Outside investments

Other Investments

Moderator: Aitrus


User avatar
mjedlin66
Site Admin
Posts: 1400
Joined: Wed Oct 02, 2013 7:51 pm

Re: Outside investments

Post by mjedlin66 »

ArrieS wrote:
mjedlin66 wrote:What do you recommend?


Well, do you have a plan for if she doesn't get the job? You talked a lot about what you'll do if she get's it but nothing about if she doesn't.

What would it look like if she didn't get the job?

Also,

Have you asked about help with your student loans? I have a feeling your organization may have something in the lines of 10K for a three year commitment. Just check if you can get someone else to pay your debts for you first. Just remember you'll owe tax on that money.


If she doesn't get the nursing job, then she will work somewhere else until she does get the nursing job. My income is enough for me to both max Roth TSP and support two people. Even if she is only making minimum wage, that is enough to fully fund both Roth IRAs.

But I probably will sit on the proceeds from the house until she does get picked up by the hospital.
Owner/creator of TSPcalc.com - "Know your numbers"

User avatar
ArrieS
Posts: 1072
Joined: Sun Aug 05, 2012 10:56 am

Re: Outside investments

Post by ArrieS »

mjedlin66 wrote:But I probably will sit on the proceeds from the house until she does get picked up by the hospital.


If you don't mind high volatility than invest it. The trick is to know yourself and that you won't really panic and sell it if you suffer a large lose. That's also if you're comfortable with carrying the debt.

The debt will be an instant return based on the interest, but it can't compound. If you invest the money it can compound which has a multiplier that the debt won't have.

So if you're okay with high volatility and can sleep at night with your debt, then invest it. Personally I'd shove it into a REIT or VYM (Vanguard High-Dividend ETF), reinvest the Dividends, and forget about it except for once a year when I have to pay taxes on the pay outs.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

User avatar
mjedlin66
Site Admin
Posts: 1400
Joined: Wed Oct 02, 2013 7:51 pm

Re: Outside investments

Post by mjedlin66 »

ArrieS wrote:
mjedlin66 wrote:But I probably will sit on the proceeds from the house until she does get picked up by the hospital.


If you don't mind high volatility than invest it. The trick is to know yourself and that you won't really panic and sell it if you suffer a large lose. That's also if you're comfortable with carrying the debt.

The debt will be an instant return based on the interest, but it can't compound. If you invest the money it can compound which has a multiplier that the debt won't have.

So if you're okay with high volatility and can sleep at night with your debt, then invest it. Personally I'd shove it into a REIT or VYM (Vanguard High-Dividend ETF), reinvest the Dividends, and forget about it except for once a year when I have to pay taxes on the pay outs.


Sure. I've already slept at night knowing I invested a lot of money instead of using it on debt. Financial planning has paid off well.

Regarding your student loan payment idea, I did that back at the Shipyard, but my current command doesn't offer it.
Owner/creator of TSPcalc.com - "Know your numbers"

TSPBuilder
Posts: 256
Joined: Tue Jun 19, 2012 2:14 pm

Re: Outside investments

Post by TSPBuilder »

mjedlin66 wrote:Greetings,

I am 26, recently married to a 25 year old wife. We are in the middle of a move to Okinawa, I am already here and my wife is a month out. I am employed as a GS-12 engineer and she is leaving a job as an RN in the hospital back home. She is expecting to hear back about a GS-11 RN in the naval hospital soon, but will be otherwise unemployed shortly.

We own two houses. One will go up for sale next month, and the other is rented for slightly more than the mortgage payment (12 years left on fixed 15 year, 3.5%). I estimated what I will be pocketing after the house is sold, taking into account realtor fees and excise taxes. I estimate that once all of our bills are paid, and we max both of our IRAs and my TSP, that we will have 30-40k to invest. I plan on maxing both IRAs and both TSPs (assuming she gets picked up by the hospital) for the rest of our careers. So I am suddenly faced with 30-40k that I have to invest in something other than the only investment vehicles I have ever known (other than real estate).

We have about 30-40k in combined student loan debt, so the idea of being debt free is certainly appealing. However, we have both been aggressive with our high-interest loans so the remainders are all 3-6% that we could easily pay off in the next 2-3 years. I think that we could beat 3-6% return with an outside investment.

What do you recommend? We have no problem putting this money away in high risk for the LONG haul. We are young, and we don't need it. It is a good problem to have.


Just curious what you decided and how it's working out for you.

Also, how did you invest in the TSP (Traditional, Roth, both, percentages)?

Post Reply

Fund Prices2021-05-07

FundPriceDayYTD
G $16.58 0.00% 0.43%
F $20.72 0.00% -2.27%
C $63.32 0.75% 13.24%
S $82.16 1.32% 10.72%
I $38.76 1.29% 9.51%
L2065 $13.84 1.02% 11.49%
L2060 $13.84 1.02% 11.49%
L2055 $13.84 1.02% 11.49%
L2050 $28.21 0.84% 9.30%
L2045 $12.88 0.79% 8.73%
L2040 $47.05 0.73% 8.19%
L2035 $12.44 0.67% 7.54%
L2030 $41.46 0.61% 6.91%
L2025 $11.77 0.48% 5.47%
Linc $22.89 0.23% 2.76%

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".

What else

"Don't ever half-ass two things. Whole-ass one thing."
- Ron Swanson