Hello. I'm new here! Very excited about this forum!

[jnw]

I'm 47, nothing saved for retirement but I do have all my debt paid off except mortgage.  Going to be doing max Roth IRA investment each month and pay off mortgage aggressively.  Should have mortgage paid off in 3 1/2 years.  Then I will put all the remaining money I don't max the Roth with, into index funds and certain securities like AAPL, AMZN etc.. (ones I believe in.. big apple and amazon fan.. use them both everyday).

I am now asking myself questions before I part with even a penny.... does purchasing this item make my life truly better? Also, can I buy this item for 1/10th of fair market value on facebook / craigslist instead?  Will the item I get depreciate?  Is it built really well to safeguard against damage / depreciation from use? etc. 

I am at the point where I better put as much as I can into retirement now, because there is no way I can live on social security benefit alone.  Wish I had all this wisdom 25 years ago I would of had never had to go into debt (to where I had to file bankrupcy 16 yrs ago), and I would of dollar cost averaged into an index fund and ignored the market fluctations over the decades.

Jennifer

Interesting/silly fact about me: I spend $5 per month on $1 Lotto America tickets; I don't think I can break this habit even though I know I will never win :). If I ever did win the $5 million, I'd take $50k each and throw it in trust fund, invested in S&P 500 index fund VOO), for all my relatives.  I'd take $2.5 million of it and throw it in S&P 500 index fund to be paid in its entirety to charity when I pass.  Wish me luck! LOL.

[matchewed]

Well I'm going to jump in and say that if the goal is to max out your savings then depending on what country you are from and your interest rate paying off your mortgage will cost you more money than just paying the standard payment and investing the difference.

[jnw]

Matchewed, thanks for the reply.

Well my interest rate isn't the best, it is at 4.65%.  I know that when I pay it down, before investing in non-retirement brokerage account, that it is a guaranteed return of 4.65%.  Average S&P 500 over the years is around 9% return I realize, but we've had quite a few years of incredible growth lately and I fear a bubble or something else which could actually bring the market down for the next few years.   With any luck, for myself, there will be a small recession during the time I am paying off the home, so after I pay it off, I will be able to buy the securities at much lower prices :). I just like the safety of the guaranteed 4.65% return.

Another thing I've been considering is investing $5k in solar panels (DIY).  A guaranteed investment with great return assuming they dont' get stolen, vandalized or destroyed from hailstorm (live in oklahoma and hail is bad here).  Renting this home and buying another has crossed my mind, but I am disabled and I think it would be too much for me.. investing in index fund seems easier and probably get me as good or better return than renting home?

Thanks for the advice.

[matchewed]

So now you will advocate timing the market and paying off the mortgage. Ok.

FWIW I would read more of this forum. There are several topics on just those two things alone that may help guide you in a more optimal direction given your circumstances as vague as  they are.

[RWD]

Welcome to the forums!

Going to be doing max Roth IRA investment each month and pay off mortgage aggressively.  Should have mortgage paid off in 3 1/2 years.

Why Roth IRA instead of a Traditional IRA? Do you have access to a 401k? Don't pay down your mortgage unless you're planning on selling your house in the near future. A rate of 4.65% is pretty good after you subtract inflation and possibly tax deductions. You especially shouldn't be paying extra on the mortgage if you haven't maxed a 401k/403b/457 yet (if applicable). Relevant reading material:
Investment Order
Mortgage payoff discussion

[...] and certain securities like AAPL, AMZN etc.. (ones I believe in.. big apple and amazon fan.. use them both everyday).

Just stick to index funds. You'll be buying plenty of Apple, Amazon, and the like with that. No need to overweight your portfolio. Relevant reading material:
https://jlcollinsnh.com/stock-series/

[DeskJockey2028]

I second and third what other's are saying here. Stick with the Index funds and take a good, hard look at which IRA will be best for you. Purchasing Index funds means you will have a bit of Apple and Amazon in your portfolio. As well as a bunch of other companies who's names don't start with A. Diversity, simplicity and low fees are the key, I think.

Also, know that you are not alone here in a sea of 20-30 year olds. At least, it can seem that way sometimes. I'm 46 myself and just into my 2nd year of actively working towards FIRE. I won't be done until I'm about 56 but that's okay, it's far better than my previous plan of working until I'm dead!

I'm 47, nothing saved for retirement but I do have all my debt paid off except mortgage.  Going to be doing max Roth IRA investment each month and pay off mortgage aggressively.  Should have mortgage paid off in 3 1/2 years.  Then I will put all the remaining money I don't max the Roth with, into index funds and certain securities like AAPL, AMZN etc.. (ones I believe in.. big apple and amazon fan.. use them both everyday).

I am now asking myself questions before I part with even a penny.... does purchasing this item make my life truly better? Also, can I buy this item for 1/10th of fair market value on facebook / craigslist instead?  Will the item I get depreciate?  Is it built really well to safeguard against damage / depreciation from use? etc. 

