Have enjoyed reading this site for a few months now but still uncertain whether the general advice ‘open a tax-advantaged retirement account’ applies; I’ve gotten some conflicting advice. Or, if it doesn’t, what I should do instead with my savings. So, hoping the collective wisdom of the forum can offer me some insight! (feel free to direct me to other threads if you think they are more useful than replying to mine.)
Topic Title: If I don’t pay taxes, how should I invest my money?
Income: $45,000/year
Current expenses: (average month)
Unavoidable expenses:
Rent $370.80
Loan (min. payment) $129.00
Utilities $20.60
Groceries $100
Mobile and Internet $5.00
Transport $5.00
Medical costs $10.00
Other miscellaneous unavoidable costs $10.00
Avoidable Expenses
Entertainment $30.00
Clothing and household goods $20.00
Subtotal : $700.00/month ($8,400/yr),
Plus about $3,000 a year in recreational travel
TOTAL EXPENSES = $11,400/yr
Assets:
Checking/Savings Accounts (all low interest rates, alas): 19,000USD + 4,900GBP = approx.. $26,000
US Mutual Funds (not a retirement account): $49,700 (Vanguard, a mix of VWELX, VEXPX, VSMGX, VTSMX, VINEX)
Peer-to-peer lending: $3,800
TOTAL ASSETS: $79,500
Liabilities:
$7,7000 – 5.75% - student loan (originally ~$25,000)
TOTAL LIABILITIES: $7,700
Specific Question: I am a 29-year-old American citizen (single, no kids) living abroad and am exempt from paying US income taxes and from paying any in my current country of residence in sub-Saharan Africa. I expect to live abroad for at least another couple years, but by 10 years from now or so, I expect to be living in the US and to retire there. My current employer offers no retirement plans. I save some money each paycheck; where should I put it?