Author Topic: No real career yet-26-63k cash/liquid-looking for advice  (Read 841 times)

zoochadookdook

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No real career yet-26-63k cash/liquid-looking for advice
« on: October 11, 2018, 06:17:00 PM »
About me:

26 (27 in may)

Assets:
Car (beater) 1500$
Roth ira 23000$ (currently set to monthly withdrawals of 480 or so to max 5500 for 2018)
Cash/business liquid inventory (I'm self employed in direct sales): around 63,000
of that in stocks: 1000$
and Bitcoin: $1500 (original cost was 4000 *ow, I intend to hold long)
Rest is cash/assets that are for sale.
 House: 80,000 equity (200k mrsp, I owe 120k)
Assorted house stuff (garage gym/tvs/all the other stuff): 5000?

Debt:
Student loans- 13000$ student loans (I graduate in December 2018 and no interest accrues until 6 months from january at around 4%). I took them because they were interest free. Haven't used them. I plan on paying down with credit cards and getting the spending bonuses. Obviously could pay off right away but at no interest I don’t see why.

Mortgage: 120k (105k is a variable rate loan in line with the prime rate, 15k is direct to my father)

 Credit cards: I put most bills for the 1.5% off but they pay off automatically

Current Income:
-self employed. 25k a year plus extra (sometimes I have a renter in the house @600/month, currently selling my neighbors house for them at 1% of 400k). This year is actually looking around 40k due to a unexpected bonus helping someone FSBO a house. This is around 6 hours a week.


Expenses:
monthly mortgage 584$
property Taxes/home insurance: around 320 a month
Utilities around 300.
Roth ira 480 or so

Extra expenses: Dog vet bills Girlfriend Gas food etc (say 200)

Total: around 1800 a month

Bills coming up:
Car timing belt/water pump/other repairs (700)

I've been out of the nest since I turned 18 and did a stint bouncing around from house to house while working in order to save money. Hence why my assets (cash and such) are high for the income level. I also drive a junky car, buy cheap groceries, etc.

So I've been trying to keep track of my finances better this year. Actually doing taxes quarterly instead of end of year/tracking all my expenses and income. I graduate with a degree in MIS/information security the end of this year and am hoping to secure employment by this summer.

The biggest problem for me is keeping all inventory details for my business as it's all cash based. Currently I use an app and excel spreadsheet. I was considering buying the app mint but it's a bit steep at 10 a month. I also struggle with spending on food and extras every month (this month I needed tools for car repairs $20, groceries $100, eating out $100, soccer rec league $50 etc-next month it could be a random boys night bar tab that runs 50 bucks)

My goals are to secure financial stability in the future. I have short term goals like purchasing a nicer car and such but I'll gladly ignore those if it contributes to a beach house and a sports car down the road.

My question is what type of investments should I be considering at my age? I know I'm getting started later and may have to sacrifice risk for returns but aside from my roth I've never had any insight to the options of investors. My family was always under the "if you can't pay cash don't buy it" mindset. Obviously this cash is not doing anything sitting around. I require maybe 10k-15k max for inventory at a given time for work as is. I also want the mortgage refinanced but that’s an issue with my write offs. I drive 20k or so for work a year at 53cents a mile write off and the banks we’ve visited look at that as income despite my car being worth nearly nothing.

I'm also not sure if the path of study (management information systems) is the career I want to pursue. I work for 12 bucks an hour this summer as a data intern (just a few months) and it seems like all entry level would hinder my 8 hours a week self employed position and pay about the same. I was considering going into the trades (electrician) as I like to work outside and they make great money and benefits (girlfriends dad is a retired master electrician) or even going back to school and getting a degree in something like engineering. Even picking up something part time would help me have more income.

Anyways any advice, direction, ideas, anything at all is appreciated.

Thanks

Z
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ILikeDividends

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #1 on: October 11, 2018, 06:32:32 PM »
You're off to the right start, and you're asking all the right questions.

Read the jlcollinsnh stock series:

https://jlcollinsnh.com/stock-series/

It's quite long, but it should answer most (all?) of your investment-related questions, and it will answer many other questions you didn't even know you had.

Your future self will thank you.
« Last Edit: October 11, 2018, 06:37:40 PM by ILikeDividends »

erutio

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #2 on: October 11, 2018, 06:33:16 PM »
VTSAX

ILikeDividends

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #3 on: October 11, 2018, 06:53:04 PM »
VTSAX
As noted in the jlcollinsnh stock series.  However, if the OP's account is at a broker other than Vanguard, there might be a transaction fee to buy this ETF.  Schwab charges $76 to buy VTSAX, so it wouldn't be appropriate for dribbling in periodic contributions with that broker.  I use a similar Schwab ETF for my purposes.

