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Started By
Message
What to do if I just received a pay increase?
Posted on 3/2/17 at 7:51 pm
Posted on 3/2/17 at 7:51 pm
Let me start off by saying I'm going to see my financial advisor next week to discuss a plan. My only concern is he is going to want me to invest more into the stock market which I am reluctant to do with the market being so high.
Was making about $190k a year but just received a nice raise to $250k base salary with the potential to make $100k-$200k extra in commission. All in all it's probably an extra $125k per year on average, this is including both mine and my wife's pay. We have two kids, maxing out 529 account each year. Was also maxing out Roth but I don't believe we will qualify for that anymore. Been putting 12% in 401k. Have a mortgage on rental property at 5% interest and mortgage on home at 3.25%. Owe about $20k on car I just purchased with a 2.99% rate.
Obviously I would like to max out 401k each year and continue with 529 account. Would you start working on paying off mortgages on houses and cars more aggressively? Would you start putting money into the stock market (probably ETFs) each month? I'm 30 years old, wife is a couple years younger and we live a very comfortable life now in New Orleans and don't really plan on changing our spending habits. Any suggestions on what to do with the extra money each month? TIA
Was making about $190k a year but just received a nice raise to $250k base salary with the potential to make $100k-$200k extra in commission. All in all it's probably an extra $125k per year on average, this is including both mine and my wife's pay. We have two kids, maxing out 529 account each year. Was also maxing out Roth but I don't believe we will qualify for that anymore. Been putting 12% in 401k. Have a mortgage on rental property at 5% interest and mortgage on home at 3.25%. Owe about $20k on car I just purchased with a 2.99% rate.
Obviously I would like to max out 401k each year and continue with 529 account. Would you start working on paying off mortgages on houses and cars more aggressively? Would you start putting money into the stock market (probably ETFs) each month? I'm 30 years old, wife is a couple years younger and we live a very comfortable life now in New Orleans and don't really plan on changing our spending habits. Any suggestions on what to do with the extra money each month? TIA
This post was edited on 3/2/17 at 8:39 pm
11
Posted on 3/2/17 at 7:55 pm to TitleistProV1X
Subtle brag is subtle
Posted on 3/2/17 at 7:56 pm to TitleistProV1X
Max 401k
Keep up with the 529s to a point only you can really decide since it has some penalties.
Backdoor ROTHs to max
Start building up taxable account investments. There are only so many shelters.
If you have an high deductible health plan option, consider it for the HSA shelter.
People might be surprised but a household making 250k a year isn't living that much better than one making 100k to 150k a year if they're maxing every thing out. Of course, when retirement rolls around that's when the spread starts to show.
Keep up with the 529s to a point only you can really decide since it has some penalties.
Backdoor ROTHs to max
Start building up taxable account investments. There are only so many shelters.
If you have an high deductible health plan option, consider it for the HSA shelter.
People might be surprised but a household making 250k a year isn't living that much better than one making 100k to 150k a year if they're maxing every thing out. Of course, when retirement rolls around that's when the spread starts to show.
This post was edited on 3/2/17 at 8:00 pm
Posted on 3/2/17 at 7:57 pm to Teddy Ruxpin
Iraqi Dinar
Bitcoin
Bitcoin
Posted on 3/2/17 at 8:02 pm to TitleistProV1X
Be me.
Look for an entry level job.
Come to Money Board
Feel sad
Leave Money Board.
Seriously wtf lol. I'm trying to figure out how I'm gonna live on a tenth of what you're making.
Look for an entry level job.
Come to Money Board
Feel sad
Leave Money Board.
Seriously wtf lol. I'm trying to figure out how I'm gonna live on a tenth of what you're making.
This post was edited on 3/2/17 at 8:27 pm
Posted on 3/2/17 at 8:05 pm to Teddy Ruxpin
Thanks for the input. Two kids are very young so gonna keep maxing 529 until they're at least getting close to high school where I can re-evaluate if necessary.
We have an $800 deductible and put a good chunk in a FSA account each year to pay for medical bills.
Yea I don't expect our living situation to change any. Will be interesting to figure out what to do when some of the larger commission checks start rolling in. The wife and I both have the same approach with finances and save as much as we can, otherwise known as cheap.
We have an $800 deductible and put a good chunk in a FSA account each year to pay for medical bills.
Yea I don't expect our living situation to change any. Will be interesting to figure out what to do when some of the larger commission checks start rolling in. The wife and I both have the same approach with finances and save as much as we can, otherwise known as cheap.
Posted on 3/2/17 at 8:14 pm to TitleistProV1X
If you don't mind me asking what industry/sales are you in?
T.I.A.
T.I.A.
Posted on 3/2/17 at 8:15 pm to FunroePete
Oil and gas sales and medical sales
Posted on 3/2/17 at 8:28 pm to TitleistProV1X
Run to a message board to post about it.
You already knew the answer.
You already knew the answer.
Posted on 3/2/17 at 8:57 pm to TitleistProV1X
quote:
TitleistProV1X
There's your answer.
Posted on 3/2/17 at 9:22 pm to TitleistProV1X
Why do you have a loan on a car making that salary?
Posted on 3/2/17 at 9:26 pm to TitleistProV1X
You make in one year what my combined household income makes in four. Not counting your commission.
Posted on 3/2/17 at 9:37 pm to cstev12
Didn't want to go below 6 months worth of expenses in checking account with two little kiddos. Thought it was a good idea since the interest rate is so low. Seems to make more sense for me to try to pay down the rental house first considering the high interest rate, even though I can deduct that interest.
Posted on 3/2/17 at 9:45 pm to TitleistProV1X
makes 190k a year
owes 20k on a car
just lol
owes 20k on a car
just lol
Posted on 3/2/17 at 9:50 pm to rocket31
Guessing your suggestion is pay off the car before I do anything else, got it.
Posted on 3/2/17 at 10:08 pm to TitleistProV1X
So you are contributing 12% to your 401k right now? Does your company offering any match?
Because if you are making 190 right now you are not getting your full match
Because if you are making 190 right now you are not getting your full match
This post was edited on 3/2/17 at 10:09 pm
Posted on 3/2/17 at 10:15 pm to TitleistProV1X
nvm
This post was edited on 3/2/17 at 10:16 pm
Posted on 3/2/17 at 10:17 pm to TitleistProV1X
Pharma sales and oil and gas?
Posted on 3/2/17 at 10:17 pm to rocket31
quote:Why LOL when the car is the lowest interest of his other 2 large expenses (home/rental home)??
makes 190k a year
owes 20k on a car
just lol
Posted on 3/2/17 at 10:18 pm to TigerTatorTots
LOL because he shouldn't finance a car.
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