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re: age vs. money in the bank
Posted on 1/1/13 at 3:43 pm to Chris Farley
Posted on 1/1/13 at 3:43 pm to Chris Farley
quote:Indeed.
300k net worth at 30 would be pretty awesome.
At 65y/o and with a 6% average return, that $300K would be worth over $2M. With growth at 7%, >$3M. At 10%, >$8M.
1
Posted on 1/1/13 at 4:09 pm to Chris Farley
quote:Ironically, that was one of my exact goals that I set for myself back in college. There was a lot of number crunching that went into that goal, and it seemed like a meaningful hurdle.
300k net worth at 30 would be pretty awesome.
Lately, I have made more of a series of 5-year financial plans. These are based on where I want to be in a variety of financial aspects (house, net worth, investments, etc) five years out, with a sequence of one-year strategies to get there.
Early on, if you focus on how much you can put away it will serve you well. For the first many years of my career, I put 15% to 401k plus the 8% company match. The 15-year note on a modest townhome also helped.
The bottom line is that the focus was primarily on how much I could save versus my means. It may have been demoralizing to compare to the population in general or conversely may have led to complacency.
Posted on 1/1/13 at 4:20 pm to Dead Mike
Professional services/consulting
Posted on 1/1/13 at 4:32 pm to lynxcat
11% goes to 401k before I see it and I can live on one of the two paychecks a month.
Lately I haven't saved as much because I am outfitting my home, so it has messed with my savings pattern.
I'm focusing on net worth.
Appreciate the information, ILB. I think I am on a similar path with a different breakdown of my portfolio than you. Once I find a city I want to live in long term, a real estate purchase will be in my near future. From your experience, how much does a young single guy typically spend on a first home purchase in the South? I'm thinking between 125-200k, but I couldn't tell you what would be my magic nunber.
Lately I haven't saved as much because I am outfitting my home, so it has messed with my savings pattern.
I'm focusing on net worth.
Appreciate the information, ILB. I think I am on a similar path with a different breakdown of my portfolio than you. Once I find a city I want to live in long term, a real estate purchase will be in my near future. From your experience, how much does a young single guy typically spend on a first home purchase in the South? I'm thinking between 125-200k, but I couldn't tell you what would be my magic nunber.
Posted on 1/1/13 at 4:40 pm to lynxcat
quote:Depending on the market and rates, at your income I'd think $225K-$300K.
From your experience, how much does a young single guy typically spend on a first home purchase in the South? I'm thinking between 125-200k, but I couldn't tell you what would be my magic nunber.
Posted on 1/1/13 at 4:43 pm to lynxcat
I have a net worth of 1 million dollars. If I could delete the 17 years of my first marriage I'd have a net worth of 10 million dollars.
Posted on 1/1/13 at 4:45 pm to NC_Tigah
I will clarify and say that I will most likely be buying a condo/apartment rather than a house. I've looked at apartments in Memphis online and I can buy a top end apartment for 180-200k, but I don't know what that means for monthly mortgage payments. I will most likely be living in Atlanta within the next year and all I have been told is Buckhead or Midtown are the places to be.
Posted on 1/1/13 at 4:56 pm to lynxcat
quote:Have you considered resale value?
a top end apartment for 180-200k
Posted on 1/1/13 at 5:01 pm to lynxcat
quote:
From your experience, how much does a young single guy typically spend on a first home purchase in the South? I'm thinking between 125-200k, but I couldn't tell you what would be my magic nunber.
I have a contract on a foreclosure in Birmingham that will be my personal home, not a rental. I paid $53k for it. I'm spending about 25k in repairs and it should be worth around $115k - $130k. It's a 3/2 in a good subdivision close to where I work downtown.
I think most people spend MUCH more than that in the area that are in my income range though. I don't know your income but at these interest rates im sure you can easily afford 125 - 200k.
Posted on 1/1/13 at 5:06 pm to NC_Tigah
quote:10-11% would be a good return but not likely unless the entire fund was in stocks until he's 65. Typically the returns will go down with the risk tolerance as age creeps closer to retirement.
age vs. money in the bank quote: 300k net worth at 30 would be pretty awesome. Indeed. At 65y/o and with a 6% average return, that $300K would be worth over $2M. With growth at 7%, >$3M. At 10%, >$8M.
