5 Year + Investments?

[zghorner]

I'm at a point in my life where I want to get serious about retirement. I currently can go and have gone without working for the past few years (sort of off and on when I get bored), which is a nice feeling but I can in no way live the lifestyle I prefer...it would be a static life and I like expensive toys too much.

I have gone back to work on a mission to retire for realz in 5 years. In those 5 years I am going to continue to grow my boat and rv storage as well as purchase 1 rent house every year. In 5 years (if everything goes as planned) I will have close to $100,000 of annual income from assets alone. I am blessed to have a mentor in this who happens to be my father in law, a very successful self-made man who owns many rent houses and a few small businesses. Just stating that so you all know I'm not walking into this with a blind fold.

Now, considering I am debt free and used to a frugal lifestyle, I am able to save money rapidly. I am interested in learning about other investment opportunities...I would like to put my eggs in a few different baskets if ya know what I mean. Not just now but even after the 5 years are up. I am curious what has been successful for you? I'm not looking for get rich quick types of things, but a safe steady return on investment. Please share.

 

[Shadowrider]

Mid-sized oil & gas (CHK, DVN, CLR, etc.) is beaten up pretty bad right now. Also look at pipeline MLPs they pay great dividends but pick carefully. 5 years? Can pay quite well in this industry with the right picks.

 

[zghorner]

Mid-sized oil & gas (CHK, DVN, CLR, etc.) is beaten up pretty bad right now. Also look at pipeline MLPs they pay great dividends but pick carefully. 5 years? Can pay quite well in this industry with the right picks.

good thoughts, that is exactly the type of stuff I am interested in. I have never looked into MLPs before but I will now, thanks.

 

[CHenry]

Mutual funds, not single stocks, those are too volatile. Get on Vanguard.com and look at the SP500 index mutual funds. They follow the SP500 which has a steady history for the last 80 years of only trending up. Short term drops are typical but if you look at a graph, the SP has done nothing but go up over the long term. Mine is averaging 12% pr year and its hard to find anything more profitable than compound interest over time. How old are you?
Rental property is another thing that is always good if you dont go into debt to buy it.

 

[zghorner]

Mutual funds, not single stocks, those are too volatile. Get on Vanguard.com and look at the SP500 index mutual funds. They follow the SP500 which has a steady history for the last 80 years of only trending up. Short term drops are typical but if you look at a graph, the SP has done nothing but go up over the long term. Mine is averaging 12% pr year and its hard to find anything more profitable than compound interest over time. How old are you?
Rental property is another thing that is always good if you dont go into debt to buy it.

I am 31. Everything I buy is with cash. I am very good at saving my money and not blowing it on stupid crap. I am in the oilfield so their is no guarantee I will keep my job for 5 years. Thankfully I am in high demand for my particular position so it looks hopeful at least. This is all the more motivation to buckle down and put my money in smart places while I can.

my biggest problem I have had up to this point is I will save up X amount of money and feel secure and quit my job to hang with my kiddos. Say to hell with all this bull crap I'm going fishing haha. but like I mentioned earlier, at this point my storage doesn't generate enough income to support the lifestyle I seek. It has a massive amount of potential and I am working to grow it every day but up to this point my life is static financially.

 

[CHenry]

I am 31. Everything I buy is with cash. I am very good at saving my money and not blowing it on stupid crap. I am in the oilfield so their is no guarantee I will keep my job for 5 years. Thankfully I am in high demand for my particular position so it looks hopeful at least. This is all the more motivation to buckle down and put my money in smart places while I can.

my biggest problem I have had up to this point is I will save up X amount of money and feel secure and quit my job to hang with my kiddos. Say to hell with all this bull crap I'm going fishing haha. but like I mentioned earlier, at this point my storage doesn't generate enough income to support the lifestyle I seek. It has a massive amount of potential and I am working to grow it every day but up to this point my life is static financially.

Your young, putting say $500 a month in a mutual fund earning 12% for the next 25 years will yield right at 1 million $$. Just $500 a month. Extend that to 30 years and its almost doubles (1.8 mill). Increase the $500 to $1000 a month for 30 years and your close to $3.6 mil.

Play with the numbers here http://www.moneychimp.com/calculator/compound_interest_calculator.htm

 

[Shadowrider]

good thoughts, that is exactly the type of stuff I am interested in. I have never looked into MLPs before but I will now, thanks.

I turned a little $900 buy into $8000 in about 6 years with Markwest Energy. When I bought it, I didn't care what the price did and had no clue it would shoot for the moon. I bought it for the 26% dividend it was paying at the time. I took the dividend and set it for DRIP (dividend reinvestment) for that whole time. That alone got me 50% more shares of that stock err..I mean units. Had I known it would do that I would be retired to a lakefront home on Grand lake right now.

CHK is a gamble but management is doing all the right things right now. They are looking at the long term, not short term, and long term for companies like this is your 5 year window. The "shorters" are killing CHK's stock price right now and have been for a year or more. It takes a strong stomach to be long with them but the potential, fundamentals, and commodity environment over the next few years are there at this present time. CLR is in about the same boat, not as beat down by traders but still leveraged very heavily. DVN is probably the most stable of those 3 and has a lot of room to run. I'm long CHK and DVN. Don't use money you have to have.

 

[Nighthawk]

Full Auto NFA weapons.

 

[zghorner]

Full Auto NFA weapons.

What has been the average growth on full auto guns per year for the past 5 years? I remember speaking to a member here (funny enough his handle is @FullAuto ) and he was really into this and seemed to think it was a great investment.

you definitely win the coolest investment suggestion award.

 

[CHenry]

you definitely win the coolest investment suggestion award.

But not the smartest. Thats like investing in gold...bad idea.