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re: Financial help
Posted on 2/18/20 at 9:22 pm to staylor226
Posted on 2/18/20 at 9:22 pm to staylor226
quote:
Supplemental life is term offered through your employer.
Supplemental life is something he would have elected above and beyond the typically "free" life insurance offered by employers (usually a year's pay). It's something I've taken advantage of from my last two employers, up to the limit of needing LOI.
Or so I thought that's what it was.
Either way, it's not feasible to rely on long-term. Changing jobs, trying to keep it is usually not a good deal. Best to get your own, outside of employer-provided, then supplement your own with whatever an employer is will to provide, from job to job.
I think this country would do well to treat health insurance like this too, but I digress.
Which reminds me... OP.... is an HSA/HDHP available through your employer?
1
Posted on 2/18/20 at 9:24 pm to lynxcat
quote:
Or, he could die at 40 and never retire. Life is a balance and it’s not about socking away every penny ever earned
Obviously anything is possible. The point of living below your means when you are young is to let your money work for you for as long as possible and you can either retire early (FIRE) or be wealthy at an older age....Or you could spend it now and hope you die young. I prefer the former and if I die young, my family will be set up.
Posted on 2/18/20 at 9:27 pm to lynxcat
quote:
Life is a balance and it’s not about socking away every penny ever earned.
I am a pretty big saver but sometimes I don't understand this board. What is the point of making and saving money if you can never spend it? I 100% agree that it is a balance and we can all be responsible and yet spend our money differently.
Posted on 2/18/20 at 9:31 pm to buffbraz
quote:
Obviously anything is possible. The point of living below your means when you are young is to let your money work for you for as long as possible and you can either retire early (FIRE) or be wealthy at an older age....Or you could spend it now and hope you die young. I prefer the former and if I die young, my family will be set up.
Why would anyone retire early? Think about the money you can continue to contribute to your investments and have you seen how the compounding works by delaying your retirement every year? If you think saving an extra $250/month at 30 makes a difference imagine waiting just 1 more year to retire. It is also a fallacy to assume the car note will last forever. He could keep the truck well past it being paid off and then the old truck note money could be investment contributions.
If the only goal was to accumulate as much wealth as possible you would never retire and it wouldn't matter if you are wealthy when you are old because you won't spend any of it.
Posted on 2/18/20 at 9:35 pm to lynxcat
quote:
this board is so extreme on how it views automobiles.
OP makes $150K a year as a single 30 year old...he can afford a nice car if he wants it. It is a want, not a need but it doesn’t mean he can’t afford it.
So you basically want him to be in debt for a very long time? Ok got it now
Posted on 2/18/20 at 9:38 pm to bod312
I think the point of the thread was to help the OP with “financial help”. “Financial help” would include getting rid of high interest debt and most would agree a 10% car loan qualifies. He doesn’t necessarily need to start an HSA or IRA with the savings he would get from getting rid of the car loan although that would be smart. He can spend it on anything he wishes. But giving it to the bank isn’t smartly this point. He can use that money to work for him as opposed to giving it to someone else.
Posted on 2/18/20 at 9:47 pm to bod312
quote:
Why would anyone retire early?
What does that even mean? Are you asking how one CAN retire early, or why would anyone want to? Two different answers.
quote:
hink about the money you can continue to contribute to your investments and have you seen how the compounding works by delaying your retirement every year?
I think every one here understands the power of compounding interest. But some want to get out of the workforce as early as possible for other life fulfillments.
quote:
If you think saving an extra $250/month at 30 makes a difference imagine waiting just 1 more year to retire
Both would be hugely important in accumulating wealth.
quote:
is also a fallacy to assume the car note will last forever.
No, but the interest he pays the bank will be gone forever.
This post was edited on 2/18/20 at 10:02 pm
Posted on 2/18/20 at 10:29 pm to deeprig9
I do have the hdhp health insurance but I haven’t invested into an hsa yet, I was hesitant because I wasn’t sure exactly how it works. I was mainly wandering if the money would stay in my account and build over the years or is it a lose it or use it type thing. I’m never in the doctor office
Also side note, I am putting in 12 percent to a 401k and now 3 percent to roth. At first I was just doing 401k but then started reading about Roth accounts. Should I keep it split up? And also is the 19k max for a 401k just my contributions which I would probably be short on or is the employer match included in that?
Also side note, I am putting in 12 percent to a 401k and now 3 percent to roth. At first I was just doing 401k but then started reading about Roth accounts. Should I keep it split up? And also is the 19k max for a 401k just my contributions which I would probably be short on or is the employer match included in that?
This post was edited on 2/18/20 at 10:34 pm
Posted on 2/18/20 at 10:42 pm to SeymourButts
HSA can be used triple tax advantaged retirement tool. Lots of information on the internet regarding them. I recently just started one myself. Check out the email link I posted earlier in thread about prioritizing investments. It’s pretty straightforward.