I am at the point where I better put as much as I can into retirement now, because there is no way I can live on social security benefit alone.  Wish I had all this wisdom 25 years ago I would of had never had to go into debt (to where I had to file bankrupcy 16 yrs ago), and I would of dollar cost averaged into an index fund and ignored the market fluctations over the decades.

Jennifer

Interesting/silly fact about me: I spend $5 per month on $1 Lotto America tickets; I don't think I can break this habit even though I know I will never win :). If I ever did win the $5 million, I'd take $50k each and throw it in trust fund, invested in S&P 500 index fund VOO), for all my relatives.  I'd take $2.5 million of it and throw it in S&P 500 index fund to be paid in its entirety to charity when I pass.  Wish me luck! LOL.

[RWD]

Purchasing Index funds means you will have a bit of Apple and Amazon in your portfolio. As well as a bunch of other companies who's names don't start with A. Diversity, simplicity and low fees are the key, I think.

Apple, Microsoft, Amazon, Alphabet (Google), and Facebook comprise 12.1% of VTSAX. That's a pretty healthy weighting of the top tech stocks.

[BTDretire]

 There is only one way to look at this, you have 19 years before you're 66yrs old, do I want to get there with or without a sizable nest egg.
  You have plenty of time to make I major change in your retirement.
 I'm with others, forget individual stocks and just invest in VTSAX.
 You said' "I would of dollar cost averaged into an index fund and ignored the market fluctations over the decades." Exactly what you need to do now!
 Yes, buy used when you can and even then there are deals and patience will get you a better deal.
 Congratulations on finding the inspiration, just keep slogging away. It works!

[jnw]

Thanks for the replies, going to re-read them but regarding retirement contributions:

Roth IRA is best for me because the majority of income is from Social Security Disability, which is unearned income -- none of that can be used for retirement account.  I am part time self-employed, reselling on ebay and craigslist where I make around $7-8k per year (about 1 hour per day of work) which I only pay $500 taxes on (self employment tax) due to earned income credit; none of my SSDI income is taxed on federal or state level because my AGI is low enough.  So therefore Roth IRA is definitely ideal.

For investing, I plan on putting max IRA contribution of $6500 per year using self employment income.   And about another $1000 or more per month of unearned income into regular investment account, after I pay off home.

[jnw]

Regarding VTSAX, why that one over say VOO?  I was considering VOO.  I just opened a Vanguard Roth IRA account the other day.

[jnw]

Also, know that you are not alone here in a sea of 20-30 year olds. At least, it can seem that way sometimes. I'm 46 myself and just into my 2nd year of actively working towards FIRE. I won't be done until I'm about 56 but that's okay, it's far better than my previous plan of working until I'm dead!

Congrats, I am so happy you most likely will be able to retire at 56!    One thing though about me is I don't think I could ever fully retire.  I am just having too much fun hitting the flea markets, thrift stores, garage sales, estate sales, craigslist, facebook marketplace, for deals where I buy items for 1/10th to 1/2 fair market value and end up reselling them on ebay/craigslist/facebook, for crazy good profit.   It's easy because I always hit these places already before I even did a little side business, to buy things affordably for my household. I can work when I want, how much I want and can even take vacations when I want.  I'll probably resell things on ebay/facebook/craigslist until I die lol.. or am unable to move.  Brings me in $500-750 extra income per month at 1 hour per day of work.

[Retire-Canada]

Congrats on finding this site. I only found it in 2014 and I'll turn 50 next year. Better late than never! Keep reading and learning there is lots of good information to be gleaned.

[One]

Matchewed, thanks for the reply.

Well my interest rate isn't the best, it is at 4.65%.  I know that when I pay it down, before investing in non-retirement brokerage account, that it is a guaranteed return of 4.65%.  Average S&P 500 over the years is around 9% return I realize, but we've had quite a few years of incredible growth lately and I fear a bubble or something else which could actually bring the market down for the next few years.   With any luck, for myself, there will be a small recession during the time I am paying off the home, so after I pay it off, I will be able to buy the securities at much lower prices :). I just like the safety of the guaranteed 4.65% return.

Another thing I've been considering is investing $5k in solar panels (DIY).  A guaranteed investment with great return assuming they dont' get stolen, vandalized or destroyed from hailstorm (live in oklahoma and hail is bad here).  Renting this home and buying another has crossed my mind, but I am disabled and I think it would be too much for me.. investing in index fund seems easier and probably get me as good or better return than renting home?

Thanks for the advice.

Sounds like a good plan!

[BTDretire]

Regarding VTSAX, why that one over say VOO?  I was considering VOO.  I just opened a Vanguard Roth IRA account the other day.

VOO is the S&P 500 stocks, VTSAX is "Vanguard Total Stock Market Index Fund is designed to provide investors with exposure to the entire U.S. equity market, including small-, mid-, and large-cap growth and value stocks."
 I think it has about 3800 stocks in it.
Peformance over the last 5 years is pretty pretty pretty close. (for "Curb your enthusiasm" fans)
Here's a Yahoo chart of VOO compared to VTSAX.
https://tinyurl.com/y73zmvj7