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Investing

I have the aggressive growth fund with USAA as my Roth IRA. max it out every year, and it has had good performance to date. it isn't rated as highly as i thought it would be compared to other funds, even with it's solid performance in the past few years. It is a long term approach only, although if you are doing an IRA, that's pretty much long term anyways... something to look into if you want.
 
I'm currently on the Extended Market Index Fund (USMIX) from USAA for my Roth IRA.
 
Wow. Didn't expect this much response, to be honest--thanks to you all.

Right now I'm gearing towards a very long term approach with my Roth IRA, going all index funds for the exact reasons Steve mentioned, and I'm not worrying at all about a life insurance policy beyond SGLI. I thankfully have zero debt of any kind, which is a blessing.

I've also considered putting together a CD ladder on top of my savings account reserve to provide me with an even larger safeguard against calamity and to help that money grow while it sits--any thoughts on that? My savings account has a pretty good interest rate, so maybe that doesn't even really make that much sense.

I guess the big motivation for me to start this thread was to see if anyone has had any experience with some of the larger companies out there that offer index mutual funds for minimal fees. I'm thinking along the lines of T. Rowe Price, Janus, Fidelity, and I know I'm forgetting a few others but I can't think of them off the top of my head. Play Devil's advocate with me.

I'm leaning away from USAA because I've not heard good things about their investing arm (I've been a member since I was a freshman in ROTC, and love them to death for banking and insurance) and because they don't have much options I would exercise that I don't already have in the TSP.

I don't know much/anything about several of the companies you've mentioned--how did you find out about them, and what made you decide to go with them? I'm not really interested in selling as much as I am in buying and holding long-term, so would TD Waterhouse / Scottrade be anything I should look into? And don't brokers just try and sell you the stuff they've got to get rid of?

Thanks again for all the input!
 
othromas said:
I've also considered putting together a CD ladder on top of my savings account reserve to provide me with an even larger safeguard against calamity and to help that money grow while it sits--any thoughts on that? My savings account has a pretty good interest rate, so maybe that doesn't even really make that much sense.
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I'll tell you what...Countrywide has a very nice return on CDs right now and great company to work with (I just got a 60-month for 5.1%).

I also found ING Direct. Right now, on new deposits, you get 4.75% for the rest of this quarter and then it goes back to it's regular rate: 3.8%...which will beat out all money markets I have ever found...great rate, fluid investment. The deal is that you link any checking account to ING and transfer in-out like a savings account. You DO need 3 business days on either side (the catch), but you don't have the money tied up for days at a time AND you make 3.8% on it.

~D
 
othromas said:
I guess the big motivation for me to start this thread was to see if anyone has had any experience with some of the larger companies out there that offer index mutual funds for minimal fees. I'm thinking along the lines of T. Rowe Price, Janus, Fidelity, and I know I'm forgetting a few others but I can't think of them off the top of my head. Play Devil's advocate with me.
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Sounds like you have a good handle on this already, and are way ahead of the pack regarding investing. The most important thing is to just do it - and do it consistently and repeatedly, over time. Time will heal any mistakes along the way, and time will also light the magic fire of compounding.

Your interest in Vanguard is justified. Excellent company with low fees. Janus and Fidelity are a little expensive. Janus had some serious problems a few years ago, and many of their investors bailed for some ethical stuff. Fidelity has an excellent variety of funds, but their fees are a little high, also. If you are interested in only a mutual fund, there is really no need to go through a broker. Even a discount broker like TD Waterhouse will charge a small fee, which can be avoided by investing directly with your selected mutual fund.

[Incidentally, I have accounts with all the above-mentioned mutual funds in addition to USAA, and I maintain 2 brokerage accounts, one with TD Waterhouse, so I have a little experience with each.]

There are many funds, and each fund has their stars and pigs. You might want to do a screen. Morningstar has one at
http://screen.morningstar.com/FundSelector.html?fsection=ToolScreener

You're definitely on the right track. Pick your fund, pick up the phone, and start investing for the long haul. Good luck!
 
Thanks for the input, sir, and for everyone else as well--you've all given me the catalyst to get off my duff and (not to be cliche) just do it.
 
I'm with bch about USAA. They have performed well.

God isn't making any more dirt, either. I buy land whenever the situation is right. This has made more than a fair chunk of money for me. Some of it is luck, some of it is intuition.
 
Great question, thanks for getting this thread started

I've spent most of my money investing in Real estate, and do not have any experience in funds/stock market at all. I'm looking into opening and maxing out two TSP accounts (my wife is a federal employee as well), and two traditional IRAs. For you experienced folks, Is there a better way to invest the 40,000 annually I've earmarked for this? I'm looking at a 21 year window remaining. Any thoughts on the L funds in the TSP? Thanks in advance for any assistance/info! Nice board ya have here.
 
I would max out your Roth IRAs before anything else, then go for whatever TSP allows both of you to contribute.

Brett
 
64gunpilot said:
I've spent most of my money investing in Real estate, and do not have any experience in funds/stock market at all. I'm looking into opening and maxing out two TSP accounts (my wife is a federal employee as well), and two traditional IRAs. For you experienced folks, Is there a better way to invest the 40,000 annually I've earmarked for this? I'm looking at a 21 year window remaining. Any thoughts on the L funds in the TSP? Thanks in advance for any assistance/info! Nice board ya have here.
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Unless you and your wife make too much and don't qualify for a Roth IRA, the Roth really is a better deal than a Traditional. The Traditional has it's place, such as if you are just barely in a higher tax bracket, and you want to bring your AGI down to the lower bracket. However, if that's not the case, then Roth all the way--grows tax deferred, and distributions are tax free.

A 21 year window is a fair amount of time. Is this until retirement at 65, or just when you will retire from the Army? The reason I ask is because depending on that and your age, you may want to consider a more aggressive fund than one of the L funds.
 
Roth IRAs

Good point on the Roth IRAs. I retire from the military in 8 years, used 21 years as the time I figured I'd be ready to begin distribution to some degree (65). The L funds did seem a little conservative to me, but I didn't know for sure. My gut says be more agressive and put more in the S and I funds, but they appeared to be particularly volatile following 911, whereas the C fund seemed to hold it's own. Any recommendations for specific Roth IRAs?
 
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