Financial Advice - Vanity

[Rural_Michigan]

I spend a lot of time browsing FR, and have noticed a lot of FReepers have a lot of knowledge/opinions pertaining to finances. There also appears to be a good number of Freepers who are about retirement age with a good conservative viewpoint. Taking into consideration current events and the steady devaluation of the dollar, my question to the experienced Freepers out there is this:

Let's say you're 25, are debt free, make no car payments, earn O-2 pay and are unmarried. You don't have any retirement accounts but are apprehensive of starting an IRA or contributing to a Thrift Savings Plan because of general mistrust of the government and banks as well as the global economic system. You think metals are worthwhile, and buy small amounts of silver on an irregular basis. Other than that, all your savings goes into a savings account.

What would you do to prepare for retirement?

[Errant]

Sounds like you've made some good moves. If I were you, I'd look at using some of those savings during this time of low interest to invest in land someplace, to serve as both a possible retreat and for future revenue from timber sales, mineral revenue, tax breaks, and etc.

You're best bet for retirement is to stay in long enough to become a general in charge of a future force of freedom fighters thereby earning not only a nice monthly subsistence allowance, but respect and acclaim as well.

Btw, I wouldn't wait too long before tying the knot with some little sweet thang so you can start repopulating Michigan. ;)

[CGASMIA68]

TSP and VWINX

[Free Vulcan]

I’m almost there. Glad I was raised in farm country, it makes it easier to get into the lifestyle.

[Delta 21]

Buy GUNS ! ! !

All you can afford for as long as you can afford to and hoard them as long as you can them dump ‘em on the yuppies for loads of cash.

[Leaning Right]

Get a low-cost Roth IRA. Look at Fidelity or Vanguard. Invest in a “target” type fund. Pick one that matches your risk tolerance (the further out, the riskier). Do the max investment if you can. These funds automatically become more conservative (less risky) as the years go by.

For example, a target 2020 fund would now hold lots of bonds. And even more bonds at year 2020 and beyond. But a target 2030 fund would now hold mostly stocks. As you get closer and closer to the year 2030, the fund manager will be automatically selling off the riskier stocks and buying the more conservative bonds.

But as others have said, diversify! Put some money into precious metals, and some money into quality real estate.

But a Roth IRA has enormous tax benefits, especially for a young (under 40) person. Ignore the Roth IRA only if you think that the sky is probably going to fall between now and 2030.

And who knows, maybe the sky just might fall! That's what diversification is all about. But those folks who invested in bomb shelters, and not stocks, in 1970 are kind of hurting financially now.

[Cold Heat]

Stay away from the tax exempt plans..Keep diversification in mind but you cannot do that right away so you start with a managed plan, non exempt that knows how to make money long, short with a mix of corporate debt and bonds. They protect your investment capital in up or down markets. You let them manage it and perhaps at some point you might feel froggy enough to take over some of that responsibility yourself...as you learn.

As your nest egg grows you want to be actively monitoring it, asking questions, asking for advice...One day you will do it all yourself.

As to metals...some advisers think that 10-15% should be in precious metals, gold, silver, platinum. I have always avoided them because they take a lot of time to gain value and not very much time to lose it. I'll leave that up to you, but you can't eat it or spend it and it costs money to store. I personally like the exchange traded ETFs...

The biggest hurdle you have to jump is to get started. The sooner you do that the better and the rest will become evident as you progress..It's not rocket science.

[JRandomFreeper]

All you can afford for as long as you can afford to and hoard them as long as you can them dump ‘em on the yuppies for loads of cash.

That has some merit to it. I paid for culinary school by selling a lot of my collection.

Some of them had appreciated quite a bit.

/johnny

[Rural_Michigan]

Thank you all. Great insight and entertaining too! Freepers are the best. I’m a lurker and use FR as a sanity check while I’m stuck at work spending the government’s money.

My only retirement goal is to own 40 acres of good midwest soil in a quiet corner of the world and enjoy friends, family and freedom - if it still exists.

Many good insights, thank you all.

[B4Ranch]

Pay yourself 1st. Every month make sure you put money away for tomorrow. Do NOT expect that you will receive one dime for retirement from anywhere except your own investments. Do not count on the government for retirement or healthcare.

Today’s Congress thinks less of you than Kissinger thought of us Vets. They prove that with their vote. “Military men are dumb, stupid animals to be used as pawns for foreign policy.” — Henry Kissinger

Think about what you want to do when you finish military service. Get all the education you can stand. Learn skills in different fields that are valuable in the civilian world. Look over the horizon for tomorrow’s sunrise and you’ll never be surprised at what happens.

Trust in Jesus to protect you and guide you through life.

Stay safe

Thanks for your service.

[Leaning Right]

Oh, and I want to add one more thing to my post #25. I really like the tax advantages of a Roth IRA. But 401k plans are also good, especially if your employer matches your contributions.

If you can fund both retirement plan types within your overall diversification strategy, all the better. But remember, part of your strategy should be to spend some of your money on yourself, today.

I've seen folks save too much money. They traded their youth for dollars. Not so good. I've seen others not worry about tomorrow. They are now 70-year-old janitors. Also not so good. Find the right balance, my FRiend.

[carlo3b]

What is coming will make the Great Depression look like a Sunday picnic, and we will all be lucky to live thru it.

