in a coffee can every week while my wife still "pays" her car loan every month to a saving account even tho it's currently paid off.

ponyboy
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Re: What would you do with $30k at 30 years old?

Postby ponyboy » Tue Jan 10, 2017 10:34 am

Not enough info. What are you expenses? Do you have an emergency fund? Have you fully funded your roth ira for 2017? Any debts that need paid off?

$30k at 30 years old isnt that much. I would look at the vanguard 3 fund portfolio and go from there. Make sure you have an emergency fund of 8ish months.

BW1985
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Re: What would you do with $30k at 30 years old?

Postby BW1985 » Tue Jan 10, 2017 10:45 am

Do you have a 401k, 403b, etc available? If so, are you maxing it out?

If you have an emergency fund then the next thing would be a taxable account.
"Squirrels figured out how to save eons ago. They buried acorns. Some, they dug up, for food. Others, they let to sprout, in new oak trees. We could learn from squirrels." -john94549

kylemerriman
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Re: What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 11:03 am

I do not have a 401k or 403B. Also, I am self employed with no employees. I do have an emergency fund.

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slayed
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Re: What would you do with $30k at 30 years old?

Postby slayed » Tue Jan 10, 2017 11:04 am

kylemerriman wrote:I do not have a 401k or 403B. Also, I am self employed with no employees. I do have an emergency fund.


I would set up a solo 401k in that case.

brad.clarkston
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Re: What would you do with $30k at 30 years old?

Postby brad.clarkston » Tue Jan 10, 2017 11:10 am

slayed wrote:
kylemerriman wrote:I do not have a 401k or 403B. Also, I am self employed with no employees. I do have an emergency fund.


I would set up a solo 401k in that case.


+1 this plus a taxable brokerage account.

I have the following accounts:

Fidelity:
Solo401k
Rollover IRA
Roth IRA
Taxable Brokerage account
$750k Life Insurance policy *** <--- Do you have a policy? Something to think about.

Vanguard:
Traditional IRA

Scottrage:
Taxable Brokerage account

kylemerriman
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Re: What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 11:30 am

brad.clarkston wrote:
slayed wrote:
kylemerriman wrote:I do not have a 401k or 403B. Also, I am self employed with no employees. I do have an emergency fund.


I would set up a solo 401k in that case.


+1 this plus a taxable brokerage account.

I have the following accounts:

Fidelity:
Solo401k
Rollover IRA
Roth IRA
Taxable Brokerage account
$750k Life Insurance policy *** <--- Do you have a policy? Something to think about.

Vanguard:
Traditional IRA

Scottrage:
Taxable Brokerage account


What if I am not sure I will be self-employed 5 years from now? Is a Solo 401k still worth considering?

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slayed
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Re: What would you do with $30k at 30 years old?

Postby slayed » Tue Jan 10, 2017 11:36 am

kylemerriman wrote:
What if I am not sure I will be self-employed 5 years from now? Is a Solo 401k still worth considering?


Yes. A solo 401k is worth having around even if you are no longer self employed as it can be the destination for your 401k rollovers (from employer plan) when you change jobs.

brad.clarkston
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Re: What would you do with $30k at 30 years old?

Postby brad.clarkston » Tue Jan 10, 2017 11:46 am

slayed wrote:
kylemerriman wrote:
What if I am not sure I will be self-employed 5 years from now? Is a Solo 401k still worth considering?


Yes. A solo 401k is worth having around even if you are no longer self employed as it can be the destination for your 401k rollovers (from employer plan) when you change jobs.


Exactly this.

I'm a independent contractor I change jobs every two/three years like clockwork sometimes as an employee sometimes as a consultant pretending to be a employee so I have a few overlapping area's.

I just thought about something else. What are you doing for health care? If your just ignoring it look into opening a HSA and dump the max into it. If you don't need it it's a way to reduce your tax foot print and save money for when you need it.

kylemerriman
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Re: What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 11:56 am

I pay out of pocket for health care. $550/month

Chadnudj
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Re: What would you do with $30k at 30 years old?

Postby Chadnudj » Tue Jan 10, 2017 12:09 pm

kylemerriman wrote:I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else?


What type of flips would you do? If it's a "it's a place that you could afford to live in, you live in it, fix it up, then sell" flip (where worse case scenario, you just pay the mortgage since you need a place to live anyway until it sells), that's a really solid plan.

