For those of you just tuning in, my original question was how best to invest my capital with an eye toward very early retirement. I specifically wanted to shy away from 401k plans and Roth IRA's (and other investment strategies based on retirement at a mandated late age). I wish to retire in 10 years.

Ok so this thread is mostly dead, but now that I can take a couple minutes to return my attentions, here is some additional information:

My annual income is roughly 40k a year after taxes (which is all that matters I suppose). The exact specifics of the job are classified . It suffices to say that I do not receive benefits of ANY kind from an employer. I would best describe my work relationship as independently subcontracted.

My current assets: Net worth is estimated to be nearly 70k. Nearly all of this is non liquid (It is tied up in two single family residences...real estate is the best investment idea I have had to this point).

One of these homes is my primary residence, the other is being rented at mild profit (not taking into account the appreciation of the property itself).

My major focus is to balance and prioritize my investing. I am unfamiliar with the term "index fund". Is it similar to "growth stocks"? Keep in mind, although I learn quickly, and have sound business sense, I have no official business education.

Some collectibles seem to be decent investments, but the time and effort involved seems prohibitive to me.

Hmm, let's see what else...I AM a DINK at the moment...Amelia contributes collecting assets as well. Oh and I am capable of saving nearly half of my income. I live cheaply, but not so cheaply that I lose my mind (I still have a car, insurance, internet access [obviously], cable, etc.) I hope this provokes some more refined advice.

2/15/2008 9:09:48 AM

I don't want to burst your bubble, but if you're only making $40k after taxes and have a net worth of only 70k, you're not going to have a good retirement if you want to retire in 10 years.

Anything that's going to generate a decent amount of income is going to require a large investment in a high risk stock, maybe something that performed like a tech company during the dot com bubble, buying as much as you can, and selling when it peaks (obvious). With only a small percentage of your net worth being liquid, that's going to make it that much more difficult to see the gains you're expecting.

Or you could try winning the lottery.

If it were this easy, don't you think everyone would be retired by the time they're 35?

2/15/2008 9:14:25 AM

That 70k will go pretty quick if you hurt yourself somehow or get sick

2/15/2008 9:30:15 AM

If you're coming to TWW for this type of advice...

2/15/2008 9:35:06 AM

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this will never work - everyone wants to retire in 10 years when they're in their 20s and 30s - guess the percentage that are successful - then of that percentage - guess how many make under 100k currently

2/15/2008 9:42:39 AM

IBTL!

2/15/2008 9:43:13 AM