And did you note retirement is planned in 12 years? Who has little kids and plans to retire while they are in highschool? And how does reducing to one income help me save faster for retirement? You are so quick to judge the dual income statement you didn't even read the post.
How much do you Save for retirement?
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And did you note retirement is planned in 12 years? Who has little kids and plans to retire while they are in highschool? And how does reducing to one income help me save faster for retirement? You are so quick to judge the dual income statement you didn't even read the post.
I believe both of you can max out your 401k up to $50k or so each. Just the first $20,500 each is pre-tax. The other $30k is after tax and the gains are tax deferred until pulled out at retirement.
Go to Vanguard or Fidelity for retirement graphs and advice. I think 900k plus 12 more years of maxing out will leave you 2 very comfortable. I think term life insurance would be prudent right now, too.
If I were you, I'd pay cash in a year or 2 for land in a growing state. Tennessee mountain land or some good land in wyoming (jackson hole) will be worth a shitload in 12 years. You might even build a summer cabin there and be a snowbird leaving your home in texas, nevada, florida, etc....
The brokers will all tell you to ride the market with "well diversified" mutual funds. I'm not an investment guru, but all my money is collecting a measly 5% in CD's and will double it's value in 14.5 years (rule of 72). Sounds crappy, I know. But how can anyone want to gamble with their retirement savings, when our administration wants to bomb Iran. Do you ever think about what that will do to our gas prices? You've seen what a clusterfuck Iraq has been, wait until you see what happens when our lying president goes "Bizzarro world" on Iran...and then Syria. Also, the value of the dollar continues to plummet, due to the expansion of our money supply by our Federal Reserve. The dollar right now is at a record 15 year low. Do not believe a word of what the Wallstreeters tell you. Just last week, our "banking leaders took a trip over to China to discuss "issues". Not a peep out of them, as to what was "agreed upon" regarding this meeting. Why no report?
Now, combine that with a national debt pinging 9 trillion with a trade deficit also in unchartered waters.
If anything, throw a chunk into gold...as gold usually performs well when the dollar value goes down the shitter.
Keep feeding the "kitty" every year as well. It will add up slowly, but surely.
OK, I'm pretty ignorant about this stuff. Is there someone I can talk to about adding after tax dollars to the 401K? Do you do this through an employer, or on your own? Other than the yellow pages, I have no idea where to start to find someone reputable with good advice. And the math works with your suggestions so I would like to learn how to do this. I'm only aware of Roth IRAs and they have income limits that prevent me from participating.
And buying land sooner than later sounds interesting. I would be willing to move almost anywhere so long as I have a few acres and no traffic. Wyoming or Tennessee would both be great. I see the benefit of being close to a major city for health care but don't want to be too close!
I appreciate the advice, but may need to forgo safe in an effort to earn a little faster.
You should find a financial advisor or counselor who gets paid a fee up front, and has connection with any investments and doesn't get any commissions from them. Here's a start......http://www.daveramsey.com/fpu/counseling/index.cfm?FuseAction=dspContent&intContentID=4850
http://www.fool.com/Retirement/Retirement01.htm
As for the 401k, go to the website and max out the percentage of your pay. Then call your employers and see if they will increase the percentage, even though it becomes after tax after you've reached your pre-tax limits. My company lets me take out up to 50%. They will automatically take the excess amounts after tax for me when I reach my $15,500 this year.
If your employers won't let you withdraw more than your pre-tax max amounts, call the provider handling your accounts and see if you can send in the after tax money yourselves. Also, if your 401k has limited investments, you might want to think differently about where you put your aftertax moneys. Like in a high growth aggressive mutual fund or an ETF. Some will tax you to death because they buy and sell a lot, others won't because they hold onto the stocks and barely trade. Talk to a financial counselor. Do some self-learning on the web. There's also tax free bonds, but you're walking on the edge of paying AMT taxes with those. Again, you make too much money not to pay for some objective help. Dave Ramsey takes pride in this. Go to his website for starters.
As for the land. My research is to buy it outright in cash. You can negotiate the best deals and you don't pay interest on a mortgage. It will increase in value and it's long term capital gains after holding it for 1 year. I don't want to leverage anything anymore. No more mortgages, even if it's deductible.
Right now and during the next year will be the best time to buy land. I wish I had more cash to buy a big piece. I'm saving my bonuses and plan to buy some mountain land in Tenn. in a year for cash. Jackson Hole is mucho expensive but a guaranteed nice profit and a great place to hang, summer or winter.
The only crummy thing about going to Tennessee now is that I just hate blowing the money to go there and visit to scope out the land and the area. The price of life, I guess.
Thanks so much for taking the time to post some great details and suggestions. I travel around the country for work and go to Nashville several times a year, so getting some time to land shop is easy. I bet you can find a lot on the web and then limit your real time in TN.
It's hard for me to pay for advice because with the Internet and other people, it seems like a waste. And remember, I earned much less just a few years ago and had more college bills for kids too. I don't pay for a maid or for someone to do my lawn or nails. But I'll check out the link and take the plunge. I don't have time to make expensive mistakes.
As to mutual funds, I've been checking out Vanguard and some of the index funds. There's no-load and the fees seem less, but I still haven't figured out all the jargon and what the different types of fees mean.