I'd be a bit cautious if you're buying a place just to fix up and flip (while living/paying rent or mortgage elsewhere), since real estate markets can go sour quickly.

WhiteMaxima
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Re: What would you do with $30k at 30 years old?

Postby WhiteMaxima » Tue Jan 10, 2017 12:17 pm

Buy a house and live in it forever.

kylemerriman
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Re: What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 12:29 pm

Chadnudj wrote:
kylemerriman wrote:I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else?


What type of flips would you do? If it's a "it's a place that you could afford to live in, you live in it, fix it up, then sell" flip (where worse case scenario, you just pay the mortgage since you need a place to live anyway until it sells), that's a really solid plan.

I'd be a bit cautious if you're buying a place just to fix up and flip (while living/paying rent or mortgage elsewhere), since real estate markets can go sour quickly.


The only way I think I could make it work is to live in the house I am flipping for at least 2 years. My wife would kill me if I made her live in another house we were flipping. lol. Also, I have 30k right now because I bought the house I just flipped when the market was really low and sold when the market was really high. I can't sit around waiting for the next low. The market is too high right now to make a profit. I plan to flip houses throughout my life, but a brokerage account with a fund seems like the better option right now because of the potential time it could grow. If I'm going to wait on flipping or buying a fund, I think getting the fund now is the better decision. What do you think?

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jafcorrea
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Re: What would you do with $30k at 30 years old?

Postby jafcorrea » Tue Jan 10, 2017 12:31 pm

kylemerriman wrote:I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else? ...
congrats, i also do flip - SF bay area .. (if you are in the same area let me know if you need help finding houses :beer )
i like Vanguard, you can open a brokerage account and buy some mutual funds, 10k can get you a admiral share less ER
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.05% .. 20k
Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.12% ... 10k
1- helps to know what funds you have in your Roth, you use VG?
2- did not send the $5500 contribution for your 2017 roth? if not 30k - 5.5 and invest the rest
3- do you know the tax (if any) you need to pay for your flip's in 2016? if not open a online saving Ally or Capitolone360 and wait until april to start investing
Thanks JC

Gropes & Ray
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Re: What would you do with $30k at 30 years old?

Postby Gropes & Ray » Tue Jan 10, 2017 12:38 pm

I received a similar amount of money a month or two before I turned 30. I paid off some student loans with higher rates and, since I was coincidentally moving, put a 20% down payment on my new house. Sounds like neither of those are good plans for you. I considered buying a rental property, but decided that is not a good idea in my city.

If you're already hitting 20% or greater of your income saved yearly, you could take some additional risk on the money and do a real estate deal. So, if I were you, I would either buy a rental or put it in an index fund.
Last edited by Gropes & Ray on Tue Jan 10, 2017 12:39 pm, edited 1 time in total.

kylemerriman
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Re: What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 12:39 pm

jafcorrea wrote:
kylemerriman wrote:I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else? ...
congrats, i also do flip - SF bay area .. (if you are in the same area let me know if you need help finding houses :beer )
i like Vanguard, you can open a brokerage account and buy some mutual funds, 10k can get you a admiral share less ER
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.05% .. 20k
Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.12% ... 10k
1- helps to know what funds you have in your Roth, you use VG?
2- did not send the $5500 contribution for your 2017 roth? if not 30k - 5.5 and invest the rest
3- do you know the tax (if any) you need to pay for your flip's in 2016? if not open a online saving Ally or Capitolone360 and wait until april to start investing


I maxed the IRA contribution for 2016 and 2017. The house I just flipped was the first I have done. I avoided capital gains by living in it for 2 years. I have a Roth with vanguard and their Target 2050 fund. I picked that fund because at the time it was the only buy-in amount I could afford ($1000).

ponyboy
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Re: What would you do with $30k at 30 years old?

Postby ponyboy » Tue Jan 10, 2017 12:41 pm

At your age I had close to $300k between retirement/taxable/savings. Its time to get serious and focus on building a nest egg. DCA in the vanguard 3 fund portfolio and fully fund your roth.

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InvestorNewb
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Re: What would you do with $30k at 30 years old?

