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1
Posted on 2/28/24 at 6:01 pm to BabyTac
quote:
5% to 401k to get company matching 60% of monthly pay into investment account
Why would you do this before pumping all of that into 401k to get tax deferred earnings?
I have access to a wide range of funds and am maxing out my contributions into a Roth 401k before I do anything else.
Posted on 2/28/24 at 6:08 pm to slackster
quote:Another good post, slackster.
Zero Savings is investments. Once you hit where you want to be for an emergency fund, there is no more "savings"
This.
But to add some flavor to the discussion, I maintain 6 months of basic living expenses in a money market fund. I recommend clients have at least 3, and then up to 12 depending on income stability.
Posted on 2/28/24 at 6:59 pm to HeartAttackTiger
After maxing out all 401K etc around 8k a month
Posted on 2/28/24 at 6:59 pm to SquatchDawg
quote:
Why would you do this before pumping all of that into 401k to get tax deferred earnings?
I plan on retiring early and enjoying the fruits of my labor while I’m still young and healthy. I don’t need a couple million dollars I can’t touch until I’m basically dead.
I already have a hefty amount in 401k. I don’t see a need to dump more than 5% to get the match. I’d rather have accessible funds at 50 when I plan on retiring.
This post was edited on 2/28/24 at 7:07 pm
Posted on 2/28/24 at 7:01 pm to BabyTac
quote:
I plan on retiring early and enjoying the fruits of my labor while I’m still young and healthy. I don’t need a couple million dollars I can’t touch until I’m basically dead.
:why not both gif:
Posted on 2/28/24 at 7:44 pm to Drizzt
quote:
Several thousand a month probably. I’ve never really looked into it. You need help.
Probably in more ways than you can imagine. It’s just my wife and I with no kids and we’ve always made good money so we never really had a budget.
Posted on 2/28/24 at 7:51 pm to HeartAttackTiger
1200/month goes into rainy day after 401k and roth max.
Emergency fund is established. 1200/month goes to dedicated big expenses. Last 3 years it's been built up for a cash purchase of a car. New HVAC the following year, new roof after that.
We have a 10 year plan that takes us to 2 newish paid vehicles, paid off house, with a newish roof and hvac.
Emergency fund is established. 1200/month goes to dedicated big expenses. Last 3 years it's been built up for a cash purchase of a car. New HVAC the following year, new roof after that.
We have a 10 year plan that takes us to 2 newish paid vehicles, paid off house, with a newish roof and hvac.
This post was edited on 2/28/24 at 8:01 pm
Posted on 2/28/24 at 8:05 pm to HeartAttackTiger
$2000 cash goes to savings in high yield account (about 4.5% and these days the total brings in about $1100 a month in interest), $1000 goes to 401k where it gets matched 1 to 1. House is almost paid off -- about 6 months or so? When that happens, we'll save or invest an additional $1700 a month.
We have zero debt except the house payment (for now).
We take normal vacations (go to some place we've never been before) no matter what comes in. I mean, you have to, else you'll lose your mind.
I'm glad I'm a government contractor and taking that tax-payer money
We have zero debt except the house payment (for now).
We take normal vacations (go to some place we've never been before) no matter what comes in. I mean, you have to, else you'll lose your mind.
I'm glad I'm a government contractor and taking that tax-payer money
This post was edited on 2/28/24 at 8:07 pm
Posted on 2/28/24 at 8:07 pm to baseballmind1212
quote:
We have a 10 year plan that takes us to 2 newish paid vehicles, paid off house, with a newish roof and hvac.
Good job brother
Posted on 2/28/24 at 8:09 pm to Rize
quote:
Rize
You get your share of downvotes but I appreciate the different perspectives on the MTB.
Posted on 2/28/24 at 8:12 pm to lynxcat
Yep I got no problem with that. Honestly, it's none of our business what others do with their money or what their philosophy on savings is.
Posted on 2/28/24 at 8:17 pm to theballguy
It’s also not a problem that they are high income DINKs with tons of disposable income. They get a lot more freedom of lifestyle and I’m not going to hate on it.
Posted on 2/28/24 at 8:25 pm to HeartAttackTiger
I shoot for 20% a month of gross income
Posted on 2/28/24 at 8:27 pm to BabyTac
You can withdraw Substantially Equal Periodic Payments and start drawing down your IRA/401K without tax penalty. You wouldn't have to wait until you are too old to enjoy your money. Maxing out 401K would get you there quicker.
Thing is, you only want to do it with tax deferred assets, not Roth assets.
You are probably paying a higher income tax rate on the money you are investing, whereas if you put it into traditional tax deferred vehicle you would probably be in a lower tax bracket for at least some of it when you withdraw it, maybe even most of it.
Thing is, you only want to do it with tax deferred assets, not Roth assets.
You are probably paying a higher income tax rate on the money you are investing, whereas if you put it into traditional tax deferred vehicle you would probably be in a lower tax bracket for at least some of it when you withdraw it, maybe even most of it.
Posted on 2/28/24 at 8:29 pm to CharlesUFarley
Son in college, daughter in med school so not much. I hope they appreciate that they won't have much debt out of college.
Posted on 2/28/24 at 8:38 pm to CharlesUFarley
I replied to the wrong post. I meant that mr. 5% 401k could start SEPP payments from his 401K/IRA before he was 59 and that there were probably tax benefits to it.
Posted on 2/28/24 at 8:51 pm to HeartAttackTiger
Around 4k a month. Currently building emergency fund as well as saving for a vehicle. We also put some away for travel. No debt and own home free and clear.
HSAs are maxed. 401k is maxed and my wife contributes to a 403b but has a teachers pension as her main retirement contribution.
HSAs are maxed. 401k is maxed and my wife contributes to a 403b but has a teachers pension as her main retirement contribution.
Posted on 2/28/24 at 9:11 pm to CharlesUFarley
Wife and I have been maxing out both 401k’s and auto invest $5k/mo into an after tax brokerage to use as a bridge account if we wanted to retire early at 50 until we can access our retirement accounts at 59.
Other than SoSEPP, which we probably wouldn’t use over the taxable brokerage, are there any other strategies you are aware of to bridge the income gap from 50 until 59.5?
Other than SoSEPP, which we probably wouldn’t use over the taxable brokerage, are there any other strategies you are aware of to bridge the income gap from 50 until 59.5?
Posted on 2/28/24 at 9:30 pm to Rize
quote:
going to Edward Jones
nobody with any financial sense uses EJ
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