That’s kind of what I’ve been leaning towards honestly. A coworker is a proponent of Roth IRAs and I’ve been communicating with him the last couple weeks.
Any Dave Ramsey fans in here or financial gurus? Need advice..
- Thread starter CobraLucci
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Cobra is straight equity.
Not everything needs to be liquid.
I also agree with everyone saying to put money into a retirement.
Not everything needs to be liquid.
I also agree with everyone saying to put money into a retirement.
I did not read all the replies but wanted to throw something in the mix.
Im not 100% for dave and i say, based on what u said, to keep it.
Based on daves advise its ok to have cars and toys w engines as long as their value added us to 1/2 or less or your yearly salary.
Hope that helps.
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Im not 100% for dave and i say, based on what u said, to keep it.
Based on daves advise its ok to have cars and toys w engines as long as their value added us to 1/2 or less or your yearly salary.
Hope that helps.
Sent from my SM-N950U using the svtperformance.com mobile app
That’s correct because if you have more than that you have to much money in things that lose money every year.
Losing money is a awful way to build wealth. Haha
Losing money is a awful way to build wealth. Haha
Agreed!
Just had a 45 second conversation with my wife that went about like this:
Me: I still think we need to meet with an advisor about opening a Roth IRA and seeing how we are looking long term at our current patterns.
Her: I don’t know why you’re so set on a Roth. They’re limited on what you can put in. What do they earn? Im sure it’s not as much as a 401k. You still have to do a 401K. I don’t know why you keep saying yours doesn’t match. I’m sure I saw somethinf where they match.
Me: *Realizing I'm wasting my breath again* Ok. But trust me, I don’t get matched. I’d be doing it if they did.
Her: I’ll believe it when I see it.
I don’t know why I bother ****ing talking to the smartest woman in the world when I’m such an uneducated waste of breath.
Me: I still think we need to meet with an advisor about opening a Roth IRA and seeing how we are looking long term at our current patterns.
Her: I don’t know why you’re so set on a Roth. They’re limited on what you can put in. What do they earn? Im sure it’s not as much as a 401k. You still have to do a 401K. I don’t know why you keep saying yours doesn’t match. I’m sure I saw somethinf where they match.
Me: *Realizing I'm wasting my breath again* Ok. But trust me, I don’t get matched. I’d be doing it if they did.
Her: I’ll believe it when I see it.
I don’t know why I bother ****ing talking to the smartest woman in the world when I’m such an uneducated waste of breath.
Employers make it known when they do match on a 401k because it is a pretty nice perk. Given that you are interested in saving more for retirement you are very likely informed on what your employer offers. Remind her that it is harder to prove something doesn't exist (employer match in this case) than to prove something does exist. Put it on her to prove that there is a match!
Also, tell her that funds in Roth IRA's are often the exact same funds that are offered in 401k's but they have lower fees. You know this but the same performance with lower fees equals more money for you! And that's without the post tax benefits as the current tax rates are likely the lowest almost all of us will see in our lives.
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A black4vcobra appeared...
It used logic.
It’s not very effective.
It used logic.
It’s not very effective.
It sounds like you are doing good. I would definitely get an ROTH IRA started ASAP. One nice thing about the ROTH IRAs is you can withdraw whatever you put in with no penalty, you just can't touch any of your gains. As for the car, if it is paid off I would keep it.
For reference they say you should have 1X your salary by 30 and 2X your salary by 35. I'll be 30 next month and I'm just shy of 2X my salary. My wife is way behind but shes doing great now. She just started saving about a year ago and has about 10k tucked away for retirement
For reference I have a 401K that I put 9% into plus a company match of 4%. I also max my ROTH IRA every year. FYI this year they increased the max from $5500 to $6000. My wife doesn't have a company match so she just maxes her Roth IRA every year and saves a little extra. The only debt we have is our home and I owe about 6k on my truck that will be paid off this year. I have about 6 months in the bank and my wife has about 4 months.
For reference they say you should have 1X your salary by 30 and 2X your salary by 35. I'll be 30 next month and I'm just shy of 2X my salary. My wife is way behind but shes doing great now. She just started saving about a year ago and has about 10k tucked away for retirement
For reference I have a 401K that I put 9% into plus a company match of 4%. I also max my ROTH IRA every year. FYI this year they increased the max from $5500 to $6000. My wife doesn't have a company match so she just maxes her Roth IRA every year and saves a little extra. The only debt we have is our home and I owe about 6k on my truck that will be paid off this year. I have about 6 months in the bank and my wife has about 4 months.
1x salary in retirement savings by 30? Yeah, looks like I'm a little bit behind there if we're looking at 401k only. Once I get the easy debt knocked out (car payments, wife's student loans), then I'll split the monthly savings between mortgage and nest egg / emergency.
Keep it and keep doing what you are doing. The car will be paid off sooner than the house. Stay single and don't get married and don't have children. If you do you will have no money!!!!
Sounds like you're well on your way to a good retirement, but...Dave Ramsey advises to not contribute to retirement until all non mortgage debts are paid off, just sayin...
I don't follow Ramsey but do what makes sense to you.
First off, I would absolutely contribute to a retirement account. Whether it be a 401k, IRA or just regular stocks and bond investing. Do one of those.
Second, how much happiness does the car bring you? How much are you paying per year in additional fees because of the car? Looking on those numbers, do you think it's worth it for the added benefits of selling? or would you 'gain' more from keeping?
Third, you're already contributing extra towards your mortgage and knocked out your debt (bravo, you're already further than most of the people in here probably giving you 'advice').
