…in life after debt?
In only somewhat related news, today is the 90th anniversary of the Rhapsody in Blue, and Vince Giordano is performing a recreation of its first performance tonight at 8pm EST at the same venue as the original (internet broadcast info here). I love that piece of music. Compared to other jazz recordings of that time period, it sounds timeless and transcendent. To me it sounds like the herald that let everyone know that it was time to step out of the austere WWI era and into the modern age. What Gershwin had in mind for the future of music and culture was whimsical, effervescent, effortlessly triumphant. Everything that is important to me! And for that reason, it suits the question I have been turning over in my mind recently. (Like the segue??)
After the abnegation and shame of loan-payoff, into what mode do we shift? I will be done taking care of the loan company; what do I do next to take care of myself? Down what path do I find my whimsical, effervescent, effortlessly triumphant future?
Going back to brass tacks, I assume that anyone who has just gained debt freedom already has or will immediately arrange:
- a “fully” funded 401K if applicable (to the match or whatever makes sense to you)
- a fully funded Roth IRA if you so choose
But these investments have legal and logical annual constraints ($17.5K for 401K if you even care to go that high, and $5500 for Roth IRA). If you make $50K and only want to contribute 5% per year to 401K because that is the match point, I don’t blame you. So you put away $2500 to 401K and $5500 to Roth IRA each year. The $8K there won’t make you rich right now. If you have any other money left over, what do you do?
As far as I am concerned, the only sensible areas of investment are, in ascending order of accessibility:
- Index fund investment (Vanguard is the popular favorite)
- Rental Income
- Peer-to-peer lending
Maybe some day I will learn things that will cause me to add or change items, but for now that is it. Don’t hold your breath for cock-fighting. (Although the Google results for “bizarre investment” deserve another look…)
So though I have been a little slow with this blog lately, I will get around to sharing my amateurish thoughts on these financial ventures, variants thereof that I find a waste of time, and how I plan to use these to go from literally zero to triumphant.
Is there is any other type of investment I should know about? I am open to suggestions 🙂
Image from http://www.wikipedia.org