Bingo.. I'm sad to say it should have happened in 2008-9, it would have recovered in 2 years in much better shape than anything that is about to descend on us now, with all of this extra debt, and devalued currency..

We were a much stronger nation back in '08, stronger attitude, more robust economy, no Obamacare, even the Democrats wouldn't have been able to suggest it, and had a stronger workforce..

The national psyche is horrible, and don't laugh, it matters in a crises, especially one with the global dimensions that this one will have.. ugh

[Attention Surplus Disorder]

Opinion:

What you are doing is almost completely correct, just keep socking it away.

If you can achieve an employer match for an IRA contribution, you should do that.

My belief is that people get very, very convinced that the USD is "steadily being devalued." My warning to you is that this is a popular meme and is largely untrue.

I myself like silver, but as one who has held and holds now and has traded it for many, many years (longer than you've been alive) IMHO it goes utterly nowhere for 2-3 years. Maybe 5 years. I could not be more neutral on PMs.

Your cash is not being devalued as per the popular chant.

I would be gathering cash and waiting for a swoon in the stock market and looking to pick away at very nice div paying stocks. I appreciate that the market has come a massive way since 3/9/2009. There are giant stocks that pay great dividends...certainly not without risk, but at your age, the risk is greater that you do not keep up with the market. INTC pays > 4%. You can buy Conoco COP and get > 4% yield. And there are plenty more, you don't have to look under rocks for undiscovered jewels. When you buy such stocks, you're not just buying stocks, you are buying the management that those companies have, which is world class, and you cannot argue otherwise in most cases. if you don't like indiv issues, you can buy SPYders. Do not fear cash on the basis of it "begin devalued". That is factually wrong. You have cash, there will come a day when you should be able to buy distressed assets at 20 cents on the dollar. Keep your eye out for opportunities of that flavor that appeal to you. And do not shun the notion of say, going into >>manageable<< debt to purchase a duplex or triplex where you can live in one unit and rent the other(s) to offset your living expenses. Just check your property taxes and realize that in the grossest of gross terms, what you take home from a rental is typically 45% of what the tenant pays. But if you are interested in such, you'll study RE much more closely.

Your age is absolutely magnificent to get into cashflowing real estate, especially if you can both buy something reasonable so it can attract a reasonable class of tenant, and if you can fix a thing or two on your own w/o calling in external help for everything.

You may wish, if the RE aspect appeals to you, to take a loan broker to lunch and to investigate what price of property you could buy if you wanted to. How much down payment would be req'd, and how much you could finance on your income. Other factors of course come into play, such as how long you wish to stay in your current area, but if you think it is stable and plan to stay there for 7-10 years, the future being a thing nobody can predict, a duplex or triplex could be a neat thing for you.

[Free Vulcan]

I know. It’s amazing how much we’ve went to hell in just 5 short years. It’s like we just chase our tails anymore.

[T-Bird45]

Just an FYI on land prices: I know of 160 acres of Central KS “good Midwest soil” being sold for just under $2k/acre this past fall. Even better land in corn country is going for more than that so structure your savings plan accordingly.

[Tagurit]

Real Estate.
Consider purchasing a duplex for rental income. If a tenant bails you still have the other tenant paying the mortgage. Put these in a corporate name and the expenses will be tax deductible and the income will be deferred, Years down the road these will be paid off and will be pure income or sell for a large chunk of cash.
If the SHTF really happens, you can live in one half and let the other half pay your mortgage,
I wish I owned a dozen of them now!

[Innovative]

Some recommended real estate - — it can be good or a total disaster.

In your situation, you may consider a house or rental in the area you live, after much research. Highly recommend against buying in areas you are not familiar with. I know people who bought land 30-40 years ago and it is still not worth anything and also people who bought real estate in cities, which appreciated a great deal. The saying in real estate: “location, location, location” is absolutely true.

Don’t ever buy in areas you aren’t personally familiar with — land, house or rental property.

I personally know people who actually started out with a decent amount of money and went totally, I mean totally broke by buying the wrong kind of real estate, believing the rosy future pictures that never materialized.

[caww]

Well worth repeating:

“Best advice I can give anyone is to ‘live well below your income level’ and ‘have a plan’, for everything”......

It doesn’t get any better for sound financial advice then that!

[combat_boots]

Land and planted trees, like Dick Lugar’s black walnuts, would be a good, long-term investment.

[killermosquito]

If coal stocks can survive I think they are an opportunity.

I read an article on 24Jun2013 about what 0bama was going to do to the coal industry and it made me angry to I bought 175 shares of ACI at 3.639.

Probably not the best way to buy stocks but I’m up 16%.

[bert]

I would start by purchasing this new and informative book

The last two chapters provide the information you are looking for.

Code Red: How to Protect Your Savings From the Coming Crisis by John Mauldin and Jonathan Tepper (Oct 28, 2013)

http://www.amazon.com/s/ref=nb_sb_ss_i_0_8?url=search-alias%3Daps&field-keywords=code%20red&sprefix=code+red%2Caps%2C190&rh=i%3Aaps%2Ck%3Acode%20red

Then, subscribe to John Maudlin's weekly news letter and read it. Sometimes it is hard but over time the picture he wants to convey will emerge.

http://www.mauldineconomics.com/subscribe

Then, subscribe to Forbes and read it from cover to cove every two weeks.

WWW.forbes.com

Doing this will provide you with lots of information that will gel into a course of action