What should I do with my extra $$?

[wa3more]

dcamp- i agree.

bureau- those are good choices as well.

The mortgage rate one pays is not necessarily the rate of return they are achieving. First of all, a mortgage is paid with after tax dollars. Also, a person will realize a higher interest deduction earlier in the mortgage and the incredmental amount over the standard deduction enters into the calculation.

I think equity returns will revert to a mean over the next 10 years or so, probably high single digits. When GDP growth and inflation are factored in, double digit returns will be hard to achieve but equities should be the best asset class. Maybe the world wide indexes Bureau picked might be best, more gobal.

[Revelate]

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@wa3more wrote:

dcamp- i agree.

bureau- those are good choices as well.

The mortgage rate one pays is not necessarily the rate of return they are achieving. First of all, a mortgage is paid with after tax dollars. Also, a person will realize a higher interest deduction earlier in the mortgage and the incredmental amount over the standard deduction enters into the calculation.

I think equity returns will revert to a mean over the next 10 years or so, probably high single digits. When GDP growth and inflation are factored in, double digit returns will be hard to achieve but equities should be the best asset class. Maybe the world wide indexes Bureau picked might be best, more gobal.

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Most investment theory suggests you have some mix of foreign assets in your portfolio as part of your diversification strategy anyway; not all regions move in lockstep when we're talking financial gains just like not all sectors do either. 

[wa3more]

I would say more common sense than investment theory. When US markets zig, overseas will zag.

All the stuff I learned in graduate school finance was garbage- efficient markets, CAPM, portfolio theory related to efficient frontiers, using beta as a proxy for risk. No one can make money following that crap. Use common sense and keep it simple. No one has figured out how to beat dollar cost averaging into an index fund yet - over a relatively long period of time.

[Anonymous]

I would say if you can keep up with a few guidelines I would put close to 20k here https://www.myconsumers.org/home/rates.html#certificate-accounts---ira-certificate-accounts, easy 4.59 percent, good place to keep you emergency cash with no strings.(in the checking account)  Honestly best advice I can give you is read up on the market and decide how much risk you are willing to take with your money, and invest like many others have said in something with the lowest fees possible, find out at your job what the fees maintaining your 401k are also.  

[Anonymous]

  In 30 years it will be worth around half that due to inflation i could be wrong i dont know the rate of inflation over the past 30 years.  Savers are losers.  Buy some land at a county tax deed sale and sale it on payments  you will make 3-7 times your money back.