Posted on 2/18/20 at 10:51 pm to SeymourButts
Just your contributions... Max out your traditional 401k and then look into a backoor Roth IRA to supplement. In my opinion, do those things before paying down the car or student loans
Posted on 2/18/20 at 11:53 pm to bod312
quote:
Why would anyone retire early?
Posted on 2/19/20 at 12:26 am to SeymourButts
Keep the truck. You make a good income, so you can afford it. Definitely refinance though, as 10% is ridiculous. Fully fund your HSA since it’s a triple tax free investment. Since your income is above the MAGI of $124,000, you’ll need to backdoor a Roth. Then contribute what you can towards your 401k.
Posted on 2/19/20 at 9:56 am to lynxcat
quote:
This board hates any kind of vehicle payment.
Because when people say things like:
quote:
I’m just looking long term to put my self in best position and once again thanks for the responses. Any input is good info
That does not include paying over $700 a month for a truck note.
Posted on 2/19/20 at 10:17 am to lynxcat
quote:
A term policy for a single individual is not needed.
He's also probably not dying as a single individual.
At some point he will get married, have kids, drink too much beer, get fat, and he will need life insurance and he'll be glad he got a super cheap policy when he was young and healthy.
Posted on 2/19/20 at 10:25 am to SeymourButts
i mean, with the exception of the 10 percent interest rate on the truck, it sounds like you have made some pretty good decisions.
Don't let the echo chamber of this board bother you too much. Many of these people present themselves as financial experts - and they may well be. But most 30 year olds are in a far, far worse situation than you are.
I love that you want to strive to be better, but sometimes it's ok to realize you are in a pretty good place.
So that brings me to the truck. Maybe you need a big truck for work, or you are hauling things, or you are just a baw, whatever. If you want to keep the truck, keep the truck, but for the love of God get that interest rate down. If you can get it below 5... I say keep it and keep making payments on it if you want that truck to be your "reward".
Keep pushing to at least a 3 month emergency fund and try to max out your retirement savings.
Sounds like you don't have any other debt outside car, student loan, and soon to be mortgage... that right there put you in outstanding shape.
Don't let the echo chamber of this board bother you too much. Many of these people present themselves as financial experts - and they may well be. But most 30 year olds are in a far, far worse situation than you are.
I love that you want to strive to be better, but sometimes it's ok to realize you are in a pretty good place.
So that brings me to the truck. Maybe you need a big truck for work, or you are hauling things, or you are just a baw, whatever. If you want to keep the truck, keep the truck, but for the love of God get that interest rate down. If you can get it below 5... I say keep it and keep making payments on it if you want that truck to be your "reward".
Keep pushing to at least a 3 month emergency fund and try to max out your retirement savings.
Sounds like you don't have any other debt outside car, student loan, and soon to be mortgage... that right there put you in outstanding shape.
Posted on 2/19/20 at 10:50 am to SeymourButts
The truck is a big hole, but you have a big shovel to fill it.
The knew jerk reaction on a $800 vehicle note is to get rid of it, but you can afford it. I'd try to refinance it and get a better interest rate.
I try to answer money questions with the "What would I do if I were in your shoes" method.
I would set a clear budget of $3500-$4000 a month. Anything over that goes to debt until its paid off - including the truck. You should be able to pay it off in a year and you will be doing really well.
The knew jerk reaction on a $800 vehicle note is to get rid of it, but you can afford it. I'd try to refinance it and get a better interest rate.
I try to answer money questions with the "What would I do if I were in your shoes" method.
I would set a clear budget of $3500-$4000 a month. Anything over that goes to debt until its paid off - including the truck. You should be able to pay it off in a year and you will be doing really well.
Posted on 2/19/20 at 11:02 am to SeymourButts
quote:
And also is the 19k max for a 401k just my contributions which I would probably be short on or is the employer match included in that?
It's actually 19.5k for 2020, but to your question it is only your portion. The total max contribution for both employee & employer is $57k.
quote:
am putting in 12 percent to a 401k and now 3 percent to roth
If your employer has a roth option, I'd consider putting the full amount into the roth. Everything the employer contributes has to go in traditional.
Posted on 2/19/20 at 11:06 am to anc
I would just refi the truck note as well.
I paid my wife’s van off a few years ago. Wrote a check for over $30k. I bought in to “no debt”. That money could have been earning and interest rates at the time were super low.
Sure, not having a note is nice, but you still have to put away “note” money for maintenance and a different car at some point.
Her van now has over 100k and the $$ is starting to rack up.
I paid my wife’s van off a few years ago. Wrote a check for over $30k. I bought in to “no debt”. That money could have been earning and interest rates at the time were super low.
Sure, not having a note is nice, but you still have to put away “note” money for maintenance and a different car at some point.
Her van now has over 100k and the $$ is starting to rack up.
This post was edited on 2/19/20 at 11:10 am
Posted on 2/19/20 at 12:26 pm to SeymourButts
quote:Am I the only one that thinks this number is pretty low for new construction. And I assume this doesn’t include property taxes and insurance.
And I am currently building a house that will be around 1226 a month with 3.25 interest rate
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