My advice: if you don't use the car as much and could use the extra money for selling, then do so. If it brings ton of joy to your life, then keep it. Other than opening some form of a retirement/investment account, I would recommend at least paying off 20% of your house to knock out PMI. I don't know what you purchased at, but if you did at 220k and owe 179k you should be close. Then put that extra PMI payment towards the principal. I would put a mild amount into savings every month (probably $500 or so just to continue to grow the savings) and then put the rest towards investment accounts.
I just recently sold my 2013 mustang after not driving it much. Put 19k straight to the bank account. Now I have a full years salary liquid. I sleep much better at night knowing i could take a shit on the CEO's desk, tell him to pound sand, and not have to worry about finances for 12+ months. Some say it's stupid to keep that amount liquid, but you have to look at the pro's and con's. You could throw it in a money market but then have terms to the account, such as limited amount at all times, can't close the account within X period of time, etc. You could throw it in the market, but it's been relatively volatile over the last 12 months. I'd rather personally save up and wait for it to drop again and then pour my money in.
Basically, do what makes sense to you, not what you read or what someone recommends people do without fully knowing their financial situation.
First off, I would absolutely contribute to a retirement account. Whether it be a 401k, IRA or just regular stocks and bond investing. Do one of those.
Second, how much happiness does the car bring you? How much are you paying per year in additional fees because of the car? Looking on those numbers, do you think it's worth it for the added benefits of selling? or would you 'gain' more from keeping?
Third, you're already contributing extra towards your mortgage and knocked out your debt (bravo, you're already further than most of the people in here probably giving you 'advice').
My advice: if you don't use the car as much and could use the extra money for selling, then do so. If it brings ton of joy to your life, then keep it. Other than opening some form of a retirement/investment account, I would recommend at least paying off 20% of your house to knock out PMI. I don't know what you purchased at, but if you did at 220k and owe 179k you should be close. Then put that extra PMI payment towards the principal. I would put a mild amount into savings every month (probably $500 or so just to continue to grow the savings) and then put the rest towards investment accounts.
I just recently sold my 2013 mustang after not driving it much. Put 19k straight to the bank account. Now I have a full years salary liquid. I sleep much better at night knowing i could take a shit on the CEO's desk, tell him to pound sand, and not have to worry about finances for 12+ months. Some say it's stupid to keep that amount liquid, but you have to look at the pro's and con's. You could throw it in a money market but then have terms to the account, such as limited amount at all times, can't close the account within X period of time, etc. You could throw it in the market, but it's been relatively volatile over the last 12 months. I'd rather personally save up and wait for it to drop again and then pour my money in.
Basically, do what makes sense to you, not what you read or what someone recommends people do without fully knowing their financial situation.
Since this thread has morphed into more of a general finance thread, I'll ask a question:
Anyone ever converted a traditional IRA to a Roth IRA? The reason I ask is I have one of each, with the traditional carrying the larger balance. However, my Roth is the only account I have that's post tax. I'd like to convert my traditional to a Roth in a one-time transaction, to have at least one account that's relatively safe from increasing tax rates.
I get that I'll have to pay taxes on the conversion. But given that these are the lowest rates we'll likely see, now seems like an ideal time to do it, if I'm going to. Are there any other pitfalls I'm not thinking of?
Anyone ever converted a traditional IRA to a Roth IRA? The reason I ask is I have one of each, with the traditional carrying the larger balance. However, my Roth is the only account I have that's post tax. I'd like to convert my traditional to a Roth in a one-time transaction, to have at least one account that's relatively safe from increasing tax rates.
I get that I'll have to pay taxes on the conversion. But given that these are the lowest rates we'll likely see, now seems like an ideal time to do it, if I'm going to. Are there any other pitfalls I'm not thinking of?
Thats what I've read. Basically every 5 years after 30 you should increase your savings by 1X your income (30=1X, 35=2X, 40=3X, etc.) I started at a really young age and put a decent percentage away. I also didn't have student loans to worry about besides helping my wife a bit with hers. Thats what has allowed me to put that much away. I thought that amount was a pretty steep to have saved by 30 too but over the last few years my savings has increased rapidly. Like anything the more you have saved the quicker it can grow. I've seen a 20k increase in my portfolios this year already.
I agree with most of what he says but some of it doesn't make sense. Not saving anything for retirement because you have debt seems silly. Maybe it makes more sense for people with $40-50k+ of debt with interest rates at 15%+. For me a $20k dollar truck note @ 2% doesn't justify not saving for retirement. I saw 20% gains in 2017 and still saw 10% last year even with the mini-crash at the end of the year. I would have missed out on those gains if I only focused on my paying my tuck off. Hell my checking account pays 2.51% APY as long as you have over 15k in the account.
I've seen the 2x of salary at age 35 before too but this one is a little more realistic for many people -https://www.sfgate.com/business/networth/article/Retirement-rule-of-thumb-from-Fidelity-3860834.php
It assumes people start saving at 25 and that you should have 1x salary at 35. I just turned 35 and have a bit more than 1.1 times my salary saved. I also am making nearly double what I did 10 years ago so if I take my salary from 10 years ago, I do have about twice that saved for retirement.
What I've noticed though is that it takes a while for the savings to take off. I'm now finally getting meaningful dividends and capital gains.
Didn't read all the replies but I follow Dave and I have done a bit of a modified plan than what he teaches.
You have no debt other than the house don't worry about selling the car. Next thing I would do is max out Roth and 401k since you have nothing. if you do this you will retire a millionaire. Plain and simple. I started to freak out because I cut contributions while I was paying off debt so I have been maxing both out for a couple years and they really take off after a bit.
You have no debt other than the house don't worry about selling the car. Next thing I would do is max out Roth and 401k since you have nothing. if you do this you will retire a millionaire. Plain and simple. I started to freak out because I cut contributions while I was paying off debt so I have been maxing both out for a couple years and they really take off after a bit.
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