Postby InvestorNewb » Tue Jan 10, 2017 12:58 pm

ponyboy wrote:At your age I had close to $300k between retirement/taxable/savings. Its time to get serious and focus on building a nest egg. DCA in the vanguard 3 fund portfolio and fully fund your roth.

30k at 30 is low for Boglehead standards, but I would not be surprised if it was above average for the general public.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)

Kingtriton10
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Re: What would you do with $30k at 30 years old?

Postby Kingtriton10 » Tue Jan 10, 2017 1:17 pm

The good news is your still relatively young for compounding to take real effect.

IMHO it just depends on how much money you plan on earning in the future. If you have a steady stream a cash coming in I'd say throw it into the market. If your cash flow is inconsistent and low then I personally wouldn't contribute $30k into the stock market. Now what I would do is invest it into yourself or a start up business in order to generate higher future earnings.

A one time $30k entry into the stock market isn't going to replace years.. and years worth in earnings that a successful business could.

Just my opinion

:sharebeer

mmmodem
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Re: What would you do with $30k at 30 years old?

Postby mmmodem » Tue Jan 10, 2017 1:22 pm

When I was 30, I was single, lived at my parents, and paid minimal rent. If I had $30k, I would max out my retirement accounts. Anything leftover, I would place in taxable in a total stock market index fund. I would not worry about an emergency fund as I lived at home.

kylemerriman
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Re: What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 2:54 pm

Is it worth getting an IRA for my wife? She is 2 years younger.

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jafcorrea
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Location: CA

Re: What would you do with $30k at 30 years old?

Postby jafcorrea » Tue Jan 10, 2017 4:06 pm

kylemerriman wrote:
jafcorrea wrote:
kylemerriman wrote:I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else? ...
congrats, i also do flip - SF bay area .. (if you are in the same area let me know if you need help finding houses :beer )
i like Vanguard, you can open a brokerage account and buy some mutual funds, 10k can get you a admiral share less ER
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.05% .. 20k
Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.12% ... 10k
1- helps to know what funds you have in your Roth, you use VG?
2- did not send the $5500 contribution for your 2017 roth? if not 30k - 5.5 and invest the rest
3- do you know the tax (if any) you need to pay for your flip's in 2016? if not open a online saving Ally or Capitolone360 and wait until april to start investing


I maxed the IRA contribution for 2016 and 2017. The house I just flipped was the first I have done. I avoided capital gains by living in it for 2 years. I have a Roth with vanguard and their Target 2050 fund. I picked that fund because at the time it was the only buy-in amount I could afford ($1000).


I do not now where you are in US ..Here in CA you need to own for 5 years and live minimum 2years

About open a Roth for your wife, if you make/ or will make less 186k (total income including flips profits ... is okay, you can send $5500 for 2016 and $5500 for 2017 (before April/17)
Thanks JC

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jafcorrea
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Re: What would you do with $30k at 30 years old?

Postby jafcorrea » Tue Jan 10, 2017 4:17 pm

kylemerriman wrote:
Chadnudj wrote:
kylemerriman wrote:I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else?


What type of flips would you do? If it's a "it's a place that you could afford to live in, you live in it, fix it up, then sell" flip (where worse case scenario, you just pay the mortgage since you need a place to live anyway until it sells), that's a really solid plan.

I'd be a bit cautious if you're buying a place just to fix up and flip (while living/paying rent or mortgage elsewhere), since real estate markets can go sour quickly.


The only way I think I could make it work is to live in the house I am flipping for at least 2 years. My wife would kill me if I made her live in another house we were flipping. lol. Also, I have 30k right now because I bought the house I just flipped when the market was really low and sold when the market was really high. I can't sit around waiting for the next low. The market is too high right now to make a profit. I plan to flip houses throughout my life, but a brokerage account with a fund seems like the better option right now because of the potential time it could grow. If I'm going to wait on flipping or buying a fund, I think getting the fund now is the better decision. What do you think?



:beer ) Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.05% .. 20k
Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.12% ... 10k
Thanks JC

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oldzey
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Re: What would you do with $30k at 30 years old?

Postby oldzey » Tue Jan 10, 2017 5:36 pm

Crystal Ball [ON]

I was 30 in 1997.

I would have bought $30K worth of Apple (AAPL) stock.
Here's what 10K of Apple would have done (multiply by 3) :sharebeer
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

Gropes & Ray
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Re: What would you do with $30k at 30 years old?

