The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: texxan1 on December 31, 2016, 02:01:21 AM

Title: Help with how and where i should put my free cash...
Post by: texxan1 on December 31, 2016, 02:01:21 AM
Ok, so I am so confused and don't want to really wait any longer to put some of my money to work.

So, im single, I have a paid for home, maxed 401k, cutting spending and have zero other debt.... where to next

I have 225k to invest now, but I know crap about how to go from here.. I want simple, nothing complex .

In the next year, I plan to invest the 225k I have, then approximately 12k a month, plus an additional 70k (lump from sale of a few boats) and all this is on top of putting 45k in my company 401k... So everything after my initial 18k in the 401 is after tax.

So ive looked at the vanguard index's. but not sure how to do it all.. Is the vanguard advisor worth the fee's? for someone like me that just wants to put it in and not look at it enough.

Overall goals is to FIRE in 2021 at age 49.5

If I take all my free cash and invest it, I don't understand yet how I can live of my 4% etc if I do Fire in 2021....

This forum is quite overwhelming because I do not know the basics.. Im good at saving money, and im good at earning money.. Im just retarded when it comes to what to do with the money I have.

Thanks in advance

Tex
Title: Re: Help with how and where i should put my free cash...
Post by: Metric Mouse on December 31, 2016, 03:46:40 AM
Call Vanguard. They'll help you set up an account and you can drop the money into the index plan of your choice. No need for advisors at this time.
Title: Re: Help with how and where i should put my free cash...
Post by: Heckler on December 31, 2016, 06:02:07 AM
https://www.bogleheads.org/wiki/Getting_started

Start here.
Title: Re: Help with how and where i should put my free cash...
Post by: talltexan on January 03, 2017, 01:58:40 PM
How does that $220 K compare to your annual expenses? If it's in the neighborhood of 20X them (which seems unlikely, but not strange on this forum), you won't need much appreciation at all.
Title: Re: Help with how and where i should put my free cash...
Post by: texxan1 on January 04, 2017, 01:57:55 AM
my annual expenses are about 32k these days... could go for less and will try, but not there yet... I spend zero besides US stateside bills when out of the country.. my company covers all expenses when in Azerbaijan...
Title: Re: Help with how and where i should put my free cash...
Post by: talltexan on January 04, 2017, 01:22:35 PM
If I'm understanding your numbers, you live on about $2,700/month while investing about $12,000 a month? That is a commendable savings rate!
Title: Re: Help with how and where i should put my free cash...
Post by: texxan1 on January 05, 2017, 12:39:35 AM
Yes, that about sums it up... This is fairly new to me though, as I have only had this new job since sept... Dramatic pay raise, and I just don't spend that much money...

I however, can invest all of my take home pay (14k a month) and put money in 401k maxed ... I have two other business's back in the states that will more than pay my 36 a year in expenses.

Just unsure of where to put it.. since it will all be after tax

Tex
Title: Re: Help with how and where i should put my free cash...
Post by: Metric Mouse on January 05, 2017, 04:32:42 AM
Yes, that about sums it up... This is fairly new to me though, as I have only had this new job since sept... Dramatic pay raise, and I just don't spend that much money...

I however, can invest all of my take home pay (14k a month) and put money in 401k maxed ... I have two other business's back in the states that will more than pay my 36 a year in expenses.

Just unsure of where to put it.. since it will all be after tax

Tex

Definitely recommend Vanguard. Admiral shares.
Title: Re: Help with how and where i should put my free cash...
Post by: financiallypossible on January 09, 2017, 10:54:59 AM
This forum is quite overwhelming because I do not know the basics.. Im good at saving money, and im good at earning money.. Im just retarded when it comes to what to do with the money I have.

Thanks in advance

Tex

That's a natural progression. I'd suggest reading some books on investing and making your money work for you. Books such as Rich Dad, Poor Dad and The Intelligent Investor.
Title: Re: Help with how and where i should put my free cash...
Post by: Shor on January 09, 2017, 11:01:57 AM
Yes, that about sums it up... This is fairly new to me though, as I have only had this new job since sept... Dramatic pay raise, and I just don't spend that much money...

I however, can invest all of my take home pay (14k a month) and put money in 401k maxed ... I have two other business's back in the states that will more than pay my 36 a year in expenses.

Just unsure of where to put it.. since it will all be after tax

Tex

Definitely recommend Vanguard. Admiral shares.
You want simple and straightforward, just throw it all in Vanguard and watch it multiply day after day.
But you're going to retire soon anyway, right? :D