Hi guys,I am coming to you because I need help figuring out my financial planning. I will try to be as comprehensive as possible. I cam here because I am trying to plan for my retirement.My income is not stable, and could continue for years or be gone within a few months. I am a 19 year old college student, and my income comes from online endeavors. I currently earn approximately $3,000 per month in profit. I am attending a public university so my tuition is about $8,000/yr and my housing is about $10,000. Other expenses such as food and books bring the total to around $22,000. This previous year it was all taken out in loans, but this next year I was planning on paying half and parents going to pay half. Here is my current financial outlook:-----------------------------------------------Assets:Janus Mutual Fund (JAMX) from GParents $3,100Roth IRA $8,200School Investment Club $2,000Savings Account (.5% interest) $11,000Checking Account $20,000Liabilities:Direct Student Loan (6.8% interest) $2,200Parent PLUS Loan (7.8% interest) $18,000Future Liabilities:3 More Years of Undergrad *$700002 Years Grad School *$70000* = estimated future expenses-----------------------------------------------I am expected to pay back the $18000 that my parents loaned out for my last year's education and continue to pay ½ of future expenses and they will cover half as stated earlier. With recent foreclosures, I can pick up a house appraised at $435k for $195k. I have been looking at this option but I cannot get rid of the feeling that I would be getting in over my head attempting to purchase the property and rent it out. Many uncertainties here but I do not know how to adequately assess everything here, I have only plugged numbers into different calculators and stared at numbers spewed out. Before this house came into my thoughts last week, I was planning to forego paying off the loans and just attempt to cover future expenses, which is what the savings account is for. I am thinking I should get this set up elsewhere where the money can earn ~5% instead of the measly ½ percent. I was then planning to use a majority of my checking account money to open an Individual 401(k) since I am self-employed. I have been thinking that if I do not attempt to purchase the house at all, which is probably a good idea, that it is worth paying the interest on my loans (much of which will be tax deductible) and getting my retirement nest moving. I should also be able to consolidate my loans after I am out of college for a lower rate, but I will have grad school (most likely) coming.So there are many problems that I cannot seem to resolve on my own, the main being what to do with my money I have now. Education is my largest expense within the next five years, so I must decide whether it is better to continue to finance my costs with loans, or to just keep my money where I can access it and ladder CDs. Obviously I want to purchase a primary residence house in the future, but this most likely won't happen until I am either in or out of graduate school, depending on where I go. This means it is probably 5+ years away, but still needs to be considered.Thanks for your time, and if you have any questions just ask.Will
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra