Yeah, that many divorces can be a real bitch on your finances.Paid off a CC last week and will be paying offer another smaller debt over the next few weeks. Trying to get this train back on track, 8 weddings really hurt my progress in 2017.
I'd probably only be able to do 1 and 2 with my current payWhile there are a few exceptions depending on your personal financial situation, the general rule of thumb for probably 99.9% of people is:
1. First, fully fund your 401(k) up to the point where your employer stops matching.
2. Next, max out a Roth IRA.
3. Next, max out your 401(k).
4. Finally, fund a traditional brokerage account.
And that's fine. I would just use that as a guide going forward. If you ever get to a point where you can make it to #3, great. If not, the same Rules #1 and #2 apply.I'd probably only be able to do 1 and 2 with my current pay
Most 401(k) plans allow the investor to withdraw from the account for the purposes of a primary mortgage down payment.
I've got an extra $8K lying around in a refund check that I'll need to use for school in the summer.
Thoughts on the best use of it for the next few months until June?
I can open up a new savings account and recoup a $150 bonus immediately. Maybe some sort of money market or mutual fund account?
I'd probably only be able to do 1 and 2 with my current pay
I have a bunch of cash in the bank that I don't know what to do with.
I have superb credit, I pay extra on my mortgage (about one extra payment a year), I contribute about 10k to my 401k each year in addition to employer contributions. I'm 29 and intend on buying a new house within the next few years as well as having a kid. Debt free except the mortgage.
Since I will need the cash relatively soon (within next few years), does it make sense to just sit on my money?
I'm thinking of at least switching to Discover online banking to get the 1.4% interest. I have a Discover credit card. Seems like a no-brainer. Anyone have experience with online banking/Discover in particular?
My goal is to max out my annual 401k within next few years (typically when I get a raise I tack on another 1-2% to the 401k, also going to start dumping some of my bonus into 401k), then open an IRA work towards maxing that out. Seems pretty par for the course.
While there are a few exceptions depending on your personal financial situation, the general rule of thumb for probably 99.9% of people is:
1. First, fully fund your 401(k) up to the point where your employer stops matching.
2. Next, max out a Roth IRA.
3. Next, max out your 401(k).
4. Finally, fund a traditional brokerage account.
Btw, question: I have about $5,800 in debt on a promotional balance transfer. Since I don't really need fantastic credit at this moment, I was thinking about actually only paying the minimum balance and putting as much as I can into a Roth IRA. Since Roth IRAs allow you to pull out whatever you've contributed at any moment, I thought I'd wait until a few weeks before my promotional rate was over, and then pull out whatever I needed to pay off the credit card. However, I'd likely have accrued hundreds of dollars (maybe even over $1k if we have another bull year) in interest just from not having paid off the card early. What are peoples' thoughts on this?
Responding to those who said more information would be helpful...
I make ~100k/year, my wife makes ~60k. Before taxes.
Mortgage is ~1050 a month, I pay 1150.
I contribute 10% to 401k with a total company match of 4% (100% of first 3% and 50% of next 2%).
Working on saving more money, I've set up my bank accounts such that I should never have to touch my savings, so I will be saving about $1400 a month. I put a bit of a buffer in my checking that should hopefully cover vacations, home upkeep, etc etc. Last year I only managed to save like 7k, though after a couple thou in medical expenses and another couple thou in vacations.
I have ~66k in my 401k and I'm actually invested 100% in the S&P 500 based on advice from a coworker. Maybe that is too risky even though I'm only 29?
I also have a 401k from an old job that has a little over 2k in it.
I only contribute $50/month to my HSA. Before last year my annual medical expenses were near zero so I never really bothered with it - the tax savings weren't worth bothering with the card. Then in the last few years I've had a few thousand in expenses. Blah. I should probably up this. I need another 1500 in it before I can invest it. Maybe at bonus time I will make a one-time contribution, and then start putting in more money. My wife is on my plan, too...and since we plan on having kids soon, yeah, I should get this going.
I have a bit over 30k in the bank. I bank with Huntington (was with FirstMerit). Only CC is Discover.
I also use Acorns contribute $5/week, round every purchase up a dollar, invested in "high risk" category. I know it's not the best considering it costs like a buck a month, but it's easy and kind of fun.
Regarding an IRA...I looked into this last year but I get confused easily. Fidelity offers an "IRA". But apparently there is a difference between Roth IRA, IRA, Roth Basic, etc. Can someone explain that to me like I'm 5?
Regarding investment options...I don't want to have to think about this too much so more options isn't necessarily desirable. I guess more options is better by default but outside of thinking about level of risk I don't really want to bother. I hate dealing with money. My wife handles the taxes.
Responding to those who said more information would be helpful...
I make ~100k/year, my wife makes ~60k. Before taxes.
Mortgage is ~1050 a month, I pay 1150.
I contribute 10% to 401k with a total company match of 4% (100% of first 3% and 50% of next 2%).
Working on saving more money, I've set up my bank accounts such that I should never have to touch my savings, so I will be saving about $1400 a month. I put a bit of a buffer in my checking that should hopefully cover vacations, home upkeep, etc etc. Last year I only managed to save like 7k, though after a couple thou in medical expenses and another couple thou in vacations.
I have ~66k in my 401k and I'm actually invested 100% in the S&P 500 based on advice from a coworker. Maybe that is too risky even though I'm only 29?
I also have a 401k from an old job that has a little over 2k in it.
I only contribute $50/month to my HSA. Before last year my annual medical expenses were near zero so I never really bothered with it - the tax savings weren't worth bothering with the card. Then in the last few years I've had a few thousand in expenses. Blah. I should probably up this. I need another 1500 in it before I can invest it. Maybe at bonus time I will make a one-time contribution, and then start putting in more money. My wife is on my plan, too...and since we plan on having kids soon, yeah, I should get this going.
I have a bit over 30k in the bank. I bank with Huntington (was with FirstMerit). Only CC is Discover.
I also use Acorns contribute $5/week, round every purchase up a dollar, invested in "high risk" category. I know it's not the best considering it costs like a buck a month, but it's easy and kind of fun.
Regarding an IRA...I looked into this last year but I get confused easily. Fidelity offers an "IRA". But apparently there is a difference between Roth IRA, IRA, Roth Basic, etc. Can someone explain that to me like I'm 5?
Regarding investment options...I don't want to have to think about this too much so more options isn't necessarily desirable. I guess more options is better by default but outside of thinking about level of risk I don't really want to bother. I hate dealing with money. My wife handles the taxes.