Postby Gropes & Ray » Tue Jan 10, 2017 6:26 pm

kylemerriman wrote:Is it worth getting an IRA for my wife? She is 2 years younger.


Yes! You should be aiming to save between 15-20% (or more if you want to retire early) of your income. It is great to put that money in IRAs or 401ks so that it receives some special tax treatment. If you have been saving less than 15% of your income, this windfall is a great chance to make up some of the difference. You can still fund 2016 IRAs until you do your taxes (or after if you are willing to refile). You can also fund your 2017 IRAs. So that is up to $22,000 that you can put in IRAs right now if you haven't funded anything already.

Is the $30,000 net of taxes? If you owe taxes on the money, don't put it all into IRAs! Make sure to reserve your tax liability.

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jafcorrea
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Re: What would you do with $30k at 30 years old?

Postby jafcorrea » Tue Jan 10, 2017 6:50 pm

jafcorrea wrote:
kylemerriman wrote:
Chadnudj wrote:
kylemerriman wrote:I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else?


What type of flips would you do? If it's a "it's a place that you could afford to live in, you live in it, fix it up, then sell" flip (where worse case scenario, you just pay the mortgage since you need a place to live anyway until it sells), that's a really solid plan.

I'd be a bit cautious if you're buying a place just to fix up and flip (while living/paying rent or mortgage elsewhere), since real estate markets can go sour quickly.


The only way I think I could make it work is to live in the house I am flipping for at least 2 years. My wife would kill me if I made her live in another house we were flipping. lol. Also, I have 30k right now because I bought the house I just flipped when the market was really low and sold when the market was really high. I can't sit around waiting for the next low. The market is too high right now to make a profit. I plan to flip houses throughout my life, but a brokerage account with a fund seems like the better option right now because of the potential time it could grow. If I'm going to wait on flipping or buying a fund, I think getting the fund now is the better decision. What do you think?



:beer ) Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.05% .. 20k
Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.12% ... 10k
About IRA income ...
https://www.irs.gov/retirement-plans/ir ... ion-limits
Thanks JC

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mgullo
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Re: What would you do with $30k at 30 years old?

Postby mgullo » Tue Jan 10, 2017 7:46 pm

slayed wrote:
kylemerriman wrote:I do not have a 401k or 403B. Also, I am self employed with no employees. I do have an emergency fund.


I would set up a solo 401k in that case.


Get your solo 401k set up and contribute as much as you can.
Aim above morality. Be not simply good, be good for something. | -Thoreau

kylemerriman
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Re: What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 8:15 pm

mgullo wrote:
slayed wrote:
kylemerriman wrote:I do not have a 401k or 403B. Also, I am self employed with no employees. I do have an emergency fund.


I would set up a solo 401k in that case.


Get your solo 401k set up and contribute as much as you can.


So I can start a solo 401k and contribute a big starting balance, say $15,000, and then more than $5500 every year? seems like a better deal than a roth ira. And if I at some point become employed I can keep contributing to it?

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jafcorrea
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Re: What would you do with $30k at 30 years old?

Postby jafcorrea » Tue Jan 10, 2017 8:25 pm

kylemerriman wrote:
mgullo wrote:
slayed wrote:
kylemerriman wrote:I do not have a 401k or 403B. Also, I am self employed with no employees. I do have an emergency fund.


I would set up a solo 401k in that case.


Get your solo 401k set up and contribute as much as you can.


So I can start a solo 401k and contribute a big starting balance, say $15,000, and then more than $5500 every year? seems like a better deal than a roth ira. And if I at some point become employed I can keep contributing to it? .... keep in mind Roth is tax free after 59 1/2 years, 401k you will pay taxes on the money, I am not saying roth is better than 401k ... i think you can read more about IRA and 401k and if you open a remodeling/flip bussines you can open a Simple IRA and put your wife as employee and make the same contribution $ to her
IRA .... https://investor.vanguard.com/ira/iras
401/Simple ... https://investor.vanguard.com/what-we-o ... s/overview

401/Simple/Roth/T IRA .. requires you/wife to received income in any year ... https://www.irs.gov/retirement-plans/ir ... ion-limits
Last edited by jafcorrea on Tue Jan 10, 2017 9:55 pm, edited 2 times in total.
Thanks JC

munemaker
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Re: What would you do with $30k at 30 years old?

