|Student Loan A||-0.37||Investments||10,866.05|
|Student Loan B||-5500||Cash||7,946.52|
|Student Loan C||-5500|
Now until the end of 2016
Currently I’m just planning on holding my current stock market positions as well as paying down 11K worth of my student loans in a big lump sum. I am going to finally start my “opportunity” fund by purchasing a $5,000 savings bond from the government. I’ll probably talk more about these two things in detail in a later post. Right now, I just talk about the big picture of what I plan to do.
If everything goes as planned
By the end of 2016, I’ll not only be out of debt, but I’ll also have a healthy opportunity fund of 5,000 saved up. An opportunity fund is my version of an “emergency” fund. I just call it an opportunity fund because I whenever I have an emergency, the fund will give me the opportunity to not get screwed financially by going into credit card debt. It’s also there to help me make the most of any future opportunity that comes by. Lets say the market crashes again like it did in 2008, the opportunity fund is there to purchase stocks while they are dirt cheap. Essentially, the $5,000 savings is going to be my secret weapon to either mitigate unfortunate occurrences or magnify fortunate events.
2017 and onward
After the new year comes to pass, the first thing I’m going to do is fully contribute $5,500 to my Roth IRA. I already have one at Schwab, but I want to do something different this time around.
Come January, I’m going to make an account with LendingClub and start peer to peer lending. Basically, what this means is that I will loan people money, and then they will (hopefully) pay me back plus interest. All of the loans will be administered automatically through LendingClub, while I sit back and watch my account grow (assuming people don’t default on my loans).
Crowdfunding Real Estate
I may start looking into crowdfunding real estate. Unfortunately, most of the websites up require you to be an “accredited investor” to invest. Essentially the websites are telling you to go away unless you have a net-worth of 1 million dollars, or make over 200K a year. The main reason I wanted to look into crowdfunding real estate over REITs was because you may get some tax advantages, (as you own a small part of a real property through crowdfunding).
Other than that, I’ll be on the lookout for creative investment options. If I can’t find anything worthwhile, I’ll probably go back and add to my stock portfolio diversifying across a bunch of sectors.