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re: What's a "normal" amount of money for a late 20s person to have in savings?
Posted on 7/27/13 at 1:18 pm to WG_Dawg
Posted on 7/27/13 at 1:18 pm to WG_Dawg
quote:
The closest Schwab to me is about 40 minutes away. Would setting this up for the first time be something I can do over the phone with someone? Again, I know I can probably do it online but I'm sure I'll have a bunch of questions and would like to speak to a person while I do it.
Honestly, you're better off doing the research yourself than relying on a salesman from Schwab or whatever. It's not so complex that you can't get the hang of it yourself, and the personal understanding gained is worth the time and effort.
If you have any questions, then you should post them here or search them here. Are you concerned about the rules governing IRAs, or are you concerned about making sensible fund selections for the account? I should also add that I use Vanguard, and they were very helpful when I called to do some unexpected maintenance on my account, but it could've also helped that I did the research before hand to give myself an idea of what's possible and what makes sense.
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Posted on 7/27/13 at 1:49 pm to WG_Dawg
I keep around 5K in savings and 2K in checking.
If a lot of money is in one of these two accounts, my wife, god bless her, thinks of something we just have to have.
I have over a years salary in an investment account that I can have wired into savings/checking in 24 hours. I have 2.5 years salary in 401k's and IRA's.
If a lot of money is in one of these two accounts, my wife, god bless her, thinks of something we just have to have.
I have over a years salary in an investment account that I can have wired into savings/checking in 24 hours. I have 2.5 years salary in 401k's and IRA's.
Posted on 7/27/13 at 2:21 pm to LSU0358
Depends on income and how long you've been working. My answer is as much as possible. My wife finished school first in 1999. She made 75k her first yr and we had one child(age 24-me 25-her). We tried to keep our expensed the same as before. We saved about 15-20k that yr. I started the next and our combined income was about 100k. We had to move and bout a house but still saved about 10k. It escalated from there. Had over 100k saved before age 30. In addition to 50k I had saved working and investing since age 12. Also had zero school debt despite me going to med school and her to pharmacy school. But I BUSTED ASSS!!! To pay as we went and we lived like paupers while in school.
Posted on 7/27/13 at 2:33 pm to LSU0358
quote:
I keep around 5K in savings and 2K in checking.
This
Posted on 7/27/13 at 3:10 pm to foshizzle
quote:
I have no idea why people use savings accounts anymore. There isn't anything they do that you can't do better some other way.
What type of account would you use for saving for a down payment on a house?
Posted on 7/27/13 at 3:14 pm to LSU0358
quote:
I have over a years salary in an investment account that I can have wired into savings/checking in 24 hours
This is precisely the type of thing I want to start. I have retirement accounts through work, but I want something other than a savings account that I can throw money into since it's just sitting idle in a savings account. What kind of investment account are you talking about? Or should I not worry about stuff like that at this point, and start with the basics like a Roth IRA first?
Posted on 7/27/13 at 3:17 pm to The Easter Bunny
quote:
What type of account would you use for saving for a down payment on a house?
Depends on what kind of time table I'm looking at. If we're talking between one and three years, I'd probably play it safe with a CD. More than three years and I'd probably pour it into either an index fund or a very conservative bond/equity basket fund.
Posted on 7/27/13 at 4:32 pm to WG_Dawg
I keep 3x monthly expenses in my "operating account". This is the account I use to pay all bills.
I keep 6x monthly expenses in my "savings account". I use this as an emergency fund and to fund my Roth IRA and my HSA as early in the contribution year as possible.
I keep 0.5x (book) annual salary in my "brokerage account". I use this to aim for alpha since it's a built in function in the male brain to try to do so. I can also use this as an emergency fund or to put a down payment on a home. Renting makes sense for my current situation. I'm debating whether to try to get this account to a 1x (book) salary or to start purchasing investment real estate.
401(k) gets maxed out. I probably save too much and should be aiming for a higher return on life (thanks to whoever coined that) considering my age. But then again, I sure as shite won't be able to do like I'm doing now once I add a house, a wife, and kids.
I keep 6x monthly expenses in my "savings account". I use this as an emergency fund and to fund my Roth IRA and my HSA as early in the contribution year as possible.
I keep 0.5x (book) annual salary in my "brokerage account". I use this to aim for alpha since it's a built in function in the male brain to try to do so. I can also use this as an emergency fund or to put a down payment on a home. Renting makes sense for my current situation. I'm debating whether to try to get this account to a 1x (book) salary or to start purchasing investment real estate.
401(k) gets maxed out. I probably save too much and should be aiming for a higher return on life (thanks to whoever coined that) considering my age. But then again, I sure as shite won't be able to do like I'm doing now once I add a house, a wife, and kids.
