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Started By
Message
Promotion -> More income -> Need advice
Posted on 6/19/13 at 10:01 pm
Posted on 6/19/13 at 10:01 pm
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.
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.
8
Posted on 6/19/13 at 10:05 pm to TigerTatorTots
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.
Posted on 6/19/13 at 10:07 pm to TigerTatorTots
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
Posted on 6/19/13 at 10:08 pm to TigerTatorTots
What line of work are you in TTT?
Posted on 6/19/13 at 10:08 pm to Ace Midnight
quote: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.
You're flush right now - get a fee for plan (versus commission) financial adviser to go over your goals with you.
Posted on 6/19/13 at 10:09 pm to TulaneTigerFan
They would have had fun with thatPosted on 6/19/13 at 10:10 pm to 4LSU2
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 6/19/13 at 10:11 pm
Posted on 6/19/13 at 10:12 pm to TigerTatorTots
quote:
Need to figure out what to do with a 40% salary increase
Well, first things first, go frick yourself.
Posted on 6/19/13 at 10:13 pm to TigerTatorTots
Can you get me a job if I move back to Louisiana?
Posted on 6/19/13 at 10:16 pm to TulaneTigerFan
quote: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?
Can you get me a job if I move back to Louisiana?
This post was edited on 6/19/13 at 10:17 pm
Posted on 6/19/13 at 10:24 pm to TigerTatorTots
What type of sales
Posted on 6/19/13 at 10:25 pm to geauxtigers003
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
sellinglsuticket @ gmail . com
This post was edited on 6/19/13 at 10:28 pm
Posted on 6/19/13 at 10:34 pm to SLafourche07
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 6/19/13 at 10:39 pm
Posted on 6/19/13 at 10:48 pm to Ace Midnight
quote:
2- Should I increase my mortgage payments?
Yes.
Posted on 6/19/13 at 10:56 pm to TigerTatorTots
quote:i've been reading bogleheads.org quite frequently lately
I don't know much about investing
This post was edited on 6/19/13 at 11:01 pm
Posted on 6/20/13 at 12:00 am to TigerTatorTots
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 6/20/13 at 12:02 am
Posted on 6/20/13 at 7:34 am to foshizzle
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 6/20/13 at 7:35 am
Posted on 6/20/13 at 8:02 am to TigerTatorTots
quote:
Paying monthly mortgage at $100 over the monthly required payment (4% rate)
Switch to 15 year
Posted on 6/20/13 at 8:05 am to Ace Midnight
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.
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.
Posted on 6/20/13 at 8:29 am to TheDiesel
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.
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 6/20/13 at 8:32 am
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