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Started By
Message
Anyone that would help me with my finances? Update (4/7/23) - Page 1
Posted on 2/4/23 at 12:36 am
Posted on 2/4/23 at 12:36 am
First off, I'm not a lost cause or anything. I'm just someone way behind the game.
This is really hard to say... but..
Long story short... I went to school for electrical engineering, did great up until my senior year, then dropped out and pissed away alot of my 20s. I was not ready to be an adult, didn't know how to deal with relationships, and honestly was a bit of a headcase and alcoholic... even though I had a 3.8 GPA.
Since turning 30 I turned things around. Moved up here and there job wise, got married (which probably saved me the most), and live a pretty solid life.
My problem is the salary I lost with not getting my degree and the years I lost saving for retirement, investing, etc.
I'm sure this thread will get tons of down votes, but I'm hoping one person might be willing to help me with direction.
My problem is alot of people's finiancial "goals" don't fit me or my situation.
I'm 42, my wife and I make about 110k together total a year. We have about 40k in 401k. We have about 60k in Ibonds right now I invested after selling some land. And we have about 20k in savings for emergency funds.
We have about 77k left on our house to pay off with a 4% rate.
I don't feel like I'm in the worst situation, but I know I'm not in the best.
I really don't know if I should try to put a bunch more into 401k over the next year and start a roth IRA.... or use the money I have in ibonds to try to do something real estate wise when I take it out.
Despite the opinion that will certainly be gathered, I'm not mentally retarded and am capable of learning. Did I frick up alot when I was younger? YES!!!
I'm ok with working til I die if I have too. I really just want to be able to have enough to take care of my wife if I pass and not leave a financial burden on anyone.
Update:
First of all, I would like to say thankyou to everyone that helped me in this thread. Not that anyone did by any means, but I wouldn't have minded getting poked at for my situation in order to gain some valuable knowledge.
We have been working towards the plans I mentioned later in this thread as far maxing our 401ks, etc and will meet those goals this year for sure based on what we were planning.
Main reason for the update is I just got a new job.
I'll be making an extra 29k a year, so our income is going from about 110k to 140k a year. My wife will also be entering nursing school (has a LPN degree right now) this fall. So she will get a great bump next year when she finishes as well.
Lots of thought and planning to do as the year progresses, and lots of work for both of us in the near future (me to learn and become proficient at my new job and her to finish school for a good raise and more opportunities), but it's definitely something we are very capable of achieving.
Anyway, I just wanted to say thanks again for the help and that things are going really good.
This is really hard to say... but..
Long story short... I went to school for electrical engineering, did great up until my senior year, then dropped out and pissed away alot of my 20s. I was not ready to be an adult, didn't know how to deal with relationships, and honestly was a bit of a headcase and alcoholic... even though I had a 3.8 GPA.
Since turning 30 I turned things around. Moved up here and there job wise, got married (which probably saved me the most), and live a pretty solid life.
My problem is the salary I lost with not getting my degree and the years I lost saving for retirement, investing, etc.
I'm sure this thread will get tons of down votes, but I'm hoping one person might be willing to help me with direction.
My problem is alot of people's finiancial "goals" don't fit me or my situation.
I'm 42, my wife and I make about 110k together total a year. We have about 40k in 401k. We have about 60k in Ibonds right now I invested after selling some land. And we have about 20k in savings for emergency funds.
We have about 77k left on our house to pay off with a 4% rate.
I don't feel like I'm in the worst situation, but I know I'm not in the best.
I really don't know if I should try to put a bunch more into 401k over the next year and start a roth IRA.... or use the money I have in ibonds to try to do something real estate wise when I take it out.
Despite the opinion that will certainly be gathered, I'm not mentally retarded and am capable of learning. Did I frick up alot when I was younger? YES!!!
I'm ok with working til I die if I have too. I really just want to be able to have enough to take care of my wife if I pass and not leave a financial burden on anyone.
Update:
First of all, I would like to say thankyou to everyone that helped me in this thread. Not that anyone did by any means, but I wouldn't have minded getting poked at for my situation in order to gain some valuable knowledge.
We have been working towards the plans I mentioned later in this thread as far maxing our 401ks, etc and will meet those goals this year for sure based on what we were planning.
Main reason for the update is I just got a new job.
I'll be making an extra 29k a year, so our income is going from about 110k to 140k a year. My wife will also be entering nursing school (has a LPN degree right now) this fall. So she will get a great bump next year when she finishes as well.