Postby munemaker » Tue Jan 10, 2017 8:26 pm

hmm...age 30...Put a down payment on a Shelby Mustang?

Image

kylemerriman
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Re: What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 8:36 pm

munemaker wrote:hmm...age 30...Put a down payment on a Shelby Mustang?

Image


I like it! Who needs retirement?

Dogsplaypoker
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Re: What would you do with $30k at 30 years old?

Postby Dogsplaypoker » Tue Jan 10, 2017 8:39 pm

I would go to Vegas. This is definitely an amount to go to Vegas with. All down, let it ride black jack. This is a no brainer.
Otherwise, Invest it all in a Vanguard index fund and forget about it for 10 years. Done.

brad.clarkston
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Re: What would you do with $30k at 30 years old?

Postby brad.clarkston » Tue Jan 10, 2017 9:43 pm

kylemerriman wrote:
mgullo wrote:
slayed wrote:
kylemerriman wrote:I do not have a 401k or 403B. Also, I am self employed with no employees. I do have an emergency fund.


I would set up a solo 401k in that case.


Get your solo 401k set up and contribute as much as you can.


So I can start a solo 401k and contribute a big starting balance, say $15,000, and then more than $5500 every year? seems like a better deal than a roth ira. And if I at some point become employed I can keep contributing to it?


The Solo401k limit is $53k for 2016 --- "You" can invest $18k tax deferred and then the "company" can match up to $35k into your account. That means your wife if she's a partner in the company can do another $18k and have the "company" match $35k as well.
I think the limit for 2016 is $54k.

Once you get more than $250k in the account you'll have to file a 5500 with the government. Watch out for part-time employees getting more than 1k hours per year with the company as that changes things fast.

Get a tax lawyer in your area to help.

Sandtrap
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Re: What would you do with $30k at 30 years old?

Postby Sandtrap » Tue Jan 10, 2017 10:08 pm

I have been in your shoes. General commercial contractor at that age. Licensed in 2 states. Built for the franchisees, Arbies, Little Caesars Pizza, etc, plus Food Courts, Commercial restorations in historic business districts. That is when I bought my lst rental and things went from there. I was busy 24/7. Insurance and bonding and labor and extra trucks was costing me a fortune. At night I had stacks of log size projects to do bid work on my desk. Self insured medically. Married. 2 kids. Though it has gone okay many many decades later, were I to do it again, and armed with "Bogleheads", I would definitely have done it differently.
I had about $80k in my hand at that time. I remember it well. $100 bills. It was thick. :moneybag

I also had a job in a large corporate construction firm. Work up to site manager then project manager and so forth. Medical included. Good retirement. But went back to R/E investment and construction for various reasons. Had I saved like crazy and done the "Boglehead" thing, maybe decades later I'd have a sizeable portfolio that exceeds what I have now.

Personally, I would aquire a solid job with benefits (gov't/state/fed?) to solidify a dependable income stream to protect that $30k.
Then I would learn from the "experts" (not me) here at "Bogleheads" re: financial investment portfolios, etc.
Retire early in my 50's. Watch my portfolio grow from $30k to ???? :sharebeer

kylemerriman
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Re: What would you do with $30k at 30 years old?

Postby kylemerriman » Tue Jan 10, 2017 10:53 pm

Sandtrap wrote:I have been in your shoes. General commercial contractor at that age. Licensed in 2 states. Built for the franchisees, Arbies, Little Caesars Pizza, etc, plus Food Courts, Commercial restorations in historic business districts. That is when I bought my lst rental and things went from there. I was busy 24/7. Insurance and bonding and labor and extra trucks was costing me a fortune. At night I had stacks of log size projects to do bid work on my desk. Self insured medically. Married. 2 kids. Though it has gone okay many many decades later, were I to do it again, and armed with "Bogleheads", I would definitely have done it differently.
I had about $80k in my hand at that time. I remember it well. $100 bills. It was thick. :moneybag

I also had a job in a large corporate construction firm. Work up to site manager then project manager and so forth. Medical included. Good retirement. But went back to R/E investment and construction for various reasons. Had I saved like crazy and done the "Boglehead" thing, maybe decades later I'd have a sizeable portfolio that exceeds what I have now.

