What would you do with a extra $2000 a month.

[ApplianceJunk]

You have a full time job and from another source other then your job you start taking in a extra $2000 a month.

You have no debt and your only monthly expenses are a mortgage/rent, utilities and food.

 

Ok, so if you have a mortgage you would not be debt free.

 

Just for the fun of it, what would you do with the extra monthly income?

[Operation_Home_Ownership]

Hmmm with no CC debt, mortgage already in place...I would begin to fund atleast a 1 year EF and beef up retirement contributions. Once I was in a good groove, enjoy the rest!

Edited November 1, 2009 by Operation_Home_Ownership

[radi8]

Hmmm with no CC debt, mortgage already in place...I would begin to fund atleast a 1 year EF and beef up retirement contributions. Once I was in a good groove, enjoy the rest!

 

 

 

That ^^

[hinklesc]

Invest more.

[TroyP]

I'd probably use a few thousand a year to max out my 401(k) contributions, invest about half, and spend the rest on toys. Because what's the point in having a bunch of money if you never enjoy it?

[nothingtolose]

Hmmm with no CC debt, mortgage already in place...I would begin to fund atleast a 1 year EF and beef up retirement contributions. Once I was in a good groove, enjoy the rest!

 

+1

assuming there are no CCs, build up a liquid 12-month emergency fund and max out 401k

I would also start paying at least for catastrophic health insurance if OP doesn't currently carry any

[phpld]

I would first put it in a high yield savings account, and then after about 1 year I would buy a 5 year CD with it.

[Kevin20]

You have a full time job and from another source other then your job you start taking in a extra $2000 a month.

You have no debt and your only monthly expenses are a mortgage/rent, utilities and food.

 

Ok, so if you have a mortgage you would not be debt free.

 

Just for the fun of it, what would you do with the extra monthly income?

 

 

First, I'd devote a chunk of it based on my marginal tax rate to paying quarterly tax payments ie, if you are in the 25% tax bracket, then right off the bat $500 of that newfound marginal income belongs to Barack Obama [and that's not counting social security and state taxes if due!]. That's assuming it doesn't move you into the next higher tax bracket, which is worse.

 

Next I'd use the excess to make sure you're maxing out a Roth IRA (if your income is low enough to use that) and investing significantly in your 401k AND building up an adequate cash reserve account worth a few months' expenses if you don't already have one.

 

After that, strippers.

Edited November 2, 2009 by Kevin20

[randb]

I wouldn't put a penny into any sort of retirement accounts. I don't have any sort of retirement accounts now. I'm a strong believer of the "idea" that correlations that have held for decades will soon start to break down.

 

I'd get out of the dollar, as I have been, every paycheck for the past 5 months. I'd buy silver. A lot of it.

 

I'd also not mind a nice vacation in the Cook Islands.

Edited November 3, 2009 by randb

[Operation_Home_Ownership]

I wouldn't put a penny into any sort of retirement accounts. I don't have any sort of retirement accounts now. I'm a strong believer of the "idea" that correlations that have held for decades will soon start to break down.

 

I'd get out of the dollar, as I have been, every paycheck for the past 5 months. I'd buy silver. A lot of it.

 

I'd also not mind a nice vacation in the Cook Islands.

 

ok wow!

Does cat food taste good?

Please come back and respond Ranb when you are on a steady diet of it during your retirement years.

[nothingtolose]

Retirement accounts are just a vehicle that gets preferential tax treatment, you could shift your portfolio into commodities/currencies, so if you wanted to take a long-term bet against USD, you could buy cheap ETFs shorting dollar or tracking a currency basket or a commodity basket.... that said, while commodities provide some inflation hedge, they are correlated with global equity markets.... and have a lot of volatility. Just look at recent history.

Taking a currency bet, assuming you are right, you pocket a gain, but there is something to be said for keeping some of your money in $ assets because your post-retirement liabilities/expenses will be mostly in $...

 

But to restate my point, a retirement portfolio doesn't have to be 100% in S&P, it can be any combo of ETFs, stocks, bonds your brokerage selected by the plan manager allows you to buy.

 

I am not sure I get the argument against investing in retirement accounts. If employer matches 401k contributions, it's literally free money up to the limit of the match. Depending on current and future tax brackets, tax savings can be significant.

 

I am not an expert by any means, JMHO.