As for AMT, I already pay it. My deductions are limited even though all we really deduct are charitable contributions and a small mortgage. It sucks that this hasn't been changed since the 60s. I sacrifice a lot of personal time to earn more and to make up for lost time and it just seems like I owe more anyway. Aggravating.
Thank you for your help.
It's hard for me to pay for advice because with the Internet and other people, it seems like a waste. And remember, I earned much less just a few years ago and had more college bills for kids too. I don't pay for a maid or for someone to do my lawn or nails. But I'll check out the link and take the plunge. I don't have time to make expensive mistakes.
As to mutual funds, I've been checking out Vanguard and some of the index funds. There's no-load and the fees seem less, but I still haven't figured out all the jargon and what the different types of fees mean.
As for AMT, I already pay it. My deductions are limited even though all we really deduct are charitable contributions and a small mortgage. It sucks that this hasn't been changed since the 60s. I sacrifice a lot of personal time to earn more and to make up for lost time and it just seems like I owe more anyway. Aggravating.
Thank you for your help.
you need $2 Mill sitting their to kick off 5,6% or to earn $100K to $120K a year to live off in retiement
OK.....Then how about putting 50K on
Ohio State this weekend at minus 3 and a half? Is that fast enough?
OK.....Then how about putting 50K on
Ohio State this weekend at minus 3 and a half? Is that fast enough?
That's fucking brilliant thinking HF - seriously, what a come back reply...LOL
What is the point spread?
Do you like Michigan or Ohio State this year to win The Game? Michigan seems to be coming alive...Upset???
OK.....Then how about putting 50K on
Ohio State this weekend at minus 3 and a half? Is that fast enough?
Hey, I said less safe, not outright stupid. I hate sports anyway!
My wife is Morgan Fairchild, yeaaah thats right, Morgan Fairchild
FYI - I live in Southern California and 750K here buys you an so-so and small house in the city and a mid size house in the valley. The same buys a decent house if you are willing to go 30 miles or more away and are willing to commute. I find his numbers very realistic and I can tell you more families than I can count that purchased for that price or more and sure don't make as much as the original poster.
Did the original poster say they live in CA? Maybe they did, I'm not sure. I do agree that the individual is putting a little too much aside for college in relation to retirement savings. I want to help my children as much as possible too but retirement comes first. Putting $1 out of every $3 saved into college funds is high. $1 out of every $5-$6 would be better.
Another thing,- it's a shame that $750K only gets you a 'so-so small house' in Southern CA. I know that's true but it still stinks. People in Southern CA earn more typically, but not enough to compensate for those kinds of home prices. It's beautiful there but you can get a large, well appointed/well built home in a thousand other places for $500K or less.
You can have the ocean and great weather, I'd rather take an early retirement and visit Southern CA later.
Who the fuck wants to live in southern CA?????? Sure...San Diego...half of it burned to the ground last year. LA.....fires, earthquakes, floods, mudslides, gangs......all that and decent housing for only $750,000! And Spanish is now the official language of southern CA! Now that shit is FUNNY!!!!!! Hola!!!!!!
I agree with the OP. You have to be full of shit. If you only make 240K you should not have taken out a 750K mortgage. Although you could cover the bills it is too much exposure in the event of a job loss. A $5200 plus monthy mortgage nut not including any other bills is bogus unless you're bringing down more than 240k. Also,you are saving too much toward college and not enough for your own retirement at 650K vs 200K.
Im 40 and making about 160 household income. No credit cards but 1 car payment that has about 2 years to go. Owe 100k on the homestead.
The wife and I bank about 20k annually for retirement. I need to be doing way more but I allow myself a couple of solid vacations each year (Mexico or Spain type shit). This I will not bend on.
I should be able to double my income in the next 10 years, just as I have in the past. I banking on the come. But Im not spending more either.
Im too much of a pussy to dive in on the 400k house like all of my friends....even though we have a ton of equity in my current home.
The wife and I bank about 20k annually for retirement. I need to be doing way more but I allow myself a couple of solid vacations each year (Mexico or Spain type shit). This I will not bend on.
I should be able to double my income in the next 10 years, just as I have in the past. I banking on the come. But Im not spending more either.
Im too much of a pussy to dive in on the 400k house like all of my friends....even though we have a ton of equity in my current home.
Dude, you'e so not saving enough. You need to save at a minimum 15% of your gross pay. Cut back on frivolous "latte factor" costs. Try to do your trips on the off season, much cheaper. You're smart for not upsizing your home.
I'm 40, single and save $30k yr. on $100k pay. I'm sick of working for people. The sooner I can do my own thing the better. Also, I'd like to know your secret for doubling your pay in 10 years.
I sort of figured that but I am divorced and re-married, and I pay a mortgage to the x wife for my first daughter. I also carry all medical and send her to a top notch camp in the summer that costs about 4k. Its okay, I have about 5 more years of that shit and I should be able to throw an extra 1200 a month easy towads retirement.
For now, it is what it is.
As far as doubling pay, I have started an my own company and I am starting out part-time on the side. I have the time so might as well use it.
You don't know the answer to that question, and yet have a portfolio like that make that kind of money and live in a $1mill home.
Okay, I believe you.