Personally, I would aquire a solid job with benefits (gov't/state/fed?) to solidify a dependable income stream to protect that $30k.
Then I would learn from the "experts" (not me) here at "Bogleheads" re: financial investment portfolios, etc.
Retire early in my 50's. Watch my portfolio grow from $30k to ???? :sharebeer


Yeah, you can make good money in the trades but you have to work really hard (50-60 hour weeks). I don't mind working hard but if I can work smarter and not have to work my life away I'm all about it. I'm getting tired of all the bidding and office work after hours (waking up in the middle of the night thinking about a job). Like you said, similar money can be made in a 9-5 with a gov't job. I guess my goal is to secure my life after 55 financially so that I can do what I enjoy throughout my 30's and 40's even if it doesn't pay as much as other jobs.

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saltycaper
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Re: What would you do with $30k at 30 years old?

Postby saltycaper » Tue Jan 10, 2017 11:15 pm

brad.clarkston wrote:
kylemerriman wrote:

So I can start a solo 401k and contribute a big starting balance, say $15,000, and then more than $5500 every year? seems like a better deal than a roth ira. And if I at some point become employed I can keep contributing to it?


The Solo401k limit is $53k for 2016 --- "You" can invest $18k tax deferred and then the "company" can match up to $35k into your account. That means your wife if she's a partner in the company can do another $18k and have the "company" match $35k as well.
I think the limit for 2016 is $54k.

Once you get more than $250k in the account you'll have to file a 5500 with the government. Watch out for part-time employees getting more than 1k hours per year with the company as that changes things fast.

Get a tax lawyer in your area to help.


For a 2016 contribution, I believe the Solo/Individual 401k account would have to have been established by December 31, 2016.
"I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said." --Alan Greenspan

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saltycaper
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Re: What would you do with $30k at 30 years old?

Postby saltycaper » Tue Jan 10, 2017 11:19 pm

jafcorrea wrote:
kylemerriman wrote:
So I can start a solo 401k and contribute a big starting balance, say $15,000, and then more than $5500 every year? seems like a better deal than a roth ira. And if I at some point become employed I can keep contributing to it? .... keep in mind Roth is tax free after 59 1/2 years, 401k you will pay taxes on the money, I am not saying roth is better than 401k ... i think you can read more about IRA and 401k and if you open a remodeling/flip bussines you can open a Simple IRA and put your wife as employee and make the same contribution $ to her
IRA .... https://investor.vanguard.com/ira/iras
401/Simple ... https://investor.vanguard.com/what-we-o ... s/overview

401/Simple/Roth/T IRA .. requires you/wife to received income in any year ... https://www.irs.gov/retirement-plans/ir ... ion-limits


It may be too late for OP to contribute 2016 income to a Solo/Individual 401k if the account was not established in 2016, but Re: Roth IRA vs. 401k, there is such a thing as a Roth 401k. Availability varies. Vanguard offers the option.
"I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said." --Alan Greenspan

BW1985
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Re: What would you do with $30k at 30 years old?

Postby BW1985 » Tue Jan 10, 2017 11:20 pm

InvestorNewb wrote:
ponyboy wrote:At your age I had close to $300k between retirement/taxable/savings. Its time to get serious and focus on building a nest egg. DCA in the vanguard 3 fund portfolio and fully fund your roth.

30k at 30 is low for Boglehead standards, but I would not be surprised if it was above average for the general public.


You'd be right, it is above average (as of 2013, doubt much has changed since then)

A household led by a 30-34 year old with a net worth of $30,000.00 was in net worth centile 57% in 2013.


Age: >35
Median net worth: $14,200
Average net worth: $73,500
Source: Federal Reserve 2016
"Squirrels figured out how to save eons ago. They buried acorns. Some, they dug up, for food. Others, they let to sprout, in new oak trees. We could learn from squirrels." -john94549

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saltycaper
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Location: The Tower

Re: What would you do with $30k at 30 years old?

Postby saltycaper » Tue Jan 10, 2017 11:30 pm

ponyboy wrote:
At your age I had close to $300k between retirement/taxable/savings. Its time to get serious and focus on building a nest egg. DCA in the vanguard 3 fund portfolio and fully fund your roth.