Edited November 3, 2009 by nothingtolose

[randb]

I wouldn't put a penny into any sort of retirement accounts. I don't have any sort of retirement accounts now. I'm a strong believer of the "idea" that correlations that have held for decades will soon start to break down.

 

I'd get out of the dollar, as I have been, every paycheck for the past 5 months. I'd buy silver. A lot of it.

 

I'd also not mind a nice vacation in the Cook Islands.

 

ok wow!

Does cat food taste good?

Please come back and respond Ranb when you are on a steady diet of it during your retirement years.

 

 

haha. I get that a lot. Just because I haven't been brainwashed into believing what the salamander box says, doesn't mean I'm wrong. My silver will be worth a lot more than your dollar denominated retirement accounts! Feel free to revive this thread when silver hits $50. I'll be too rich to post here then.

[Kevin20]

Just my opinion here, but I wouldn't be surprised if commodities run up and experience quite a bubble of their own, what with all these commodity ETFs coming on line, bringing massive amounts of cash into commodity markets creating false demand, people fretting incessantly about the declining dollar and hyperinflation, more celebrities than ever on commercials touting gold, and all sorts of self-appointed financial advisors explaining that the only way to invest for retirement is to pull the gold fillings out of your teeth and get a metal detector.

 

And then there'll be the mother of all bubble-bursts, commodities will implode like never before in history, and a lot of unsophisticated investors who have closets full of gold and silver and beans will get annihilated.

 

Actually I'm pretty sure this will happen, just can't predict the time frame on it.

[randb]

Retirement accounts are just a vehicle that gets preferential tax treatment, you could shift your portfolio into commodities/currencies, so if you wanted to take a long-term bet against USD, you could buy cheap ETFs shorting dollar or tracking a currency basket or a commodity basket.... that said, while commodities provide some inflation hedge, they are correlated with global equity markets.... and have a lot of volatility. Just look at recent history.

Taking a currency bet, assuming you are right, you pocket a gain, but there is something to be said for keeping some of your money in $ assets because your post-retirement liabilities/expenses will be mostly in $...

 

But to restate my point, a retirement portfolio doesn't have to be 100% in S&P, it can be any combo of ETFs, stocks, bonds your brokerage selected by the plan manager allows you to buy.

 

I am not sure I get the argument against investing in retirement accounts. If employer matches 401k contributions, it's literally free money up to the limit of the match. Depending on current and future tax brackets, tax savings can be significant.

 

I am not an expert by any means, JMHO.

 

Sorry for the confusion. The issue I have with retirement accounts is the lack of liquidity. I'd rather put my money into a regular investment account, and have access to the money whenever I need/want it. I'm very good with saving, so I don't need to be forced to put my money away for retirement.

[randb]

Just my opinion here, but I wouldn't be surprised if commodities run up and experience quite a bubble of their own, what with all these commodity ETFs coming on line, bringing massive amounts of cash into commodity markets creating false demand, people fretting incessantly about the declining dollar and hyperinflation, more celebrities than ever on commercials touting gold, and all sorts of self-appointed financial advisors explaining that the only way to invest for retirement is to pull the gold fillings out of your teeth and get a metal detector.

 

And then there'll be the mother of all bubble-bursts, commodities will implode like never before in history, and a lot of unsophisticated investors who have closets full of gold and silver and beans will get annihilated.

 

Actually I'm pretty sure this will happen, just can't predict the time frame on it.

 

 

Yeah, I think they're overdoing it these days, but I still feel more comfortable holding something that has value, and is easily divisible.

[Operation_Home_Ownership]

....all sorts of self-appointed financial advisors explaining that the only way to invest for retirement is to pull the gold fillings out of your teeth and get a metal detector.

 

[Operation_Home_Ownership]

haha. I get that a lot. Just because I haven't been brainwashed into believing what the salamander box says, doesn't mean I'm wrong. My silver will be worth a lot more than your dollar denominated retirement accounts! Feel free to revive this thread when silver hits $50. I'll be too rich to post here then.

 

Then what have you been brainwashed by listening to HAM radio? That strategy sounds str8 out of Grapes of Wrath...good luck cause there is gold in dem der hills!

 

Though I kid, I love reading the different saving strategies, we have a date in 30 years Ran, right here...hopefully the library will still have free internet for you to use.

