Promotion -> More income -> Need advice | TigerDroppings.com
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TigerTatorTots
LSU Fan
Mandeville, LA
Member since Jul 2009
69002 posts

Promotion -> More income -> Need advice

Need to figure out what to do with a 40% salary increase

Current situation (prior to promotion):
-Currently maxing out my employee match
-Currently throwing $150/mo into my RothIRA
-Paying monthly mortgage at $100 over the monthly required payment (4% rate)
-No car note
-Already have a 6 month safety net in place

I already live very comfortably and can buy what I want when I want so I'm not worried about increasing my entertainment budget.

My questions to you are:

1- Should I max out my contributions to my Roth (this seems like a no brainer)
2- Should I increase my mortgage payments?
3- I don't know much about investing, so what should I do with the excess? I'm 24 so I can be rather aggressive.


Ace Midnight
LSU Fan
Between sanity and madness
Member since Dec 2006
38015 posts

re: Promotion -> More income -> Need advice
quote:

1- Should I max out my contributions to my Roth (this seems like a no brainer)


Yes, in your situation, definitely.

quote:

2- Should I increase my mortgage payments?


Yes.

quote:

3- I don't know much about investing, so what should I do with the excess? I'm 24 so I can be rather aggressive.



You're flush right now - get a fee for plan (versus commission) financial adviser to go over your goals with you.


TulaneTigerFan
Tulane Fan
Seattle
Member since Sep 2005
35856 posts

re: Promotion -> More income -> Need advice
quote:

Need to figure out what to do with a 40% salary increase

Current situation (prior to promotion):


You should have posted just those first two sentences on the OT


4LSU2
LSU Fan
Madisonville
Member since Dec 2009
24383 posts

re: Promotion -> More income -> Need advice
What line of work are you in TTT?


TigerTatorTots
LSU Fan
Mandeville, LA
Member since Jul 2009
69002 posts

re: Promotion -> More income -> Need advice
quote:

You're flush right now - get a fee for plan (versus commission) financial adviser to go over your goals with you.
Yea I was leaning to something like this, since I'm not well versed on investing. I may just piggy back onto my dad's financial adviser to see if he can work with me.


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TigerTatorTots
LSU Fan
Mandeville, LA
Member since Jul 2009
69002 posts

re: Promotion -> More income -> Need advice
They would have had fun with that


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TigerTatorTots
LSU Fan
Mandeville, LA
Member since Jul 2009
69002 posts

re: Promotion -> More income -> Need advice
Sales/Account management (In a cool industry where you don't get sanctions put on you for taking customers out fishing and shite )
This post was edited on 6/19 at 10:11 pm


SLafourche07
New Orleans Pelicans Fan
Member since Feb 2008
1497 posts

re: Promotion -> More income -> Need advice
quote:

Need to figure out what to do with a 40% salary increase




Well, first things first, go frick yourself.


TulaneTigerFan
Tulane Fan
Seattle
Member since Sep 2005
35856 posts

re: Promotion -> More income -> Need advice
Can you get me a job if I move back to Louisiana?


TigerTatorTots
LSU Fan
Mandeville, LA
Member since Jul 2009
69002 posts

re: Promotion -> More income -> Need advice
quote:

Can you get me a job if I move back to Louisiana?
My previous position will be open come mid July 1 and they may be posting it mid to late July. Even that one was paying incredibly well if you just hit your targets. You into sales?
This post was edited on 6/19 at 10:17 pm


geauxtigers003
LSU Fan
Lafayette
Member since Aug 2007
84 posts

re: Promotion -> More income -> Need advice
What type of sales


TigerTatorTots
LSU Fan
Mandeville, LA
Member since Jul 2009
69002 posts

re: Promotion -> More income -> Need advice
ETA: Shoot me an email instead. I'd rather not have people connect the dots on my identity. I'll check it tomorrow


sellinglsuticket @ gmail . com
This post was edited on 6/19 at 10:28 pm


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jimbeam
USA Fan
University of LSU
Member since Oct 2011
37260 posts

re: Promotion -> More income -> Need advice
quote:

Well, first things first, go frick yourself.




but yea i'd meet company 401k (if your company has it and you haven't), max roth, then max 401k


but i'm a learning noob
This post was edited on 6/19 at 10:39 pm


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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
33935 posts
Online

re: Promotion -> More income -> Need advice
quote:

2- Should I increase my mortgage payments?


Yes.





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jimbeam
USA Fan
University of LSU
Member since Oct 2011
37260 posts

re: Promotion -> More income -> Need advice
quote:

I don't know much about investing
i've been reading bogleheads.org quite frequently lately
This post was edited on 6/19 at 11:01 pm


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31712 posts

re: Promotion -> More income -> Need advice
quote:

1- Should I max out my contributions to my Roth (this seems like a no brainer)


Absolutely. I'd take some of that 6 month safety net and put it in there as well, you can always get it back if you need it without a penalty.

quote:

2- Should I increase my mortgage payments?


At 4%? No. That's only 3% after tax. Paying extra is therefore just a 3% investment - which is just barely better than keeping pace with inflation, and also locks up the money.
This post was edited on 6/20 at 12:02 am


Ace Midnight
LSU Fan
Between sanity and madness
Member since Dec 2006
38015 posts

re: Promotion -> More income -> Need advice
quote:

At 4%? No. That's only 3% after tax. Paying extra is therefore just a 3% investment - which is just barely better than keeping pace with inflation, and also locks up the money.


What's all you guys' love affair with debt? Housing is a, more or less, unavoidable expense. I don't suggest you put yourself in a bind to pay off the mortgage, but at the same time if that payment isn't there, there is more money to fund a steady stream of investments.

I still recommend paying extra, particularly on a 30 year mortgage.
This post was edited on 6/20 at 7:35 am


Duckman13
LSU Fan
Tiger Stadium
Member since Dec 2006
2878 posts

re: Promotion -> More income -> Need advice
quote:

Paying monthly mortgage at $100 over the monthly required payment (4% rate)


Switch to 15 year


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TheDiesel
LSU Fan
Houston via Baton Rouge
Member since Feb 2010
2502 posts

re: Promotion -> More income -> Need advice
Why put the extra money for the house note away at 3% when you can invest the money and more than likely beat that rate of return?

As long as the thought of debt doesn't cause you to not sleep, using the money for an investment with a higher rate of return should be the way to go.


ColoradoAg03
Texas A&M Fan
Denver, CO
Member since Oct 2012
2497 posts

re: Promotion -> More income -> Need advice
Take a nice vacation first of all, to reward yourself for earning your success.

Learn investing from people who have been doing it a while, especially ones that have been successful. Educate yourself online. Investopedia is a good place to start for beginners to get the basics of investing. Maybe even start day trading. Start small (stocks no more than $5/share) and get good at it before putting real amounts of your money at risk. Set a budget of what you would be ok losing if that were to happen, as you learn the ropes on a small scale. Just like going to a casino, budget for loss, hope and try to do well.
This post was edited on 6/20 at 8:32 am


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