I've saved about 50k this year after going completely debt free last year.

I'm under contract for 6 more years, and will do 12.5 more total. So my housing/rent is covered.

I've got emergency funds for 12 months covered, so assuming I continue to save 30k a year or more. I want to invest it until I retire at 51.

My question, have you guys had more success with large over the phone or online folks or in person local advisors? My constant moving might make the latter a bit less optimal.

I could save cash but 12+ more years would just be wasted.

I'm also putting what I can into the DoD retirement plan.

Any strategies for what is relatively short term would be appreciated as well.

My advice is use a company like Vanguard or Fidelity. Set up an account. If you want to invest the whole $50K I would split it up and put it in various funds. I would put 15% of it in a couple of bond funds as a hedge of a large drop in the market.

Diversification is still really important.

Even consider buying a small piece of RE. Done right it will make you more $ than most things.

Saving is step one. Good for you.

Thanks ORC,

We wanted to buy our retirement property a few years ago but the current housing situation has put that on hold. I always figured buying now will save me whatever price increase happens in the next 13 years.
And it would serve as a summer vacation spot or camping spot, whatever we wanted to do with it.

A lot of military buy houses, I wasn't in a spot until the last couple years but I think waiting out this housing boom would be wise. I do agree with you though and next time im stationed in Hawaii, probably 3 years from now, I'll likely buy there. Hawaii is way less susceptible to housing market fluctuations being an island.

I need to research, I figured if I started with 1/3's I could do some low risk stuff, maybe some CDs and stuff you were talking about, another 3rd a little more high risk and then the final I could invest in some 6-18 month stock purchases. This is all my uneducated thinking but I'm confident with some good research and starting slow I could make a buck or two with stocks personally.

Do not over think it. Index and mutual funds with a reputable company will go along why to simplify it and give you a good base to build not only your portfolio but also a knowledge base to go from. Good luck. Start now!

I think the answer depends on how much investment guidance you need.

If you'll be making all the investment decisions yourself, just get an online account like e*Trade and invest away.

If you need someone to really stay on top of your portfolio, your basic choices are a Full Service Broker or a Certified Financial Planner. The challenge with a broker is getting a good one, as being commission-based they only get paid when they buy or sell something. A fee-based planner only makes money when you do, but they can have minimum account sizes, often starting at 100k.

Then there's the in-between, you need a little guidance setting up your portfolio, but don't need active and frequent restructuring- sort of a set it and forget it. You could go with someplace like Charles Schwab, meet someone at your local branch who can get you set up according to your goal plan. Also, the moving around part wouldn't matter too much, as they have branches all over and you can just move your home branch wherever you are. [Just noticed your location. Korea? Not sure how much of this information would apply in your case. Still good basic advice.]

(Full disclosure here, I am a former Schwab employee, but I no longer have official connection other than having my personal accounts still there.)

Yu're in the military - bump up your TSP.

The 6 more years under contract can mean nothing. The DOD can have a RIF and you will be gone in 6 months if they wanted. But if that were to happen, you would get a severance based on rank and TIS. Schwab has a pretty good program for advising based on your goals. Personally, I believe in keeping your money in various places. It’s kind of like caliber, you have various types and diversify the portfolio.

quote:

Originally posted by LS1 GTO:
Yu're in the military - bump up your TSP.

Absolutely true, about 50% of max right now so I need to fix that

Saved $50k this year? You've got it made. Find a financial planner you trust. Get into mutual funds. Let your guy guide you on managed risk. If you're putting that kind of money away every year, you'll be a great account for them.

I think one has to look at the ‘total financial picture’ before getting to individual investments. Part of that includes age, kids, risk tolerance, goals, years to retirement & the rest.

I’ve been away from the military a while, not familiar with ‘TSP’, normally one starts with pre-tax options, 401k type offerings.

I’m mostly a Vanguard fanboy, but understand others can compete with them. I’d want diversification today as much as any time, even though the buddy you talk to has all the great stock advice on the next Amazon.

I’d look at filling up pre-tax savings through work, then a Traditional or Roth IRA if more to save. With younger kids at least a little in a 529 plan isn’t a bad idea.

The big house option. I happen to use Fidelity. On their site you can search available mutual funds using criteria to limit expense ratios etc.
Pretty easy to select something that "should" easily beat Index funds. FOCPX as one example.
I wouldn't go RE right now. IMO the RE market is overdue for a pullback in many zip codes.

There's always this discussion of the 1% the CFPs charge as a management fee, and the low-load .0x% that Vanguard charges and you can just buy their target fund that automatically follows their guidance toward asset allocation. I can't say with any certainly which is right. I'm sure it totally depends on the individual CFP. And that, in my opinion, is a total crap shoot. Do you believe the one putting the sales pitch at you at any given moment, is better at decision making than Vanguards time tested principles are at avoiding individual decision risk.

So instead of opening account with Fidelity or Vanguard, you can also open self directed investment accounts with your bank - either Roth IRA and/or self directed investment account. The more money you have with your bank, the more benefits you can use daily, more so than with Fidelity. You can get loans at lower rate and less fees for instance, and use your ATM card without fee anywhere for example.

You can still buy the same mutual funds and stocks as with Fidelity or Vanguard etc.

Most of my money are in Vanguard and other S&P 500 ETF funds.

You can also buy some treasury I fund to to fight inflation as well.

I’m a big fan of Fidelity, having been with them since the days of Peter Lynch in the mid 80’s although Vangaurd is also a good company.

You have over 10 years to retirement so forget bonds (which have sucked ) and CD’s which will actually loos money when inflation is figured into the equation. Instead research which mutual funds have been performing best in the past 5, 10 years and spread your money over 4 or 5 of them.

In my case I have a S&P index fund, Blue Chip Growth, and Contrafund to name a few and have done very well with minimal work on my part and risk that I consider acceptable…I am currently mostly retired and still don’t have any bond funds or CD’s but that’s just my appetite for risk and my comfort with the ability of the Fidelity fund managers to pick the right stocks…

We found an Endorsed Local Provider via Dave Ramsey website.
They were awesome-explained things so even a dumb sailor would understand.

A lot depends on your age and when you plan on retiring.

I would stay fully vested in the market, no bonds if you are more than 8 years from retirement.

As you get closer to retirement I would reallocate depending on your risk tolerance.

I have a high risk tolerance so I stay in the market.

I just move my stuff around according to what is happening in the world.

I am in Fidelity and Merrill Lynch.

I am also looking at opening a Robin Hood account.

I too and a big fan of Fidelity. They have been great to deal with and have done well with my investments.

They can help you determine a good strategy to meet the goals you are looking for.

I'm also a fan of Fidelity, particularly their mutual funds. I feel that is the way to go. It's a minimal fee for mutual funds that are managed by professionals. The Fidelity OTC mutual fund has had a good record since 1984.

quote:

Originally posted by sig2392:

I am also looking at opening a Robin Hood account.

I'm not a financial advisor, but Robinhood has been involved in some shady happenings lately.

You might go here and do a little research. Read and ask questions to get a little insight. https://www.bogleheads.org/forum/index.php.