Lots of thought and planning to do as the year progresses, and lots of work for both of us in the near future (me to learn and become proficient at my new job and her to finish school for a good raise and more opportunities), but it's definitely something we are very capable of achieving.
Anyway, I just wanted to say thanks again for the help and that things are going really good.
This post was edited on 4/7/23 at 2:43 am
19
Posted on 2/4/23 at 1:02 am to NATidefan
At 42 you still have a bit of time before retirement. I'd suggest starting a Roth IRA. Can be done relatively easy at vanguard. Max that out over the year. I think the 2023 limit is $6500.
If it's your 401k then contribute to it regularly. Put in whatever is matched at least.
If it's your 401k then contribute to it regularly. Put in whatever is matched at least.
Posted on 2/4/23 at 1:19 am to HailToTheChiz
Thanks we both put in already what is matched 401k wise. Was planning to start a roth this weekend and put in max for this year for the two of us.
From what I gather that makes the most sense. Trying to figure out where to go after that. Thanks though, appreciate it.
From what I gather that makes the most sense. Trying to figure out where to go after that. Thanks though, appreciate it.
Posted on 2/4/23 at 2:28 am to NATidefan
Don’t know if this is like a drinking Friday night validation seeking thread, but you’re doing a decent job bro. And seem like you want to do the best you can which is always the most important thing.
Breaking down the numbers, you’re doing fine. Maybe not in comparison if you’re trying to keep up with the Jones’ of a Finance Board, but you’re doing better than the average American.
Just to put things into perspective for you:
People aged 35-44 have an average savings of $38,400
People aged 45-54 have an average savings of $93,400
By my count you have $120k in savings and investments. So you are doing considerably better than the average person 12 years your senior. You may not be proud of where you are now, but you’re doing a better job than you’re giving yourself credit for. Keep up the good work.
I too recommend the Roth for your situation. I’d only contribute to the 401k whatever the % is that’s matched. At your income level, there’s really no upside to over contributing to a 401k, I don’t think it will move you down a tax bracket. Allowing your money to grow tax free in a Roth IRA will probably suit you better for the future
Breaking down the numbers, you’re doing fine. Maybe not in comparison if you’re trying to keep up with the Jones’ of a Finance Board, but you’re doing better than the average American.
Just to put things into perspective for you:
People aged 35-44 have an average savings of $38,400
People aged 45-54 have an average savings of $93,400
By my count you have $120k in savings and investments. So you are doing considerably better than the average person 12 years your senior. You may not be proud of where you are now, but you’re doing a better job than you’re giving yourself credit for. Keep up the good work.
I too recommend the Roth for your situation. I’d only contribute to the 401k whatever the % is that’s matched. At your income level, there’s really no upside to over contributing to a 401k, I don’t think it will move you down a tax bracket. Allowing your money to grow tax free in a Roth IRA will probably suit you better for the future
Posted on 2/4/23 at 5:04 am to Zzyzx
And whenever you get a raise, put half of it in 401k.
Also, check into finding a college that will work with you to finish “a degree.”
Should be a way to get that box checked. Company might pay for it. Do not overpay for this-just check. There are diploma mills out there taking Money under false pretenses. Troy and Alabama have pretty big distance learning options and it would be in state.
on the one hand it’s a piece of paper, on the other HR screens piles of applications for positions by saying “bachelors degree required.”
Also, check into finding a college that will work with you to finish “a degree.”
Should be a way to get that box checked. Company might pay for it. Do not overpay for this-just check. There are diploma mills out there taking Money under false pretenses. Troy and Alabama have pretty big distance learning options and it would be in state.
on the one hand it’s a piece of paper, on the other HR screens piles of applications for positions by saying “bachelors degree required.”
Posted on 2/4/23 at 5:15 am to NATidefan
You don't need help.
This is an easy game. It's just long and boring.
Make more. Spend Less. Invest.
This is an easy game. It's just long and boring.
Make more. Spend Less. Invest.
Posted on 2/4/23 at 7:15 am to NATidefan
Max a Roth. Do either of you have an HSA to contribute to? Those are triple taxed advantaged.
You aren’t doing that bad there are certainly people in far worse shape. Good news is you can fix all this and get started right now on a better retirement path.
You aren’t doing that bad there are certainly people in far worse shape. Good news is you can fix all this and get started right now on a better retirement path.
Posted on 2/4/23 at 7:19 am to NATidefan
There is nothing wrong with the IRA route.
But you are permitted to put more into the 401k than you are permitted to put into the Ira.
