Garrett Capital Investment Management
David Garrett is the Manager at Garrett Capital Investment Management in Salt Lake City, UT. David and his team are committed to helping people create solutions for their investment and retirement assets. Once they understand their clients' risk tolerance, time horizon, and goals, they will work diligently to develop a portfolio that carefully balances investment strategies with preserving principal.
David knows that today’s economic environment brings challenges. But along with challenges come opportunities and potential rewards. David and his team work closely with Financial Advisors and clients to evaluate those opportunities and get in position to reap the rewards. They enjoy helping people build a solid financial foundation for the future.
David takes an active role in the management of his clients' portfolios. Garret Capital and clients have grown to expect results in bull and bear markets. Over the last 20 years, they have delivered consistent and favorable returns for our private and institutional clients by staying vigilant and responsive.
MA, Applied Economics, Utah State University
MBA Food and Agribusiness, Royal Agricultural University
Don't retire. Find another job doing what you like to do and be productive. Remember, "happy" beats "money" although it takes at least some money to be happy. You have to eat and live. 54-year-olds in retirement will burn through money pretty fast unless they live in a cold-water shack and don't eat. Your friends are right, 192k in our day won't go far.
Hello 25, you are doing great! I'm 68 years old and here is what I would do if I were in your shoes.
First, don't get too caught up in stocks repeating the past. We've had a nice run but when things get dicey you are going to be in for a shock. At 25 you've never experienced a bear market. You were 15 during the last one and were likely not emotionally involved back then. You will be emotionally involved in the next bear market. You could easily wake up on morning and find that your investments are worth half of what they are now and that you don't have a job.
Second, I'd pay off the student loans first and the credit card second. Student loans scare the heck out of me because of the difficulty in getting out of them if your life takes a turn for the worst. I know the rates are higher on the credit card.
Third, you've reasoned out your options pretty well. If you sell stocks you might have the problem of taxes to add to your debt reduction.
Summary: You are in the good times right now. Use the good times to get out of debt. If things continue good you'll be more secure and if they don't, you'll be even more secure.
I like the pay down your mortgage idea; it's a 5.75% rate of return on your money guaranteed -- no bank out there is offering that. However, if you don't have sufficient cash reserves on hand I'd probably do that too, maybe 50/50 or something that feels comfortable. Cash reserves are very important to have and justify giving up some of that 5.75% to have. If you are comparing the rates of return on investments vs your mortgage then keep in mind that you are effectively borrowing money to invest. Want to do that? It's leverage plain and simple and when think in those terms it means whatever investment you choose just got riskier.
Do it if you have more dollars then sense. You are right about the fees but most index funds are stock funds and when we get the next major sell-off you might not care so much about all the fees you saved. But there is always the chance the market will go up and keep going up all the way till you die.
Hi Single 50, There are some obvious answers here such as paying the highest cost loans but really there are more questions that need to be asked such as why did you sell your car? Are you going to buy another one? Do you have transportation? What are your goals? I always recommend getting out of debt first but again, more Qs here than As.