To the OP: I opened my Schwab account many years before Vanguard even existed.  I'm very satisfied with Schwab, and I'm too old to be switching brokers now.  If I were just starting out now, I would probably go with Vanguard for all the reasons cited in the jlcollinsnh stock series.

« Last Edit: October 11, 2018, 07:25:48 PM by ILikeDividends »

zoochadookdook

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #4 on: October 11, 2018, 09:07:57 PM »
Transferred from Edward jones to vanguard 6 months ago. 2060 target date retirement fund currently

Financial.Velociraptor

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #5 on: October 12, 2018, 02:40:09 AM »
I was 28 when I finished university and retired at 40.  Your start isn't all that late in the grand scheme of things. Just control lifestyle inflation and invest diligently.  You will get there.

zoochadookdook

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #6 on: October 15, 2018, 12:58:40 PM »
You're off to the right start, and you're asking all the right questions.

Read the jlcollinsnh stock series:

https://jlcollinsnh.com/stock-series/

It's quite long, but it should answer most (all?) of your investment-related questions, and it will answer many other questions you didn't even know you had.

Your future self will thank you.

just started on this today-That's a lot of literature hah

effigy98

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #7 on: October 15, 2018, 03:00:02 PM »
Invest in yourself (skills) for free. Example: go to leetcode and learn basically how to code (problem solving games). Get recruited to 100k+ year job with upside to 500k total compensation in 5 to 10 years. It will be hard like cramming 4 years of math, but once you do... you can blow up your investment accounts.

appleshampooid

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #8 on: October 15, 2018, 03:13:19 PM »
Invest in yourself (skills) for free. Example: go to leetcode and learn basically how to code (problem solving games). Get recruited to 100k+ year job with upside to 500k total compensation in 5 to 10 years. It will be hard like cramming 4 years of math, but once you do... you can blow up your investment accounts.
500k total comp? Sure if you're the cream of the crop and job hop obsessively, or get lucky and join a unicorn startup. I'm 10 years in to a tech career and my total comp will be about 200k this year depending on the value of our stock when my grant vests. I'm not the best and brightest, but probably 75th percentile.

I do encourage folks to learn to code, but let's keep expectations realistic.

zoochadookdook

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #9 on: October 16, 2018, 05:04:55 PM »
coders make that much? I thought most companies were outsourcing for that kind of work? Kind of makes my MIS degree look like hot garbage if I have to spend another 4 years in comp sci learning coding. I'm decent at maths though; stats qmm work always made easy work.

appleshampooid

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #10 on: October 16, 2018, 05:55:05 PM »
coders make that much? I thought most companies were outsourcing for that kind of work? Kind of makes my MIS degree look like hot garbage if I have to spend another 4 years in comp sci learning coding. I'm decent at maths though; stats qmm work always made easy work.
Outsourcing happens, but its impact is overstated. It's tough to deliver the correct product when your dev team is across the world and doesn't speak good English. Barring a huge crash, there will always be a big market for software developers domestically. Even with a huge crash, I think there will be *some* market.

Glassdoor says the average software developer makes $91k:
https://www.glassdoor.com/Salaries/software-developer-salary-SRCH_KO0,18.htm

Seems low, but I've lived in high COL areas my whole career.

appleshampooid

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #11 on: October 16, 2018, 05:56:58 PM »
Oh wow, I guess they split out "Software Engineer" and the average there is $115:
https://www.glassdoor.com/Salaries/software-engineer-salary-SRCH_KO0,17.htm

In my experience, those 2 roles were roughly equal. ¯\_(ツ)_/¯

zoochadookdook

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #12 on: October 16, 2018, 06:02:43 PM »
Gotcha, I know I have an income issue I just need to find what work will make enough money and go for it. I believe I can do anything but working for myself has given me a respect for flexibility in a schedule and an unfortunate pickiness of employment.

I think making 80k-100k a year would allow me to live MORE than comfortably enough. Ideally benefits would be amazing as well.

I'll look into the coding; what language specifically would you recommend?

appleshampooid

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #13 on: October 16, 2018, 06:26:48 PM »
Gotcha, I know I have an income issue I just need to find what work will make enough money and go for it. I believe I can do anything but working for myself has given me a respect for flexibility in a schedule and an unfortunate pickiness of employment.