If I had 4-8M in my nest egg I would probably still leave the majority in stocks because even if you take a 30% hit close to retirement you are likely to recover that in 2-3 years if you are able to continue working
Posted on 1/1/13 at 5:15 pm to Danchase
quote:No question. Except one would assume that initial $300K would be only a portion of his portfolio.
not likely unless the entire fund was in stocks until he's 65. Typically the returns will go down with the risk tolerance as age creeps closer to retirement.
Might as well be the stock portion, no?
Seriously though, the point was more an emphasis on the cumulative value of money put back at an early age.
Posted on 1/1/13 at 5:24 pm to NC_Tigah
I thought I was doing ok until I found out that a buddy (that is about the same age as me .. Under 40) bought a house last month that was listed for 2 million bucks ..
Oh, he paid cash
Oh, he paid cash
This post was edited on 1/1/13 at 5:26 pm
Posted on 1/1/13 at 6:33 pm to NC_Tigah
quote:
Have you considered resale value?
This is what bothers me the most. I think these properties take a very long time to flip and I do not see them appreciating in value any time soon.
Posted on 1/1/13 at 6:43 pm to lynxcat
Tell me where on Mud Island you are finding a place for $180k? That's about the only top end place there is in Memphis.
Posted on 1/1/13 at 6:55 pm to guttata
29 yo
90k savings
2 homes with combined equity of 150k
90k 401k
10k misc. stocks.
Wife has a retirement and kids have college and savings accounts also.
90k savings
2 homes with combined equity of 150k
90k 401k
10k misc. stocks.
Wife has a retirement and kids have college and savings accounts also.
Posted on 1/1/13 at 7:11 pm to guttata
Mud island is homes and there are values from $5+ million for houses at the front with river views down to $150,000 towards the back end of the island.
The apartments that caught my attention are downtown on N. Main. 150-200 gets a very nice 2b/2b apartment or condo.
There are a lot of nice places in East Memphis and a couple in Midtown (i.e. Hein Park), but those are very family oriented areas.
The apartments that caught my attention are downtown on N. Main. 150-200 gets a very nice 2b/2b apartment or condo.
There are a lot of nice places in East Memphis and a couple in Midtown (i.e. Hein Park), but those are very family oriented areas.
This post was edited on 1/1/13 at 7:14 pm
Posted on 1/1/13 at 8:05 pm to lynxcat
quote:
So what is good savings at this point for someone working for a couple years? 10, 20, 30, 40, 50+ thousand?
No idea. I would like to think that at this point it's more about not having debt and having a propensity to save. That would put you ahead of most 24 year olds. I'm 24 as well(we know each other, not sure if this has been established yet or not) and I'm saving 20% into my 401k and have a small emergency account set up as well as a Roth and regular brokerage acct. At this rate I'll have saved more than 1x my salary before the time I turn 26 but I haven't accounted for the possibility of going back to school or buying a home.
Posted on 1/1/13 at 8:27 pm to Chris Farley
Yep, I know you. Your parents just came to my house, actually
I think I'm a little ahead on the 1x timeline you laid out, which makes perfect sense given our COL living differences and there is no way employers make up that difference in full through compensation adjustments. I will be at the 1x mark within the next year...my next bonus should put me around that number.
I've got to find better investments to make because I focused on creating an emergency fund first and foremost.
I think I'm a little ahead on the 1x timeline you laid out, which makes perfect sense given our COL living differences and there is no way employers make up that difference in full through compensation adjustments. I will be at the 1x mark within the next year...my next bonus should put me around that number.
I've got to find better investments to make because I focused on creating an emergency fund first and foremost.
Posted on 1/1/13 at 8:39 pm to lynxcat
quote:
there is no way employers make up that difference in full through compensation adjustments.
Very VERY true, and if I end up moving to NYC it will only get worse. 
Posted on 1/1/13 at 8:44 pm to Chris Farley
I cannot imagine paying the rent for NYC. You bringing the gf along for the ride?
I just moved into my own place with no roommate and I already dread the rent payments.
COL is the biggest reason a Chicago move didn't happen for me.
I just moved into my own place with no roommate and I already dread the rent payments.
COL is the biggest reason a Chicago move didn't happen for me.
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