Comments on: What is The Next Step?

By: Tim

Tim — Wed, 16 May 2007 00:38:50 +0000

can’t comment on what the next step is, because there are no goals listed in the post. i’ve assumed that you’ve figured out how much and at what time you want to retire and you have maxed out your contributions towards that end; however, i don’t believe this was addressed. if not, then you need to invest more to meet those goals.

if the retirement goals are being fully funded, then you have to determine what other goals you have. until then, you cannot and no one else can prescribe or recommend what the next step should be.

i don’t see anything about estate planning, health/medical and life insurance (locking in now may be more beneficial), etc.

you can always contribute more towards your taxable investments. i’m not a fan of gold coins, simply because any precious metal is only worth the scrap cost of the metal or the face value of the coin. remember, coins need a buyer. you could buy shares in gold rather than gold coins.

By: Dean in Des Moines

Dean in Des Moines — Mon, 07 May 2007 17:16:17 +0000

Giving. I don’t see that listed anywhere.

By: John

John — Mon, 07 May 2007 02:07:57 +0000

This is most certainly NOT all. You’re off to a better start than 90% of your peers, but there are several next steps, some of which have been alluded to, others not.

Other than your six months ‘emergency fund’, have you mapped out low cost insurances (and supplemental insurances/funds…’AFLAC’ should ring a bell) for the more common physical emergencies life often has in store? If you can insure the insurance for $20 a month, you may want to do so.

How about the cost of a new or ‘new to you’ automobile…has the total for that been saved up yet? Buying outright saves thousands in insurance premiums and you negotiate a far lower price from a position of strength…

Have you purchased your own forclosure ‘fixer-upper’ so you can live ‘rent free’ and plough your income into assets rather than bills far sooner than most? If you can’t do it alone yet, have you tried to syndicate it with a couple of hard working and like minded friends?

Have you planted the seeds for several non-correlated income streams yet? Some folks here have referred to a couple. The write-offs alone can mitigate the thin profits for the first few years…

Do you invest from an LLC owned by your self directed IRA yet to minimize tax impact now and in the future?

Have you established your own mastermind group of folks your age (5-7 professional and non-professional folks) who share insights on politics/finance/business trends? If you have, have each of you kicked a small amount into an investment club to possibly ‘get there’ faster than you each can on your own?

As Fred Meyer alludes to…have you developed top-notch sales/bartering/negotiation skills yet? These alone are ‘old school’ money and force multipliers…not ‘incrementals’.

Have you established a fund that pays for financial education monthly, quarterly, yearly?

(Sigh)….there are so many other issues -

We all have miles to go before we sleep my young padawan (lol)…and sleep is highly over-rated. You’ve had a nice rest, now get back to work. You don’t want to be in your mid forties and behind the power curve. ( I speak from hard won experience and feel I am still behind said curve…even though I am highly liquid with little to no debt.)

MOST IMPORTANT – find a mate that shares your values and knows that life can be like standing back to back in a knife fight at times…and can still find the humour in it. Priceless!!!

Read, Read, Read, Apply, Apply, Apply and Simplify, Simplify, Simplify…you’ll be lightyears ahead of most in short order.

Wishing to come off as helpfull and not ‘preachy’, all the best going forward…

John

By: Shadox

Shadox — Sun, 06 May 2007 20:34:20 +0000

Personal finance should be a boring thing. If you have done everything you need to do put everything on auto-pilot and cruise along.

Life is for having fun and for sharing it with family and friends!

By: Ben

Ben — Sun, 06 May 2007 14:44:05 +0000

Congrats on getting your finances in order! If I were you, I’d look at ways you could earn extra money for yourself. Try and start some small business, over time your experience and income will grow. In my mind, this is another way of diversifying; you’ll have another income stream in addition to your investments and career income.

By: thomas

thomas — Sun, 06 May 2007 04:28:33 +0000

As said above, enjoy what you do have , be appreciative.
I like the alternative energy idea of getting solar/wind/geothermal, get it all net metered and the utility will be writing you checks every month, since by law they are required to buy the extra energy you produce.

By: Omar

Omar — Sat, 05 May 2007 13:16:09 +0000

The ideas already mentioned are very good ones but I thought I’d throw out one that not too many people would consider. How about becoming self sustainable by installing a solar water heater and solar electric panels? That way you don’t ever have to worry about paying for your electric and heating utilities, you don’t have to worry about increasing energy costs and you get a good return on investment considering that there are federal and state tax credits that’ll cover approximately 50% of the cost!

By: Bob Meyer

Bob Meyer — Sat, 05 May 2007 11:32:11 +0000

Coins are good, but food & water would be as practical if conditions change. I’ve been publishing BarterNews magazine since 1979 and the use of barter is growing worldwide because it’s a proven tool in both good times as well as bad. Sincerely, Bob Meyer

By: plonkee

plonkee — Sat, 05 May 2007 11:03:18 +0000

I’d consider real estate (depends on the market in the area though), but my preferred option would be working out how to generate enough money in accessible accounts that I could retire early, or just switch to part-time working.

I’d start planning plenty of trips abroad (which I do anyway) and I’d give more money away.

By: Foobarista

Foobarista — Sat, 05 May 2007 04:25:34 +0000

I vote for early retirement. That is what we’re working towards. And I’d skip the Mad Max doomsday scenarios – if they happen, a few gold trinkets won’t help much; you’d be better off with weapons, ammo, and some skill in using them. Since I’m not terribly interested in living in such a world, I don’t bother.

But if you’re seeking inflation hedges – and aren’t worried about the end of civilization – carefully researched real estate can’t be beat.

By: Frank Kelly

Frank Kelly — Sat, 05 May 2007 02:01:53 +0000

Check your insurance for various events

– health
– life
– auto
– home (flood?)
– long-term disability

Have enough coverage? The correct deductible – not too small (higher premiums)?

-Frank

By: Anonymous

Anonymous — Fri, 04 May 2007 23:26:46 +0000

How about giving to charities? Philanthropy?

By: Dustin

Dustin — Fri, 04 May 2007 23:19:58 +0000

You say real estate is one of your options. Do you have an issue with getting a rental home?

By: Alex

Alex — Fri, 04 May 2007 21:55:23 +0000

The next step is simple: EARLY RETIREMENT! To do that, you need money in non-pretax accounts (b/c you can’t access these until you’re 60)

By: Ronnie

Ronnie — Fri, 04 May 2007 21:12:16 +0000

This post hit the spot. I often wonder “ok what now?”. I was so excited when I was paying my debts off. I guess because I felt something when I closed accounts, cut up cards, and received the title for my car. Since then, I’ve built up my 401k, and my Ameritrade investment account and now I’m looking for the next step. I guess the next step for me is to find a second income so I can invest more, so I can reach financial independence.