Posted on 7/27/13 at 6:18 pm to WG_Dawg
Normal is probably one month living expense
Remember....people lie on the Internet
Remember....people lie on the Internet
Posted on 7/27/13 at 11:31 pm to Teddy Ruxpin
quote:
I really wish this was one social construct that would disappear among good friends. I understand it not being polite walking up to random folks and talking about their money, but you would think the best people to talk too would be similarly situated individuals that you are close to.
This.
I've only discussed it with one of my friends, and it was while we were both buzzing in the drunken post game glow of an LSU victory while listening to the radio call in show.
The fact that we are in our mid twenties and have been good friends for over a decade helped
Oh, and the fact that his wife works AND he is a doctor so their finances are the opposite of embarrassing prob helped as well
This post was edited on 7/27/13 at 11:33 pm
Posted on 7/27/13 at 11:36 pm to yellowfin
quote:
Normal is probably one month living expense
While true, strikes me as sad.
I've been working in earnest for only 5 months but I have a couple of month's living expenses between my brokerage and my Roth.
I won't feel comfortable financially until I can throw in at least 20k within a week.
An arbitrary goal, but it's where I stand.
This post was edited on 7/27/13 at 11:40 pm
Posted on 7/28/13 at 8:11 am to WG_Dawg
quote:
The closest Schwab to me is about 40 minutes away. Would setting this up for the first time be something I can do over the phone with someone? Again, I know I can probably do it online but I'm sure I'll have a bunch of questions and would like to speak to a person while I do it.
Yes, you can do it online, in fact that's what I did. I haven't visited a Schwab branch in years.
I understand that they have consultations available online but have no idea how it works, basically all I can tell you here is that their customer service is always ranked very highly in the industry and my experience has been consistent with that.
If you want to chat with someone, it's probably worth the 40 minutes IMHO.
Posted on 7/28/13 at 8:33 am to Joshjrn
quote:Bad idea. You can get about the same rates in a savings account and be able to take it out any time.
If we're talking between one and three years, I'd probably play it safe with a CD.
Posted on 7/28/13 at 8:52 am to WG_Dawg
quote:
What kind of investment account are you talking about?
Individual stocks, futures, etc. I'm in no way recommending you trade individual stocks and especially not futures if you are new to investing/trading.
Posted on 7/28/13 at 9:20 am to WG_Dawg
32 and I have a little over 15k in savings.
I didn't finish grad school until 26 and my first year of work didn't pay a whole hell of a lot compared to my expenses. At 27 we started paying off my 92k+ of student lones and I finished paying it off at around 29 and a half. We then bought a cheap house and had a son in my early 30s and we have only my income. My situation is a bit different in that my profession is in high demand and I'll never really be out of work.
As long as you are out of dept in your 20s I wouldn't sweat it. Have a couple months emergency fund and enjoy this time in your life.
I didn't finish grad school until 26 and my first year of work didn't pay a whole hell of a lot compared to my expenses. At 27 we started paying off my 92k+ of student lones and I finished paying it off at around 29 and a half. We then bought a cheap house and had a son in my early 30s and we have only my income. My situation is a bit different in that my profession is in high demand and I'll never really be out of work.
As long as you are out of dept in your 20s I wouldn't sweat it. Have a couple months emergency fund and enjoy this time in your life.
Posted on 7/28/13 at 10:36 am to St Augustine
quote:
As long as you are out of dept in your 20s I wouldn't sweat it. Have a couple months emergency fund and enjoy this time in your life.
Good way to end up in a bind. We have always saved at least 25% of our pre-tax income.
"Normal" is zero for most people your age.
Posted on 7/28/13 at 11:03 am to SmackoverHawg
quote:
We have always saved at least 25% of our pre-tax income.
And kept it in savings? Just growing the savings account? That's a good way for most people to have to work into their 70's.
Posted on 7/28/13 at 12:11 pm to ell_13
quote:
And kept it in savings? Just growing the savings account? That's a good way for most people to have to work into their 70's.
No. Saved and invested. I'm 39 and will be able to quit entirely by age 45 if I choose.
We now save closer to 50% for the record. No sense in spending money on shite you don't need just because you can. Not that we don't splurge and live well.
Posted on 7/28/13 at 12:18 pm to SmackoverHawg
quote:
Saved and invested.
Okay. Makes much more sense.
Posted on 7/29/13 at 10:57 am to WG_Dawg
reading this thread it sounds like the wife and i dont have enough saved at this point, and we always felt like we were ahead.
we will both be 43 this year and between the 2 of us in savings, home equity, retirement plans, and 529 accounts we are sitting combined at about 1.4M net worth, or only 700k each, (the actual split is about 66/34 in favor of the wife). looks like we have some work to do.
we will both be 43 this year and between the 2 of us in savings, home equity, retirement plans, and 529 accounts we are sitting combined at about 1.4M net worth, or only 700k each, (the actual split is about 66/34 in favor of the wife). looks like we have some work to do.
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