Home > Updates-almost to $500k

Updates-almost to $500k

August 26th, 2021 at 07:35 pm

Hi guys.I am $7,000 away from being at $500k investments!!!  Took a long time coming as I put so much towards the rentals. the rentals are paying off though. Average monthly for the year NET is $9800. I have not been hit by any major costs though. so no roofs or big window jobs. I will want to save up for those. I am up $3000/month  on the average more than with the old property mgr even though his rate was 5% of rents and the new guy is 6.5% of rents. BIG difference. I hardly think of the rentals now when before (as some of you know) it was an ongoing nightmare

Work is going well.. asked for and got a raise of $4/hr which is $8k a year if I stay. I also get overtime at time and a half which is very lucrative. I will work until at least end of year I think then go from there.

I want to switch my investments around

What do folks recommend for taxable and tax deferred accounts that I do not expect to draw from for 10 year or more?

My goal is to reach $550k investments by year end.

I DO want to buy a 2 flat or something but am waiting for nearer to year end as folks start to drop prices.

I am putting in most of my money into investments and would like to get to #750k-$1mm before I stop saving but dont want to wait years to do so.. my plan is still in flux. Thinking of diverting some funds to individual stocks vs safer S and P 500 mutual funds.

My house is still doing well and the area I live in is doing great. hopign prices continue to go up so I can sell, take this money and buy somewhere lower cost w no mortgage or very small.

Thoughts on investing welcomed.


4 Responses to “Updates-almost to $500k”

  1. terri77 Says:

    I recommend getting an investment account at Fidelity, Schwab, or Vanguard. Invest in the total stock index fund or ETF.

  2. Carol Says:

    Terri has good advice.

  3. Carol Says:

    Also look into life cycle funds and balanced funds so that you are diversified and are not risking all your savings in the market. You have time, but probably don't want to start all over again, again.

  4. Dido Says:

    Yes, in your 50s, you want to have some diversification with a maximum of about 70% in stocks. (70% equities and 30% fixed income is considered moderately aggressive.)

    If your funds are in taxable accounts, you want to be careful that they are tax efficient. ETFs are more tax-efficient than mutual funds. If you want a really basic allocation suggestion look at "How a Second Grader Beat Wall Street" or just google "Allan Roth Second Grader Portfolio." He'll start you off with a decent tax efficient portfolio...he has a variety of risk levels using the same basic set of Vanguard ETFs (which you can buy at any custodian; you don't need to invest at Vanguard to get Vanguard funds, you can get them at Schwab or Fidelity as well.)

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