Edited November 3, 2009 by Operation_Home_Ownership

[randb]

haha. I get that a lot. Just because I haven't been brainwashed into believing what the salamander box says, doesn't mean I'm wrong. My silver will be worth a lot more than your dollar denominated retirement accounts! Feel free to revive this thread when silver hits $50. I'll be too rich to post here then.

 

Then what have you been brainwashed by listening to HAM radio? That strategy sounds str8 out of Grapes of Wrath...good luck cause there is gold in dem der hills!

 

Though I kid, I love reading the different saving strategies, we have a date in 30 years Ran, right here...hopefully the library will still have free internet for you to use.

 

OP asked a simple question. I answered. I'm done now. Bye!

Edited November 3, 2009 by randb

[TroyP]

You have a full time job and from another source other then your job you start taking in a extra $2000 a month.

You have no debt and your only monthly expenses are a mortgage/rent, utilities and food.

 

Ok, so if you have a mortgage you would not be debt free.

 

Just for the fun of it, what would you do with the extra monthly income?

 

 

First, I'd devote a chunk of it based on my marginal tax rate to paying quarterly tax payments ie, if you are in the 25% tax bracket, then right off the bat $500 of that newfound marginal income belongs to Barack Obama [and that's not counting social security and state taxes if due!]. That's assuming it doesn't move you into the next higher tax bracket, which is worse.

 

Next I'd use the excess to make sure you're maxing out a Roth IRA (if your income is low enough to use that) and investing significantly in your 401k AND building up an adequate cash reserve account worth a few months' expenses if you don't already have one.

 

After that, strippers.

 

Depends on where it came from... if your favorite aunt and uncle gave you $12,000 each every year, you'd be $24,000 a year richer, and wouldn't owe a nickel in additional tax.

 

I know a guy who won $2,000 a week for life on a scratch off ticket. You know what he did? Bought a car with power windows, a Honda Accord. Hasn't changed anything else as far as we can see.

[Jen23514]

I know a guy who won $2,000 a week for life on a scratch off ticket. You know what he did? Bought a car with power windows, a Honda Accord. Hasn't changed anything else as far as we can see.

 

that kind of stuff never happens to me

 

oh wait, I don't play.......

[LBCS]

I know a guy who won $2,000 a week for life on a scratch off ticket. You know what he did? Bought a car with power windows, a Honda Accord. Hasn't changed anything else as far as we can see.

 

That's like $100K a year. Honda Accord sounds about right.

[radi8]

I know a guy who won $2,000 a week for life on a scratch off ticket. You know what he did? Bought a car with power windows, a Honda Accord. Hasn't changed anything else as far as we can see.

 

That's like $100K a year. Honda Accord sounds about right.

 

Didn't mention whether it was new or not.

[radi8]

Just my opinion here, but I wouldn't be surprised if commodities run up and experience quite a bubble of their own, what with all these commodity ETFs coming on line, bringing massive amounts of cash into commodity markets creating false demand, people fretting incessantly about the declining dollar and hyperinflation, more celebrities than ever on commercials touting gold, and all sorts of self-appointed financial advisors explaining that the only way to invest for retirement is to pull the gold fillings out of your teeth and get a metal detector.

 

And then there'll be the mother of all bubble-bursts, commodities will implode like never before in history, and a lot of unsophisticated investors who have closets full of gold and silver and beans will get annihilated.

 

Actually I'm pretty sure this will happen, just can't predict the time frame on it.

 

ITA. Buying commodities and metals as an investment is OK, provided you treat it as you would any other investment. The problem is when people buy them out of fear, as a hedge against some future Armageddon. Doing that is a sucker's bet.

[LBCS]

I know a guy who won $2,000 a week for life on a scratch off ticket. You know what he did? Bought a car with power windows, a Honda Accord. Hasn't changed anything else as far as we can see.

 

That's like $100K a year. Honda Accord sounds about right.

 

Didn't mention whether it was new or not.

 

Good point :-)

[hegemony]

I know a guy who won $2,000 a week for life on a scratch off ticket. You know what he did? Bought a car with power windows, a Honda Accord. Hasn't changed anything else as far as we can see.

 

That's like $100K a year. Honda Accord sounds about right.

 

Didn't mention whether it was new or not.

 

Good point :-)

 

I like my honda.