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Learning, Sharing, and Teaching => Investor Alley => Topic started by: sergey_1989 on November 04, 2012, 03:56:05 PM

Title: Need an investment advice
Post by: sergey_1989 on November 04, 2012, 03:56:05 PM
Hello everybody,

I've read MMM blog since the day one of his articles was published on Lifehacker. I wouldn't say that it completely changed my life (I was born in Russia and raised in a frugal family), but I decided to live even more modest to be able to save most of my income and retire early.

I'm an international student who just graduated with a Bachelors' degree. I work for a small state college and earn decent salary. My state has also one of the lowest costs of living, so I'm able to save about 60 to 75% of what I make. My problem is that I don't know how to invest (given my situation).

First of all, I'm not yet eligible for my employer's retirement plans (they match up to 8% - but only after I've been here for 2 years). Second, I'm not sure whether I'll stay in the U.S. for very long time. While I certainly wouldn't want to go back to my country, I'd like to travel around the world and live in several countries. Third, I may need what I saved to pursue a Master's degree next year or the year after.

I thought about using LendingClub or Prosper, but they are still not available in my state. Also, I'm not a U.S. Citizen and not even a resident, so I'm not sure if they would allow me to invest even if I moved across the river to another state.

I would prefer to invest in something that pays more than 1 or 2% when using savings accounts or CDs. I don't want to spend too much time picking stocks or watching my portfolio either. Basically, I would prefer to transfer money and let it sit there and earn interest until I need it in the future.

Could you please recommend something?
Title: Re: Need an investment advice
Post by: gooki on November 04, 2012, 06:49:23 PM
Vanguard index funds.
Title: Re: Need an investment advice
Post by: simonsez on November 05, 2012, 09:24:58 AM
While you are in the US, see if your state job qualifies you for a 457(b) plan in addition to a 401(k).  Not only could you double the amount you save in pre-tax accounts (35k instead of 17.5k in 2013) but there is also no 10% early penalty for withdrawing before age 59 1/2.