1) Your net worth has no bearing on the questions posed by the OP.

2) You're implying the OP has not been serious about their career(s)/job(s), earnings, savings, etc., without regard for what the OP's particular situation is or what they have done, which is kind of rude.

3) DCA makes no sense.
"I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said." --Alan Greenspan

kjvmartin
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Re: What would you do with $30k at 30 years old?

Postby kjvmartin » Tue Jan 10, 2017 11:48 pm

kylemerriman wrote:I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else?


Do you have any debt?

brad.clarkston
Posts: 451
Joined: Fri Jan 03, 2014 8:31 pm
Location: Kansas City, MO

Re: What would you do with $30k at 30 years old?

Postby brad.clarkston » Wed Jan 11, 2017 10:47 am

saltycaper wrote:
brad.clarkston wrote:
kylemerriman wrote:

So I can start a solo 401k and contribute a big starting balance, say $15,000, and then more than $5500 every year? seems like a better deal than a roth ira. And if I at some point become employed I can keep contributing to it?


The Solo401k limit is $53k for 2016 --- "You" can invest $18k tax deferred and then the "company" can match up to $35k into your account. That means your wife if she's a partner in the company can do another $18k and have the "company" match $35k as well.
I think the limit for 2016 is $54k.

Once you get more than $250k in the account you'll have to file a 5500 with the government. Watch out for part-time employees getting more than 1k hours per year with the company as that changes things fast.

Get a tax lawyer in your area to help.


For a 2016 contribution, I believe the Solo/Individual 401k account would have to have been established by December 31, 2016.


Yep that was just an example the real thing to look at would be 2017 which would be a limit of $54k total.

brad.clarkston
Posts: 451
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Location: Kansas City, MO

Re: What would you do with $30k at 30 years old?

Postby brad.clarkston » Wed Jan 11, 2017 10:49 am

kjvmartin wrote:
kylemerriman wrote:I have $30k to invest
-I have a Roth IRA already and have paid off my debt.
-I am a remodeler and have the ability to flip houses for less cost than most people.
What would you do? Real estate? Stocks? something else?


Do you have any debt?


Did you read the thread?

Maverick3320
Posts: 327
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Re: What would you do with $30k at 30 years old?

Postby Maverick3320 » Wed Jan 11, 2017 2:36 pm

InvestorNewb wrote:
ponyboy wrote:At your age I had close to $300k between retirement/taxable/savings. Its time to get serious and focus on building a nest egg. DCA in the vanguard 3 fund portfolio and fully fund your roth.

30k at 30 is low for Boglehead standards, but I would not be surprised if it was above average for the general public.


+1. I'm guessing this is way ahead of the peer curve. Congrats.

Sandtrap
Posts: 1174
Joined: Sat Nov 26, 2016 6:32 pm

Re: What would you do with $30k at 30 years old?

Postby Sandtrap » Fri Jan 13, 2017 11:17 am

kylemerriman wrote:
Sandtrap wrote:I have been in your shoes. . . . . . . . . . .

Personally, I would aquire a solid job with benefits (gov't/state/fed?) to solidify a dependable income stream to protect that $30k.
Then I would learn from the "experts" (not me) here at "Bogleheads" re: financial investment portfolios, etc.
Retire early in my 50's. Watch my portfolio grow from $30k to ???? :sharebeer


Yeah, you can make good money in the trades but you have to work really hard (50-60 hour weeks). I don't mind working hard but if I can work smarter and not have to work my life away I'm all about it. I'm getting tired of all the bidding and office work after hours (waking up in the middle of the night thinking about a job). Like you said, similar money can be made in a 9-5 with a gov't job. I guess my goal is to secure my life after 55 financially so that I can do what I enjoy throughout my 30's and 40's even if it doesn't pay as much as other jobs.


