Author Topic: How would you invest $2000 a month?  (Read 4411 times)

rybrad

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How would you invest $2000 a month?
« on: August 24, 2017, 04:20:24 PM »
A little background on myself. Turning 26 soon and planning on retiring early. I have a career lined up as a military officer. I plan on saving 20% of my salary in the Military Thrift Savings Plan and maxing out a Roth IRA every year. My goal is to retire at around 46 years old with the military pension. I also am planning on buying up quite a few rentals. I do have a solid side income of $2000 per month that I'd like to invest, but not sure how. If you had 2k to invest every month with the plan of retiring around 46, what would you do? Stock market index funds? Mutual funds? I have very little knowledge when it comes to investing. Thanks!

BigHaus89

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Re: How would you invest $2000 a month?
« Reply #1 on: August 24, 2017, 04:24:09 PM »


Mighty-Dollar

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Re: How would you invest $2000 a month?
« Reply #3 on: August 25, 2017, 01:20:59 AM »
Invest in a total stock market index fund like ITOT through E Trade. Every third month I'd invest in a total bond market index fund like AGG or BND.

moof

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Re: How would you invest $2000 a month?
« Reply #4 on: August 25, 2017, 08:16:33 AM »
With a 20 year horizon and a likely pension and a foundation I would open a Vanguard account and buy VTSAX.  Do your homework about whether your situation allows IRA, Roth IRA, or 401k style contributions to minimize taxes.

Aggie1999

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Re: How would you invest $2000 a month?
« Reply #5 on: August 25, 2017, 08:54:42 AM »
Vanguard account with ~70% in Total Stock Market (VTSAX) and ~30% in Total International Stock Market (VTIAX). Remember to fill all available tax advantaged plans that are available to you and fit your needs first.

Tonyahu

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Re: How would you invest $2000 a month?
« Reply #6 on: August 25, 2017, 11:24:30 AM »
A little background on myself. Turning 26 soon and planning on retiring early. I have a career lined up as a military officer. I plan on saving 20% of my salary in the Military Thrift Savings Plan and maxing out a Roth IRA every year. My goal is to retire at around 46 years old with the military pension. I also am planning on buying up quite a few rentals. I do have a solid side income of $2000 per month that I'd like to invest, but not sure how. If you had 2k to invest every month with the plan of retiring around 46, what would you do? Stock market index funds? Mutual funds? I have very little knowledge when it comes to investing. Thanks!

I am 26 as well. I would suggest:

60% Equities (Roth IRA)
20% Crypto-Currencies (Ethereum, Monero, Litecoin)
10% Cash
10% Silver

You are young. Look to the future. Take the "risk".

ChpBstrd

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Re: How would you invest $2000 a month?
« Reply #7 on: August 25, 2017, 01:45:21 PM »
VTI

Rubic

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Re: How would you invest $2000 a month?
« Reply #8 on: August 25, 2017, 03:36:35 PM »
In addition to the J.L. Collins series, I'd recommend Nord's Military Guide for Retirement:

http://the-military-guide.com/

Nords is also a frequent poster on these forums.

sol

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Re: How would you invest $2000 a month?
« Reply #9 on: August 25, 2017, 05:35:05 PM »
I would invest $2k/mo the same way I would invest $200/mo or $20k/mo.  The amounts don't really matter so much.

Nords

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Re: How would you invest $2000 a month?
« Reply #10 on: August 27, 2017, 01:11:00 PM »
In addition to the J.L. Collins series, I'd recommend Nord's Military Guide for Retirement:

http://the-military-guide.com/

Nords is also a frequent poster on these forums.
Thanks, Rubic!


A little background on myself. Turning 26 soon and planning on retiring early. I have a career lined up as a military officer. I plan on saving 20% of my salary in the Military Thrift Savings Plan and maxing out a Roth IRA every year. My goal is to retire at around 46 years old with the military pension. I also am planning on buying up quite a few rentals. I do have a solid side income of $2000 per month that I'd like to invest, but not sure how. If you had 2k to invest every month with the plan of retiring around 46, what would you do? Stock market index funds? Mutual funds? I have very little knowledge when it comes to investing. Thanks!
Welcome to the forums, Rybrad.

The first thing I'd do with an extra $2000/month (above/beyond military income) is use it for living expenses to ensure that I deducted at least $1500/month from my base pay to the Roth TSP.  That way its contributions are maximized each year ($18K) in the world's largest passively-managed index funds with the world's lowest expense ratios.

The next thing I'd do is maximize my annual contributions to my Roth IRA account.  Then you'd invest more in taxable accounts.

Finally, I'd try to save at least 40% of my gross pay among those three types of accounts.  (It's difficult as an O-1 or O-2, but it can be done.  After the promotion to O-3 it's a lot easier.)  Investing that in the TSP and other equity index funds will achieve financial independence in less than 20 years-- you will not even need a military pension.

That answers the "where" you'd put your money.  As far as "what", I'd choose passively-managed equity index funds with low expense ratios.  You can read more about choosing your asset allocation on the Bogleheads wiki:
https://www.bogleheads.org/wiki/Main_Page
Make sure you choose your asset allocation before you choose the specific funds.

Finally, take your military career one obligation at a time.  Don't just grimly clench your jaw and gut it out to 20-- that risks your physical, emotional, and even mental health.  (My readers and I have the testimony to back up that assertion.)  Instead, stay on active duty as long as you're feeling challenged & fulfilled.  When the fun stops, consider leaving active duty for the Reserves or National Guard. 

And remember that with a high savings rate you won't have to be tempted to stick around for the military's big bonus bucks.

If you have more questions about the military aspects of personal finance then please post here, or PM me, or e-mail me at NordsNords@Gmail.