- January 21, 2024
- Posted by: legaleseblogger
- Category: Related News
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Maximizing Nest Egg Savings and Investment Options
At this stage in my life, I find that my savings are not where I believe they should be. Despite having no debt and being a full-time student under a VA program, my current income from retirement pay, VA pension, and COLA stipend totals about 8K a month. After factoring in my expenses such as rent ($2300), food ($600), gas ($100), and utilities ($200), I am left with very little to contribute to my savings.
As someone who is late to the game in building a nest egg, I’ve managed to save around $60k and have it in a High Yield Savings Account (HYSA), which returns approximately $200 in interest. In addition, I have $6k in a Thrift Savings Plan (TSP) that I need to roll into an accessible civilian account.
Furthermore, I have a shared rental property with my ex, where we owe $290k but it is worth at least $400k. Currently, the property is rented out for $2400 a month, with a mortgage payment of $1550. The excess income flows into a joint rental account for incidentals.
Given my circumstances, I am actively seeking the best methods to maximize my nest egg savings and explore different investment options. While I understand that traditional investments might not offer the most expedient results, I am open to any suggestions or advice that could potentially lead to a more robust financial outlook.
How AI Legalese Decoder Can Help:
The AI Legalese Decoder can assist in navigating the complex terminology and legal aspects related to financial investments and retirement accounts. By utilizing this tool, you can easily translate convoluted legal jargon and gain a clearer understanding of the options available for rolling over your TSP and optimizing your savings strategy. Additionally, the AI Legalese Decoder can provide insights into the implications of shared rental property ownership and guide you in making informed decisions regarding its management. By leveraging this technology, you can enhance your financial literacy and make well-informed choices to bolster your nest egg and secure a stable financial future.
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Original:
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Rewritten:
AI Legalese Decoder: Simplifying Legal Documents with Advanced Machine Learning
AI Legalese Decoder is a cutting-edge tool designed to revolutionize the way legal documents and contracts are analyzed and interpreted. Through the utilization of highly advanced machine learning algorithms, this innovative technology has the capability to break down complex legal jargon and seamlessly translate it into simpler, more understandable language.
This groundbreaking tool has the potential to greatly benefit both individuals and businesses who may not possess a strong understanding of legal terminology. By utilizing AI Legalese Decoder, these individuals and businesses can gain a comprehensive understanding of their legal documents, allowing them to make informed decisions and navigate their legal obligations with confidence and clarity.
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AI Legalese Decoder can provide individuals and businesses with the invaluable ability to comprehend and decipher complex legal documents and contracts. By utilizing its advanced machine learning capabilities, AI Legalese Decoder can break down convoluted legal jargon and translate it into clear, understandable language. This can greatly alleviate the confusion and frustration frequently associated with legal documents, empowering users to confidently navigate their legal obligations and make informed decisions. Overall, AI Legalese Decoder has the potential to streamline the legal document interpretation process and enhance the overall understanding of legal contracts for individuals and businesses alike.
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****** just grabbed a
I always heard how this country doesnÔÇÖt take care of our vets, but 8k/mo plus cola for life, healthcare, tuition, sounds like a pretty sweet deal to me. I assume some of that income is not taxable?
You are already doing better than 90% of the people in this sub.
To answer your question though, if that divorce was truly messy then IÔÇÖm not sure how excited IÔÇÖd be to have half a rental property with the ex. Any way to sell your half or have her buy you out? I know itÔÇÖs cash flowing but how much is your patience and sanity worth?
What do you need money for? You have one of the safest pensions/retirements in the world. Do you expect less than 8k a month in income in the future? Do you need more income for what?
Traditionally you’d be asked to contribute to retirement accounts but you seem to be set on that end.
Your biggest bill is rent. If you can shrink that, even by 1/3 you can increase your savings significantly.
Your in school so you are out of your home for a significant portion of the day and I assume have access to amenities on campus such as library to study in.
You really only need the basics and could probably downsize to a studio space and still have your privacy (say no to roommates). Plus less to clean!
I don’t have much to offer in the way of dealing with the savings despite the divorce, but curious about your HYSA.
(200$ Interest / $60,000 Savings)*100 = .33% Interest rate.
Did you mean 6K Savings or $2,000 interest?
Just trying to help for someone who can answer this better.
The divorce doesn’t sound messy since you are managing to share a rental property and the income from it. Messy would have been you had to sell the property and she drained all of your accounts. You also aren’t financially wiped out because you have savings and are able to add to it monthly and I’m assuming you are using your GI bill to pay for your degree. You are doing pretty well.
So your property is paying for itself, you have a chunk of money in┬á HYSA, and you are continuing to build savings. You’re in a good position. An obvious next step is to open a conventional mutual fund account where you can direct a substantial portion of your savings to higher risk/higher yield investments. The HYSA only slows the loss of value due to inflation. In the long term, 10+ years, you need something that will substantially beat inflation – something like an S&P500 index fund.┬á
 You could invest in more real estate, but you already have some of that. At 40-50 years old with a pension, I would want to be heavily invested in stocks. Edit: If you want to eventually own a home outright (which is a wise choice), wait until your stock fund is big enough for a down payment and make that step.
Do not get married again 
Wow I shouldÔÇÖve went military. Jesus.
Leave your TSP alone. It’s historically one of the lowest cost retirement vehicles available. Emptying it would preclude you from getting back into it if the costs go back down in the future.┬á
Open a Roth IRA and max it. You have until April to contribute $6500 for the 2023 tax year. Then contribute $7000 for 2024. Vanguard, Schwab, Fidelity.
Read or listen to The Simple Path to Wealth by JL Collins. 
I understand your mindset. We had forced scarcity in a variety of ways on active duty that a lot of people do not understand. It’s not crazy to be scared of the money going away.┬á
Imo the advice for single people is always the same. Cut your expenses to the bone. Go back to renting a room or small studio. Your food budget is absurd for a single person. Do an analysis on every single line item in your spending to see if it is necessary.
That will free up cash flow. Figure out if you can qualify for contributions to 401k/tsp/IRA. If you do, max those out. Put your money into an s&p 500 index fund.
60k in a hysa is a good idea but often I see these large amounts building up because people don’t have a financial plan. You need liquid cash savings but not 60k. Maybe 20k.┬á
Put the rest into a fidelity taxable brokerage.
Also looking into seeing if you can buy the remaining equity in the rental from your exwife is a wise idea.
Do you plan to work after you finish school? A 2nd career?
Get yourself a GS-07 job, and use that income to cover your expenses
Have you filed for VA disability?
HYSA seem to be a staple on reddit. Invest in mutual funds. S&P 500. Think in 5 years selling your rental property.