Absolutely true, "kylemerriman".
IMHO you're way ahead of the curve for being able to stop, step back, think, and try to look at the bigger, broader, longer term picture -- and play the mental "what if" game that's so important.
A lot can be said for health and quality of life. Most of my contractor peers have retired with multiple spine surgeries (me too), multiple divorces, etc, and some are still still working, once wealthy but now grinding away to survive. The really smart ones used the "quick big money" brutal work in the building industry as "seed money" for portfolio investments (Bogleheads) and then very early on solidified their income stream by working 40/hr weeks at pension jobs with great COLA, health benefits (family), and the option for early retirement. IE: some jobs like EMS, etc, have early retirement options such as retiring at 20 years at "high 3", and no age limitiation. Thus utilizing all options and all income streams and career paths.
So something to consider is not so much "this or this" but rather how to allocate your time, human resources, as well as financial resources over the long term for the mostest, bestest, and quality of personal and family life.
"Bogleheads" seem to integrate all of this with an efficient broad based financial portfolio to best long term advantage.
Each unique but very admirable and reflected in this wonderful forum.

db1216
Posts: 8
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Re: What would you do with $30k at 30 years old?

Postby db1216 » Fri Jan 13, 2017 11:33 am

Sandtrap wrote:
kylemerriman wrote:
Sandtrap wrote:I have been in your shoes. . . . . . . . . . .

Personally, I would aquire a solid job with benefits (gov't/state/fed?) to solidify a dependable income stream to protect that $30k.
Then I would learn from the "experts" (not me) here at "Bogleheads" re: financial investment portfolios, etc.
Retire early in my 50's. Watch my portfolio grow from $30k to ???? :sharebeer


Yeah, you can make good money in the trades but you have to work really hard (50-60 hour weeks). I don't mind working hard but if I can work smarter and not have to work my life away I'm all about it. I'm getting tired of all the bidding and office work after hours (waking up in the middle of the night thinking about a job). Like you said, similar money can be made in a 9-5 with a gov't job. I guess my goal is to secure my life after 55 financially so that I can do what I enjoy throughout my 30's and 40's even if it doesn't pay as much as other jobs.


Absolutely true, "kylemerriman".
IMHO you're way ahead of the curve for being able to stop, step back, think, and try to look at the bigger, broader, longer term picture -- and play the mental "what if" game that's so important.
A lot can be said for health and quality of life. Most of my contractor peers have retired with multiple spine surgeries (me too), multiple divorces, etc, and some are still still working, once wealthy but now grinding away to survive. The really smart ones used the "quick big money" brutal work in the building industry as "seed money" for portfolio investments (Bogleheads) and then very early on solidified their income stream by working 40/hr weeks at pension jobs with great COLA, health benefits (family), and the option for early retirement. IE: some jobs like EMS, etc, have early retirement options such as retiring at 20 years at "high 3", and no age limitiation. Thus utilizing all options and all income streams and career paths.
So something to consider is not so much "this or this" but rather how to allocate your time, human resources, as well as financial resources over the long term for the mostest, bestest, and quality of personal and family life.
"Bogleheads" seem to integrate all of this with an efficient broad based financial portfolio to best long term advantage.
Each unique but very admirable and reflected in this wonderful forum.


I just turned 30 last month and I have just hit 31k in my retirement account as a government employee. OP seems very similar to me in that I am always looking to use my entrepreneurial spirit i.e. moneymaking schemes as my wife calls them. However, the security of the government along with a steady contribution to my retirement account seems like a great rock for me and my family so far. I'm behind the Bogleheads here but I feel like I am oodles ahead of a lot of my peers around here. I'm all about the money-chase nowadays but I vote for that retirement account too. :D

Sandtrap
Posts: 1174
Joined: Sat Nov 26, 2016 6:32 pm

Re: What would you do with $30k at 30 years old?

Postby Sandtrap » Fri Jan 13, 2017 1:04 pm

[/quote]
I just turned 30 last month and I have just hit 31k in my retirement account as a government employee. OP seems very similar to me in that I am always looking to use my entrepreneurial spirit i.e. moneymaking schemes as my wife calls them. However, the security of the government along with a steady contribution to my retirement account seems like a great rock for me and my family so far. I'm behind the Bogleheads here but I feel like I am oodles ahead of a lot of my peers around here. I'm all about the money-chase nowadays but I vote for that retirement account too. :D[/quote]

Absolutely! Congratulations!
It's a multi-pronged approach that exponentially builds. The stable income stream, health benefits, and retirement contribution + tapping into that other passion for growth and challenge. Not either or. Both. All inclusive. Balanced. A reflection of maturity. Consideration to provide security and safety for family health and income vs personal. :sharebeer


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