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MANNYIZDAMAN
New Member
Cash: $ 2.50
Posts: 7
Joined: 15 Aug 2006
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| FINANCIAL FUTURE, ALTERNATIVE INVESTMENT |
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I make $35,000 a year as a school teacher. I have a $5,000 savings account paying 2% and a 403b worth $50,000. I am 40 years old. I contribute $100/month to the 403b and own a house that I inherited from my parents. I have no kids. I have $6,000 in credit card debt and owe $16,000 on my BMW. I have an opportunity to buy an investment property in Florida swamp land, that is rummored to be turning into an upscale mall, for $300,000. I also want to go back to school for my Masters Degree so I can make more money teaching. WHAT ADVICE WOULD YOU GIVE ME REGARDING MY FINANACIAL POSITION, SPECIFICALLY LOOKING AT MY DEBT LOAD, INVESTMENT OPPORTUNITIES (AND ALTERNATIVE INVESTMENTS) AND MY FINANCIAL FUTURE (CARRER AND RETIREMENT)? PLEASE BE SPECIFIC AND DETAILED IF POSSIBLE
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Tue Aug 15, 2006 6:25 am |
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Blue Eyed Cat
Contributing Member
Cash: $ 2.90
Posts: 29
Joined: 12 Jul 2006
Location: Central Florida
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Put your savings in a higher yield account. Emigrant MM pays over 5% and can be linked to your other accounts so deposits and withdrawals are easy and fast.
Keep up continbutions to the 403b. If your employer contributes matching funds, make sure you contribute enought to get all the employer contributions.
Before you think about risky real estate investments, get rid of your debt. Put yourself on a financial budget and pay off the credit card debt first and then the car.
Stop using the CC completely.
Stop buying anything that isn't a necessity and use the saved money to pay off CC.
Find out what your school system will do to help you get your Masters. Check with the county, the state, financial aid, check scholarships on the internet. The way teachers are needed today, you should be able to go to school for minimal $ out of pocket.
Once you have paid off your debt, keep your expenses reasonable and start accumulating cash. A Roth IRA is a good idea. If you are really interested in real estate investments, stay close to home and get educated so you can make a good investment. Real estate can make you money but it is not easy money--you work for it.
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Sat Aug 19, 2006 6:52 pm |
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Blue Eyed Cat
Contributing Member
Cash: $ 2.90
Posts: 29
Joined: 12 Jul 2006
Location: Central Florida
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Sorry, it posted twice in error.
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Sat Aug 19, 2006 6:52 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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Teachers are often advised that, because of low pay, they must be conservative - but the opposite is true, you need to take advantage of the power of compounding. And you're in a good spot to do it - the primary requirement is a steady income, that's more important than a big income. You can afford to invest $4000/yr, every year, uninterrupted, w/o the concerns of market volitility, for 30 years - that should get you about $1M at age 65.
Make that primary, make it automatic - then enjoy spending the other $31k because you'll know that your future is on track. But a BMW? Late-model upsacle cars over a 30 years period will eat your lunch, the depreciation is horrific. How about finding a 5-year old Toypta for $5000 or $8000?
Swamp land in FL? I assume that your're baiting us with that one, but just in case, the answer is NO.
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Mon Aug 21, 2006 12:14 am |
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