- 9,995
- 3,286
NT: Official Personal Finances Thread
- 1,987
- 568
Easiest is target date fund or index fund if you don't know much about stocks.
- 9,995
- 3,286
What about those Vanguard Admiral funds?
- 1,987
- 568
Vanguard Admiral funds usually have minimum of 10k, which you can do if you contribute to both 2016 and 2017 IRA. But you'll only be able to claim 5.5k on your 2016 tax return.
- 4,758
- 1,409
Can always start with investor shares then get admiral shares. I think they automatically convert if I remember correctly.
- 2,631
- 218
Any self employed NTers ? What are you guys doing about a retirement account ? I turn 30 in May and i'm definitely looking to get started on that this year for 2016.
- 12,455
- 9,502
Need to start investing in something. Got 401 k through work they match 6% so I usually have it anywhere form 6-10%. Got like $30k in savings. I own a house so I like to have money in savings just in case (last year had to replace hvac etc..), but I need to invest like $10 k into something. IRA a good idea if I already have a 401k? Was thinking about researching the stock market, but need to set time aside to do that.
- 1,987
- 568
Maxing your IRA contribution is the next step after 401k.
antidope
Supporter
- 63,434
- 67,770
Are you maxing out your 401k? I'd consider doing that before any sort of IRA.
- 12,455
- 9,502
I mean my job matches 6% so I always set the contributions to at least 6%. I have it at 10% right now though
antidope
Supporter
- 63,434
- 67,770
Your 10% is how much in dollars though? Cause the max on your 401k is much higher than that of the Ira.
What I ended up doing was running a quick analysis of what would happen if I raised my 401k contributions from 12-18% (been doing 12% at minimum since the day I started working) to see what the difference would be in my check. The delta between what was now being upsized on my 401k contributions and my take home pay was material. Not an outright recommendation but something to think about. Maxing out the 401k should be step one imo in terms of investing.
The max for 401k should really be like 30k but that's another argument for another time.
What I ended up doing was running a quick analysis of what would happen if I raised my 401k contributions from 12-18% (been doing 12% at minimum since the day I started working) to see what the difference would be in my check. The delta between what was now being upsized on my 401k contributions and my take home pay was material. Not an outright recommendation but something to think about. Maxing out the 401k should be step one imo in terms of investing.
The max for 401k should really be like 30k but that's another argument for another time.
- 4,758
- 1,409
They say it's best to get up to the company match, then max out the ira, then double back to max out your 401K.
antidope
Supporter
- 63,434
- 67,770
I'm of the school of thought that you should figure out how to max out your 401k as early as possible and move forward from there. Once you get there you hopefully never look back and just live your life with the built in assumption that wherever you work you're maxing it out and your income is taking that into account.
Your 401k should be the primary retirement nest egg, if you max out both the amount of principal you put into the IRA wont even come to being a third of what ends up going into the 401k. Assume the yields on both portfolios are the same and you're maxing out both, the 401k is giving you more.
Two of my bosses have been maxing out their 401ks since they were 22 years old. That is the ideal scenario IMO.
Your 401k should be the primary retirement nest egg, if you max out both the amount of principal you put into the IRA wont even come to being a third of what ends up going into the 401k. Assume the yields on both portfolios are the same and you're maxing out both, the 401k is giving you more.
Two of my bosses have been maxing out their 401ks since they were 22 years old. That is the ideal scenario IMO.
Last edited:
- 12,455
- 9,502
Makes sense. Guess I'll be increasing my 401k.
- 30,277
- 21,740
What's the max amount you can contribute to a 401k? $18k annually?
Nujavez
formerly gatorad3
- 8,259
- 14,099
I don't make enough to live comfortably if I max out my 401k/retirement unless I make an extra 20k or something
Last edited:
antidope
Supporter
- 63,434
- 67,770
Yup with a 6k catch up if you're over 50.
antidope
Supporter
- 63,434
- 67,770
I remember really good savings account rates was a topic of discussion in here. If any of you guys have a Santander Bank in your area their money market account interest rate is 1.20% provided you keep a 10k balance. If you drop below 10k the rate goes to 0.30% until it goes back above 10k.
- 10,580
- 7,874
Not tryna see your numbers specifically but I'd like to see the math you used to compare.
- 2,040
- 469
Been getting really serious about finances in the past 5-6 months. Was being a bit irresponsible without even realizing it.
Dave Ramsey has been super helpful, listen to his show a lot. Starting to throw a lot of money a month towards student loans.
Dave Ramsey has been super helpful, listen to his show a lot. Starting to throw a lot of money a month towards student loans.
antidope
Supporter
- 63,434
- 67,770
I really wish I had it man. I was playing around with it in Excel back in June of 2016. Gonna try and recreate it tomorrow at work and see if I can get close to what I did.
- 4,758
- 1,409
As I've said in here before a lot of people recommend filling tax buckets in this order :
1. 401K up to match
2. Max out IRA
3. Max out 401K
This math is available online.
1. 401K up to match
2. Max out IRA
3. Max out 401K
This math is available online.
- 16,095
- 16,846
What do you do if your employer doesn't match?
other than getting a new job.
other than getting a new job.
Last edited:
antidope
Supporter
- 63,434
- 67,770
I would still max it out. But I am not in the business of giving investment advice.
401k matching is a part of your compensation though and you should be looking elsewhere
Last edited:
- 4,758
- 1,409
@friscostylez I agree try to find a new job. 401K matching doubles your money and its free.
In the mean time I'd look at the funds your company allows you to put 401K money into. If you like them put what you can in.
If you don't like what they offer maybe open up an IRA and try to max that out , $5,500 vs $18,000
If you max out the IRA then put money into the 401K. Maxing out a 401K isn't something the average person can do.
I only suggest this way since you company doesn't offer matching and if you don't like what funds they offer.
In the mean time I'd look at the funds your company allows you to put 401K money into. If you like them put what you can in.
If you don't like what they offer maybe open up an IRA and try to max that out , $5,500 vs $18,000
If you max out the IRA then put money into the 401K. Maxing out a 401K isn't something the average person can do.
I only suggest this way since you company doesn't offer matching and if you don't like what funds they offer.
