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Posted
  On 11/2/2024 at 12:32 AM, Vintner said:

Roth 401Ks are goldmines for the crowd under 35. At least do the company match but the best advice is to contribute all that you can.  It’s hard to see the benefit when you are early in your career, because it’s taking away from your discretionary spending aka “fun budget”. The first $100K is the hardest but that will grow and the next $100K comes faster (barring financial crises…but that’s when things get cheap and markets will recover) and eventually the annual growth of your investments exceeds your contributions.
 

Keep the pedal to the metal if you can but I will say that as your earnings increase throughout your career you may choose to shift some to traditional 401K in order to moderate/minimize current taxes. 


Regardless of your vehicle keep making the biggest contribution that you can afford and keep it all invested in something.  Most companies 401K managers have crappy money market vehicles.

 

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1) Your first >5 years out of college just crank your withholding to the max (likely 20%).  You were poor in college; just stay poor a few more years.  As stated above, you're gonna prime the pump and get you a gold mine someday.

 1a) They tell me your first million is a lot harder to make than your second. I hope so.  

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Posted

There’s a good amount of finance influencers/youtubers ( I fucking hate that I just typed that out) that say getting to 100k is harder and takes more effort than getting to the first million, and that’s what every person in their 20s should focus on—getting to 100k. 

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Posted
  On 11/2/2024 at 9:24 PM, StassneyHorn said:

There’s a good amount of finance influencers/youtubers ( I fucking hate that I just typed that out) that say getting to 100k is harder and takes more effort than getting to the first million, and that’s what every person in their 20s should focus on—getting to 100k. 

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The Money Guys are good but I feel like use it to sell their AUM but less militant than Dave Ramsey. White coat investor is good even if not a doctor. He can get pretty advanced but overall good advice. 

Posted (edited)

For the max 401k crowd (traditional or roth) check to see if your employer allows for after tax contributions. I'm in year 6 of my employment and just learned that I can contribute an additional 10K as after tax dollars to my traditional 401k and then have it automatically converted to my roth 401k account. It's a way of pushing up to $10K extra into my roth via payroll deductions.

Backdoor roth IRA contributions are tricky for me tax wise because I have traditional IRA balances. I believe this works around that issue or at least I haven't discovered it yet. as always don't take tax advice from someone named after a movie tough guy.

 

Edited by Nice Guy Eddie
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Posted

Some motivation around the holidays

Number of 401(k) ‘millionaires’ just jumped by 9.5%
https://www.cnn.com/2024/12/05/business/401k-balances-fidelity/index.html

Highlighted what I thought was important

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Posted

I turn 42 in a week. I finally hit $600k in my 401k this year. Growing up and just out of college I would have been ecstatic. I thought about 1mil would be plenty to retire on just drawing the interest.  Everything seems so expensive now I’m not sure I can ever retire. 

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Posted
  On 12/6/2024 at 12:24 AM, UT_OB1 said:

I turn 42 in a week. I finally hit $600k in my 401k this year. Growing up and just out of college I would have been ecstatic. I thought about 1mil would be plenty to retire on just drawing the interest.  Everything seems so expensive now I’m not sure I can ever retire. 

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Congrats! That’s a great balance for age 42 (I work in the industry). 
 

If you put $15k away a year with no employer match and got a 7% return on average you’d have $2.9mn at age 62. 8% return would be $3.5mn at age 62.
 

Posted
  On 12/6/2024 at 12:24 AM, UT_OB1 said:

I turn 42 in a week. I finally hit $600k in my 401k this year. Growing up and just out of college I would have been ecstatic. I thought about 1mil would be plenty to retire on just drawing the interest.  Everything seems so expensive now I’m not sure I can ever retire. 

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Is your house payed off? Worried about kids not leaving the house?

Posted

House not paid off. Kids are just 9 and 12 so that doesn’t even seem possible in my head, but I know it will be here faster than I want. Still college after that, and we haven’t been to start saving at all. 

Probably my biggest fear is my wife’s meds/health. She has medicine that is $25k a month. She has to have it. Employer insurance covers it for now, but it’s a fight every time the company switches providers. She had to fly to see another doctor one time to get it approved again. The coupon drops the price all the way to $20k a month. Htf do they expect people to survive with those prices?

 

*I did not kill any ceos this week*

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Posted
  On 12/6/2024 at 2:46 AM, UT_OB1 said:

House not paid off. Kids are just 9 and 12 so that doesn’t even seem possible in my head, but I know it will be here faster than I want. Still college after that, and we haven’t been to start saving at all. 

Probably my biggest fear is my wife’s meds/health. She has medicine that is $25k a month. She has to have it. Employer insurance covers it for now, but it’s a fight every time the company switches providers. She had to fly to see another doctor one time to get it approved again. The coupon drops the price all the way to $20k a month. Htf do they expect people to survive with those prices?

 

*I did not kill any ceos this week*

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You're gonna make it, man. The fact that you've put 600K away even with 300k/annual medical bills tells me you've got some hill-climbing gears in that transmission. Good for you.

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Posted

1) Max 401K, then Max HSA, then look at Roth.  First two are pretax.  And you can take both with you if fired. 

2) If you sold stock and have capital gains, then look at selling any loser stocks to offset those cap gains.

3) Review all your insurance, bank and brokerage accounts to make sure you have correct beneficiaries in place in case of your demise.

4) Take $100 and carry it around between now and the end of the year.  And give it away to somebody, for any reason you deem.  You will know the right moment, and it will make you feel really good inside.

 

 

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Posted
  On 12/7/2024 at 4:06 AM, horn4life said:

4) Take $100 and carry it around between now and the end of the year.  And give it away to somebody, for any reason you deem.  You will know the right moment, and it will make you feel really good inside.

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Y'know, it HAS been forever since I visited a Scrip Club...

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Posted
  On 12/7/2024 at 4:06 AM, horn4life said:

1) Max 401K, then Max HSA, then look at Roth.  First two are pretax.  And you can take both with you if fired. 

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Why pretax?

  On 12/7/2024 at 4:06 AM, horn4life said:

2) If you sold stock and have capital gains, then look at selling any loser stocks to offset those cap gains.

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This is Surly.  We don't lose.

  On 12/7/2024 at 4:06 AM, horn4life said:

4) Take $100 and carry it around between now and the end of the year.  And give it away to somebody, for any reason you deem.  You will know the right moment, and it will make you feel really good inside.

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I PM'd you my address thx.

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Posted

As someone quickly approaching old guy status, one change I wish I had done as a younger person was to push the 401k limits at work. I could have found a way to live on 1-2 percent less. Pack a few more lunches to work. It would have made a difference 25 years later.

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Posted
  On 12/14/2024 at 8:15 PM, Nice Guy Eddie said:

As someone quickly approaching old guy status, one change I wish I had done as a younger person was to push the 401k limits at work. I could have found a way to live on 1-2 percent less. Pack a few more lunches to work. It would have made a difference 25 years later.

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Every time you get a raise, bump your withholding the same amount.  Your yearly bonus goes into your ROTH IRA.  Just do it.

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