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Message
Next life steps advice (investing, saving, etc...)
Posted on 1/11/22 at 8:09 am
Posted on 1/11/22 at 8:09 am
Current Situation:
26 with wife and new born kid
Public school teacher bringing home $2800/mo
Pension plan through school system
Budget very well so wife stays home (which im cool with for now. She'll be making about 45k when she starts)
No car notes
Home owner - still owe 135,000 - note is $715
10k in savings
Trying to figure out what the next best steps are to make my money work for me. We have some leftover money at the end of the month but not a ton to start investing. Should I be doing something with the 10k thats in savings? Watching videos on compound interest makes me think time is running out to start investing. Any advice out there?
26 with wife and new born kid
Public school teacher bringing home $2800/mo
Pension plan through school system
Budget very well so wife stays home (which im cool with for now. She'll be making about 45k when she starts)
No car notes
Home owner - still owe 135,000 - note is $715
10k in savings
Trying to figure out what the next best steps are to make my money work for me. We have some leftover money at the end of the month but not a ton to start investing. Should I be doing something with the 10k thats in savings? Watching videos on compound interest makes me think time is running out to start investing. Any advice out there?
4
Posted on 1/11/22 at 8:14 am to BayouBengal23
(no message)
This post was edited on 2/28/22 at 3:45 am
Posted on 1/11/22 at 8:16 am to BayouBengal23
Roughly speaking your investment tiers should be:
1. Build up six month emergency savings fund
2. Invest in 401K up to company match (might not be applicable in your case if you have a pension instead, if so just delete this one)
3. Max out Health Savings Account (if offered by your employer)
4. Max out Roth IRA's
5. Max our remaining tax sheltered investment vehicles (401K's, etc.).
1. Build up six month emergency savings fund
2. Invest in 401K up to company match (might not be applicable in your case if you have a pension instead, if so just delete this one)
3. Max out Health Savings Account (if offered by your employer)
4. Max out Roth IRA's
5. Max our remaining tax sheltered investment vehicles (401K's, etc.).
Posted on 1/11/22 at 8:19 am to GeneralLee
quote:
Roughly speaking your investment tiers should be:
1. Build up six month emergency savings fund
2. Invest in 401K up to company match (might not be applicable in your case if you have a pension instead, if so just delete this one)
3. Max out Health Savings Account (if offered by your employer)
4. Max out Roth IRA's
5. Max our remaining tax sheltered investment vehicles (401K's, etc.).
I would be investing in a taxable account in his case long before maxing out every retirement vehicle. Needs to be some balance there so he has access to money when needed for life expenses.
Posted on 1/11/22 at 8:53 am to thunderbird1100
In his case, HSA and 401K probably isn't an option as he's a teacher. So Roth IRA is the main retirement vehicle he has and you can withdraw principal from those penalty free (if needed for an emergency life expense). He's likely in a low tax bracket as well so making Roth contributions makes a lot of sense.
Posted on 1/11/22 at 9:26 am to BayouBengal23
Your priority at 26 should be making more money. Leverage your skills to increase your earnings.
Posted on 1/11/22 at 9:42 am to BayouBengal23
Money Guy Financial Order of Operations. Follow that!
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