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Investing

Great thread. While we're talking about investing, I'm in OCS right now and will probably take out the $25,000 commissioning loan which has just a 1.9% interest. I'm going to pay off my car which is $15,000. Should I still take out the full $25,000 and use the other $10,000 in a money market account of some sort? Maybe that ING company that someone mentioned?

In addition to this, I plan on maxing out a Roth IRA and putting some money in the TSP.

I'm new to this whole game, any advice helps.
 
Brett327 said:
I think what Steve was implying is that you shouldn't get life insurance as an investment.

Brett
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Which is what part of whole life insurance is....an investment. My opinion...there are better places to put your money for retirement.
 
Jr KLR said:
Great thread. While we're talking about investing, I'm in OCS right now and will probably take out the $25,000 commissioning loan which has just a 1.9% interest. I'm going to pay off my car which is $15,000. Should I still take out the full $25,000 and use the other $10,000 in a money market account of some sort? Maybe that ING company that someone mentioned?

In addition to this, I plan on maxing out a Roth IRA and putting some money in the TSP.

I'm new to this whole game, any advice helps.
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Well, you're not really going to pay off your car, but I know what you're saying. Without technically doing so, you'll just be refinancing at a lower rate. Definitely do that (as well as pay off any credit card debt accumulated). Take the other 10K and max out your Roth as you already suggested. TSP is going to come out of your base pay, special pays, bonuses, etc, not the loan from USAA. Take the extra 6K after you max out the Roth and stick it in a brokerage account (money market) and start building an emergency fund. For civilians, the recommended amount is 4-6 months of your pay. Since the Navy tends to give a little better notice when they "fire" someone, you probably don't need 4-6 months worth. I would recommend between 10-15K depending on your comfort level and whether you will be owning a home. Think of it this way. The point of the emergency fund is to have a cusion when things come up. And they DO come up. Most people tend to disregard the whole notion of the emergency fund because they want to think there will be no emergecy. Don't be that person.
 
Speaking of which, I had the pleasure of shunting a big part of my bonus installment into my various mutuals today - it was like being a kid in the Vanguard candy store. :D

Brett
 
I recommend Schwab. I had several accounts there and ended up moving them to a broker for some more "professional" advice, but after a few years and absolutly nothing to show for it but his recommendation of ENRON and losing a lot, I moved back to Schwab.

I also like MAD MONEY and Jim Carmer for recommendations.
 
Sabre170 said:
I recommend Schwab. I had several accounts there and ended up moving them to a broker for some more "professional" advice, but after a few years and absolutly nothing to show for it but his recommendation of ENRON and losing a lot, I moved back to Schwab.

I also like MAD MONEY and Jim Carmer for recommendations.
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Full service brokers are for suckers, and Kramer is an idiot as are all those "financial management" people. Best money you can spend WRT investing is a subscription (or daily access) to the WSJ, Money magazine, and become a paying member of Morningstar.com.

Brett
 
Sabre170 said:
I recommend Schwab. I had several accounts there and ended up moving them to a broker for some more "professional" advice, but after a few years and absolutly nothing to show for it but his recommendation of ENRON and losing a lot, I moved back to Schwab.
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Schwab is a broker.

Sabre170 said:
I also like MAD MONEY and Jim Carmer for recommendations.
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BOOYAH!
 
Brett327 said:
Full service brokers are for suckers, and Kramer is an idiot as are all those "financial management" people.
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Jim Kramer is much like Brett....you either love him or hate him.

Brett327 said:
Best money you can spend WRT investing is a subscription (or daily access) to the WSJ, Money magazine, and become a paying member of Morningstar.com.
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WSJ and IBD
 
Steve Wilkins said:
Jim Kramer is much like Brett....you either love him or hate him.

WSJ and IBD
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I take pride in my polarizing effect. I'm much more comfortable knowing that some people want me dead, than if everyone were a suck-up syncophant. :D

Brett
 
Finally took the plunge yesterday and started my Roth with Vanguard. I feel pretty good about it; now I'm just hoping I don't need that $3k anytime soon. Maybe I should quit reading the gun threads and thinking thoughts too big for my wallet...
 
othromas said:
Finally took the plunge yesterday and started my Roth with Vanguard. I feel pretty good about it; now I'm just hoping I don't need that $3k anytime soon. Maybe I should quit reading the gun threads and thinking thoughts too big for my wallet...
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Just FYI....this years max for IRA contribution is 4K
 
Steve: I know it's $4k; I don't have quite enough right now to sock the final grand into the fund I opened yet. I just wanted to get it opened more than anything.
 
Compound interest my friend. It takes a few years and sometimes leads you to wonder if you're making progress at all, but in time the interest will overtake what you're putting in. Just be steady and progressive about it - it MORE than pays off (no pun intended). You've done the hard part already (getting started). :)
 
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