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He said using leverage.
NT: Official Personal Finances Thread
He said using leverage.
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How long were you with your previous employer, and how long ago did you depart? Will they even allow you to keep it, and if so, are their investment options compelling?
Furthermore, will your current employer allow you to roll your old 401k into their 401k? That might be an option to consider versus rolling it into an IRA. Fidelity has a pretty good article on some different options and things to watch out for.
https://www.fidelity.com/viewpoints/retirement/401k-options
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Prices vary by location , properties with no more than 12.5K down its doable.
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I don't, but my brother does. He has access to MLS and helps me find/acquire properties. I look for properties ranging from $30k-$60k, that need minimal cosmetic work. Afterall, they're rentals and don't need fancy upgrades. I find they yield higher cash on cash return.
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Sorry, to clarify it was a roth 401k. But i think i found my answer. The employer portion would be regular since its pretax. I guess my question then becomes cant i just withdraw my roth portion or their portion once they match my contribution? How much are the taxes and penalties on each?
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What do you guys think about acquiring property that isn't in your local area?
Rental investment property that is....
I've always been Leary about doing that. Owning a property in Florida for example. And I live in NYC. It's like damn if something goes wrong, then what? Property managers seem to be your only bet...
Also even going to see these properties in person, what if you line up some properties to visit and look at, they all are trash and you choose to buy none, you just wasted a trip
Rental investment property that is....
I've always been Leary about doing that. Owning a property in Florida for example. And I live in NYC. It's like damn if something goes wrong, then what? Property managers seem to be your only bet...
Also even going to see these properties in person, what if you line up some properties to visit and look at, they all are trash and you choose to buy none, you just wasted a trip
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^I think it's best to acquire property in your local area if possible for the simple fact that you are familiar with the area. If it's not really plausible I think out of area rental properties are still a good investment.
You need to really research and do your due diligence on the property managers.
Line up more properties so it's highly unlikely to be an issue.
You need to really research and do your due diligence on the property managers.
Line up more properties so it's highly unlikely to be an issue.
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Roll it over to an IRA. It's your money and an IRA will give you more options and you can better keep track of it when you move from one company to another.
PM me for details.
You are able to withdraw your original contribution without penalty since it was already after tax. However, if you withdraw the other portions, you will be assessed a 10% penalty PLUS your tax rate.
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So what if I kept my 401k which is at a measly 3% & got an IRA as well? Smart move? My whole issue is I don't trust the market. I'd like to be able to take some portion of my money out.
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Why don't you trust the market? Looking at any trend, you're going to make money int he long term. Jumping in and out is the fastest way to lose money.
Unless your employer is offering a match for that 3%, your best bet is probably contributing to an IRA or Roth IRA. You have SO many more options and the fees will be lower.
A 401k plan is basically just a perk that employers pitch and they don't try to give you all of the options since most normal people will not even contribute if they feel overwhelmed by their choices. It's called the paradox of choice. We want the BEST, and therefore, don't do anything because we don't want the worst or to fall behind, so we inevitably fall behind.
You stated that you don't trust the market. The market is made up of private companies trying to make money. Do you trust that the largest companies in the world (as a whole) will lose money? With the type of innovation and modern analytics, the likelihood that most companies will lose money over the long term is slim to none. In fact, most companies that succeed and thrive are those that know how to navigate hard times. Look at most of the successful financial institutions today and they got their start during the height of the Great Depression.
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Folks that "don't trust the market" reminds me of those who stuff cash into their mattresses because they "don't trust the banks."
Sure it's possible for your investments to take a beating if you'd invested just before a crash (i.e. 2000 & 200
, but in the long-term, you'll always come out on top. Look at the historical charts of the indexes. "Make your money work for you" as they say.
Sure it's possible for your investments to take a beating if you'd invested just before a crash (i.e. 2000 & 200
, but in the long-term, you'll always come out on top. Look at the historical charts of the indexes. "Make your money work for you" as they say.
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The market has tripled since the crash, I believe.
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[COLOR=#red]BROTHERS, LET IT BE KNOWN THAT ON THIS DAY, 4/1/2016, I, YOUR BROTHER; FRIEND; COMRADE; HOMEY; BROKE FREE OF THOSE TYRANNICAL SHACKLES KNOWN AS STUDENT LOANS. TODAY, I STAND HERE AMONGST YOU AS A FREE MAN...[/COLOR]
Exactly 2 years ago (4/1/2014), I was over 35K in debt: 5k+ in credit card debt, and a lil over 30K in student loan debt. When I landed a full time gig that paid me well enough to allow me to tackle my debt, I devised to plan to become "financially healthy" as soon as possible.