I think making 80k-100k a year would allow me to live MORE than comfortably enough. Ideally benefits would be amazing as well.

I'll look into the coding; what language specifically would you recommend?
It's tough to recommend one specifically because I actually moved over to the ops side a few years ago - I'm now a Site Reliability Engineer (aka Systems Engineer, Infrastructure Engineer, lots of names for the same basic job). Javascript is popular these days, but I kinda hate it. Java was popular years ago but is declining.

Python is probably a good one to learn in. To be really successful though, you need to be a polyglot and able to learn new languages as they become popular.

But if you have a career right now that can earn you 80-100k/year, *and* you enjoy it, I don't know if it makes sense to switch.

ILikeDividends

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #14 on: October 16, 2018, 07:28:53 PM »
Gotcha, I know I have an income issue I just need to find what work will make enough money and go for it. I believe I can do anything but working for myself has given me a respect for flexibility in a schedule and an unfortunate pickiness of employment.

I think making 80k-100k a year would allow me to live MORE than comfortably enough. Ideally benefits would be amazing as well.

I'll look into the coding; what language specifically would you recommend?
To be really successful though, you need to be a polyglot and able to learn new languages as they become popular.
I'll add my two cents to emphasize that point.  An ability to rapidly acquire competence and expertise in any language is far more valuable than being a super star within a single language silo.

Also, look up the value chain of software development to expand beyond that:
coding<--technical/solution design<--business analyst<--business requirements<--business/systems architecture, etc . . .

The further up the chain, going from left to right, the more interchangeable you are, the more value you bring, the more you are likely to earn, and the less likely you are to find yourself at the top of the downsizing list if/when that time ever comes.

If you have a talent for management, then various management roles branch off of all of those levels as well.  Flexibility and adaptability are key to survival.
« Last Edit: October 16, 2018, 07:51:23 PM by ILikeDividends »

zoochadookdook

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #15 on: October 18, 2018, 04:47:57 PM »
Gotcha, I know I have an income issue I just need to find what work will make enough money and go for it. I believe I can do anything but working for myself has given me a respect for flexibility in a schedule and an unfortunate pickiness of employment.

I think making 80k-100k a year would allow me to live MORE than comfortably enough. Ideally benefits would be amazing as well.

I'll look into the coding; what language specifically would you recommend?
It's tough to recommend one specifically because I actually moved over to the ops side a few years ago - I'm now a Site Reliability Engineer (aka Systems Engineer, Infrastructure Engineer, lots of names for the same basic job). Javascript is popular these days, but I kinda hate it. Java was popular years ago but is declining.

Python is probably a good one to learn in. To be really successful though, you need to be a polyglot and able to learn new languages as they become popular.

But if you have a career right now that can earn you 80-100k/year, *and* you enjoy it, I don't know if it makes sense to switch.

oh I absolutely don't make that right now but I need a job. I finish school this month and while being self employed is ok; there's a limit to earnings and no real potential for other benefits. I believe I can continue to pull in 10k-15k a year part time self employed no matter what other job I have.

ILikeDividends

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Re: No real career yet-26-63k cash/liquid-looking for advice
« Reply #16 on: October 18, 2018, 06:21:37 PM »
Gotcha, I know I have an income issue I just need to find what work will make enough money and go for it. I believe I can do anything but working for myself has given me a respect for flexibility in a schedule and an unfortunate pickiness of employment.

I think making 80k-100k a year would allow me to live MORE than comfortably enough. Ideally benefits would be amazing as well.

I'll look into the coding; what language specifically would you recommend?
It's tough to recommend one specifically because I actually moved over to the ops side a few years ago - I'm now a Site Reliability Engineer (aka Systems Engineer, Infrastructure Engineer, lots of names for the same basic job). Javascript is popular these days, but I kinda hate it. Java was popular years ago but is declining.

Python is probably a good one to learn in. To be really successful though, you need to be a polyglot and able to learn new languages as they become popular.

But if you have a career right now that can earn you 80-100k/year, *and* you enjoy it, I don't know if it makes sense to switch.
I believe I can continue to pull in 10k-15k a year part time self employed no matter what other job I have.
Don't count on that.  When you snag a salaried white collar job, work demands on your time can far exceed 40 hours a week for sustained periods of time (read: years at a time).

Of course, you'll also likely be quite well paid for your suffering.  Any extra left over, however, after that part time 15K is taxed at the top marginal rate, will seem like pretty meager compensation in trade for just one good nights sleep.  ;)
« Last Edit: October 18, 2018, 06:27:23 PM by ILikeDividends »