The 'win' with the 401k is that you can sock away a lot more per year.
If you want to get excited about your retirement savings, then put more in.
You have $40k today. Have a goal for $80k in 2 years (or 3).
As my income grew, I put more into the 401k. It was doubling every 36-40 months. It isn't hard to get excited when you see that happen over over during a 15 year span.
But you are permitted to put more into the 401k than you are permitted to put into the Ira.
The 'win' with the 401k is that you can sock away a lot more per year.
If you want to get excited about your retirement savings, then put more in.
You have $40k today. Have a goal for $80k in 2 years (or 3).
As my income grew, I put more into the 401k. It was doubling every 36-40 months. It isn't hard to get excited when you see that happen over over during a 15 year span.
Posted on 2/4/23 at 7:46 am to NATidefan
quote:
I really just want to be able to have enough to take care of my wife if I pass and not leave a financial burden on anyone.
If that is really your only financial goal, you can buy a 30 year term life policy for as much as you want her to have for a relatively reasonable price.
With the limited debt you have, I am not sure why you don’t go back to school part time to finish your degree and increase your earning capacity. Increase earning capacity would be the first step I would take to financial security. You will have at least 20 years to use that degree, even going part time.
You are not that far behind. Don’t get down on yourself, but do recognize it is time to buckle up.
Posted on 2/4/23 at 7:49 am to NATidefan
I would maximize your tax advantaged accounts before trying real estate.
"pay yourself first"
Meaning, the first allocations of your paycheck need to be towards savings/retirement. You then form your budget around what is left.
Y'all make enough to be able to max out 401k AND IRAs and that is exactly what you need to do. You need compounding to start working in your favor.
Emergency fund should be plenty at your salary.
4% mortgage is low enough that I wouldn't pay that off right now.
"pay yourself first"
Meaning, the first allocations of your paycheck need to be towards savings/retirement. You then form your budget around what is left.
Y'all make enough to be able to max out 401k AND IRAs and that is exactly what you need to do. You need compounding to start working in your favor.
Emergency fund should be plenty at your salary.
4% mortgage is low enough that I wouldn't pay that off right now.
Posted on 2/4/23 at 9:44 am to NATidefan
I'm ok with working til I die if I have too. I really just want to be able to have enough to take care of my wife if I pass and not leave a financial burden on anyone.
--
Do you have a term life insurance policy?
Also, relax you're doing fine.
Posted on 2/4/23 at 10:05 am to NATidefan
quote:This is what term life insurance is for.
I really just want to be able to have enough to take care of my wife if I pass and not leave a financial burden on anyone.
Posted on 2/4/23 at 11:33 am to Zzyzx
Thanks for all the responses and help. I guess I just don't know really where I stand sometimes.
Going to read through all these this evening and try to get that ira started after I do taxes.
Going to read through all these this evening and try to get that ira started after I do taxes.
This post was edited on 2/4/23 at 12:03 pm
Posted on 2/4/23 at 11:41 am to NATidefan
Any other debt? Student loans, etc? House worth? Need to see your net worth to get the full picture.
Posted on 2/4/23 at 11:49 am to NATidefan
If you don’t need the money at your fingertips, a traditional IRA makes more sense than a Roth.
You’re unlikely to be in the same or higher tax bracket in retirement, so traditional IRAs make more sense, and save the tax savings in a taxable brokerage account.
You’re unlikely to be in the same or higher tax bracket in retirement, so traditional IRAs make more sense, and save the tax savings in a taxable brokerage account.
Posted on 2/4/23 at 11:56 am to slackster
Yeah, sorry, I said roth. I meant traditional.
Posted on 2/4/23 at 11:58 am to Odinson
quote:
Any other debt? Student loans, etc? House worth? Need to see your net worth to get the full picture.
Not much, about 4000 on my car at 2% interest. One thing I can say is I have great credit.
House was 120k whe we bought it in 2019. But it was a really good deal even then, in today's market I'd say it's 200k just by comparison.
This post was edited on 2/4/23 at 12:02 pm
Posted on 2/4/23 at 12:00 pm to ItzMe1972
quote:
Do you have a term life insurance policy?
I don't, but it has been on my list of things to do. Does anyone have a recommendation on one to look into?
Posted on 2/4/23 at 12:04 pm to GEAUXT
quote:
4% mortgage is low enough that I wouldn't pay that off right now.
Yeah, I wish I had refinanced when the rates were so low a few years ago and locked in a 2% though.
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