The first step in this plan was to create an excel budget sheet to help me keep track of my money and spending. I watched youtube tutorials to figure out how to to create my excel budget:
If you notice, the "look" of my budget has changed every single year since I started keeping one. This is not for cosmetic purposes. I feel that a budget should mirror the growth and/or evolution of its user; thus, mine has improved upon itself as I have gotten better at managing my money. With a budget in hand to track my spending, I next began the process of tackling my debt.
The first debt I tackled was my credit card (Discover; 5K+) debt due to its high interest rate. After settling this debt, I moved on to my student loans.
For my student loans, I took the "psychological win" approach. In other words, I paid off the smallest loan balances first. I also employed the snowball method to help my settle accounts faster. Now after two years, I am legit debt free and i could not be any happier. It feels great...
View media item 1974953
Becoming debt free was phase one of three of my "financially healthy" plan. Today, i begin phase two, which is to bulk up my emergency fund (at least 6 months of expenses). Phase three will be largely concerned with maximizing my investments opportunities...
I look forward to continuing this journey with y'all, my "personal finance" brahs...
...
Exactly 2 years ago (4/1/2014), I was over 35K in debt: 5k+ in credit card debt, and a lil over 30K in student loan debt. When I landed a full time gig that paid me well enough to allow me to tackle my debt, I devised to plan to become "financially healthy" as soon as possible.
The first step in this plan was to create an excel budget sheet to help me keep track of my money and spending. I watched youtube tutorials to figure out how to to create my excel budget:
2014 budget...
View media item 1974995
2015 budget...
View media item 1974996
2016 budget...
View media item 1974997
View media item 1974995
2015 budget...
View media item 1974996
2016 budget...
View media item 1974997
If you notice, the "look" of my budget has changed every single year since I started keeping one. This is not for cosmetic purposes. I feel that a budget should mirror the growth and/or evolution of its user; thus, mine has improved upon itself as I have gotten better at managing my money. With a budget in hand to track my spending, I next began the process of tackling my debt.
The first debt I tackled was my credit card (Discover; 5K+) debt due to its high interest rate. After settling this debt, I moved on to my student loans.
For my student loans, I took the "psychological win" approach. In other words, I paid off the smallest loan balances first. I also employed the snowball method to help my settle accounts faster. Now after two years, I am legit debt free and i could not be any happier. It feels great...
View media item 1974953
Becoming debt free was phase one of three of my "financially healthy" plan. Today, i begin phase two, which is to bulk up my emergency fund (at least 6 months of expenses). Phase three will be largely concerned with maximizing my investments opportunities...
I look forward to continuing this journey with y'all, my "personal finance" brahs...
...
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My man 
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antidope
Supporter
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Congrats fam, that's so major.
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Good job
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Huge news, congrats!
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Wish I had though to take a screenshot when I paid mine off June 2, 2009. Will never forget that day!
Sallie Mae still owes me $.02. So technically, she's indebted to me now.
Sallie Mae still owes me $.02. So technically, she's indebted to me now.
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who wants a lending club referral tho 
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Congrats. I still got $20k left on my students loans, but working on something to pay it of in the next 1.5 years.
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[COLOR=#red]BROTHERS, LET IT BE KNOWN THAT ON THIS DAY, 4/1/2016, I, YOUR BROTHER; FRIEND; COMRADE; HOMEY; BROKE FREE OF THOSE TYRANNICAL SHACKLES KNOWN AS STUDENT LOANS. TODAY, I STAND HERE AMONGST YOU AS A FREE MAN...[/COLOR]
Exactly 2 years ago (4/1/2014), I was over 35K in debt: 5k+ in credit card debt, and a lil over 30K in student loan debt. When I landed a full time gig that paid me well enough to allow me to tackle my debt, I devised to plan to become "financially healthy" as soon as possible.
The first step in this plan was to create an excel budget sheet to help me keep track of my money and spending. I watched youtube tutorials to figure out how to to create my excel budget:
2014 budget...
View media item 1974995
2015 budget...
View media item 1974996
2016 budget...
View media item 1974997
If you notice, the "look" of my budget has changed every single year since I started keeping one. This is not for cosmetic purposes. I feel that a budget should mirror the growth and/or evolution of its user; thus, mine has improved upon itself as I have gotten better at managing my money. With a budget in hand to track my spending, I next began the process of tackling my debt.
The first debt I tackled was my credit card (Discover; 5K+) debt due to its high interest rate. After settling this debt, I moved on to my student loans.
For my student loans, I took the "psychological win" approach. In other words, I paid off the smallest loan balances first. I also employed the snowball method to help my settle accounts faster. Now after two years, I am legit debt free and i could not be any happier. It feels great...
View media item 1974953
Becoming debt free was phase one of three of my "financially healthy" plan. Today, i begin phase two, which is to bulk up my emergency fund (at least 6 months of expenses). Phase three will be largely concerned with maximizing my investments opportunities...
I look forward to continuing this journey with y'all, my "personal finance" brahs...
...
Taking note
