Investment help

Saving & investing, frugality & simple living. They're all part of the wealth equation.
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Cash-cash
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Investment help

Postby Cash-cash » Sun Dec 16, 2012 2:03 am

Hi all, need some help with investing my cash and I really don't know where to begin. Here are my details that are probably pertinent to your advice:
-28 years old
-Live in Asia
-monthly rent/car= $0, covered by company
-living expenses: roughly $1k month
-debt/loans: $10k
-current savings, $55k - 25k is in money market account remainder is in checking @ 0.2% :swear:

I like to keep my money liquid, my employer doesn't offer 401k contribution and I don't want to stick my money in any sort of fund that charges a penalty for early withdrawal. I also have my own business, Internet based, in which I reinvest some of my savings. I am not risk averse, I just don't really know where to put my money. I am also weary of investing in stocks and the return on bonds is not worth tying up my cash, IMO.

Looking forward to your advice.

Edit: I am single, earn $80k year, save roughly 70% of my income, splurge occasionally ($2k-$5k vacation etc.)

peachy
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Location: Maryland
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Re: Investment help

Postby peachy » Sun Dec 16, 2012 5:36 am

Are you American?
You really should start a retirement fund (Roth perhaps). Pay off your loans too.

Cash-cash
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Re: Investment help

Postby Cash-cash » Sun Dec 16, 2012 7:12 am

Hi peachy, yes I am.

My foreign income is considered exempt, does this limit the max amount I can contribute to the Roth? I believe the standard contribution limit is $5k, correct?

The debt is all cc and I am paying it off 1 card at a time to build my credit, are there any hindrances to paying it all off at once?

DoingHomework
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Re: Investment help

Postby DoingHomework » Sun Dec 16, 2012 2:55 pm

I think you'll have trouble getting a definitive answer on your tax situation here. I suspect that even though you foreign income is not taxable by the US, it still qualifies as earned income so it could make you eligible for IRAs. But there are going to be a lot of complicated details.

Your internet business income is interesting. Depending on how/where it is registered and many other factors there might be some things you can do. But again, it might be a little tricky.

Cash-cash
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Re: Investment help

Postby Cash-cash » Mon Dec 17, 2012 12:06 am

DoingHomework wrote:Your internet business income is interesting. Depending on how/where it is registered and many other factors there might be some things you can do. But again, it might be a little tricky.


Business is registered in Florida as an S Corp. My business isn't really profitable, it pretty much breaks even every year without any additional investment. I don't pay myself a salary from my business.

annibe11e
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Re: Investment help

Postby annibe11e » Tue Dec 18, 2012 9:37 am

I would suggest talking to a tax advisor about your income and your IRA options first. Once you have that information, you'll have a better idea how to proceed.


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